1964_COMPANIES_ORDINANCE — Page 58

168

CAP. 321

Companies

[1984 Ed.

(a) the thing in question is done with the prior approval of the company given at a general meeting at which the purpose of any expenditure and the amount of any loan to be made by the company or the extent of the company's liability under any guarantee to be given by the company or, as the case may be, in respect of any security to be provided by the company are disclosed; or

(b) that thing is done on condition that, if the approval of the company is not so given at or before the next following annual general meeting, the loan shall be repaid or that liability discharged within 6 months from the conclusion of that meeting.

(5) Subject to subsection (7), the exception specified in sub- section (3)(d) operates in respect of a loan referred to therein only if the following conditions are satisfied -

(a) the company ordinarily makes loans of that description to its employees on terms no less favourable than those on which the loan itself is made: and

(b) the loan does not exceed 80 per cent of the value of the residential premises, or the part thereof, in question and any land to be occupied and enjoyed therewith as stated in a valuation report which complies with the following requirements---

(i) the valuation report shall be made by a pro- fessionally qualified valuation surveyor who is subject to the discipline of a professional body; and

(ii) the valuation report shall be made and signed by the valuation surveyor not earlier than 3 months prior to the date on which the loan is made; and

(c) the loan is secured by a legal mortgage on the land comprising the residential premises, or the part thereof.

in question and any land to be occupied and enjoyed therewith.

(6) Subject to subsections (7) and (8), the exception specified in subsection (3)(e) operates only if the following conditions are satisfied.

(a) the loan in question is made by the company or it enters into the guarantee in question in the ordinary course of the company's business; and

(b) the amount of the loan or the amount guaranteed is not greater, and the terms of the loan or guarantee are not more favourable. in the case of the person to whom the loan is made or in respect of whom the guarantee is entered into than that or those which it is reasonable to expect that company to have offered to or in respect of a person of the same financial standing as that person but unconnected with the company.

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