TNAG-1487-FCO40-2044-Hong-Kong-banking-Banking-Bill-1986-1986 — Page 292

C158

Exhibition of audited balance

sheet.

(Cap. 32.)

(Cap. 32.)

Meetings.

BANKING BILL

60. (1) Every authorized institution shall, not later than 6 months after the close of each financial year, exhibit throughout the year in a conspicuous position in the principal place of business thereof in Hong Kong and in each local branch thereof-

(a) a copy of its latest audited annual balance sheet, and any notes thereon, a copy of the profit and loss account and a copy of the report of the auditor made pursuant to section 141 of the Companies Ordinance or section 114 of this Ordinance;

(b) the full and correct names of all persons who are directors or managers for

the time being of the institution; and

(c) the names of all subsidiary companies, for the time being, of the institution. (2) A copy of each of the documents referred to in subsection (1) shall be lodged with the Commissioner by an authorized institution, prior to first exhibition thereof under subsection (1), with a list of the names of all companies of which, for the time being, its directors are also directors.

(3) The documents lodged with the Commissioner pursuant to subsection (2) shall be accompanied, in the case of an authorized institution which is a company limited by shares or limited by guarantee and having a share capital, by a copy of the report of the directors laid before the company in general meeting in accordance with section 129D(1) of the Companies Ordinance.

(4) If, in the case of an authorized institution incorporated outside Hong Kong, the Commissioner is satisfied that a report has been duly made by an auditor, or any person exercising a similar function in accordance with the law of the place in which the institution is incorporated, upon the annual balance sheet and accounts of the institution and a copy of such report and the report of the directors of such institution is sent to the Commissioner, he may by notice in writing exempt any such institution from this section and section 59.

(5) The Commissioner may require any authorized institution to submit such further information as he may think necessary for the proper understanding of the balance sheet and profit and loss accounts sent by that institution under sub- section (2); and such information shall be submitted within such period and in such manner as the Commissioner may require.

(6) The annual balance sheet of an authorized institution, copies of which are required by subsection (1) to be exhibited, shall be in such form as the Commissioner

may approve.

(7) Every director and every manager of an authorized institution which contravenes subsection (1), (2), (3) or (6) 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.

(8) Every director and every manager of an authorized institution which fails to comply with any requirement under subsection (5) commits an offence and is liable on conviction upon indictment or on summary conviction to a fine of $50,000 and to imprisonment for 6 months and, in the case of a continuing offence, to a further fine of $2,500 for every day during which the offence continues.

61. (1) The governing board, by whatever name called, of an authorized institution, any auditor of the institution, including an auditor appointed under section 59(2), or any other auditor who has acted for the institution for any period not earlier than 9 months before the date of the notice, or the Commissioner, may, by notice in writing to the other parties mentioned herein, request a meeting to discuss matters relating to the institution.

BANKING BILL

(2) Any meeting to be held in pursuance of a notice under subsection (1) may proceed notwithstanding the non-attendance of not more than one of the parties served with that notice.

C159

Committee of

62. Notwithstanding any other provision of this Ordinance or the Professional Reports to Accountants Ordinance, the Commissioner may, where he is of the opinion that there Disciplinary has been negligence or serious misconduct by any auditor of an authorized institu- misbehaviour, etc. tion, including an auditor appointed under section 59(2), in respect of his duties by auditors. as such an auditor, make a complaint to the Disciplinary Committee under the (Cap. 50.) Professional Accountants Ordinance in respect of that auditor.

PART XII

DISCLOSURE OF INFORMATION BY AUTHORIZED INSTITUTIONS

63. (1) Every authorized institution shall submit to the Commissioner-

Returns and information to be

Commissioner.

(a) not later than 14 days after the last day of each calendar month a return submitted to the

showing the assets and liabilities of its principal place of business in Hong Kong and all local branches thereof at the close of business on the last business day of that month; and

(b) not later than 14 days after the last day of each quarter ending on 31 March, 30 June, 30 September and 31 December respectively, or upon any other day which may be approved by the Commissioner, a return relating to its principal place of business in Hong Kong and all local branches thereof as at the close of business on the last business day of the preceding quarter: Provided that the Commissioner may by permission in writing allow the returns referred to in paragraphs (a) and (b) to be submitted at less frequent intervals.

(2) The Commissioner may require an authorized institution to submit such further information as he may consider necessary for the proper understanding of the financial position of the institution and such information shall be submitted within such period and in such manner as the Commissioner may require.

(3) The Commissioner may require any return submitted to him pursuant to subsection (1), or any information submitted to him pursuant to a requirement under subsection (2), to be accompanied by a certificate-

(a) of the auditor appointed under section 59(1) or of the auditors appointed

under section 59(1) and (2), as the case may be; and

(b) in the case of an authorized institution which has been exempted under section 60(4) from section 59, of an auditor approved by the Commissioner for the purposes of this paragraph,

as to all or any of the following-

(i) whether or not, in the opinion of the auditor or auditors, the return or information is correctly compiled from the books or records of the institution and, if not correctly compiled, the nature and extent of the incorrectness;

(ii) whether or not, during the period to which the return or information relates, there appears to the auditor or auditors to be any contravention by the institution of any of its duties under this Ordinance, and, if it so appears, the nature of the contravention and the evidence therefor;

(iii) whether or not, during the period to which the return or information relates, there was any matter which, in the opinion of the auditor or auditors, adversely affects the financial position of the institution to a material extent, and if there was, the nature of the matter and the reason why the auditors are of that opinion.

(4) Notwithstanding section 124, the Commissioner may prepare and publish consolidated statements aggregating the figures in the returns furnished under subsection (1).