XN000022-1985-06-26 — Page 39

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WEDNESDAY, JUNE 26, 1985

WHEN THE MERGER TOOK PLACE, HE SAID, THE NEW BANK WOULD TAKE OVER THE NAME THE ROYAL BANK OF SCOTLAND PLC+ FROM THE PRESENT ROYAL BANK OF SCOTLAND. THERE WOULD, THEREFORE, BE NO EFFECTIVE CHANGE IN THE NAME UNDER WHICH THE HONG KONG BANKING BUSINESS TRANSFERRED FROM THE EXISTING ROYAL BANK OF SCOTLAND TO THE NEW BANK WAS CARRIED ON.

+BY EFFECTING THE MERGER IN HONG KONG BY WAY OF LEGISLATION RATHER THAN BY OTHER MEANS, SUBSTANTIAL COST AND TIME SAVINGS WILL BE MADE TO THE BENEFIT OF THE HONG KONG CUSTOMERS OF THE ROYAL BANK OF SCOTLAND, SIR ROGER SAID.

THE SECOND READING WAS ALSO GIVEN TO THE LLOYDS BANK

(MERGER) BILL.

THE HON W.C.L. BROWN SAID THE PURPOSE OF THE BILL WAS TO MAKE PROVISION IN HONG KONG FOR THE FUSION OF THE UNDERTAKING OF LLOYDS BANK PLC AND THAT OF LLOYDS BANK INTERNATIONAL LIMITED.

LLOYDS BANK INTERNATIONAL LIMITED WAS A BANK LICENSED UNDER THE BANKING ORDINANCE AND WAS A WHOLLY OWNED SUBSIDIARY OF LLOYDS BANK PLC, MR BROWN SAID.

BOTH COMPANIES WERE INCORPORATED IN ENGLAND.

+THE DECISION TO MERGE LLOYDS BANK PLC AND LLOYDS BANK INTERNATIONAL LIMITED WAS TAKEN SOME WHILE AGO IN LONDON, + HE SAID.

IN ACCORDANCE WITH NORMAL PRACTICE, IT WAS DECIDED THAT THE MERGER SHOULD BE EFFECTED BY AN ACT OF THE UNITED KINGDOM PARLIAMENT.

THIS ACT HAD SUBSEQUENTLY BEEN PASSED AS THE LLOYDS BANK (MERGER) ACT 1985.

CONSEQUENTLY, LEGAL ADVICE WAS TAKEN IN ALL THE COUNTRIES IN WHICH LLOYDS BANK INTERNATIONAL LIMITED OPERATED AS TO THE EFFECT OF THE LLOYDS BANK (MERGER) ACT 1985.

IN HONG KONG, THE ADVICE WAS THAT IT WAS BY NO MEANS CERTAIN THAT IT WOULD BE EFFECTIVE TO VEST ALL THE RIGHTS AND LIABILITIES OF LLOYDS BANK INTERNATIONAL LIMITED IN LLOYDS BANK PLC AND

IT WAS THEREFORE SUGGESTED THAT A HONG KONG ORDINANCE SHOULD BE ENACTED IN SUBSTANTIALLY THE SAME TERMS AS THE UK ACT.

THE BILL LAID BEFORE THIS COUNCIL SEEKS TO GIVE LEGISLATIVE EFFECTS TO THIS PROPOSAL, MR BROWN SAID.

HE SAID THE BILL, IF ENACTED, WOULD BE, IN ALL MATERIAL RESPECTS, IDENTICAL WITH THE UNITED KINGDOM LLOYDS BANK (MERGER) ACT 1985.

DEBATE ON THE BILLS, BOTH UNOFFICIAL MEMBER'S BILLS, WAS ADJOURNED.

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