Hong Kong for a director formally to retire after a three year term, and to be re-appointed if required, we have accepted the suggestion that such rotating directors, on re-appointment, should not require the Commissioner's approval. Related to this amendment, and to the amendment I mentioned earlier that nothing done in contravention of clause 70(1), including of course. the appointment of directors in a shareholders meeting, shall be invalid by that reason only, I will also be moving an amendment to the effect that the Commissionermay withdraw approvals given to the appointment of directors and secretaries. an advance notice of 7 days and an opportunity for representation to be made, and of course, provision of subsequent appeal to the Governor in Council.
There will be
Clause 76: Maintenance of adequate provisions
16.
Clause 76(1) requires institutions to maintain provisions against bad and doubtful debts, and to ensure that they are adequate before any profit or loss is declared. It is carried over from the existing Banking Ordinance. We thought that consultation with the Commissioner would be useful in determining what is adequate, hence clause 76(2). It has, however, been criticised as impractical. I will therefore be moving
At the same an amendment to delete this provision. time, prudence requires that, first, adequate provisions be maintained against bad and doubtful debts and diminution of the value of assets, and not just the former; and second, that this be done at all times, and
A second not just before declaring profit or loss. amendment to this clause will meet these points.
Clause 82: Commissioner's directions
17.
Clause 82 was meant to tackle those cases wher an institution's exposures to a number of different
No comments yet.
Private notes are available after approval.