TNAG-1487-FCO40-2044-Hong-Kong-banking-Banking-Bill-1986-1986 — Page 108

Disclosure of information relating to authorized

institutions.

Winding-up of

authorized institutions. (Cap. 32.)

(6) Any person who-

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(a) contravenes subsection (1); or

(b) aids, abets, counsels or procures any person to contravene subsection (1), commits an offence and is liable-

(i) on conviction upon indictment to a fine of $100,000 and to imprisonment

for 2 years; or

(ii) on summary conviction to a fine of $50,000 and to imprisonment for 6

months.

125. (1) Subject to subsection (3) and notwithstanding section 124, the Commis- sioner may,

if he considers that it is in the interests of the depositors of the authorized institution, provide to the appropriate recognized banking supervisory authority of a place outside Hong Kong which is, in his opinion, subject to adequate secrecy provisions in that place information on matters relating to the affairs of an authorized institution-

(a) which is incorporated, or which has its principal place of business, in that

place;

(b) which is incorporated in or outside Hong Kong and is a subsidiary or

associate of a bank incorporated in that place; or

(c) which is incorporated in Hong Kong and which has, or is proposing to establish, in that place an overseas branch, overseas representative office, subsidiary or associate of that authorized institution, and where, in the case of a subsidiary or associate, such subsidiary or associate is or would be subject to supervision by that recognized banking supervisory authority. (2) Subject to subsection (3) and notwithstanding section 124, the Commis- sioner may, if he considers that it is in the interests of customers of the representative office, provide to the appropriate recognized banking supervisory authority of a place outside Hong Kong which is, in his opinion, subject to adequate secrecy provisions in that place information on matters relating to the affairs of a local representative office which is maintained by a bank incorporated in that place.

(3) Under no circumstances shall the Commissioner provide any information under this section relating to the affairs of any individual customer of an authorized institution or local representative office.

126. (1) The provisions of the Companies Ordinance with regard to a creditors' voluntary winding-up shall not apply to authorized institutions.

(2) On a petition by the Financial Secretary, acting in accordance with a direction of the Governor in Council under section 53(1)(iii), the High Court may-- (a) on any ground specified in section 177 of the Companies Ordinance; or (b) if it is satisfied that it is in the public interest that the authorized institution

or former authorized institution should be wound up,

order the winding-up of an authorized institution or former authorized institution in accordance with the provisions of the Companies Ordinance relating to the winding-up of companies.

(3) Where before the presentation of a petition for the winding-up of an authorized institution by the court, whether or not the petition is presented by the Financial Secretary, the Commissioner has assumed control of the business of the institution under section 52(1)(C) or pursuant to an order of the Governor in Council under section 53(1)(ii) or some other person has assumed control of the business of the institution pursuant to a direction of the Commissioner under section 52(1)(C) or an order of the Governor in Council under section 53(1)(ii) and such control has continued at all times until the presentation of the petition, and a winding-up order is made thereon, then, notwithstanding the provisions of section 184(2) of the Companies Ordinance, the winding-up of the institution by the court shall, for the

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purposes of sections 170, 179, 182, 183, 266, 267, 269 and 274, and paragraphs (d), (e), (h), (i), (j), (k), (l), (m), (n) and (o) of section 271(1), of the Companies Ordinance, (Cap. 32.) be deemed to have commenced at the time the Commissioner or such other person assumed control of the business of the institution.

(4) Where the Commissioner has assumed control of the business of an authorized institution under section 52(1)(C) or pursuant to an order of the Governor in Council under section 53(1)(ii) or some other person has assumed control of the business of an authorized institution pursuant to a direction of the Commissioner under section 52(1)(C) or an order of the Governor in Council under section 53(1)(ii), nothing in section 182 of the Companies Ordinance shall invalidate any disposition of the property of the institution made by it under the direction of the Commissioner or such person acting bona fide in the course of the carrying on of the business of the institution.

(5) Where the Financial Secretary is entitled to petition the High Court by virtue of section 121(5)(ƒ), the High Court may wind up a deposit-taking company or former deposit-taking company in accordance with the provisions of the Companies Ordinance relating to the winding-up of companies if—

(a) the company is unable to pay sums due and payable to its depositors or is

able to pay such sums only by defaulting on its obligations; or

(b) the value of the company's assets is less than the amount of its liabilities. (6) Nothing in this section shall authorize the winding-up of a former deposit- taking company which does not continue to have any liability in respect of any deposit for which it had a liability at the time when it was registered or licensed.

127. Any director, manager, trustee, employee or agent of any authorized Offences by institution who, with intent to deceive-

(a) wilfully makes, or causes to be made, a false entry in any book of record or

in any report, slip, document or statement of the business, affairs, transac tions, condition, assets or accounts of the institution;

(b) wilfully omits to make an entry in any book of record or in any report, slip, document or statement of the business, affairs, transactions, condition, assets or accounts of the institution, or wilfully causes any such entery to be omitted; or

(c) wilfully alters, abstracts, conceals or destroys an entry in any book of record, or in any report, slip, document or statement of the business, affairs, transactions, condition, assets or accounts of the institution, or wilfully causes any such entry to be altered, abstracted, concealed or destroyed,

commits an offence and is liable-

(i) on conviction upon indictment to a fine of $500,000 and to imprisonment

for 5 years; or

(ii) on summary conviction to a fine of $50,000 and to imprisonment for 2 years.

128. Any director or employee (other than a compradore) of an authorized institution, who asks for or receives, consents or agrees to receive any gift, commis- sion, emolument, service, gratuity, money, property or thing of value for his own personal benefit or advantage or for that of any of his relatives, for procuring or endeavouring to procure for any person any advance, loan, financial guarantee or credit facility from that institution or the purchase or discount of any draft, note, cheque, bill of exchange or other obligation by that institution, or for permitting any person to overdraw any account with that institution, commits an offence and is liable-

(a) on conviction upon indictment to a fine of $100,000 and to imprisonment

for 5 years; or

(b) on summary conviction to a fine of $50,000 and to imprisonment for 2 years.

directors,

managers, trustees, employees and agents.

Prohibition on receipt of commission by staff.