XN000022-1995-02-22 — Page 40

(a)

(b)

27.

to allow the Monetary Authority, through a Manager, to control the affairs, business and property of a troubled institution so that it can be nursed back to health, perhaps as a prelude to sale; and

to enable the Monetary Authority to take quick action to safeguard the assets and maintain the fabric of the business until a liquidator can be appointed.

It is proposed that subject to certain limits which may be imposed by the Monetary Authority, the Manager be given all powers necessary to manage properly the affairs, business and property of the institution. The new Ninth Schedule sets out the specific powers of the Manager which include, amongst others, the power to enter into contract on behalf of the institution, and to dispose of the business or property of the institution. Experience in 1991 in the control of the Bank of Credit and Commerce Hong Kong Limited revealed ambiguities about the powers of the Manager appointed under Part X of the Ordinance. It is considered both necessary and desirable to spell out more clearly the scope, objectives, duties and powers of the Manager to ensure that he could carry out his duty effectively when an institution runs into problem.

There are a number of miscellaneous amendments made by the Bill, covering areas such as publication of audited annual accounts, submission of returns and information to the Monetary Authority, limitation on advances, restriction on the use of the name "bank" and others. These are considered necessary either to clarify various existing provisions in the Ordinance or cater for new developments in the banking sector.

Thank you, Mr President.

End/Wednesday, February 22, 1995

خود ترقی

Occupancy rate of singleton hostels

Following is a question by the Hon Peggy Lam and a reply by the Secretary for Home Affairs, Mr Michael Suen, in the Legislative Council today (Wednesday):

Question:

As the overall vacancy rate of the 17 singleton hostels provided by the Home Affairs Department for lodgers in "caged homes" is as high as 60%, will the Government inform this Council of the following:

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