566989-1929-Supplementary-Bill-read-a-first-time---Hongkong-and-Shanghai-Bank — Page 3

Power to close establish- ments.

Power to sell and convert

property

taken as

security,

Present capital.

Increase of capital.

Alteration of capital.

Reorganisa

tion of capital.

L'ower to issue bearer notes.

446

(2) The Bank shall have power to close any of its establishments,

6. It shall be lawful for the Bank to sell, dispose of and convert into money any real or personal property of whatever description, mortgaged, charged, pledged, or hypothecated to the Bank or taken by it in satisfaction, liquidation or payment of any debt or liability.

7. The capital of the Bank is 20,000,000 dollars, divided into 160,000 shares of $125 caeli, all of which are fully paid up at the commencement of this Ordinance. The capital may, with the consent of the Governor previously obtained and notified in the Gazette, from time to time be increased by ordinary resolution, of which notice has been duly given, passed at a general meeting, to a total amonnt not exceeding the sum of 50,000.000 dollars,

8. The shareholders in general meeting shall. in addition to the power hereinbefore conferred of increasing the capital of the Bank, have power by ordinary resolu- tion :-

(a) to consolidate and divide all or any of the capital of the Bank into shares of larger nominal amount than its existing shares :

(b) to sub-divide its shares, or any of them, into shares of smaller amount than is fixed by this Ordinance or by the regulations, so, however, that in the sub-division the proportion betweea the amount paid and the amount. If any, unpaid on each redneed snare shall be the same as it was in the case of the share from which the reduced share is derived: and

(c) to cancel shares which, at the date of the pass- ing of the resolution in that behalf, have not been taken or agreed to be taken by any person, and to diminish the amount of its capital by the amount of the shares so cancelled, and a cancella- tion of shares in pursuance of this section shall not be deemed to be a reduction of capital.

9.-(1) The shareholders may, subject to the prior approval of the Governo, by special resolution reorganise the capital, whether by the consolidation of shares of different classes or by the division of the shares into shares of different classes:

Provided that no preference or special privilege attached- to or belonging to any class of shares shall be interfered with except by a resolution passed by a majority in number of shareholders of that class bolding three-fourths of the share capital of that class and confirmed at a meeting of shareholders of that class in the same manner as a special resolution of the Bank is required to be confirmed, and every resolution so passed shall bind all shareholders of the class.

(2) A copy of any such resolution shall be filed with the Colonial Secretary within seven days after the passing of the same or within such further time as the Governor may allow, and the resolution shall not take effect until such copy has been so filed.

10. Until and including the 12th day of July 1939 - it shall be lawful for the Bank to make, issne, and circulate notes of the Bank payable to bearer on demand. at the place of issue and in coin lawfully current at such place, and to re-issue the notes from the place at which the same were originally issued. After that date the Bank shall cease to make issue or reissue notes but shall redeem any utes which it shall have previously issued or reissued. The number of notes of a lower denomination than 5 dollars issued by the Bank shall be limited to such umber- as may from time to time be authorized by the Secretary of State.