598306-1939-Supplementary-Draft-Bills---1938-Supplementary-Appropriation — Page 2

455

A BILL

INTITULED

[No. 28/38:—11.4.39.-2.]

An Ordinance to amend the Trustee Ordinance, 1934.

BE it enacted by the Governor of Hong Kong, with the advice and consent of the Legislative Council thereof, as follows:

1. This Ordinance may be cited as the Trustee Amend- Short title. ment Ordinance, 1939.

2. The Trustee Ordinance, 1934, is amended by the insertion of the following sections immediately after section 106 at the end of Part VIII thereof

New

sections 106A, 106B and 1060 for Ordin-

ance No. 18 of 1934.

as Trust

106A. Notwithstanding anything in sections 77, 81, 82, Registration 92, 93, 94, 97 and 101, which, except in the case of of certain

banking section 82 (1) (1), shall not apply in this case, but subject corporations to the other provisions of this Part, any corporation Companies. lawfully carrying on banking business in the Colony and having a capital (in stock or shares) for the time being issued of not less than $4,000,000 (of which not less than $1,600,000 shall have been paid up in cash) may with the consent of the Governer in Council be registered as a Trust Company: Provided that the Governor in Council shall not give such consent unless he is satisfied that the extent and nature of the corporation's business in the Colony is sufficient to justify such special registration.

106B. The powers of investigation conferred upon in- spectors under section 96 shall in the case of a corporation registered as a Trust Company under section 106A be limited to the trust business of the corporation.

Limitation

of

powers of inspectors

under

section 96.

Company

s. 106A.

106C. On application made by the Attorney General the Striking court may order that any corporation registered under the off Trust provisions of section 106A as a Trust Company shall be struck registered off the register of Trust Companies if it ceases to be qualified under for registration under that section or if from the consideration of the report of an inspector appointed under section 96 it appears that the corporation has committed a breach of trust, and the court may appoint a new trustee, or new trustees, for any trust property held by the corporation.

1

Objects and Reasons.

1. Certain banking corporations carrying on business in this Colony and authorized by their constitution to undertake trust business are, unless appointed to be trustees in a