TNAG-1487-FCO40-2044-Hong-Kong-banking-Banking-Bill-1986-1986 — Page 282

C138

Application for banking licence.

(Cap. 32.)

Grant or refusal

of banking

licence.

BANKING BILL

(7) Any person who enters into a contract or arrangement, or uses any device or scheme, which has the effect of, or is designed to have the effect of, avoiding subsection (1) or (3) commits an offence and is liable-

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

for 5 years; or

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

months.

PART IV

LICENSING AND REGISTRATION OF AUTHORIZED INSTITUTIONS AND KEEPING OF REGISTER

15. (1) A company which wishes to transact, or a body of persons proposing to form a company for the purpose of transacting, banking business in Hong Kong shall apply to the Governor in Council, through the Commissioner, for a banking licence or, in the case of a body of persons proposing to form a company, for an intimation that a banking licence will be granted to the company upon its incorporation.

(2) There shall be lodged with the Commissioner in respect of an application for a banking licence or for an intimation that a banking licence will be granted-

(a) a copy of the charter, Ordinance (other than the Companies Ordinance), statutes, memorandum of association and articles of association, or other instrument, under which the company is or is to be incorporated, which shall be verified in such manner as the Commissioner or the Governor in Council may require; and

(b) such other documents and information as may be required by the Commis-

sioner or the Governor in Council.

(3) After receiving an application for a banking licence, the Commissioner shall forward to the Governor in Council the application and his advice as to whether or not the applicant should be granted a banking licence or, in the case of a proposed company, whether or not the company upon incorporation should be granted a banking licence.

16. (1) After receiving an application forwarded under section 15 and the advice of the Commissioner in respect thereof the Governor in Council may-

(a) grant a banking licence or, in the case of a proposed company, intimate his intention to grant a banking licence upon receipt of notice of its incorporation;

(b) grant a banking licence subject to such conditions as he may think proper to attach thereto in any particular case or, in the case of a proposed company, intimate his intention, upon receipt of notice of its incorporation, to grant a banking licence subject to the attachment of such conditions; or

(c) without assigning any reason therefor, refuse to grant a banking licence or, in the case of a proposed company, intimate his intention to refuse to grant a banking licence upon receipt of notice of its incorporation.

(2) Every director and every manager of a bank which contravenes any condition attached under subsection (1)(b) to its banking licence commits an offence and is liable-

(a) on conviction upon indictment to a fine of $200,000; or

(b) on summary conviction to a fine of $50,000,

and, in the case of a continuing offence, to a further fine of $5,000 for every day during which the offence continues.

BANKING BILL

17. (1) Without limiting the generality of section 16(1)(b), the Governor in Council may at any time, by notice in writing served upon a bank, attach to its banking licence such conditions, or amend or cancel any conditions attached to the banking licence, as he may think proper.

(2) Every director and every manager of a bank which contravenes any condition attached under this section to its banking licence commits an offence and is liable-

(a) on conviction upon indictment to a fine of $200,000; or

(b) on summary conviction to a fine of $50,000,

and, in the case of a continuing offence, to a further fine of $5,000 for every day during which the offence continues.

C139

Amendment of conditions of banking licence.

18. No company which is incorporated in Hong Kong shall be granted a bank- Minimum paid-up ing licence unless its share capital issued and paid-up is not less than $100,000,000, share capital for deduction having been made in respect of a debit balance, if any, appearing in the grant of banking profit and loss account of the company.

licence.

19. (1) Every bank shall pay the annual banking licence fee specified in the Banking licence Second Schedule.

(2) The fee payable under this section shall be paid upon the grant of the banking licence and thereafter upon every anniversary of the date of its grant.

fees.

Second Schedule.

20. (1) Every company shall, before it commences a business of taking Application for

registration as deposits, apply for registration in accordance with this section.

deposit-taking

(2) There shall be lodged with the Commissioner in respect of an application for company. registration

(a) a copy of the memorandum and articles of association or other document

constituting the company; and

(b) such other documents and information as may be required by the Commis-

sioner.

(3) Where an application for registration is made by a company which has been carrying on business for more than 18 months immediately preceding the date of the application and which has completed a financial year ending earlier than 6 months before the date of the application, there shall be lodged with the application duly signed copies of—

(a) in the case of a company (other than a private company) registered under

Part I of the Companies Ordinance-

(i) the profit and loss account of the company for that financial year; (ii) the balance sheet as at the date to which such profit and loss account is made up;

(iii) the auditors' report attached to such balance sheet; and

(iv) the report by the directors (with respect to the state of the company's affairs) attached to such balance sheet,

which are required to be laid before the company in general meeting in accordance with the Companies Ordinance;

(b) in the case of a private company registered under Part I of the Companies Ordinance, or a company registered under Part IX of the Companies Ordinance, the documents specified in paragraph (a) as if the company were a company to which that paragraph applies; and

(c) in the case of a company incorporated outside Hong Kong and which has complied with Part XI of the Companies Ordinance, the documents referred to in paragraph (a) which are required to be delivered to the Registrar of Companies in accordance with section 336 of the Companies Ordinance.

(Cap. 32.)