1964_SECURITIES_AND_FUTURES_COMMISSION_ORDINANCE — Page 80

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CAP. 24]

Securities and Futures Commission

[1989 Ed.

(a) require the Exchange Company or clearing house, before the

expiration of a period specified in the notice-

(i) to amend, withdraw or revoke, in such manner as shall be specified in the notice, any provision of its memorandum of association, articles of association, rules or regulations or other instrument so specified;

(ii) to take such action relating to the management, conduct or

operation of its business as may be so specified;

(b) prohibit the Exchange Company or clearing house doing or causing to be done, during a period so specified, such act or other thing relating to the management, conduct or operation of its business as shall be so specified.

(2) The Commission shall not serve a restriction notice unless-—-—-—-

(a) it has previously consulted the Financial Secretary in relation

thereto;

(b) it has previously requested in writing the Exchange Company or clearing house concerned to put, or cause to be put, into effect a provision (which includes a request to refrain from doing any act or other thing) specified in the request and similar in effect to the requirement or prohibition specified in the restriction notice or, in case there is more than one such requirement or prohibition so specified, provisions the combined effect of all of which is similar to the combined effect of the requirements or prohibitions so specified; and

(c) in the case of a request under paragraph (b) which-

(i) contains a provision requesting the Exchange Company or clearing house concerned to amend, withdraw or revoke any provision of its memorandum or articles of association under subsection (1)(a)(i), the provision has not been complied with before the expiration of the period specified in relation thereto in the request being not less than 45 days; or (ii) contains a provision requesting the Exchange Company or clearing house concerned to do or refrain from doing any act or other thing, the Commission is satisfied that the provision has not been complied with.

(3) (a) Where a restriction notice requires an Exchange Company or clearing house to amend, withdraw or revoke any provision of its memorandum of association or articles of association, the Exchange Company or clearing house may appeal to the Governor in Council against the notice.

(b) An appeal under paragraph (a) shall not affect the coming into

force of the restriction notice to which the appeal relates.

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