TNAG-1649-FCO40-2296-Hong-Kong-Commissioner-of-Banking-s-annual-report-for-1986--1987 — Page 20

C494

BANKING (AMENDMENT) BILL 1987

in the case of an authorized institution which is a registere deposit-taking company, without the prior approval of th Commissioner-

(a) make any arrangement or enter into any agreement

for the sale or disposal of all or any part of--

(i) in the case of a bank, its banking business; and

(ii) in the case of a deposit-taking company, its business of taking deposits; or

(b) make any reconstruction of its capital to reduce

such capital.

(2) An authorized institution incorporated in Hong Kong which

(a) makes any arrangement or enters into any agree- ment for the sale or disposal of all or any part of its business, irrespective of whether the arrangement or agreement is pursuant to an approval under subsec- tion (1)(a); or

(b) makes any reconstruction of its capital, irrespective of whether the reconstruction is pursuant to an approval under subsection (1)(b),

shall give notice in writing of the arrangement, agreement or reconstruction, as the case may be, to the Commissioner as soon as practicable after making that arrangement, entering into that agreement or making that reconstruction, and--

(i) the notice shall be signed by a director of the

institution; and

(ii) the institution shall provide the Commissioner with such information in respect of that arrangement, agreement or reconstruction as he may require.

(3) An authorized institution aggrieved by a decision of the Financial Secretary or the Commissioner refusing his approval for the purposes of subsection (1) may appeal to the Governor in Council against the decision, but the decision shall take effect immediately, notwithstanding that an appeal has been or may be made under this subsection.

(4) Every director and every manager of an authorized institution which contravenes subsection (1) commits an offence and is liable---

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

and to imprisonment for 2 years; or

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

imprisonment for 6 months.

(5) Every director and every manager of an authorized institution which contravenes subsection (2) commits an offence and is liable on conviction upon indictment or 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.