LEGAL PRACTITIONERS ORDINANCE

LAWS OF HONG KONG

LEGAL PRACTITIONERS ORDINANCE

CHAPTER 159





CHAPTER 159

LEGAL PRACTITIONERS ORDINANCE

ARRANGEMENT OF SECTIONS

Section.................................... Page

PART I
SHORT TITLE AND INTERPRETATION

1. Short title ........................................................ 5

2. Interpretation ..................................................... 5

PART II

SOLICITORS

3. Power of Court to admit solicitors 7
4. Qualifications for admission 9
5. Roll of solicitors 9
6. Practising certificates-solicitors 10

7. Qualifications for practising as solicitor ............. 11

7A.Solicitors may exercise functions of commissioner for oaths 12
8.Accountant's reports 12

9.Appointment of Disciplinary Committee .......................................... 13

10.Powers of a Disciplinary Committee 13

11.Ancillary powers of a Disciplinary Committee .......................................... 14

12.Findings of a Disciplinary Committee is
13.Appeal and saying 16
14.Applications to Court 16
is.Application with respect to allegations 17

16.Restrictions on powers to strike names off roll .......................................... 17

17.Council may inspect proceedings in bankruptcy 17
18.Winding-up, etc. of business of solicitors struck off or suspended 18
19.Removal from roll 18

20.Restrictions on taking articled clerks ............. 18

21.Power to prohibit taking articled clerks 19
22.Power to discharge articles in certain cases 20
23.Discharge of articles in cases of bankruptcy, etc. 20
24.Society's general right of audience 20
25.Expenses of Disciplinary Committee and of Society 21
26.Statutory provisions to prevail over Society's articles 21

26AA. Abolition of enrolled student status 21





Section Page

PART IIA
CONTROL OF SOLICITORS PROPERTY IN
CERTAIN CASES

26A.Power of Council to deal with property of certain solicitors 22
26B.Solicitors guilty of undue delay in certain matters 23
26C.Control of deceased solicitor's practice in certain circumstances 23
26D.On death of solicitor practising on his own account Council to deal with
banking accounts of practice 24

PART 111

BARRISTERS

27. Power of Court to admit barristers 24
27A. Additional power of Court to admit barristers 26
28. Formalities for admission of a barrister 26
29. Roll of barristers 27
30. Practising certificates-barristers 27
31. Qualifications for practising as barrister 28
32. Power of Court to strike off or suspend barrister 28
33. Bar Committee-general right of audience 29
34. Establishment of Committee of Inquiry 29
35. Function of Committee of Inquiry 29
36. Powers of Committee of Inquiry 30
37. Powers of the Court of Appeal 31
38. Variation of order of the Court of Appeal 31
39. Expenses of Committee of Inquiry and of Bar Committee 32

PART IV
NOTARIES PUBLIC

40. Registration of notaries public 33
41. Register of notaries public 33

42. Power of Court to strike off or suspend a notary public 33

43. Restoration of name of notary public 33

PART V
PRIVILEGES, RESTRICTIONS AND OFFENCES IN CONNECTION WITH PRACTISE

44. Penalty for unlawfully practising as a barrister or notary public 33





Section Page

45. Unqualified person not to act as solicitor 34
46. Penalty for pretending to be a solicitor 34

47. Unqualified person not to prepare certain instruments, etc . 35
48. Unqualified person not to act in preparation of papers for probate, etc. 35

49. Solicitor not to act as agent for unqualified person 36

50. No costs for unqualified person 36

50A. Recovery of moneys in certain cases 36
51. Application of penal provisions to body corporate 36
52. Solicitors not to commence or defend actions while in prison 37

53. Employment by solicitors of persons struck off or suspended 37
54. Penalty on failure to disclose fact of having been struck off, etc. 38

55. Time limit for commencement of certain proceedings 38

PART VI

REMUNERATION OF SOLICITORS

Non-contentious Business

56. Agreement for remuneration for non-contentious business 39

57. Remuneration of a solicitor who is a mortgagees 39

Contentious Business

58. Power to make agreements 40
59. Mistellaneous provisions ......................................................... 40

60........................................Enforcement of agreements in respect of contentious business 41
61........................................Death, incapability, or change of solicitor, etc . 42

62........................Agreement excludes taxation ...............................
..........................43

63........................................Form of bill of costs for contentious business 43

General Provisions regarding Remuneration

64.......................General provisions as to remuneration
................................................ 44
65.......................Power of Court to order delivery of bill, etc . ................................ 44
66.......................Action to recover costs ..... 45

67.......................................Taxation of bills on application of party chargeable on solicitor 46

68.....................Taxation on application of third parties .......................
......................................47





Section.................................... Page
69. General provisions as to taxations ....48
70. Charging orders .......................48
71. Revival of order for payment of costs .48

PART VII

ROLES

72.......................................Power of Chief Justice to make rules 49
72A......................................Rules for barristers in Hong Kong 50
72B......................................Legislative Council may amend Schedule 1 50
73.......................................Power of the Council to make rules 51
73A......................................Indemnity rules 52
74.......................................Costs Committee 54

PART VIII

GENERAL

74A.......................................Advisory Committee on Legal Education 55
75........................................Saving 56

Schedule 1 . .............................56
Schedule 2. Property in the control or possession of certain solicitors and other

persons
.................................................................................................... 57





CHAPTER 159

LEGAL PRACTITIONERS

Tomake amended provision for the admission and registration of legal
practitioners and their employees, and of notaries public, and for purposes
connected therewith.

[1August 1964] L.N.107of.1974

Originally 16 of 1964 35 of 1966, 25 of 1968, 14 of 1970, 32 of 1972, 68 of 1973, 92 of 1975,
58 of 1976, 29 of 1977, 22 of 1979, L.N. 290 of 1979, 52 of 1980, 75 of 1980, L.N. 371 of
1980, 1 of 1981,14 of 1981, R. Ed. 1981, 79 of 1981,50 of 1982,80 of 1982,31 of 1987,
L.N. 153 of 1988, 46 of 1989

PART 1

SHORT TITLE AND
INTERPRETATION

1. Short title

This Ordinance may be cited as the Legal Practitioners Ordinance.

2. Interpretation

(1) In this Ordinance, unless the context otherwise requires-

,,accountant's report' means a report delivered in accordance with the provisions of
section 8; (Replaced 25 of 1968 s. 2)

,,articles' means any contract in writing, whether entered into before or after the
commencement of this Ordinance, whereby any person is bound to serve an
apprenticeship as clerk for the purpose of being admitted as a solicitor;
(Replaced 50 of 1982 s. 2)

'Bar Committee' means the Committee of the Hong Kong Bar Association;

'barrister' means a person who is enrolled as a barrister on the roll of barristers and
who, at the material time, is not suspended from practice;

'client' except in relation to non-contentious business, includes any person who as
principal or on behalf of another person retains or employs, or is about to retain
or employ, a solicitor, and any person who is or may be liable to pay a
solicitor's costs;





'Committee of Inquiry' means a Committee of Inquiry appointed under section 34;

'contentious business' includes any business done by a solicitor in any court,
whether as a solicitor or as an advocate;

'costs' includes fees, charges, disbursements, expenses and remuneration;

'Costs Committee' means the Costs Committee appointed under section 74;

'Council' means the council of the Society elected in accordance with the
provisions of its articles of association; (Added52of 1980s.2)

'Court means the High Court; (Amended 92 of 1975 s.59)

'Disciplinary Committee' means a Disciplinary Committee appointed by the Council
in accordance with the provisions of section 9; (Amended 52 of 1980s.2)

,,employee' includes a former employee; (Added 25 of 1968 s.2)

'non-contentious business' includes any business connected with sales,
purchases, leases, mortgages and other matters of conveyancing;

'notary public' means a person who is registered on the register of notaries public
and who, at the material time, is not suspended from practice;

'practising certificate' means

(a) a certificate issued by the Society under section 6; and

(b)a certificate issued by the Registrar under section 30; (Replaced 58
of 1976 s. 2)

'qualified person' means a person qualified for admission as a solicitor; (Added 50
of 1982 s. 2)

'register of notaries public' means the register kept by the Registrar in accordance
with the provisions of section 41;

'Registrar' means the Registrar of the Supreme Court and any deputy registrar or
assistant registrar of the Supreme Court;

'roll of solicitors' means the roll kept by the Registrar in accordance with the
provisions of section 5;

'roll of barristers' means the roll kept by the Registrar in accordance with the
provisions of section 29;

'Society' means The Law Society of Hong Kong; (Replaced 14 of 1970 s. 2)

,,solicitor' means a person who is enrolled on the roll of solicitors and who, at the
material time, is not suspended from practice;

'unqualified person' means a person who is not a solicitor.

(2) For the avoidance of doubt, it is hereby declared that any conduct of

an articled clerk or employee of a solicitor which would reasonably be regarded

as disgraceful, dishonourable or discreditable by a solicitor of good repute shall

be deemed misconduct. (Added 25of 1968s.2. Amended] of 1981 s.2)

(3) Any rules made under section 73(1)(d) or (f) shall, subject to sec

tion 73(3) and unless the context otherwise requires, apply to a qualified person







as they apply to a solicitor.(Added50 of 1982 s.2)





PART 11

SOLICITORS

3. Power of Court to admit solicitors

(1) The Court may, in such manner as may be prescribed by the Chief Justice,
admit as a solicitor of the Supreme Court of Hong Kong any person who is qualified
for admission in accordance with this Ordinance and who

(a) is a Commonwealth citizen; or (Amended 80 of 1982 s. 2)

(b) has been ordinarily resident in Hong Kong for a total period of

not less than 7 years. (Amended 58 of 1976s.3)

(IA) For the purposes of subsection (1), a person shall be treated as ordinarily
resident in any one year if he is present in Hong Kong for a period of not less than
180 days in that year. (Added 58 of 1976s.3)

(1AA) The Court shall not admit a person under section 4(1)(a)(ii) unless

(a) he has resided in Hong Kong for at least 3 months immediately

before his admission;

(b) he is a Hong Kong permanent resident as defined in the

Immigration Ordinance (Cap. 115); or

(c) he has been ordinarily resident in Hong Kong for at least 7 years.

(Added46 of 1989 s. 2)

(1AB) In addition to the powers conferred on it by subsection (1) and
notwithstanding section 4(1), but subject to subsection (1AE), the Court may, after
the Chief Justice has consulted the Attorney General and the Council, admit a
person as a solicitor of the Supreme Court of Hong Kong, in such manner as may be
prescribed by the Chief Justice, if

(a) the Court is satisfied that he

(i) has been admitted as a solicitor in a jurisdiction listed in

Schedule 1 or if there is no admission of solicitors in such
jurisdiction, as a legal practitioner in that jurisdiction;

(ii) has been employed for at least 7 years in the public service of

the Government as a legal officer;

(iii) has been so employed-
(A) for a period of at least 3 years; and

(B)either immediately or recently before the date of his
application for admission,

on work similar to that usually undertaken by a solicitor in Hong
Kong in the course of his practice;

(iv) intends, if admitted, to commence practice as a solicitor; and
(y) is a fit person to be a solicitor; and





(b)he has passed an examination in solicitor's accounts specified for the
purposes of this paragraph by the Council. (Added46 of 1989 s.2)

(1AC) Subsection (1AB)(b) shall not apply in any case where the Chief Justice,
after consultation with the Council, is satisfied that the applicant concemed has
previously passed an examination in solicitor's accounts.

(Added46 of 1989 s. 2)

(1AD) Notwithstanding subsection (1) and section 4(1), the Court may, in such
manner as may be prescribed by the Chief Justice, admit a person as a solicitor of
the Supreme Court of Hong Kong if the Court is satisfied that he

(a)is a teacher in a course leading to a Postgraduate Certificate in Laws
and is employed and has been employed for at least one year as a full
time law lecturer at the Department of Professional Legal Education of
the University of Hong Kong or at any other institution approved for
the purposes of this paragraph by the Chief Justice after consultation
with the Attorney General and the Council;

(b)has been admitted in a jurisdiction listed in Schedule 1 as a solicitor,
or if there is no admission of solicitors in such jurisdiction, as a legal
practitioner in that jurisdiction;

(c)has in that jurisdiction been engaged for at least 2 years in work that
would, if undertaken in Hong Kong, be similar to that usually
undertaken by a solicitor in Hong Kong in the course of his practice;
and

(d) is a fit person to be a solicitor. (Added46 of 1989 s. 2)

(1AE) The Court shall not admit under subsection (I AB) more than 10 persons
in any period of 12 months. (Added46of 1989s. 2)

(1AF) In this section 'legal officer' means

(a)a legal officer within the meaning of the Legal Officers Ordinance
(Cap. 87);

(b)a person appointed under section 3 of the Legal Aid Ordinance (Cap.
91); and

(c)any person deemed to be a legal officer for the purpose of the Legal
Officers Ordinance (Cap. 87), by virtue of section 2(3) of the Registrar
General (Establishment) Ordinance (Cap. 100). (Added46 of 1989 s. 2)

(IB) The Court may, when admitting a person as a solicitor, sit in chambers.
(Added 58 of 1976 s. 3)

(2) Every solicitor shall be an officer of the Court and shall be subject to the
jurisdiction thereof in accordance with the provisions of the Supreme Court
Ordinance (Cap. 4) and of this Ordinance.

(3) Subject to the provisions of this Ordinance, the Court or any judge thereof
may exercise the same jurisdiction in respect of any person admitted to





practise as a solicitor therein as may be exercised by the High Court, the Crown
Court and the Court of Appeal respectively, or any division or judge thereof, in
England, by virtue of section 50(2) of the Solicitors Act 1974 (1974 c. 47 U.K.),
in respect of any solicitor or attorney admitted to practise therein. (Amended
58 of 1976 s. 3)

4. Qualifications for admission

(1) No person shall be admitted as a solicitor unless the Court is
satisfied-
(a) either-
(i) that he has complied with such requirements as may be
prescribed by the Council with respect to service under
articles and to passing of examinations; or
(ii) upon such evidence as may be prescribed by the Council,
that he has been admitted as an attorney or solicitor in any
part of the United Kingdom and has neither been struck off
the rolls thereof nor is under suspension from practice as
such at the time of his application for admission under this
Ordinance; and
(b) that he is a fit person to be a solicitor.
(2) A person shall not he disqualified from admission as a solicitor by
reason only that-
(a)a solicitor whom he has served for the whole or such part of such
term of articled service as may be prescribed by the Council has
neglected or omitted to take out a practising certificate; or
(b)the name of the solicitor whom he has served for any period has
after the termination of that period been removed from or struck
off the roll of solicitors.
(Amended50 of 1982 s. 3)
[cf. 1957 c. 27 s. 3 U.K.]

5. Roll of solicitors

(1) The Registrar shall keep a roll of all solicitors admitted by the Court
under section 3 and shall have the custody of the roll of solicitors and of all
documents relating thereto and shall allow any person to inspect the roll during
office hours without payment.
(2) The Registrar, upon production of a certificate of admission signed by
the Chief Justice and upon payment to the Registrar and to the Society of such
fees as may be prescribed by the Chief Justice, shall enter on the roll of
solicitors the name of the person admitted.





(3) The Chief Justice may, if he thinks fit, at any time order the Registrar to
replace on the roll of solicitors the name of a solicitor whose name has been
removed or struck off the roll of solicitors.

[cf. 1957 c. 27 ss. 6, 7 8 U.K.]

6. Practising certificates-solicitors

(1) The Society, on application in writing by a solicitor in the month of
November in any year in such form as may be prescribed by the Council and on
payment of such fee as may be so prescribed, shall, subject to subsection (3), issue
to the applicant a practising certificate as a solicitor for the period of one calendar
year from 1 January next following the date of the application.

(IA) A practising certificate issued to a solicitor admitted under section 3(1AD)
is subject to the condition that the solicitor shall not practise on his own account or
in partnership. (Added46of 1989s. 3)

(2) A practising certificate issued under subsection (1) shall be in such form as
may be prescribed by the Council.

(3) A practising certificate shall not be issued under subsection (1) unless the
applicant has, where necessary, delivered to the Council an accountant's report
under section 8, complied with any indemnity rules made by the Council under
section 73A or is exempt from them and has paid to the Society the membership
subscription in respect of the year for which the practising certificate is to be issued.
(Amended 75 of 1980 s. 2)

(4) Notwithstanding subsection (1), the Society may, upon such conditions as
it thinks fit, permit an application for a practising certificate to be made under this
subsection at any time and upon such application may issue to the applicant a
practising certificate for any period not exceeding one calendar year and ending on
31 December in the year in which it is issued.

(5) Notwithstanding subsection (1), the Society may

(a)refuse to issue a practising certificate on such grounds as may be
prescribed by the Chief Justice; or

(b)issue a practising certificate to an applicant subject to such
conditions as may be prescribed by the Chief Justice.

(6) It shall be a condition of a practising certificate issued for the first time on or
after 1 August 1976 to any solicitor who does not satisfy the Council that since
being admitted as a solicitor he has been bona fide employed in the practice of a
solicitor in Hong Kong for at least 2 years prior to his application for such practising
certificate, that he shall not practise as a solicitor on his own account or in
partnership until he satisfies the Council that since being admitted as a solicitor he
has been bona fide employed in the practice of a solicitor in Hong Kong for at least 2
years. (Amended 22 of 1979s. 2; 46of 1989s. 3)

(6A) Notwithstanding subsection (6), if the Council considers that an applicant
has acquired substantial experience in the law, either in Hong Kong





or in the United Kingdom, over a considerable period of time the Council may reduce
the period of 2 years to a period of

(a) one year; or

(b)where immediately before his admission as a solicitor, the applicant
was working in the office of a solicitor in Hong Kong, one year less
one day for each day of the period he so worked, but the Council shall
not reduce the period of 2 years to less than 9 months. (Added46 of
1989 s. 3)

(7) Where the name of a solicitor is removed from or struck off the roll of
solicitors or where a receiving order in bankruptcy is in force against him, the
practising certificate of that solicitor shall automatically determine and in any such
case no part of the fee paid in respect thereof shall be repayable.

(8) The publication in the Gazette by the Society of a list of the names and
addresses of those solicitors who have obtained practising certificates for the period
stated therein shall, until the contrary is proved, be evidence that each person
named therein is a person qualified under section 7 to act as a solicitor and to whom
a practising certificate for the period stated in such list has been issued under this
section; and the absence from any such list of the name of any person shall, until the
contrary is proved, be evidence that such person is an unqualified person.

(9) Where the Society, in the exercise of the powers conferred on it under
subsection (5), refuses to issue a practising certificate or issues a certificate subject
to conditions, the applicant may appeal to the Chief Justice against the decision of
the Society within 1 month of being notified of it.

(10) Where the Council refuses to disapply subsection (6) in the case of an
applicant who claims to have acquired substantial experience in the law, either in
Hong Kong or in the United Kingdom, over a considerable period of time, the
applicant may appeal to the Chief Justice against the decision of the Council within 1
month of being informed of that decision.

(11) On an appeal to the Chief Justice under subsection (9) or (10) he may

(a) affirm the decision of the Society or Council; or

(b)direct the Society to issue a practising certificate to the applicant free
from conditions or subject to such conditions as he thinks fit.

(Replaced 58 of 1976 s.4. Amended52 of 1980s.2)

7. Qualifications for practising as solicitor

No person shall be qualified to act as a solicitor unless-

(a) his name is for the time being on the roll of solicitors;

(b) he is not suspended from practice;

(c)he has in force a current practising certificate; and (Replaced`46 of
1989 s. 4)





(d)he is complying with any indemnity rules made by the Council under
section 73A or is exempt from them. (Added 75 of 1980 s.3)

[cf. 1975 c. 27 s. 1 U.K.]

7A. Solicitors may exercise functions

of commissioner for oaths

(1) For the purpose of administering and receiving an oath, affidavit or
affirmation any solicitor who is in practice in Hong Kong and who holds a current
practising certificate shall possess and may exercise all the powers of a
commissioner for oaths that are conferred by or under any law.

(2) A document containing an oath, affidavit or affirmation administered and
received under subsection (1) and purporting to be signed by a solicitor shall be
admitted in evidence without proof of the signature of the solicitor, and without
proof that he is a solicitor who is in practice in Hong Kong or that he holds a current
practising certificate.

(Added29 of 1977s. 2)

8. Accoutant's reports

(1) Every solicitor shall once in each period of 12 months ending with 31
October or such other date as may be prescribed by the Council, unless he satisfies
the Council that owing to the circumstances of his case it is unnecessary so to do,
deliver by post or otherwise to the Council a report signed by an accountant
(hereinafter referred to as 'an accountant's report') and containing such information
as may be prescribed by rules made by the Council under section 73(1)(b):

Provided that an accountant's report shall be delivered to the Council not more
than 6 months (or such other period as any rules made under section 73(1)(b) may
prescribe) after the end of the accounting period specified in that report. (Replaced
25 of 1968 s.4) [cf.1965c.31s.9U.K.]

(2) Subject as may be prescribed by the Council, the accounting period for the
purposes of an accountant's report shall

(a)begin at the expiry of the last preceding accounting period for which
an accountant's report has been delivered;

(b) cover not less than 12 months;

(c)terminate not more than 6 months, or such lesser period as may be
prescribed by the Council, before the date of the delivery of the
report to the Council; and

(d)where possible, consistently with paragraphs (a), (b) and (c),
correspond to a period or consecutive periods for which the





accounts of the solicitor or his firm are ordinarily made up.
(Amended25of 1968s.4) [cf. 1957c.27s.30 U.K.]

(3) If a solicitor fails to comply with the provisions of this section or any
requirements relating to accounts which may be prescribed by the Council any
person may make a complaint in respect of that failure to the Council or the Court.

(Amended 58 of 19 76 s. 5; 52 of 1980 s. 2)

9. Appointment of Disciplinary Committee

(1) There shall be a Disciplinary Committee Panel which shall consist of not less
than 11 members of the Society, each of whom shall have been in practice as a
solicitor in Hong Kong for a period of not less than 10 years and shall be appointed
by the Chief Justice after consultation with the Society.

(Amended50 of 1982 s. 8)

(2) Where it appears necessary or desirable to the Council that the conduct of a
solicitor, an employee of a solicitor or an articled clerk should be investigated as a
result of a complaint being made to it or otherwise, the Council for the purpose of
such investigation may appoint a Disciplinary Committee consisting of not less than
3 members of the Disciplinary Committee Panel. (Replaced 25 of 1968 s. 5. Amended 52
of 1980 s. 2; 1 of 1981 s. 3)

(3) A Disciplinary Committee shall have power to appoint its own Chairman and
shall sit in camera in such place and at such time as the Disciplinary Committee may
direct.

10. Powers of a Disciplinary Committee

(1) A Disciplinary Committee shall have power to inquire into and investigate
the conduct of any person in respect of which it was appointed.

(2) Subject to the provisions of this Ordinance, upon the hearing of any
complaint as aforesaid or upon any investigation as aforesaid, a Disciplinary
Committee shall have power to make such order as it thinks fit and any such order
may, in particular, include provision for all or any of the following matters

(a)striking off the roll of solicitors the name of the solicitor to whom the
complaint or investigation relates;

(b)suspending that solicitor from practice for such period as the
Disciplinary Committee shall think fit;

(c)payment by that solicitor of a penalty not exceeding $50,000 which
shall be paid into the general revenue;

(d)censure of that solicitor or, if the complaint or investigation relates to
a solicitor's employee or articled clerk, of such employee or articled
clerk; (Amemded L.N. 153 of 1988)







(e)payment by any party of costs or of such sum as the Disciplinary
Committee may consider a reasonable contribution towards costs;

cancellation or suspension of the articles of any articled clerk to
whom the complaint or investigation relates; and

(g)prohibition of employment by any solicitor of any solicitor's
employee or articled clerk, to whom the complaint or investigation
relates, for such period as the Disciplinary Committee may decide.

(3) Every order made under subsection (2) shall be filed with the secretary of
the Society and shall be available for inspection by any solicitor during such hours
as the Council may prescribe. (Amended52 of 1980 s. 2)

(4) A Disciplinary Committee appointed by the Council shall hear and determine
every application by a solicitor to procure the removal from the roll of solicitors of
his own name. (Amended52 of 1980s.2)

11. Ancillary powers of a Disciplinary Committee

(1) For the purpose of conducting any such inquiry or investigation, a
Disciplinary Committee shall have all such powers as are vested in the Court or in
any judge in the course of any action or suit in repsect of the following matters

(a)enforcing the attendance of witnesses and examining them upon oath
or otherwise;

(b) compelling the production of documents;

(c) punishing persons guilty of contempt;

(d) ordering an inspection of any property;

(e) conducting the examination of witnesses; and

(1)adjourning any meeting from time to time and from one place to
another,

and a summons under the hand of the Chairman of a Disciplinary Committee may be
substituted for and shall be equivalent to any form of process capable of being
issued in any action or suit for compelling the attendance of witnesses or the
production of documents and any warrant of committal to prison issued for the
purpose of enforcing any such powers as aforesaid shall be under the hand of such
Chairman and shall not authorize the imprisonment of any offender for a period
exceeding 1 month.

(2) The Commissioner of Police and all police officers, officers of the court,
gaolers and bailiffs of the court are required to give their utmost assistance to every
Disciplinary Committee and to every chairman thereof, in the enforcement of
documents, warrants and orders issued in accordance with subsection (1) or
otherwise.





(3) Every member of a Disciplinary Committee shall have the like protection and
privileges, in relation to any action or suit brought against him for any act done or
omitted to be done in the execution of his duties as such member, as is given by any
law to a magistrate acting in the execution of his office.

(4) All proceedings of a Disciplinary Committee and any order made in
accordance with the provisions of section 10 shall be privileged.

12. Findings of a Disciplinary Committee

(1) Every order made by a Disciplinary Committee shall be prefaced by a
statement of its finding in relation to the facts of the case and shall be signed by the
Chairman or by some other member authorized by the Disciplinary Committee in that
behalf.

(2) A signed copy of every order in relation to a solicitor shall be filed with the
Registrar who shall forthwith enter a note of the order on the roll of solicitors in
connection with the name of the solicitor, and where the order so directs shall
remove or strike out the same, and shall cause every order for suspension or striking
out to be published in the Gazette within 14 days of his receipt of a copy of the order.

(3) Payment of any penalty or costs ordered to be paid by the Disciplinary
Committee may, on the application of any member of the Disciplinary Committee or,
in the case of costs, by the party in whose favour the order is made, be enforced by
writ of execution issued out of the Court on the production of a copy of the order
signed by the Chairman or other authorized member of the Disciplinary Committee
and the rules of the Court shall, so far as applicable, apply to any such execution.

(4) A Disciplinary Committee, on the application of any party against whom an
order for payment of a penalty or costs is made, may order that the same may be paid
by instalments or that payment may be deferred for such period as the Disciplinary
Committee shall think fit.

(5) (a)Every application for an order for payment by instalments, or for the
deferring of payment, may be made at the hearing or, within 14 days
after the date of the order for payment of penalty or costs, by notice
in writing to the Disciplinary Committee and to all parties who were
represented at the hearing.

(b)Upon receipt of any such notice, the Disciplinary Committee shall,
within 14 days, notify the applicant and all such other parties of the
date upon which such application will be heard by the Disciplinary
Committee.

(c)There shall be no right of appeal from the decision of the Disciplinary
Committee on any such application.





13. Appeal and saying

(1) Subject to the provisions of section 12(5)(c), an appeal against any order
made by a Disciplinary Committee shall lie to the Court of Appeal and the provisions
of Order 59 of the Rules of the Supreme Court (Cap. 4 sub. leg.) shall apply to every
such appeal save that the time for serving notice of motion of appeal shall be 21
days from the date of the decision and not 6 weeks as provided in the said Order and
the decision of the Court of Appeal on any such appeal shall be final.

(2) In any appeal under subsection (1) the Society shall be the respondent.

(3) Nothing herein contained shall affect the jurisdiction of the Court under
sections 3(2), 14 and 45.

(4) The hearing of every appeal under this section shall be in camera unless,
and to the extent to which, the Court of Appeal may otherwise direct.

(Amended 92 of 1975 s. 59)

14. Applications to Court

(1) Where an application to strike the name of a solicitor off the roll of solicitors
or to require a solicitor to answer allegations contained in an affidavit is made to the
Court, subject to the provisions of subsection (3)

(a)the Court shall not entertain the application except upon production of
an affidavit showing that the applicant has served upon the Society
not less than 21 clear days' notice of his intention to make the
application, together with copies of all affidavits intended to be used
in support thereof,

(b)the Society may apply to the Court to make absolute any order nisi
which may have been made by the Court in the matter of the
application, or to make an order that the name of the solicitor with
respect to whom the application is made be struck off the roll of
solicitors, or such other order as the Court may think fit; and

(c)the Court may order that the costs of the Society of or relating to any
such matter aforesaid be paid by the solicitor against whom, or by the
person by whom, the application was made, or was intended to be
made, or partly by one and partly by the other of them.

(2) Where an order, whether nisi or absolute, has been made by the Court upon
a motion to remove from or strike off the roll of solicitors the name of a solicitor, or to
require the solicitor to answer allegations contained in an affidavit, and has not been
drawn up by the applicant within 1 week after it was made, the Society may cause
the order to be drawn up, and all future proceedings thereon shall be taken as if the
motion had been made by the Society.





(3) Where an order is made by the Court that the name of a solicitor be struck
off the roll of solicitors, or that the solicitor be suspended from practice, the
Registrar shall enter a note thereof on the roll of solicitors in connection with the
name of the solicitor and, where the order so directs, shall remove or strike off the
name.

[cf. 1957 c. 27 ss. 51, 52 53 U.K.]

15. Application with respect to allegations

For the avoidance of doubt, it is hereby declared that an application by any
person to require a solicitor to answer allegations contained in an affidavit, whether
the application is made to the Society or to the Court, may be treated as an
application to strike the name of that solicitor off the roll of solicitors on the grounds
of the matters alleged.

[cf. 1957 c. 27 s. 55 U.K.]

16. Restrictions on powers to strike names of roll

(1) No solicitor shall be liable to have his name struck off the roll of solicitors on
account of any failure to comply with such requirements with respect to service
under articles as may be prescribed by the Chief Justice or on account of any defect
in his admission and enrolment, unless the application to strike his name off the roll
of solicitors is made within 12 months after the date of his enrolment:

Provided that this subsection shall not apply in any case where fraud is proved
to have been committed in connection with the failure or defect.

(2) No solicitor shall be liable to have his name struck off the roll of solicitors by
reason only that

(a)a solicitor whom he has served for the whole or such part of the term
of articled service as may be prescribed by the Chief Justice has
neglected or omitted to take out a practising certificate in accordance
with the provisions of section 6; or

(b)the name of a solicitor whom he has served for any period has after the
termination of that period been struck off the roll of solicitors.

[cf. 1957 c. 27 s. 54 U.K.]

17. Council way inspect proceedings in bankruptcy

The Council shall be entitled, without payment of any fee, to inspect the file of
proceedings in bankruptcy relating to any solicitor against whom proceedings in
bankruptcy have been taken, and to be supplied with office copies of the
proceedings on payment of the usual charges for such copies.

(Amended52 of 1980 s. 2)
[cf. 1957 c. 27 s. 83 U.K.]





18. Winding-up, etc. of business of solicitors

struck off or suspended

(1) The Court may make an order for the winding-up of the business of any
solicitor who is struck off the roll of solicitors in such terms and appointing such
solicitor or firm of solicitors or the Official Receiver under the Bankruptcy Ordinance
(Cap. 6) or both as it thinks fit for that purpose.

(2) The Court may make an order appointing any solicitor or firm of solicitors or
the Official Receiver or both to manage the business of any solicitor, whose
practising certificate is suspended, for the duration of such suspension.

19. Removal from roll

(1) Upon reasonable cause being shown to the Council by a solicitor the
Council may direct the Registrar to remove the name of such solicitor from the roll of
solicitors and the Registrar shall thereupon remove such name from the roll of
solicitors. (Amended52 of 1980 s. 2)

(2) With effect from the date of removal of a name under this section the person
whose name is so removed shall cease to be a solicitor. (Amended 46 of 1989s.5)

(3) Upon application being made for removal as aforesaid the Council may
advertise or require the solicitor to advertise the application inviting any person who
objects thereto to make objection to the Council. (Amended52 of 1980s.2)

(4) Where the Registrar is satisfied that a person who was admitted as a
solicitor under section 3(1AD) is no longer qualified under paragraph (a) of that
section, he shall, unless the person has become qualified otherwise under this
Ordinance, remove his name from the roll of solicitors. (Added46 of 1989 S.5)

(5) Without prejudice to the generality of subsection (1), where a person
admitted under section 3(1AB) does not commence practice as a solicitor within a
period of 12 months after his admission, it shall be a cause for the removal of his
name from the roll of solicitors under this section. (Added46of 1989s. 5)

20. Restrictions on taking articled clerks

(1) No person who has not at some time been in continuous practice as a
solicitor in Hong Kong for a period of 5 years shall, without the special leave in
writing of the Society, take any articled clerk. (Amended 25 of 1968 s. 6)

(2) No person shall have more than 2 articled clerks at the same time.





(3) No person shall take or retain any articled clerk unless

(a) he is practising as a solicitor; and

(b) he is not employed as an assistant by another solicitor.

(4) If any solicitor takes, retains or has an articled clerk in contravention of any
of the provisions of subsection (1), (2) or (3), the Council may discharge the articles
of that clerk upon such terms, including terms as to return of premium, as it thinks fit.
(Amended52 of 1980s.2)

(5) Any

(a) solicitor; or

(b) qualified person,
serving in the

(i) Legal Department; or

(ii) Registrar General's Department; or

(iii) Legal Aid Department, of the Government shall, for the purpose of this
section, be deemed to be practising as a solicitor; and this subsection shall apply in
relation to periods before as well as periods after the commencement of the Legal
Practitioners (Amendment) Ordinance 1982 (50 of 1982). (Added 50 of 1982 s.4)

(6) Rule 6(3) of the Articled Clerks Rules (Cap. 159 sub. leg.) is deemed to be
and always to have been valid and is revoked. (Added 50 of 1982 s.4)

(7) Where at any time after 15 September 1972 and before the commencement of
the Legal Practitioners (Amendment) Ordinance 1982 (50 of 1982) a person purported
to enter into articles with another person ('the principal') those articles shall not be
invalid and that person shall not be deemed to be or to have been disqualified from
admission as a solicitor, by reason only that the principal was not practising as a
solicitor if the principal was at that time--

(a) a solicitor; or

(b) a person qualified for admission as a solicitor,
serving in the

(i) Legal Department; or

(ii) Registrar General's Department; or

(iii) Legal Aid Department, of the
Government. (Added 50 of 1982 s. 4)

(Amended50 of 1982 ss. 4 8)
[cf. 1957 c. 27 s. 41 U.K.]

21. Power to prohibit taking articled clerks

(1) Where the Society refuses to issue a practising certificate to a solicitor
under section 6, the Council may by notice in writing to that solicitor prohibit

him from taking an articled clerk.(Amended52 of 1980 s. 2)





(2) If a solicitor contravenes a notice given to him under subsection (1) a
complaint may be made in respect thereof to the Society or to the Court under
section 9 or 14,

(Replaced 58 of 1976 s. 6)

22. Power to discharge articles in certain cases

If either

(a)during the term of any articles a clerk has been continuously absent
from the place of business of his principal for a period of 3 months or
such longer period as may be prescribed by the Council except for
such reason as may be prescribed by the Council; or

(b)the Council is for any other reason of the opinion that any articles
ought to be discharged,

the Council may, on application of the solicitor, the articled clerk or any other
person, discharge the articles upon such terms, including terms as to return of
premium, as it shall think fit and may determine what, if any, of the service by the
clerk under the articles shall be deemed good service.

(Amended 52 of 1980 s. 2)

23. Discharge of articles in cases of bankruptcy, etc.

If a solicitor to whom a clerk is articled becomes bankrupt before the expiration
of the term or executes a trust deed for the benefit of his creditors under any law
relating to bankruptcy or is imprisoned for debt and remains in prison for the space
of 21 days, the Court, on the application of any person, may order the articles to be
discharged or to be assigned to another solicitor on such terms and in such manner
as the Court thinks fit.

24. Society's general right of audience

The Society shall have a general right of audience by any member of the
Society appointed for that purpose by the Society or by any counsel, before

(a) a Disciplinary Committee; and

(b) the Court on the hearing of-

(i) any application to the Court for admission as a solicitor; and

(ii) any proceedings in the Court relating to, affecting or touching
any matter affecting the qualification, service or examination of
articled clerks or the removal from or





restoration to the roll of solicitors or the suspension from
practice of a solicitor or affecting any privilege, restriction or
misconduct in connection with the professional practice,
conduct and discipline of a solicitor, a solicitor's employee or an
articled clerk,

and in any such case, whether the Society has or is seeking audience or not, the
Society shall be served with a copy of every necessary document filed with the
Registrar.

25. Expenses of Disciplinary Committee and of Society

(1) The expenses incurred by

(a) a Disciplinary Committee; and

(b)the Society, in connection with proceedings before a Disciplinary
Committee and any appeal under section 13,

may be paid to the Society out of general revenue upon a certificate issued by the
Attorney General.

(2) The Attorney General shall only issue a certificate under subsection (1) if he
is satisfied that

(a)the expenses were necessarily incurred by the Disciplinary
Committee or the Society, as the case may be, in exercise of the
powers or duties conferred or imposed by this Ordinance;

(b) the amount of such expenses is reasonable; and

(c)the expenses could not reasonably be recovered from the person
whose conduct is the subject of the proceedings before the
Disciplinary Committee or the Court of Appeal, as the case may be.
(Amended92of1975s.59;46 of 1989s.6)

(3) In this section, 'expenses' includes witnesses' expenses and fees, counsel's
fees, solicitor's fees, auditor's fees and other charges and disbursements.

26. Statutory provisions to prevail over Society's articles

In the case of any inconsistency between the provisions of this Ordinance and
the Memorandum and Articles of Association of the Society the provisions of this
Ordinance shall prevail.

26AA. Abolition of enrolled student status

(1) A person who immediately before the commencement of the Legal
Practitioners (Amendment) Ordinance 1981 (1 of 198 1) was an enrolled
student under Part 11 of the Articled Clerks Rules (Cap. 159 sub. leg.) shall cease
to be an enrolled student for all purposes and his enrolment shall be of no effect on
the commencement of the Legal Practitioners (Amendment) Ordinance 1981 (1 of
1981).





(2) Any rights or privileges of an enrolled student subsisting immediately
before the commencement of the Legal Practitioners (Amendment) Ordinance
1981 (1 of 1981) shall cease to have effect on the commencement of that
Ordinance.
(Replaced 1 of 1981 s. 4)

PART IIA

CONTROL OF SOLICITOR'S PROPERTY IN CERTAIN CASES

26A. Power of Council to deal with
property of certain solicitors

(1) If the Council has reasonable cause to believe that a solicitor, or any
solicitor's employee or articled clerk, has been guilty of dishonesty in
connection with that solicitor's practice as a solicitor or in connection with any
trust of which that solicitor is a trustee, the provisions of Schedule 2, except
paragraph 7 thereof, and, if the Council is satisfied that the solicitor, employee
or articled clerk has been guilty as aforesaid, the said paragraph 7, shall apply
in relation to that solicitor.
(2) Where the name of the solicitor is removed from or struck off the roll
or a solicitor is suspended from practice, that solicitor shall within 21 days from
the material date satisfy the Council that he has made suitable arrangements for
making available to his clients or to some other solicitor or solicitors instructed
by his clients or by himself-
(a)all deeds, wills, documents constituting or evidencing title to any
property, papers, books of accounts, records, vouchers and other
documents in his or his firm's possession or control, or relating to
any trust of which he is the sole trustee or co-trustee only with
one or more of his partners, clerks or servants; and
(b)all sums of money due from him or his firm to, or held by him or
his firm on behalf of, his clients or subject to any such trust as
aforesaid,
and if he fails so to satisfy the Council, Schedule 2 shall apply in relation to
him.
(3) In subsection (2), the expression 'the material date' means whichever
is the latest of the following dates, that is to say-
(a)the date when the order of the Disciplinary Committee or of the
court by or in pursuance of which the solicitor's name is removed
from or struck off the roll, or the solicitor is suspended from
practice, is to take effect;
(b) the last date on which an appeal against that order may be lodged;
(c) the date on which any such appeal is dismissed or abandoned.





(4) In this section and in Schedule 2, the expressions 'trust' and -trusteeshall
extend to implied and constructive trusts and to cases where the trustee has a
beneficial interest in the trust property and to the duties incident to the office of a
personal representative and trustee, where the context includes a personal
representat(Added25of1968s.7. Amended52 of 1980s. 2; 46of 1989s. 7) [cf.
1957 c. 27 s. 31 U.K.]

26B. Solicitors guilty of undue delay in certain matters

(1) Where-

(a)a complaint is made to the Council that there has been undue delay
on the part of a solicitor in connection with any matter in which he or
his firm has been instructed on behalf of a client or any matter which
relates to the administration of a trust of which that solicitor is the
sole trustee or co-trustee only with one or more of his partners,
employees or articled clerks; and

(b)the Council has by notice in writing invited the solicitor to give an
explanation in respect of that matter; and

(c)the solicitor has, within a period of not less than 8 days specified in
the said notice, failed to give an explanation in respect of that matter
which the Council regards as sufficient and satisfactory; and

(d)the solicitor has been notified in writing by the Council that he has so
failed,

the provisions of Schedule 2, other than paragraphs 7 and 8 thereof, shall apply in
relation to that solicitor, but as regards the documents specified in paragraph 1, and
the sums of money specified in paragraph 10, of Schedule 2, only in so far as they
relate to the matter complained of.

Provided that for the purposes of the proviso to paragraph 6 of Schedule 2, the
Council may take copies of, or extracts from, documents which relate to the matter
complained of or to that matter and to other matters in the solicitor's practice.
(Amended52 of1980s. 2;46of 1989s. 7)

(2) In this section the expressions 'trust' and 'trustee' have the same
meanings as in section 26A.

(Added 25 of 1968 s. 7)
[cf. 1965 c. 31 s. 11
U.K.]
26C.Control of deceased solicitor's practice
in certain circumstances

(1) Where-

(a)the Council has reasonable cause to believe that the representatives
of a deceased solicitor who immediately before his





death was practising as a solicitor in his own name, or as a sole
solicitor under a firm name, have been guilty of dishonesty or undue
delay in administering the affairs of that solicitor's practice or in
connection with any trust of which that solicitor was the sole trustee
or co-trustee only with one or more of his clerks or servants; or
(Amended52 of 1980 s. 2)

(b)a solicitor dies and immediately before his death the provisions of
Schedule 2 applied to him,

the provisions of Schedule 2, other than paragraph 7 thereof, shall apply in relation
to such personal representatives and shall continue to apply to the personal
representatives of the solicitor last mentioned as they apply or applied, as the case
may be, in relation to the solicitor referred to in those provisions and as if the words
'the personal representatives' were, with the necessary adaptations, substituted for
the words 'the solicitor' wherever these words occur in those provisions.
(Amended 46 of 1989 s. 7)

(2) In this section the expressions 'trust' and 'trustee' have the same
meanings as in section 26A.

(Added 25 of 1968 s. 7)
[cf. 1965 c. 31 s. 13
U.K.]

26D. On death of solicitor practising on his own account
Council to deal with banking accounts of practice

On the death of a solicitor who immediately before his death was practising as a
solicitor in his own name or as a sole solicitor in a firm name the right to operate on
or otherwise deal with any banking account in the name of the solicitor or his firm,
being an account in the title of which the word 'client' appears, shall,
notwithstanding anything in this Ordinance or otherwise to the contrary, vest in the
Council to the exclusion of any personal representatives of such solicitor and shall
be exercisable as from the death of the solicitor.

(Added25of1968s.7.Amended52 of 1980s.2)
[cf. 1965 c. 31 s. 14
U.K.]

PART III

BARRISTERS

27. Power of Court to admit barristers

(1) The Court may, in such manner as may be prescribed by the Chief Justice,
admit as a barrister of the Supreme Court in Hong Kong, any person who satisfies
the following requirements, that is to say





(a) (i) he has been called to the Bar in England or Northern
Ireland; or

(ii) he has been admitted as an advocate in Scotland; or

(iii)he is a Bachelor of Laws of the University of Hong Kong and has
obtained the Postgraduate Certificate in Laws awarded by that
University; or

(iv) he has obtained the Postgraduate Certificate in Laws awarded by
the University of Hong Kong and he is a Hong Kong permanent
resident within the meaning of the Immigration Ordinance (Cap.
115), or is a Commonwealth citizen or citizen of the Republic of
Ireland who has been ordinarily resident in Hong Kong for a
period of at least 7 years; (Replaced 32 of 1972s. 2. Amended
58of1976s.7,14 of 1981 s. 2; 31 of 1987 s. 28)

(b)he is not at the time of the application disbarred or removed from the
roll of advocates in Scotland or suspended from practice as such
barrister or advocate;

(e)he is not in practice as a solicitor either on his own account or as a
partner or salaried employee in a legal firm in any country where a
qualified person is able to practise both as a barrister and solicitor at
the same time and does not intend whilst enrolled as a barrister in
Hong Kong to practise as a solicitor either on his own account or as a
partner or salaried employee in a legal firm in any such country;
(Amended50 of 1982 s. 8)

(d) (Repealed 58 of 1976 s. 7)

(e)he has been ordinarily resident in Hong Kong for a period of at least 8
consecutive months immediately prior to the date of his application for
admission or satisfies the Court that he intends to be ordinarily
resident in Hong Kong. (Amended50 of 1982 s.8)

(IA) In addition to the requirements under subsection (1)(a)(i) or (ii), a person
must also

(a)have practised as a barrister or advocate in the United Kingdom for at
least 3 years;

(b)be a Hong Kong permanent resident as defined in the Immigration
Ordinance (Cap. 115); or

(e)have been ordinarily resident in Hong Kong for at least 7 years.
(Added46 of 1989 s. 8)

(2) The Court may admit a person as a barrister under this section

(a) (Repealed 58 of 1976 s. 7)

(b)either generally or for the purpose of any particular case or cases and
may impose on a person so admitted restrictions and conditions as the
Court may see fit, notwithstanding that such





person does not satisfy the requirements of subsection (1)(e) and
subsection(1A). (Amended46of1989s.8)

(3) The Court may, when admitting a person as a barrister, sit in chambers.
(Added58of 1976s. 7)

(4) In this section-

'Commonwealth citizen' means a person who is recognized by the law of a

Commonwealth country as being a citizen of that country;

'Commonwealth country' means a country that is an independent sovereign

member of the Commonwealth. (Added 14 of 1981 s. 2)

(Replaced 25 of 1968 s. 8)

27A. Additional power of Court to admit barristers

(1) In addition to the powers conferred on it by section 27, but subject to
subsection (2), the Court may, after the Chief Justice has consulted the Attorney
General and the Bar Committee, admit a person as a barrister of the Supreme Court of
Hong Kong, in such manner as may be prescribed by the Chief Justice, if the Court
is satisfied that he

(a)has been admitted as a barrister in a jurisdiction listed in Schedule 1 or
if there is no admission of barristers in such jurisdiction, as a legal
practitioner in that jurisdiction;

(b) has experience in advocacy;

(c)has been employed for at least 7 years in the Legal Department of the
Government as a legal officer within the meaning of the Legal Officers
Ordinance (Cap. 87);

(d) has been so employed-

(i) for a period of at least 3 years; and

(ii) either immediately or recently before the date of his application
for admission,

on work similar to that usually undertaken in the course of his
practice by a barrister in Hong Kong of 10 years seniority; and

(e)intends, if admitted, to practise as a barrister in Hong Kong within 12
months after his admission.

(2) The Court shall not admit as barristers, under subsection (1), more than 4
persons in any period of 12 months.

(Added46 of 1989 s. 9)

28. Formalities for admission of a barrister

Save as may be prescribed by the Chief Justice, no person shall be admitted as
a barrister unless he has deposited with the Registrar his certificate of call to the Bar
in England or Northern Ireland, his certificate of admission as an advocate in
Scotland or his Postgraduate Certificate in Laws awarded by the





University of Hong Kong, as the case may be, and has filed in the Court an affidavit
of identity in such form as may be prescribed by the Chief Justice together with an
affidavit showing the manner in which he satisfies the requirements set out in
section 27(1).

(Amended 25 of 1968 s. 9; 58 of 1976 s. 8)

29. Roll of barristers

(1) The Registrar shall keep a roll of all barristers admitted by the Court under
section 27 and shall have custody of the roll of barristers and of all documents
relating thereto and shall allow any person to inspect the roll of barristers during
office hours without payment.

(2) The Registrar, upon production of a certificate of admission signed by the
Chief Justice and upon payment to the Registrar of such fee as may be prescribed by
the Chief Justice, shall enter upon the roll of barristers the name of the person
enrolled.

(3) The Chief Justice may, if he thinks fit, at any time order the Registrar to
replace on the roll of barristers the name of a barrister whose name has been
removed or struck off the roll of barristers.

30. Practising certificates-barristers

(1) The Registrar, upon application in writing by a barrister in the month of
November in a year and upon payment of such fee as may be prescribed by the
Chief Justice and upon being satisfied in such manner as may be prescribed by the
Chief Justice that the person to whom the application relates is qualified to practise
as a barrister or is qualified to practise to a limited extent under section 31(2), shall
issue to the applicant a practising certificate as a barrister in such form as may be
prescribed by the Chief Justice for the period of one calendar year from 1 January
next following the date of the application: (Amended 25 of 1968 s. 10; 58 of 1976 s. 9)

Provided that

(a)the Registrar, in his absolute discretion and upon such condition as
he may consider necessary, may permit the application for a
practising certificate to be made under this subsection at any time
and upon such application may issue to the applicant a practising
certificate for any period not exceeding one calendar year and ending
on 31 December in any year; and

(b)where the name of a barrister is removed from or struck off the roll of
barristers, the practising certificate of that barrister shall
automatically determine without any entitlement to any refund of the
prescribed fee or of any part thereof.





(2) The publication in the Gazette by the Registrar of a list of the names and
addresses of those barristers who have obtained practising certificates for the
period therein stated shall be prima facie evidence that each person named therein is
a person qualified under section 31 to practise as a barrister and to whom a
practising certificate for the period specified in such list has been issued under this
section and the absence from any such list of the name of any person shall be prima
facie evidence that such person is not so qualified.

31. Qualifications for practising as barrister

(1) A barrister shall not be qualified to practise as such

(a)subject to subsection (2), unless he has completed the prescribed
qualifying period of active practice;

(b) unless he holds a valid practising certificate;

(c)having qualified for admission as a barrister by virtue of section
27(1)(a)(i) or (ii), unless he continues to be a barrister in England or
Northern Ireland or an advocate in Scotland and is not there
suspended from practice as such;

(d) if he is suspended from practice under section 32 or 37;

(e)if he is a solicitor on his own account or a partner or a salaried
employee of a firm of lawyers in a country where a person is able to
practise both as a barrister and as a solicitor at the same time.

(2) After the expiry of the first 6 months of the prescribed qualifying period of
active practice, a barrister shall be qualified to practise as a barrister to such limited
extent as the Bar Committee may determine.

(Replaced 58 of 1976 s. 10)

32. Power of Court to strike of or suspend barrister

(1) The Court shall have power on reasonable cause being shown to remove
from or strike off the roll of barristers or to suspend from practice any barrister who
has been guilty of such misconduct as to make him unfit to practise, whereupon the
Registrar shall enter a note of the Court order on the roll of barristers in connection
with the name of the barrister and where the order so directs, shall remove or strike
off the name. (Amended 46 of 1989 S.10)

(2) Without affecting the generality of subsection (1), where a person admitted
as a barrister under section 27A does not commence practice as a barrister in Hong
Kong within 12 months after his admission, it shall be a cause for removal of his
name from the roll of barristers under this section. (Added 46 of 1989 s. 10)





33. Bar Committee-general right of audience

The Bar Committee shall have a general right of audience, by any member of the
Bar Committee appointed for that purpose by the Bar Committee or by any other
counsel

(a) before a Committee of Inquiry; and

(b) before the Court on the hearing of

(i)any application to the Court for admission and enrolment as a
barrister; and

(ii) any proceedings in the Court relating to, affecting or touching
any matter affecting the qualification or examination of a person
seeking to be a barrister or the removal from or restoration to the
roll of barristers or suspension from practice of barristers or
affecting the privileges, restrictions or offences in connection
with the professional practice, conduct and discipline of a
barrister,

and in any such case, whether the Bar Committee has or is seeking audience or not,
the Bar Committee shall be served with a copy of every necessary document filed
with the Registrar.

34. Establishment of Committee of Inquiry

(1) Without derogating from the right of the Court to act on its own motion
under section 32, the Chief Justice, upon application being made in writing by the
Attorney General or by the Bar Committee, may appoint a Committee of Inquiry to
exercise the function set out in section 35.

(2) A Committee of Inquiry shall consist of

(a)one of Her Majesty's Counsel for Hong Kong, being a practising
barrister, unless the Chief Justice is of the opinion that in the
circumstances of the case such an appointment is impracticable or
inadvisable; and

(b)not less than 2 nor more than 4, or in the event of no appointment
being made under paragraph (a) not less than 3 nor more than 5,
practising barristers of not less than 5 years standing.

(3) The Chairman of a Committee of Inquiry shall be appointed by the Chief
Justice.

(4) A Committee of Inquiry shall sit in camera in such place and at such time as
the Committee of Inquiry may direct.

35. Function of Committee of Inquiry

(1) A Committee of Inquiry shall inquire into any complaint against a barrister
laid before it by the Attorney General or by the Bar Committee and shall





(a)submit its findings in the form of a report to the Registrar, which
report shall include its findings of fact and law and shall be open
to the inspection of the barrister concemed, of his counsel and
solicitor and of the Attorney General and of the Bar Committee
when the complaint is laid by it, but shall not be open to public
inspection; and
(b)where it is the opinion of the Committee of Inquiry that a prima
facie case of misconduct has been made out, in addition to
submitting its report to the Registrar, forward a signed copy of
such report to the Chief Justice, together with a transcript of the
evidence taken and copies of the documents put in evidence at the
hearing.
(2) The laying of a complaint before a Committee of Inquiry shall be in
the discretion of the Attorney General or of the Bar Committee, as the case
may be:
Provided that where a judge refers any complaint to the Attorney General
or to the Bar Committee, the same shall be laid before a Committee of Inquiry.

36. Powers of Committee of Inquiry

(1) For the purpose of conducting any such inquiry or investigation, a
Committee of Inquiry shall have all such powers as are vested in the Court or in
any judge in the course of any action or suit in respect of the following matters-
(a)enforcing the attendance of witnesses and examining them upon
oath or otherwise;
(b) compelling the production of documents;
(c) punishing persons guilty of contempt;
(d) ordering an inspection of any property;
(e) conducting every examination of witnesses; and
(j)adjourning any meeting from time to time and from one place to
another,
and a summons under the hand of the Chairman of a Committee of Inquiry
may be substituted for and shall be equivalent to any form of process capable of
being issued in any action or suit for compelling the attendance of witnesses or
the production of documents and any warrant of committal to prison issued for
the purpose of enforcing any such powers as aforesaid shall be under the hand
of such Chairman and shall not authorize the imprisonment of any offender for
a period exceeding 1 month.
(2) The Commissioner of Police and all police officers, officers of the
court, gaolers and bailiffs of the court are required to give their utmost
assistance to every Committee of Inquiry and to every chairman thereof, in the
enforcement of documents, warrants and orders issued in accordance with
subsection (1) or otherwise.





(3) Every member of a Committee of Inquiry shall have the like protection and
privileges, in relation to any action or suit brought against him for any act done or
omitted to be done in the execution of his duties as such member, as is given by any
law to a magistrate acting in the execution of his office.

(4) All proceedings of a Committee of Inquiry and every report made in
accordance with the provisions of section 35 shall be privileged.

37. Powers of the Court of Appeal

(1) Where a report is forwarded to the Chief Justice under section 35(1)(b) the
Chief Justice shall cause the matter to be set down for hearing before the Court of
Appeal and the Registrar shall give not less than 14 days' notice of the date of such
hearing to the barrister concerned, to the Attorney General and to the Bar Committee
and at the same time shall forward to each a copy of the report of the Committee of
Inquiry.

(2) At a hearing set down under subsection (1)-

(a)the Bar Committee shall be the Applicant and shall move the Court of
Appeal to take disciplinary action against the barrister concemed upon
the findings of fact and law of the Committee of Inquiry;

(b)counsel may appear on behalf of the barrister concerned and the Bar
Committee may be represented by counsel or by the Attorney General.

(3) The Court of Appeal shall at such hearing consider the report of the
Committee of Inquiry and such submissions upon the findings of fact and law of the
Committee of Inquiry as may be made on behalf of the Bar Committee and the
barrister concemed and may call for the original record of the evidence taken and any
document put in evidence before the Committee of Inquiry.

(4) The Court of Appeal may, upon special grounds being shown, consider any
additional evidence not adduced before the Committee of Inquiry.

(5) Every hearing under this section shall be in camera unless, and to the extent
to which, the Court of Appeal may otherwise direct.

(6) On completion of the hearing the Court of Appeal may

(a) censure the barrister; or

(b) suspend him from practising for such period as it may specify; or

(e) order that his name be struck off the roll of barristers; or

(d) make such other order as the Court of Appeal may think fit.

(7) Any order made under subsection (6) shall be published in the Gazette
unless the Court of Appeal shall otherwise direct, and may be published in such
manner as the Court of Appeal may direct.

(Amended 92 of 1975 s. 59)

38. Variation of order of the Court of Appeal

(1) Without derogating from the power of the Chief Justice under section 29(3)
to order the replacement on the roll of the name of a barrister who





has been struck off the same, and subject to the provisions of subsection (2), any
barrister who has been suspended from practising or whose name has been struck
off the roll may apply to the Court of Appeal for an order to vary or discharge the
order suspending him or striking his name off the roll.

(2) No application shall be made under subsection (1)-

(a)in the case of an order of suspension, until the expiration of 2 years
from the date of such order or of half the period of suspension,
whichever is the less; or

(b)in the case of an order striking the name of the barrister off the roll,
until the expiration of 2 years from the date of such order,

and in either case where such an application has been made and determined, no
further application shall be made until the expiration of 2 years from the date of such
determination:

Provided that the barrister may at any time apply to a judge in chambers for
permission to make such application on the grounds that new material facts have
come to light since the making of the order which it is sought to vary or discharge,
and where the judge is of the opinion that such facts should be placed before the
Court of Appeal, he shall grant such application.

(3) At the hearing of the application the Court of Appeal may

(a) reduce the period of suspension; or

(b)discharge the order of suspension or the order striking the name of
the barrister off the roll, as the case may be; or

(c) confirm the original order; and

(d) make such order as to costs as it shall see fit.

(Amended 92 of 1975 s. 59)

39. Expenses of Committee of Inquiry

and of Bar Committee

(1) The expenses incurred by-

(a) a Committee of Inquiry; and

(b)the Bar Committee, in connection with proceedings before a
Committee of Inquiry and any proceedings under section 37,

may be paid to the Bar Committee out of general revenue upon a certificate issued
by the Attorney General.

(2) The Attorney General shall only issue a certificate under subsection (1) if he
is satisfied that

(a)the expenses were necessarily incurred by the Committee of Inquiry or
the Bar Committee, as the case may be, in exercise of the powers or
duties conferred or imposed by this Ordinance;

(b) the amount of such expenses is reasonable; and

(c)the expenses could not reasonably be recovered from the barrister
whose conduct is the subject of the proceedings before the Committee
of Inquiry or the Court of Appeal, as the case may be.





(3) In this section, 'expenses' includes witnesses' expenses and fees, counsel's
fees, solicitor's fees, auditor's fees and other charges and disbursements.

PARTIV

NOTARIES PUBLIC

40. Registration of notaries public

The Registrar shall register every notary public who, to the satisfaction of the
Registrar, produces to the Registrar his notarial faculty and who files in the Court an
affidavit of identity in such form and pays such enrolment fee as may be prescribed
by the Chief Justice.

41. Register of notaries public

The Registrar shall keep a register of notaries public registered by him under
section 40 and shall have custody of the register of notaries public and of all
documents relating thereto and shall allow any person to inspect the register of
notaries public during office hours without payment.

42. Power of Court to strike off or suspend a notary public

(1) The Court, upon reasonable cause being shown, may remove from or strike
off the register of notaries public or suspend from practice any notary public.

(2) Upon the making of any order by the Court under subsection (1) the
Registrar shall enter a note of the order on the register of notaries public in
connection with the name of the notary public and, where the order so directs, shall
remove or strike off the name.

43. Restoration of name of notary public

The Chief Justice may, if he thinks fit, at any time order the Registrar to replace
on the register of notaries public the name of a notary public whose name has been
removed or struck off therefrom.

PART V

PRIVILEGES, RESTRICTIONS AND OFFENCES
IN CONNECTION WITH PRACTICE

44. Penalty for unlawfully practising

as a barrister or notary public

Any person who





(a)not being a qualified barrister, either directly or indirectly, practises
or acts as a barrister;

(b)not being a qualified notary public, either directly or indirectly,
practises or acts as a notary public,

shall be guilty of an offence and shall be liable on summary conviction to a fine of
$10,000. (Amended 46 of 1989 s. 11)

45. Unqualified person not to act as solicitor

(1) A person who, by virtue of section 7, is not qualified to act as a solicitor shall
not act as a solicitor, or as such sue out any writ or process, or commence, carry on
or defend any action, suit or other proceeding, in the name of any other person or in
his own name, in any court of civil or criminal jurisdiction or act as a solicitor in any
cause or matter, civil or criminal, to be heard or determined before any court,
magistrate or justice. (Amended 46 of 1989s.12)

(2) Any person who contravenes the provisions of this section shall

(a)be guilty of contempt of the court in which the action, suit, cause,
matter or proceeding in relation to which he so acts is brought or
taken and may be punished accordingly;

(b)be incapable of maintaining any action for any costs in respect of
anything done by him in the course of so acting;

(c)be guilty of an offence and shall be liable on summary conviction to a
fine of $10,000 and to imprisonment for 2 years; and (Amended 46of
1989 s. 11)

(d)in addition to any other penalty or forfeiture and any disability to
which he may be subject, be liable for each such offence to a penalty
of $25,000 to be recovered, with full costs of action, by action brought
in the Court, by the Society with the sanction of the Attorney
General. (Amended 46of 1989 s.13)

(3) Any penalty recovered under this section shall be deemed to be a penalty
due to the Crown and shall be paid into the general revenue of Hong Kong.
(Amended50 of 1982 s. 8)

[cf. 1957 c. 27 s. 18
U.K.]

46. Penalty for pretending to he a, solicitor

Any unqualified person who wilfully pretends to be, or takes or uses any name,
title, addition or description implying that he is qualified or recognized by law as
qualified to act as, a solicitor shall be guilty of an offence and shall be liable on
summary conviction to a fine of $10,000. (Amended 46of 1989 s.]])

[cf. 1957 c. 27 s. 19
U.K.]





47. Unqualified person not to prepare

certain instruments, etc.

(1) Any unqualified person, not being a barrister or a notary public, who, unless
he proves that the act was not done for or in expectation of any fee, gain or reward,
either directly or indirectly

(a)draws or prepares any instrument relating to movable or immovable
property or to any legal proceeding; or

(b)draws or prepares any memorial or other document for the purposes
of the Land Registration Ordinance (Cap. 128), or the New Territories
Ordinance (Cap. 97) or makes any application or lodges any
testimony for registration under either of those Ordinances at the
Land Office or at any District Land Office,

shall be guilty of an offence and shall be liable on summary conviction to a fine of
$50,000. (Amended 46 of 1989 s. 14)

(2) This section shall not extend to

(a)any public officer drawing or preparing instruments in the course of
his duty; or

(b)any person employed merely to engross or copy any instrument or
proceeding.

(3) For the purposes of this section, instrument does not include

(a) a will or other testamentary instrument; or

(b) an agreement under hand only; or

(c) a letter of power of attorney; or

(d) a transfer of stock containing no trust or limitation thereof.

[cf. 1957 c. 27 s. 20 U.K.]

48. Unqualified person not to act in preparation

of papers for probate, etc.

Any unqualified person, not being a barrister or a notary public, who, either
directly or as an agent of any person, whether or not that other person is a solicitor,
barrister or notary public, takes instructions for or draws or prepares any paper on
which to found or oppose a grant of probate or of letters of administration shall,
unless he proves that the act was not done for or in expectation of any fee, gain or
reward, be guilty of an offence and, without prejudice to any other liability or
disability to which he may be subject under this Ordinance or any other enactment,
shall be liable on summary conviction to a fine of $50,000: (Amended 46of 1989 s.14)

Provided that this section shall not apply to any public officer drawing or
preparing any such papers in the course of his duty.

[cf. 1957 c. 27 s. 21 U.K.]





49. Solicitor not to act as agent for unqualified person

(1) No solicitor shall wilfully and knowingly

(a)act as agent in any action or in any matter in bankruptcy for any
unqualified person; or

(b)permit his name to be made use of in any such action or matter upon
the account or for the profit of any unqualified person; or

(c) send any process to any unqualified person; or

(d)do any other act enabling any unqualified person to appear, act or
practise in any respect as a solicitor in any such action or matter.

(2) Where it appears to a Disciplinary Committee or to the Court that a solicitor
has acted in contravention of this section, the Disciplinary Committee or the Court
shall order his name to be struck off the roll of solicitors.

(3) Where the Court orders the name of a solicitor to be struck off the roll in
respect of an offence under this section, it may further order that the unqualified
person who was enabled by the conduct of the offender to act or practise as a
solicitor shall be imprisoned for any period not exceeding 1 year.

[cf. 1957 c. 27 s. 34 U.K.]

50. No costs for unqualified person

No costs in respect of anything done by an unqualified person acting as a
solicitor shall be recoverable in any action, suit or matter by any person
whomsoever.

[cf. 1957 c. 27 s. 23 U.K.]

51A. Recovery of moneys in certain cases

Nothing in section 45(2)(b) or in section 50 shall prevent the recovery of
moneys paid or to be paid by a solicitor on behalf of a client in respect of anything
done by the solicitor while acting for the client without holding a practising
certificate in force provided that such moneys would have been recoverable if that
solicitor had held such a certificate in force when so acting.

(Added 25 of 1968 s. 12)

[cf. 1965 c. 31 s. 7 U.K.]

51. Application of penal provisions to body corporate

(1) If any act is done by a body corporate, or by any director, officer or servant
thereof, of such a nature or in such a manner as to be calculated to imply that the
body corporate is qualified or recognized by law as qualified to act as a solicitor, the
body corporate shall be guilty of an offence and shall be





liable on summary conviction to a fine of $25,000, and, in the case of an act done by
a director, officer or servant of the body corporate, such person shall also be guilty
of an offence and shall be liable on summary conviction to a fine of $10,000.
(Amended 46 of 1989ss.11&13)

(2) For the avoidance of doubt, it is hereby declared that in sections 45, 46, 47,
48, 49 and 50, references to unqualified persons and to persons include references to
a body corporate.

[cf. 1957 c. 27 s. 22 U.K.]

52. Solicitors not to commence or defend

actions while in prison

(1) No solicitor whilst a prisoner in any prison shall as a solicitor, in his own
name or in the name of any other solicitor, sue out any writ or process, or commence,
prosecute or defend any action or any matter in bankruptcy.

(2) Any solicitor commencing, prosecuting or defending any such action or
matter in contravention of this section shall be incapable of maintaining any action
for the recovery of any costs in respect of any business done by him whilst so
confined as aforesaid, and he and any solicitor permitting him to commence,
prosecute or defend any such action or matter in his name shall be guilty of
contempt of the court in which such action or matter was commenced or prosecuted
and may be punished accordingly.

[cf. 1957 c. 27 s. 35 U.K.]

53. Employment by solicitor of persons

struck off or suspended

(1) No solicitor shall, in connection with his practice as a solicitor, without the
written permission of the Society which may be given for such period and subject to
such conditions as the Society thinks fit, employ or remunerate any person who, to
his knowledge, is disqualified from practising as a solicitor by reason of the fact that
his name has been struck off the roll of solicitors or is suspended from practising as a
solicitor or whose practising certificate has been determined by virtue of section 6(7)
in consequence of a receiving order in bankruptcy being in force against him.
(Amended 25 of 1968s.13)

(2) No solicitor shall in connection with his practice as a solicitor employ or
remunerate any person who, to his knowledge, is the subject of an order made by a
Disciplinary Committee under section 10(2)(g) whereby the employment of such
person by any solicitor is prohibited, while such order is in force.

(3) No solicitor shall, in connection with his practice as a solicitor, without
written permission of the Society, which may be given for such period





and subject to such conditions as the Society may think fit, employ or remunerate
any person, who, to his knowledge, has been convicted of a criminal offence
involving dishonesty. (Replaced 25 of 1968 s. 13)

(4) A solicitor aggrieved by the refusal of the Society to grant any such
permission as aforesaid, or by any conditions attached by the Society to the grant
thereof, may appeal to the Chief Justice, in such manner as may be prescribed by the
Chief Justice, and on any such appeal the Chief Justice may confirm the refusal or
the conditions, as the case may be, or may, in lieu of the Society, grant such
permission for such period and subject to such conditions as he thinks fit.

(5) If any solicitor acts in contravention of the provisions of this section or of
the conditions subject to which any permission has been given thereunder, his name
shall be struck off the roll or he shall be suspended from practice for such period as a
Disciplinary Committee or as the Court may think fit.

(6) Any person who, while there is in force in respect of him an order made
under section 10(2)(g) prohibiting his employment by any solicitor, seeks or accepts
any employment by or remuneration from a solicitor in connection with his practice
as a solicitor without previously informing the solicitor of that order shall be guilty
of an offence and shall be liable on summary conviction to a fine of $25,000.
(Amended 46 of 1989 s. 13)

[cf. 1957 c. 27 ss. 36 38 U.K.]

54. Penalty on failure to disclose fact

of having been struck off, etc.

(1) Any person who, whilst he is disqualified from practising as a solicitor by
reason of the fact that he has been struck off the roll or is suspended from practising
as a solicitor, seeks or accepts employment by a solicitor in connection with that
solicitor's practice without previously informing him that he is so disqualified shall
be guilty of an offence and shall be liable on summary conviction to a fine of
$10,000. (Amended 46of 1989 s.]])

(2) No proceedings under this section shall be commenced except by or with
the consent of the Attorney General.

[cf. 1957 c. 27 s. 37 U.K.]

55. Time limit for commencement of certain proceedings

Notwithstanding anything in the Magistrates Ordinance (Cap. 227),
proceedings in respect of any offence against section 46, 47, 48 or 54 may be
brought at any time within 2 years next after the commission of the offence or within
6 months after the first discovery thereof by the prosecutor, whichever period
expires first.

[cf. 1957 c. 27 s. 24 U.K.]





PART VI
REMUNERATION OF SOLICITORS
Non-contentious Business

56. Agreement for remuneration for
non-contentious business
(1) Whether or not any rules made under section 74 are in force, a
solicitor and his client may, either before or after or in the course of the
transaction of any non-contentious business by the solicitor, make an
agreement as to the remuneration of the solicitor in respect thereof.
(2) The agreement may provide for the remuneration of the solicitor by a
gross sum, or by commission or percentage or by salary, or otherwise, and it
may be made on the terms that the amount of the remuneration therein
stipulated for either shall or shall not include all or any disbursements made by
the solicitor in respect of searches, plans, travelling, stamps, fees or other
matters.
(3) The agreement shall be in writing and signed by the person to be
bound thereby or his agent in that behalf.
(4) The agreement may be sued and recovered on or set aside in the
like manner and on the like grounds as an agreement not relating to the
remuneration of a solicitor:
Provided that if on any taxation of costs the agreement is relied on by the
solicitor and objected to by the client as unfair or unreasonable, the taxing
officer may inquire into the facts and certify them to the Court, and if on that
certificate it appears just to the Court that the agreement should be cancelled,
or the amount payable thereunder reduced, the Court may order the agreement
to be cancelled, or the amount payable thereunder to be reduced, and may give
such consequential directions as it thinks fit.
[cf. 1957 c. 27 s. 57 U.K.]

57. Remuneration of a solicitor who is a mortgagee
(1) If a mortgage is made to a solicitor, either alone or jointly with any
other person, he, or the firm of which he is a member, shall be entitled to
recover from the mortgagor in respect of all business transacted and acts done
by him or them in negotiating the loan, deducing and investigating the title to
the property, and preparing and completing the mortgage, such usual costs as
he or they would have been entitled to receive if the mortgage had been made to
a person who was not a solicitor and that person had retained and employed
him or them to transact that business and do those acts.





(2) If, whether before or after the commencement of this Ordinance, a mortage
has been made to, or has become vested by transfer or transmission in, a solicitor,
either alone or jointly with any other person, and if any business is transacted or
acts done by that solicitor, or by the firm of which he is a member, in relation to that
mortgage, or the security thereby created or the property comprised thereunder,
then he or they shall be entitled to recover from the person on whose behalf the
business was transacted or the acts were done, and to charge against the security,
such usual costs as he or they would have been entitled to receive if the mortgage
had been made to and had remained vested in a person who was not a solicitor and
that person had retained and employed him or them to transact that business and do
those acts.

(3) In this section, 'mortgage' includes any charge on any property for
securing money or money's worth.

[cf. 1957 c. 27 s. 58 U.K.]

Contentious Business

58. Power to make agreements

A solicitor may make with his client an agreement in writing as to his
remuneration, in respect of any contentious business done or to be done by the
solicitor for the client, which provides that the solicitor shall be remunerated either
by a gross sum or by salary, or otherwise, and at either a greater or a less rate than
that at which he would otherwise have been entitled to be remunerated.

[cf. 1957 c. 27 s. 59 U.K.]

59. Miscellaneous provisions

(1) An agreement such as is referred to in section 58

(a)shall not affect the amount of, or any rights or remedies for the
recovery of, any costs payable by the client to, or to the client by,
any person other than the solicitor, and that person may, unless he
has otherwise agreed, require any such costs to be taxed according
to the rules for the time being in force for the taxation thereof.

Provided that the client shall not be entitled to recover from any
other person under any order for the payment of any costs to which
the agreement relates more than the amount payable by him to his
solicitor in respect thereof under the agreement;

(b)shall be deemed to exclude any claim by the solicitor in respect of the
business to which it relates other than

(i) a claim for the agreed costs; or
(ii) a claim for such costs as are expressly excepted therefrom.





(2) A provision in any such agreement that the solicitor shall not be liable
for negligence, or that he shall be relieved from any responsibility to which he
would otherwise be subject as a solicitor, shall be void.
[cf. 1957 c. 27 s. 60 U.K.]

60. Enforcement of agreements in respect
of contentious business

(1) No action shall be brought upon any such agreement as is referred to
in section 58, but the court may, on the application of any person who is a party
to, or the representative of a party to, the agreement, or who is, or who is
alleged to be, liable to pay. or who is or claims to be entitled to be paid, the
costs due or alleged to be due in respect of the business to which the agreement
relates, enforce or set aside the agreement and determine every question as to
the validity or effect thereof.
(2) On any such application the court-
(a)if it is of opinion that the agreement is in all respects fair and
reasonable, may enforce it;
(b)if it is of opinion that the agreement is in any respect unfair or
unreasonable, may declare it void and may order it to be given up
to be cancelled and may order the costs covered thereby to be
taxed as if the agreement had never been made;
(c)in any case, may make such order as to the costs of the
application as it may think fit.
(3) If the business covered by any such agreement is business done, or to
be done, in any action, the amount payable under the agreement shall not be
received by the solicitor until the agreement has been examined and allowed by
a taxing officer of the court, and, if the taxing officer is of opinion that the
agreement is unfair or unreasonable, he may require the opinion of the court to
be taken thereon and the court may reduce the amount payable thereunder, or
order the agreement to be cancelled and the costs covered thereby to be taxed as
if the agreement had never been made.
(4) When the amount agreed for under any such agreement has been paid
by or on behalf of the client or by any person entitled so to do, the person
making the payment may at any time within 12 months after payment apply to
the court and the court, if it appears to it that the special circumstances of the
case require the agreement to be reopened, may, on such terms as may be just,
reopen the agreement and may order the costs covered thereby to be taxed and
the whole or any part of the amount received by the solicitor to be repaid by
him.
(5) Where any such agreement is made by the client as the guardian or
committee of, or as a trustee under a deed or will for, any person whose
property will be chargeable with the whole or any part of the amount payable





under the agreement, the agreement shall, before payment, be laid before the
taxing officer of the court, and that officer shall examine the agreement and may
disallow any part thereof, or may require the opinion of the court to be taken
thereon.
(6) Any such client as is mentioned in subsection (5), who pays the whole
or any part of the amount payable under the agreement without the agreement
having been allowed by the taxing officer or by the court, shall be liable at any
time to account to the person whose property is charged with the whole or any
part of the amount so paid for the sum so charged, and the solicitor who
accepts the payment may be ordered by the court to refund the amount received
by him.
[cf. 1957 c. 27 s. 61 U.K.]

61. Death, incapability, or change of solicitor, etc.

(1) If, after some business has been done under an agreement made in
pursuance of the provisions of section 58 but before the solicitor has wholly
performed it, the solicitor dies or becomes incapable of acting, any party to, or
the representative of any party to, the agreement may apply to the court and
the court shall have the same jurisdiction as to enforcing the agreement so far as
it has been performed, or setting it aside, as it would have had if the solicitor
had not died or become incapable of acting:
Provided that the court may, notwithstanding that it is of opinion that the
agreement is in all respects fair and reasonable, order the amount due in respect
of the business done thereunder to be ascertained by taxation, and in that
case-
(a)the taxing officer, in ascertaining that amount, shall have regard
so far as may be to the terms of the agreement; and
(b)payment of the amount found by him to be due may be enforced
in the same manner as if the agreement had been completely
performed.
(2) The provisions of subsection (1) shall apply in the event of the client
changing his solicitor (as, notwithstanding the agreement, he shall be entitled to
do) before the conclusion of the business to which the agreement relates in the
same manner as they apply when the solicitor dies or is incapacitated, with this
modification, that if an order is made for the taxation of the amount due to the
solicitor in respect of the business done under the agreement the court shall
direct the taxing officer to have regard to the circumstances under which the
change of solicitor has taken place, and the taxing officer, unless he is of
opinion that there has been no default, negligence, improper delay or other
conduct on the part of the solicitor affording to the client reasonable ground for
changing his solicitor, shall not allow to the solicitor the full amount of the
remuneration agreed to be paid to him.





(3) In this section and in sections 60 and 63, 'court' means-
(a)in relation to an agreement under which any business has been
done in any court having jurisdiction to enforce and set aside
agreements, any such court in which any of that business has
been done;
(b)in relation to an agreement under which no business has been
done in any such court, and under which more than the sum
mentioned in section 32 of the District Court Ordinance (Cap.
336) is payable, the High Court; (Amended 35 of 1966 Schedule;
68 of 1973 s. 5; 79 of 1981 s. 3)
(c)in relation to an agreement under which no business has been
done in any such court, and under which not more than the sum
mentioned in section 32 of the District Court Ordinance (Cap.
336) is payable, the District Court. (Amended 35 of 1966
Schedule; 68 of 1973 s. 5; 79 of 1981 s. 3)
[cf. 1957 c. 27 s. 62 U.K.]

62. Agreement excludes taxation

Subject to the provisions of sections 59, 60 and 61, the costs of a solicitor
in any case where any agreement has been made in pursuance of the provisions
of section 58 shall not be subject to taxation, nor to the provisions of section 66
with respect to the signing and delivery of a solicitor's bill.
[cf. 1957 c. 27 s. 63 U.K.]

63. Form of bill of costs for contentious business

Where the remuneration of a solicitor in respect of contentious business
done by him is not the subject of such an agreement as is mentioned in section
58, the solicitor's bill of costs may at the option of the solicitor either contain
detailed items or be for a gross sum:
Provided that-
(a)at any time before service upon him of a writ or other originating
process for the recovery of costs included in a gross sum bill and
before the expiration of 3 months from the date of the delivery to
him of the bill, the party chargeable therewith may require the
solicitor to deliver to him in lieu thereof a bill containing detailed
items, and the gross sum bill shall thereupon be of no effect;
(b)where an action is commenced on a gross sum bill, the court
shall, if so requested by the party chargeable therewith before the
expiration of 1 month from the service on that party of the writ
or other originating process, order that the bill shall be taxed;





(c)if a gross sum bill is referred to taxation, whether under this section
or otherwise, nothing in this section shall prejudice any rules of court
with respect to taxation, and the solicitor shall furnish the taxing
officer with such details of any of the costs covered by the bill as the
taxing officer may require.

[cf. 1957 c. 27 s. 64 U.K.]

General Provisions regarding Remuneration

64. General prvisions as to remuneration

(1) Nothing in section 58, 59, 60, 61 or 62 shall give validity to

(a)any purchase by a solicitor of the interest, or any part of the interest,
of his client in any action, suit or other contentious proceeding; or

(b)any agreement by which a solicitor retained or employed to prosecute
any action, suit or other contentious proceeding stipulates for
payment only in the event of success in that action, suit or
proceeding; or

(c)any disposition, contract, settlement, conveyance, delivery, dealing
or transfer which is under the law relating to bankruptcy invalid
against a trustee or creditor in any bankruptcy or composition.

(2) A solicitor may take security from his client for his costs to be ascertained
by taxation or otherwise.

(3) Subject to the provisions of any rules of court, upon every taxation of costs
with respect to any contentious business, the taxing officer may

(a)allow interest at such rate and from such time as he thinks just on
moneys disbursed by the solicitor for the client, and on moneys of
the client in the hands of, and improperly retained by, the solicitor;

(b)in determining the remuneration of the solicitor, have regard to the
skill, labour and responsibility involved in the business done by him,
the general complexity of the matter and the amount or value of the
matter in issue.

[cf. 195 7 c. 27 s. 65 U.K.]

65. Power of Court to order delivery of bill, etc.

(1) The jurisdiction of the Court to make orders for the delivery by a solicitor of
a bill of costs and for the delivery up of, or otherwise in relation to, any deeds,
documents or papers in his possession, custody or power is hereby declared to
extend to cases in which no business has been done by him in the Court.





(2) If a mortgage has been made to, or has become vested by transfer or
transmission in, a solicitor, either alone or jointly with any other person, and any
business is transacted or acts are done by that solicitor, or by the firm of which he is
a member, in relation to that mortgage or the security thereby created or the property
comprised thereunder, then he or they shall be entitled to recover from the person
on whose behalf the business was transacted or the acts were done, and to charge
against the security, such usual costs as he or they would have been entitled to
receive if the mortgage had been made to and had remained vested in a person who
was not a solicitor and that person had retained and employed him or them to
transact that business and do those acts.

(3) In this section and in sections 66, 67 and 68, 'solicitor' includes the
executors, administrators and assignees of the solicitor in question.

[cf. 1957 c. 27 s. 67 U.K.]

66. Action to recover costs

(1) Subject to the provisions of this Ordinance, no action shall be brought to
recover any costs due to a solicitor until 1 month after a bill thereof has been
delivered in accordance with the requirements of this section:

Provided that, if there is probable cause for believing that the party chargeable
with the costs is about to quit Hong Kong, or become a bankrupt, or to compound
with his creditors, or to do any other act which would tend to prevent or delay the
solicitor obtaining payment, the Court may, notwithstanding that 1 month has not
expired from the delivery of the bill, order that the solicitor be at liberty to commence
an action to recover his costs and may order those costs to be taxed. (Amended50 of
182 s. 8)

(2) The said requirements are as follows

(a)the bill must be signed by the solicitor, or if the costs are due to a firm
by one of the partners of that firm, either in his own name or in the
name of the firm, or be enclosed in, or accompanied by, a letter which
is so signed and refers to the bill; and

(b)the bill must be delivered to the party to be charged therewith, either
personally or by being sent to him by post to, or left for him at, his
place of business, dwelling house or last known place of abode,

and where a bill is proved to have been delivered in compliance with those
requirements, it shall not be necessary in the first instance for the solicitor to prove
the contents of the bill and it shall be presumed, until the contrary is shown, to be a
bill bona fide complying with this Ordinance.

[cf. 1957 c. 7 s. 68 U.K.]





67. Taxation of bills on application of
party chargeable on solicitor

(1) On the application, made within 1 month of the delivery of a
solicitor's bill, of the party chargeable therewith the Court shall, without
requiring any sum to be paid into court, order that the bill shall be taxed and
that no action shall be commenced thereon until the taxation is completed.
(2) If no such application is made within the period mentioned in
subsection (1), then, on the application either of the solicitor or of the party
chargeable with the bill, the Court may, upon such terms, if any, as it thinks fit
(not being terms as to the costs of the taxation), order-
(a) that the bill shall be taxed;
(b)that, until the taxation is completed, no action shall be
commenced on the bill, and any action already commenced be
stayed:
Provided that-
(i) if 12 months have expired from the delivery of the bill, or if the
bill has been paid, or if a verdict has been obtained or a writ of
inquiry executed in an action for the recovery of the costs covered
thereby, no order shall be made on the application of the party
chargeable with the bill except in special circumstances and, if an
order is made, it may contain such terms as regards the costs of
the taxation as the Court may think fit;
(ii) in no event shall any such order be made after the expiration of
12 months from the payment of the bill.
(3) Every order for the taxation of a bill shall require the taxing officer to
tax not only the bill but also the costs of taxation and to certify what is due to
or by the solicitor in respect of the bill and in respect of the costs of the
taxation.
(4) If after due notice of any taxation either party thereto fails to attend,
the taxing officer may proceed with the taxation ex parte.
(5) Unless-
(a)the order for taxation was made on the application of the
solicitor and the party chargeable does not attend the taxation; or
(b) the order for taxation otherwise provides,
the costs of the taxation shall be paid according to the event of the taxation,
that is to say, if one-sixth or more of the amount of the bill is taxed off, the
solicitor shall pay the costs, but otherwise the party chargeable shall pay the
costs:
Provided that-
(i) if, in the case of a bill for non-contentious business, not less than
half of the amount of the bill before taxation consists of





costs for which no scale charge is prescribed, for the reference in
this subsection to one-sixth of the amount of the bill there shall
be deemed to be substituted a reference to one-fifth thereof,
(ii) the taxing officer may certify any special circumstances relating to
the bill or the taxation thereof to the Court, and the Court may
make thereon any such order as it thinks fit respecting the
payment of the costs of the taxation.
[cf. 1957 c. 27 s. 69 U.K.]

68. Taxation on application of third parties

(1) Where a person other than the person who is the party chargeable
with the bill for the purposes of section 67 has paid, or is or was liable to pay,
the bill either to the solicitor or to the party chargeable with the bill, that person
or his executors, administrators or assignees may apply to the Court for an
order for the taxation of the bill as if he were the party chargeable therewith,
and the Court may make thereon the same order, if any, as it might have made
if the application had been made by that party:
Provided that, in cases where the Court has no power to make an order
except in special circumstances, the Court may, in considering whether there are
special circumstances sufficient to justify it in making an order, take into
account circumstances affecting the applicant but which do not affect the party
chargeable with the bill.
(2) If a trustee, executor or administrator has become liable to pay a bill
of a solicitor the Court may, upon the application of any person interested in
any property out of which the trustee, executor or administrator has paid, or is
entitled to pay, the bill, and upon such terms, if any, as it thinks fit, order the
bill to be taxed, and may order such payments, in respect of the amount found
due to or by the solicitor and in respect of the costs of the taxation, to be made
to or by the applicant, or to or by the solicitor, or to the executor, administrator
or trustee as it thinks fit:
Provided that in considering any such application the Court shall have
regard to-
(a)the provisions of section 67 as to applications by the party
chargeable with taxation of a solicitor's bill so far as they are
capable of being applied to an application made under this
subsection;
(b) the extent and nature of the interest of the applicant.
(3) If an applicant under subsection (2) pays any money to the solicitor,
he shall have the same right to be paid that money by the trustee, executor or
administrator chargeable with the bill as the solicitor had.





(4) On an application made under this section-
(a)except in special circumstances, no order shall be made for the
taxation of a bill which has already been taxed;
(b)the Court may, if it orders taxation of the bill, order the solicitor
to deliver to the applicant a copy of the bill upon payment of the
costs of that copy.
[cf. 1957 c. 27 s. 70 U.K.]

69. General provisions as to taxations

(1) Every application for an order for the taxation of a solicitor's bill or
for the delivery of such a bill and the delivering up of any deeds, documents and
papers by a solicitor shall be made in the matter of that solicitor.
(2) The certificate of the taxing officer by whom any bill has been taxed
shall, unless it is set aside or altered by the Court, be final as to the amount of
the costs covered thereby, and the Court may make such order in relation
thereto as it thinks fit, including, in a case where the retainer is not disputed, an
order that judgment be entered for the sum certified to be due with costs.
[cf. 1957 c. 27 s. 71 U.K.]

70. Charging orders

Any court in which a solicitor has been employed to prosecute or defend
any suit, matter or proceeding may at any time declare the solicitor entitled to a
charge on the property recovered or preserved through his instrumentality for
his taxed costs in reference to that suit, matter or proceeding and may make
such orders for the taxation of the said costs and for raising money to pay, or
for paying, the said costs out of the said property, as it thinks fit, and all
conveyances and acts done to defeat, or operating to defeat, that charge shall,
except in the case of a conveyance to a bona fide purchaser for value without
notice. be void as against the solicitor:
Provided that no order shall be made if the right to recover the costs is
barred by any statute of limitations.
[cf. 1957 c. 27 s. 72 U.K.]

71. Revival of order for payment of costs

Whenever any judgment or order has been made for payment of costs in
any action and such action afterwards becomes abated, it shall be lawful for
any person interested under such judgment or order to revive such action, and
thereupon to prosecute and enforce such judgment or order, and so from time
to time as often as any such abatement may happen.
[cf. 1870 c. 28 s. 19 U.K.]





PART VII

RULES

72. Power of Chief Justice to make rules

The Chief Justice may make rules-

(a) in relation to the admission of solicitors and of barristers and the

registration of notaries public--

(i) regulating the manner in which applications for admission under
sections 3, 27 and 27A shall be made and the forms to be
employed in respect thereof; (Amended 46 of 1989 s. 15)

(ii)regulating the procedure and constitution of the Court at the
hearing of applications under sections 3, 27 and 27A; (Amended
46 of 1989 s. 15)

(iii) regulating the manner in which applications for registration under
section 40 shall be made and the forms to be employed in
respect thereof;

(iv) exempting, in any particular case, a person seeking admission
under section 3 or 27 or registration under section 40 from
compliance with all or any of the conditions prescribed for
such admission or registration by this Ordinance, subject to
such conditions as may appear necessary;

(v) providing for the duties of the Registrar in connection with such
admissions and registrations;

(vi) providing for the forms of the roll of solicitors, the roll of
barristers and the register of notaries public, the mode in which
they shall be kept and the contents thereof,

(vii) prescribing any fees payable in connection with such admissions
and registrations;

(viii) regulating the issue to barristers of practising certificates and the
fees payable for, the conditions of issue of, the manner of
applying for, the period and form of, the publication of the issue
and the suspension of such practising certificates and generally
in relation thereto; (Replaced 58 of 1976s.11)

(ix) (Repealed 58 of 1976 s. 11)

(x) regulating the granting of exemption from the provisions of any
of such rules and of the compliance with any terms imposed
upon the grantees of such exemption and prescribing the form of
any statutory declaration evidencing such compliance;





(b) in relation to the conduct of barristers, to provide for-

(i) the laying of a complaint before the Committee of Inquiry;

(ii) the conduct of proceedings before a Committee of Inquiry;

(iii) the submission of the report of a Committee of Inquiry to the
Court of Appeal and its consideration by the Court of Appeal;
and

(iv)the procedure for making an application, under section 38, to vary
or discharge an order of the Court of Appeal and for hearing any
such application; and (Amended 92 of 1975 S.59)

(c) generally to prescribe or provide for

(i) any other certificate, form or other document required under this
Ordinance;

(ii)any other fee which is required to be prescribed under this
Ordinance;

(iii)the better carrying into effect of the provisions of this Ordinance;
and

(iv) anything which under this Ordinance is to be or may be
prescribed by the Chief Justice.

72A. Rules for barristers in Hong Kong

The Chief Justice may make rules in relation to the admission of persons who
seek to qualify or have qualified as barristers in Hong Kong

(a) regulating the enrolment of students seeking to become barristers

in Hong Kong;

(b) regulating the manner in which pupillage may be served, including

applications for pupillage, disqualifications in respect of pupillage,
approval and termination of pupillage and the period and
requirements of pupillage; (Replaced 58 of 1976 s.12)

(ba) regulating the examinations to be passed by students seeking to

become barristers in Hong Kong; (Added 58 of 1976 s. 12)

(bb) prescribing the qualifying period of active practice for the

purposes of section 31, which period may include such periods of
active practice served before admission as a barrister in Hong
Kong or before call to the Bar in England or Northern Ireland
or admission as an advocate in Scotland as may be prescribed;
(Added 58 of 1976 s. 12)

(c) generally for the better control of such students.

(Added 32 of 1972 s. 3)

72B. Legislative Council may amend Schedule 1

The Legislative Council may by resolution amend Schedule 1.





73. Power of the Council to make rules

(1) The Council may make rules-

(a) providing for

(i)the conduct and discipline of solicitors, solicitor's employees and
articled clerks; (Replaced 25 of 1968 s. 14. Amended 1 of 1981 s. 5)

(ii)the restriction of payment of commission to unqualified persons;
and

(iii) for the purpose of harmonizing the relationship of solicitors inter
se and, with the prior approval of the Bar Committee, governing
the relationship of solicitors and barristers;

(aa) regulating the issue to solicitors of practising certificates and the

fees payable for, the conditions of issue of, the manner of
applying for, the period and form of, the publication of the issue
and the suspension of such practising certificates and generally in
relation thereto; (Added 58 of 1976s.13)

(b) in relation to the keeping by solicitors of accounts, providing

for-

(i) the opening and keeping by solicitors of accounts at banks of
clients' money;

(ii)the keeping by solicitors of accounts containing particulars and
information as to moneys received, held or paid both for or on
account of their clients;

(iii) empowering the Council to take such action as may be necessary
to enable them to ascertain whether or not such rules are being
complied with;

(iv)regulating the manner in which solicitors shall deal with money
held by them in a fiduciary capacity and the books of accounts to
be kept in respect thereof and for the auditing of such accounts;

(v)the qualifications to be held by an accountant by whom an
accountant's report may be given; (Amended 25 of 1968 s.14)

(vi)the nature and extent of the examination to be made by the
accountant of the books and accounts of a solicitor or of his firm
and of any other relevant documents with a view to the signing
of a report to be delivered by the solicitor under section 8;
(Amended 25 of 1968 s. 14)

(vii)the form of an accountant's report and the information to be
contained therein in accordance with section 8(1); (Replaced 25 of
1968 s. 14)





(viii)the evidence, if any, which shall satisfy the Council that the
delivery of an accountant's report is unnecessary and the cases
in which such evidance is or is not required; (Amended 25 of
1968 s. 14)

(ix)specifying in such circumstances as may be set forth in the rules
a different accounting period from that specified in section 8(2);
and

(x) regulating any matters of procedure or matters incidental,
ancillary or supplemental to the provisions of section 8;

(c) providing for the conduct of inquiries, or investigations by a

Disciplinary Committee under section 9;

(d) regulating articles and examinations, and in particular, without

prejudice to the generality of the foregoing, providing for-
(Amended32of 1972s. 4)

(i) the manner in which any person shall qualify for admission under
section 4(1)(a)(i) including, in particular, the period of articles, if
any, to be served in any particular case, the examination or
examinations to be passed and notices and forms to be used in
connection therewith; and

(ii)the manner in which application for admission under section
4(1)(a)(ii) shall be made and the documents to be filed in
connection therewith; (Amended 1 of 1981 s. 5)

(e) enabling the Council to exempt any person from compliance with

the provisions of any such rules and to impose and enforce
conditions upon which such exemption may be granted in any
particular case; and
prescribing any thing which, under this Ordinance, is to be or
may be prescribed by the Council. (Amended 52 of 1980 s. 2)

(2) Every rule made by the Council under this section shall be subject to the
prior approval of the Chief Justice. (Amended52 of 1980s.2)

(3) No rule made under subsection (1)(b), (c) or (d) shall apply to a person to
whom section 75 applies insofar as such person is acting in the course of the
employment which gives rise to the application of that section. (Amended50 of 1982
s. 5)

73A. Indemnity rules

(1) The Council may make rules (in this Ordinance referred to as indemnity
rules') concerning indemnity against loss arising from claims in respect of any
description of civil liability incurred

(a) by a solicitor or former solicitor in connection with his practice

or with any trust or of which he is or formerly was a trustee;





(b)by an employee of a solicitor or former solicitor in connection
with that solicitor's practice or with any trust of which that
solicitor or the employee is or formerly was a trustee.
(2) For the purpose of providing such indemnity, indemnity rules-
(a)may authorize or require the Society to establish and maintain a
fund or funds;
(b)may authorize or require the Society to take out and maintain
insurance with authorized insurers;
(c)may require solicitors or any specified class of solicitors to take
out and maintain insurance with authorized insurers.
(3) Without prejudice to the generality of subsections (1) and (2), in-
demnity rules-
(a)may specify the terms and conditions on which indemnity is to be
available, and any circumstances in which the right to it is to be
excluded or modified;
(b)may provide for the management, administration and protection
of any fund maintained by virtue of subsection (2)(a) and require
solicitors or any class of solicitors to make payments to any such
fund;
(c)may require solicitors or any class of solicitors to make payments
by way of premium on any insurance policy maintained by the
Society by virtue of subsection (2)(b);
(d)may prescribe the conditions which an insurance policy must
satisfy for the purposes of subsection (2)(c);
(e)may authorize the Society to determine the amount of any
payments required by the rules, subject to such limits, or in
accordance with such provisions, as may be prescribed by the
rules;
may specify circumstances in which, where a solicitor (not being a
solicitor who is exempt from complying with the rules) for whom
indemnity is provided has failed to comply with the rules, the
Society or insurers may take proceedings against him in respect
of sums paid by way of indemnity in connection with a matter in
relation to which he has failed to comply;
(g)may specify circumstances in which solicitors are exempt from
the rules;
(h)may empower the Council to take such steps as they consider
necessary or expedient to ascertain whether or not the rules are
being complied with; and
(i) may contain incidental, procedural or supplementary provisions.
(4) If any solicitor (not being a solicitor who is exempt from complying
with indemnity rules) fails to comply with the rules any person may make a
complaint in respect of that failure to the Disciplinary Committee.





(5) The Society shall have power, without prejudice to any of its other powers,
to carry into effect any arrangements which it considers necessary or expedient for
the purpose of indemnity under this section.

(6) Every rule made by the Council under this section shall be subject to the
prior approval of the Chief Justice.

(7) No rule made under this section shall apply to a person to whom section 75
applies in so far as such person is acting in the course of the employment which
gives rise to the application of that section. (Amended50 of 1982 s. 6)

(Added 75 of 1980 s. 4)

74. Costs Committee

(1) There is hereby established a Costs Committee consisting of the following
persons

(a)a judge of the High Court appointed by the Chief Justice as
Chairman; (Replaced 52 of 1980 s. 2)

(b) the Registrar or a deputy registrar of the Supreme Court;

(c)the Registrar General or such representative of the Registrar General
as is approved by the Chief Justice; and

(d)the President and the Vice-President of the Society and one member
of the Society nominated by the Society and approved by the Chief
Justice.

(2) The quorum for the Costs Committee shall be the Chairman and 2 members
under subsection (1)(d).

(3) The Costs Committee may make rules

(a)providing for the remuneration of solicitors in respect of non-
contentious business;

(b)prescribing that, as regards the mode of remuneration, it shall be
according to the scale of rates or percentage varying or not in
different classes of business, or by a gross sum, or by a fixed sum for
each document prepared or perused, without regard to length, or in
any other mode, or partly in one mode and partly in another;

(c)regulating the amount of remuneration with reference to all or any of
the following, among other, considerations, that is to say

(i)the position of the party for whom the solicitor is concemed in
the business, that is, whether as vendor or purchaser, lessor or
lessee, mortgagor or mortgagee, and the like;

(ii)the place where, and the circumstances in which, the business
or any part thereof is transacted;





(iii) the amount of the capital money or rent to which the
business relates;
(iv) the skill, labour and responsibility involved therein on the
part of the solicitor;
(v)the number and importance of the documents prepared or
perused, without regard to length;
(d) authorizing and regulating the taking by a solicitor from his
client of security for payment or otherwise, which may become
due to him under any such rule; and
(e) authorizing and regulating the allowance of interest on costs and
expenses.
(4) Every rule made under this section shall be subject to the prior
approval of the Chief Justice.
(5) So long as any rules made under this section are in operation, taxation
of bills of costs of solicitors in respect of non-contentious business shall, subject
to the provisions of section 5, be regulated by such rules.

PART VIII

GENERAL

74A. Advisory Committee on Legal Education

(1) There is established an Advisory Committee on Legal Education to
advise the Governor on-
(a) legal education and training in Hong Kong; and
(b)the future demand in Hong Kong for persons with legal
education or training and the means by which that demand may
be met.
(2) The committee shall consist of-
(a) the Chief Justice or his representative, who shall be the chairman;
(b) the Attorney General or his representative;
(c) the Secretary for Education and Manpower or his representative;
(d) 10 other members appointed by the Governor, of whom-
(i) 3 shall be nominated by the Society;
(ii) 2 shall be nominated by the Bar Committee;
(iii) 2 shall be nominated by the Vice-Chancellor of the
University of Hong Kong; and
(iv) one shall be nominated by the Director of the City
Polytechnic of Hong Kong; and
(e) other persons the committee may co-opt.





(3) A member of the committee who is unable to attend a meeting of the
committee may, on 7 days' notice to the chairman, send a substitute who shall be
deemed to be a member of the committee.

(4) A member of the committee appointed under

(a) subsection (2)(d) shall hold office for a 3 year term; and

(b)subsection (2)(e) shall hold office for a term, not exceeding 2 years,
specified by the committee.

(5) A member appointed under

(a)subsection (2)(d) may at any time resign from the committee by
notice in writing to the Governor; or

(b)subsection (2)(e) may at any time resign from the committee by notice
in writing to the chairman.

(6) Notice of the appointment or termination of membership of a member
appointed under subsection (2)(d) may be published in the Gazette.

(7) The Registrar of the Supreme Court shall be secretary to the committee.

(8) The committee shall report its advice at least annually to the Governor or
more often as the Governor requests.

(9) The committee may determine its own procedure.

(Replaced 46 of 1989 s. 17)

75. Saving

Nothing in this Ordinance shall-

(a)prejudice or affect any rights or privileges of any member of Her
Majesty's Overseas Judiciary, any legal officer within the meaning of
section 2 of the Legal Officers Ordinance (Cap. 87), any person to
whom the provisions of the Registrar General (Establishment)
Ordinance (Cap. 100) apply ',any person holding an appointment
under section 3(1) of the Legal Aid Ordinance (Cap. 9 1), or require
any such person or any clerk or officer appointed to act for him to be
admitted in any case where it would not have been necessary for him
to be admitted if this Ordinance had not been enacted; or (Amended
1 of 1981 s. 6; 50 of 1982 s. 7)

(b)affect any enactment empowering any person, whether or not a
solicitor or a barrister, to conduct, convene or otherwise act in
relation to any legal proceedings.

SCHEDULE 1 [ss. 3 27A]

1. The States and Territories of the Commonwealth of Australia.
2. The Territories and Provinces of Canada, except Quebec.





3. New Zealand.

4. The Republic of Ireland.

5. Zimbabwe.

6. Singapore.

(Schedule 1 added 46 of 1989 s.
19)

SCHEDULE 2 [ss. 26A, 26B 26C]

PROPERTY IN THE CONTROL OR POSSESSION OF CERTAIN SOLICITORS AND OTHER
PERSONS

SOLICITORS AND OTHER PERSONS

1. The Council may require the production or delivery to any person appointed by the Council at
a time and place to be fixed by the Council, and may take possession, of all deeds, wills,
documents constituting or evidencing the title to any property, papers, books of account,
records, vouchers and other documents in the possession or control of the solicitor or his firm, or
relating to any trust or which he is the sole trustee or is co-trustee only with one or more of his
partners, employees or articled clerks.

2. If any person having possession or control of any such documents fails to comply forthwith
with any such requirement

(a)he shall be guilty of an offence and be liable on summary conviction to a fine of
$5,000;and. (Amended 46of 1989s. 18)

(b)the High Court or a judge thereof may, on the application of the Council, order that
person to comply with the requirement within such time as may be specified in the
order, and may at the same time further order that on that person's failure to
comply with such requirement one or more members of the Council, or one or more
persons appointed by the Council for the purpose, may forthwith enter upon any
premises (using such force as is reasonably necessary for the purpose) to search for,
and take possession of, the documents referred to in paragraph 1.

3. Upon taking possession of any such documents, the Council shall serve upon the solicitor and
every person from whom those documents were received, or from whose premises they were
taken by virtue of an order made under paragraph 2, a notice giving particulars and the date of
taking possession thereof.

4. Any requirement of notice under this Schedule shall be made in writing under the hand of such
person as may be appointed by the Council for the purpose and may be served on any person
either by personal service or by being sent by registered post addressed to his last known place of
business or residence.

5. Within 14 days after the service of a notice under paragraph 3, the solicitor or other person
upon whom the notice was served may apply to ajudge of the High Court in chambers for an
order directing the Council to return those documents to the person from whom they were
received, or from whose premises they were taken, as the case may be, by the Council, or to such
other person as the applicant may require; and on the hearing of any such application the judge
may make such order with respect to the matter as he may think fit.

6. If no application is made under paragraph 5, or if the judge to whom any such application is
made directs that the documents shall remain in the custody or control of the Council, the
Council may make inquiries to ascertain the person to whom those documents belong and may
deal with those documents in accordance with the directions of that person:

Provided that, before dealing with such documents, the Council may take copies of, or
extracts from, any such documents.





7. The High Court or a judge thereof may, on the application of the Council, order that no
payment shall be made without the leave of the High Court or ajudge thereof by any banker
named in the order out of any banking account in the name of the solicitor or his firm.

8. (1) The High Court or a judge thereof, on the application of the Council, may from time to
time order that for such time not exceeding 18 months as the Court or judge, as the case may be,
thinks fit, postal packets (as defined by section 2 of the Post Office Ordinance (Cap. 98)
addressed to the solicitor or his firm at any place or places mentioned in the order for re-
direction shall be re-directed, sent or delivered by the Postmaster General or the officers acting
under him to a person appointed under paragraph 1 or otherwise as the Court or judge, as the case
may be, directs, and the same shall be done accordingly.

(2) Where such an order is made under sub-paragraph (1), the Council shall pay to the
Postmaster General the like charges (if any) as would have been charged and payable

(a)in respect of an application or instructions by the addressee, in the case of a
permanent change of his place of business, for the re-direction or delivery of postal
packets to which the order relates to him at the address of the person to whom they
are to be re-directed, sent or delivered under the order, during the time specified in
the order; and

(b)in respect of the re-direction or re-transmission of any individual postal packet in
accordance with the order, if the packet had been redirected or re-transmitted in
accordance with such application or instructions as aforesaid.

9. In any case where the Council has taken possession of documents under paragraph 1, and has
not been required to return them by virtue of paragraph 5, the following paragraphs shall apply,
but without prejudice to the application of paragraph 16 so far as it affects any of the preceding
paragraphs.

10. The Council may, by resolution in that behalf, take control of all sums of money due from
the solicitor or his firm to, or held by him or his firm on behalf of, his or his firm's clients or
subject to any trust of which he is the sole trustee or co-trustee only with one or more of his
partners, employees or articled clerks, and for that purpose the Council shall serve on the
solicitor or his firm, and, except where the provisions of section 26D apply, on any banker and
on any other person having possession or control of any such sums of money a notice together
with a certified copy of such resolution, prohibiting the payment out of such sums of money
otherwise than pursuant to paragraph 12or 13. (Amended 58 of 1976 s.14)

11. Within 14 days of the service of a notice under paragraph 10 the solicitor or his firm, or the
banker or other person upon whom the notice was served, may apply to a judge of the High Court
in chambers for an order directing the Council to withdraw the notice and on the hearing of any
such application the judge may make such order with respect to the matter as he may think fit.

12. Subject to the service of any notice under paragraph 10, and to any application that may be
made under paragraph 11, the Council or any person in that behalf appointed by the Council may
withdraw the moneys, or from time to time any part of the moneys, in any banking account in
the name of the solicitor or his firm, and any moneys in the office of the solicitor or his firm due
to or held on behalf of his clients, and pay them into a special account or special accounts in the
name of the Council or such person appointed as aforesaid and may operate on, and otherwise
deal with, such special account or accounts as the solicitor or his firm might have operated on, or
otherwise dealt with, the said banking account:

Provided that a banker with whom such special account or accounts is or are kept shall be
under no obligation to ascertain whether that account or those accounts is or are being so
operated on or otherwise dealt with.

13. (1) Subject to paragraphs 11 and 12, the Council may serve a notice on the solicitor, or his
firm or banker or other person upon whom a notice has been served under paragraph 10, directing
that, immediately after the expiration of 8 days from the service of the first-mentioned notice,
such moneys as are referred to in that notice be transferred in accordance with the directions of
the Council:





Provided that-

(a)no such directions shall be given by the Council except with the approval of the
person to whom the said moneys belong, being in the case of a trust the trustee, and,
where the solicitor is the sole trustee of a trust or a co-trustee thereof only with one
or more of his partners, clerks or servants, the person beneficially entitled to such
moneys; and

(b)the person upon whom such first-mentioned notice has been served as aforesaid shall
be under no obligation to ascertain whether such approval has been obtained.

(2) In any case where the Council is unable to ascertain the person to whom the said moneys
belong or where the Council otherwise thinks it expedient so to do, the Council may apply to the
High Court or a judge thereof for directions as to the transfer of such moneys.

14. If any person fails to comply with the requirements of any notice given under paragraph 10
or 13

(a)he shall be guilty of an offence and be liable on summary conviction to a fine of
$5,000;and (Amended 46of 1989s. 18)

(b)the High Court or a judge thereof may, on the application of the Council, order that
person to comply with the requirements of the notice within such time as may be
specified in the order.

15. Subject to any order for the payment of costs, that may be made on an application under
paragraph 2, 5, 7, 8, 11, 13(2) or 14, any costs incurred by the Council for the purposes of this
Schedule shall be paid by the solicitor and shall be recoverable from him as a debt owing to the
Council.

16. The Council may make rules with respect to the procedure to be followed in giving effect to
the provision of paragraphs 1, 3, 4, 6, 10, 12 and 13(1) and with respect to any matters
incidental, ancillary or supplemental to those provisions.

(Schedule 2added25of 1968s. 16. Amended9of1975s.59;52of 1980s.2)
[cf. 1965 c. 31 Sch. 1
U.K.]

https://oelawhk.lib.hku.hk/items/show/2716

HOTEL PROPRIETORS ORDINANCE

LAWS OF HONG KONG

HOTEL PROPRIETORS ORDINANCE

CHAPTER 158





CHAPTER 158.

HOTEL PROPRIETORS.

To amend the law relating to inns and innkeepers.

[1st February, 1962.1

1. This Ordinance may be cited as the Hotel Proprietors Ordinance.

2. In this Ordinance, unless the context otherwise requires'hotel'
means an establishment held out by the proprietor as

offering food, drink and, if so required, sleeping accommodation,
without special contract, to any traveller presenting himself who
appears able and willing to pay a reasonable sum for the services
and facilities provided and who is in a fit state to be received.

3. (1) An hotel within the meaning of this Ordinance shall, and any
other establishment shall not, be deemed to be an inn., and the duties,
liabilities and rights which immediately before the commencement of this
Ordinance by law attached to an innkeeper as such shall, subject to the
provisions of this Ordinance, attach to the proprietor of such an hotel
and shall not attach to any other person.

(2) The proprietor of an hotel shall, as an innkeeper, be under the
like liability, if any, to make good to any guest of his any damage to
property brought to the hotel as he would be under to make good the
loss thereof.

4. (1) Without prejudice to any other liability incurred by him with
respect to any property brought to the hotel, the proprietor of an hotel
shall not be liable as an innkeeper to make good to any traveller any loss
of or damage to such property except where

(a)at the time of the loss or damage sleeping accommodation at
the hotel had been engaged for the traveller; and

(b)the loss or damage occurred during the period commencing
with the midnight immediately preceding, and ending with the
midnight immediately following, a period for which the
traveller was a guest at the hotel and entitled to use the
accommodation so engaged.

(2) Without prejudice to any other liability of his or to the
provisions of section 5 or other right of his with respect thereto, the
proprietor of an hotel shall not as an innkeeper be liable to make good to
any guest of his any loss of or damage to, or have any lien on, any
vehicle or any property left therein.

(3) Where the proprietor of an hotel is liable as an innkeeper to
make good the loss of or any damage to property brought to the hotel,
his liability to any one guest shall not exceed the sum





of one thousand dollars in respect of any one article, or the sum of two
thousand dollars in the aggregate, except where

(a)the property was stolen, lost or damaged through the default,
neglect or wilful act of the proprietor or some servant of his; or

(b)the property was deposited by or on behalf of the guest
expressly for safe custody with the proprietor or some servant
of his authorized, or appearing to be authorized, for the
purpose, and, if so required by the proprietor or that servant,
in a container fastened or sealed by the depositor and when
property is deposited in accordance with the provisions of
this paragraph, the liability of the proprietor as an innkeeper to
any one guest in respect of the loss of or damage to property
so deposited shall not exceed the value thereof as declared by
or on behalf of the guest at the time of deposit; or

(c)at a time after the guest had arrived at the hotel, either the
property in question was offered for deposit as aforesaid and
the proprietor or his servant refused to receive it, or the guest
or some other guest acting on his behalf endeavoured to offer
the property in question but, through the default of the
proprietor or a servant of his, was unable to do so: Provided
that the provisions of this paragraph shall not apply where the
value of the property as declared by or on behalf of the guest
when offered for deposit exceeds the sum of ten thousand
dollars:

Provided that the proprietor shall not be entitled to the protection
of this subsection unless, at the time when the property in question was
brought to the hotel, a copy of the notice set out in the Schedule printed
in plain type was conspicuously displayed in a place where it could
conveniently be read by his guests at or near the reception office or
desk or, where there is no reception office or desk, at or near the main
entrance to the hotel.

5. A proprietor of an hotel shall as an innkeeper, in addition to his
ordinary lien. have the right absolutely to sell by public auction any
property which may have been deposited with him or left in his hotel or
in premises appurtenant or belonging thereto, where the guest
depositing or leaving such property shall be or become indebted to him
for any board or lodging:

Provided however

(a)that, except in the case of perishable property, no such sale
shall be made until after the property shall have been for the
space of six weeks in such charge or custody or in or upon
such premises without such debt having been

having

satisfied;

(b)that such proprietor, after having, out of the proceeds of such
sale, paid himself the amount of any such debt together with
the costs and expenses of such sale, shall





on demand pay to the guest depositing or leaving such
property the surplus, if any, remaining after such sale;

(c)that the debt for the payment of which a sale is made shall not
be any other or greater debt than the debt for which the
property could have been retained by the proprietor as an
innkeeper under his lien;

(d)that, in the case of perishable property, as soon as
conveniently may be either before or after such sale. and in
the case of other property at least one month before any such
sale, the proprietor shall cause to be inserted in a newspaper
circulating in the Colony an advertisement containing a notice
of such sale or intended sale and giving shortly a description
of the property sold or intended to be sold together with the
name of the guest where known who deposited or left it.

SCHEDULE. [s. 4.]

NOTICE.

Loss of or Damage to Guests' Property.

The liability under the Hotel Proprietors Ordinance, Cap. 158, of an hotel
proprietor to make good loss or damage to a guest's property

(a)extends only to the property of guests who have engaged sleeping
accommodation at the hotel;

(b)is limited to DOLLARS ONE THOUSAND (S1,000.00) for any one
article and a total of DOLLARS TWO THOUSAND ($2,000.00) in the
case of any one guest, except

(i)in the case of property which has been deposited for safe custody in
which case such liability is limited to the declared value of the
property; or

(ii) in the case of property, the declared value of which does not exceed
DOLLARS TEN THOUSAND (310,000.00), which has been offered
for deposit;

(c)does not cover motor-cars or other vehicles of any kind or any property
left in them.

This notice does not constitute an admission either that the Ordinance applies
to this hotel or that liability thereunder attaches to the proprietor of this hotel in
any particular case.
Originally 49 of 1961. Short title. Interpretation. 4 & 5 Eliz. 2 c. 62, s. 1(3). Inns and innkeepers. 4 & 5 Eliz. 2 c. 62, s. 1(1) & (2). Modifications of liabilities and rights of innkeepers as such. 4 & 5 Eliz. 2 c. 62, s. 2. Schedule. Power of sale. [cf. 41 & 42 Vict. c. 38, s. 1.]

Originally 49 of 1961. Short title. Interpretation. 4 & 5 Eliz. 2 c. 62, s. 1(3). Inns and innkeepers. 4 & 5 Eliz. 2 c. 62, s. 1(1) & (2). Modifications of liabilities and rights of innkeepers as such. 4 & 5 Eliz. 2 c. 62, s. 2. Schedule. Power of sale. [cf. 41 & 42 Vict. c. 38, s. 1.]

https://oelawhk.lib.hku.hk/items/show/2715

PENSIONS (SPECIAL PROVISIONS) ORDINANCE

LAWS OF HONG KONG

PENSIONS (SPECIAL PROVISIONS) ORDINANCE

CHAPTER 157





CHAPTER 157.

PENSIONS (SPECIAL PROVISIONS).

To make provision for the granting of pensions to certain public
officers transferred on the 1st day of September, 1950, from the
public service to the service of Cable and Wireless, Limited.

[30th May, 1952.]

1. This Ordinance may be cited as the Pensions (Special
Provisions) Ordinance.

2. In this Ordinance. unless the context otherwise requires

'company' means Cable and Wireless, Limited;

'transferred officer' means a person transferred from the public service
to the service of the company on the 1st day of September, 1950.

3. The Pensions Ordinance and any regulations made thereunder
shall apply to such of the transferred officers named in the Schedule as
shall be appointed to the pensionable staff of the company as though
service in the company were included in the definition of public service
contained in section 2 of the Pensions Ordinance and as though the
company were included in the Schedule to the Pensions Regulations
and any subsequent enactment shall in like manner apply to the
transferred officers as aforesaid.

4. This Ordinance shall be deemed to have had effect from the 1st
day of September, 1950.

SCHEDULE.

Au Kam Moon C Ying Keung
Au Shiu Kow CHow Woon Man

Au Wing Kit CHOY Sang
CHAI Man ~G Kum Tung
CHAN, Daniel CRUZ, Luiz
C~ Ho Yin DEW Boon Seng
C~ Kok Min FUNG Hun
CHANG Kee Lim Ho Kee
CHE Ting Fan Hu Moo Teh
CHEUNG Ping Hung HUANG Kwok Hung
CHEUNG Yau Kee IP Yee
CHEUNG King Piu ISMAIL, Omar

CHEUNG Hon KWAN Kin Wing
CHIU Bud Yee KWOK Kam Sing





LAM Kwok Choi Loo Kam Chi
LAM Pak Yeung MAK Sik Kwan
LAM Shin Kee Pon Chiu Yeung
LAM Yu Kong POON Benedic Ho Chak
LAW Shee Fai PUN Sai Kam
LEE Ching lu Siu Cokge
LEE Yick Cho So Kam To
LEI Hon Ming TAM Kwong Tien
LEUNG Tso Chi TANG Ming Shu
Li Chung TONG Shiu Lung
Li Chung UN Leung Wai
Li So WONG Hi Hung
Li Lin Keung WONG Wai
Li Pui Lam WONG Man Ying
LIANG Way E WONG Keung
Lim. Henry YAM Bor
LIN Ping Chi YAU Kam Sin
Lo, Henry YUNG Heng Suee
Lo Lai Keung
Originally 18 of 1952. Short title. Interpretation. The Pensions Ordinance and regulations and subsequent enactments to apply to transferred officers. (Cap. 89.) (Cap. 89 sub. leg.) Commencement.

Originally 18 of 1952. Short title. Interpretation. The Pensions Ordinance and regulations and subsequent enactments to apply to transferred officers. (Cap. 89.) (Cap. 89 sub. leg.) Commencement.

https://oelawhk.lib.hku.hk/items/show/2714

ANCILLARY DENTAL WORKERS (DENTAL HYGIENISTS) REGULATIONS

ANCILLARY DENTAL WORKERS (DENTAL HYGIENISTS)
REGULATIONS

(Cap. 156, section 29)

[14th November, 1969.1

1. These regulations may be cited as the Ancillary Dental Workers
(Dental Hygienists) Regulations.

2. There is established hereby a class of ancillary dental workers to
be known as dental hygienists.

3. Any person who holds the United Kingdom Minister of Health's
Certificate of Proficiency in Oral Hygiene, or who holds any other
certificate or diploma which, in the opinion of the Dental Council, is of an
equivalent standard and has been gained following a course of dental
training extending over a period of not less than nine months, may apply
to the Dental Council for enrolment as a dental hygienist.

4. (1) The Dental Council may, at its absolute discretion, admit any
person to practise as a dental hygienist if it is satisfied that the applicant

(a) holds the qualifications specified in regulation 3; and

(b) is a fit and proper person to practise as a dental hygienist.

(2) The Registrar shall maintain a roll in which the name and
address of every person whom the Dental Council has admitted to
practise as a dental hygienist shall be recorded.

(3) Any enrolled dental hygienist who alters his name or address
shall notify the Registrar immediately of any such alteration.

(4) Every dental hygienist shall pay to the Registrar an enrol-
ment fee five dollars who his name is recorded in the roll maintained
under paragraph (2).

(5) The Registrar shall issue to each enrolled dental hygienist a
certificate of enrolment in such form as may be determined by the Dental
Council from time to time.

5. (1) If the Dental Council is satisfied at any time by any complaint
made to it or by any information received by it that an enrolled dental
hygienist either does not hold the qualifications specified in regulation 3
or is not a fit and proper person to practise as a dental hygienist, it may

(a)order that such enrolled person cease to practise as a dental
hygienist; and





(b)direct that the name of the person be deleted from the
roll of dental hygienists maintained by the Registrar
pursuant to regulation 4(2).

(2) On being notified in writing of an order made by the
Dental Council pursuant to paragraph (1), any dental hygienist
against whom such an order has been made shall forthwith deliver
to the Registrar the certificate issued to him pursuant to regulation
4(4).

(3) Any person who contravenes paragraph (2) shall be guilty
of an offence and shall be liable on conviction to a fine of two
hundred and fifty dollars.

6. (1) Subject to this regulation, an enrolled dental hygienist
may undertake dental work of the following kinds-

(a) the cleaning and polishing of teeth;

(b)the scaling of teeth (that is to say the removal of tartar
deposits, accretions and stains from those parts of the
surface of the teeth which are exposed or which are directly
beneath the free margins of the gums, including the
application of medicaments thereto);

(e)the application to the teeth of solutions of sodium or
stannous fluoride or such other similar prophylactic solu-
tions as the Council may from time to time determine;

(d)the exposure of x-ray films inter-orally or extra-orally for
the investigation of lesions or suspected lesions of the
mouth, jaws, teeth and associated structures; and

(e) the giving of advice on matters relating to dental hygiene.

(2) A dental hygienist shall not undertake any form of dental
work unless-

(a) he is enrolled in accordance with regulation 4;

(b) he is employed by a registered dentist;

(c)any patient upon whom he undertakes dental work has
first been examined by a registered dentist who has then
prescribed the treatment to be carried out by the dental
hygienist;

(d) such dental work is carried out-
(i) in accordance with the directions of a registered
dentist who is available in the premises at all times when
such dental work is being carried out; and
(ii) in such premises and under such conditions as are
suitable for such work.





(3) An enrolled dental hygienist who undertakes such kinds of
dental work as are prescribed in paragraph (1) shall, if he complies at all
times with the conditions prescribed in paragraph (2), be deemed not to
be practising dentistry for the purposes of the Ordinance.

(4) For the purposes of this regulation, 'registered dentistmeans a
person registered under section 9 of the Ordinance other than a person
entitled to registration under section 7(d) of the Registration of Dentists
Ordinance 1940.
L.N. 161/69. Citation. Establishment of dental hygienists. Qualification of applicants for enrolment. Enrolment of dental hygienists. Disqualification order by Dental Council. Scope of dental work that may be undertaken by dental hygienists. (1 of 1940.)

L.N. 161/69. Citation. Establishment of dental hygienists. Qualification of applicants for enrolment. Enrolment of dental hygienists. Disqualification order by Dental Council. Scope of dental work that may be undertaken by dental hygienists. (1 of 1940.)

https://oelawhk.lib.hku.hk/items/show/2713

DENTISTS (REGISTRATION AND DISCIPLINARY PROCEDURE) REGULATIONS

DENTISTS (REGISTRATION AND DISCIPLINARY
PROCEDURE) REGULATIONS

ARRANGEMENT OF REGULATIONS

Regulation .................................Page

PART 1

CITATION AND
INTERPRETATION

1. Citation............................ ... ... ... ... .. . ... ... ... A 3

2. Interpretation.............. ... ... ... ... ... ... ... ... ... ... A 3

PART II

REGISTER AND CERTIFICATES

3. Form of register............. ... ... ... ... - . ... ... ... ... A 3

4.......Fees ............................ ... ... ... ... ... ... ... ... A 3

5..................Application for registration ... ... ... ... ... ... ... ... ... A 3

6...........Examination .................... ... ... ... ... ... ... ... ... A4

7................Certificate of registration ... ... ... ... ... ... ... ... ... ... A4

8..............Practising certificate ...... ... ... ... ... ... ... ... ... ... ... A 4
8A..............Certificate of standing .. ... ... ... ... ... ... ... ... ... ... A 4

8B....................Copies of entries and certificates ... ... ... ... ... ... ... ... A 4

9................Alteration of register .... ... ... ... ... ... ... ... ... ... A 4
10................Qualifications ......... ... ... ... ... ... ... ... ... A 5

11...................Statement by body corporate ... ... ... ... ... ... ... ... ... A 5

PART III

PROCEEDINGS PREPARATORY To HEARING BY THE
COUNCIL

12.......................Preliminary Investigation Committee ... ... ... ... ... ... ... A 5

13..............................Submission or receipt of complaint or information ... ... ... ... A 7

14............................Complaint or information touching conduct ... ... ... ... ... A 7

15.................................Reference of complaint or information to the Committee ... ... ... A 8
15A................................Consideration of complaint or information by the Committee ... ... A 8

16..............................Determination of Committee that no inquiry be held ... ... ... ... A 8
17..............................Determination of Committee that inquiry be held ... ... ... ... A 9

18................Adjournment of inquiry .... ... ... ... ... ... ... ... ... ... A 9
19................Reference back to Committee ... ... ... ... ... ... ... ... ... A 9

20.......................Documents to be furnished to Council ... ... ... ... ... ... ... A 9
21.......................Documents to be available to each party ... ... ... ... ... ... A 10

22..............Notice to produce ........ ... ... ... ... ... ... ... ... ... A 10
23..............Amendment of notice............. ... ... ... ... ... ... ... ... A10











Regulation Page
PART IV
PROCEEDINGS AT HEARING OF THE COUNCIL

24. Record of proceedings ... ... ... ... ... ... ... ... ... ... ... A10
25. Opening of inquiry ... ... ... ... ... ... ... ... ... ... ... ... A10
26. Objections on point of law ... ... ... ... ... ... ... ... ... ... All
27. Order of procedure ... ... ... ... ... ... ... ... ... ... ... ... All
28. Postponement of judgment ... ... ... ... ... ... ... ... ... ... A 12
29. Notice of determination of judgment ... ... ... ... ... ... ... ... A 12
30. Postponement of sentence ... ... ... ... ... ... ... ... ... ... A 13
31. Address in mitigation .. . ... ... ... ... ... ... ... ... ... ... A 13
32. Notice of postponement of sentence ... ... ... ... ... ... ... ... A 13
33. Evidence ... ... ... ... ... ... ... ... ... ... ... ... ... ... A 13
34. Voting ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... A 14

PART V
DUTIES OF LEGAL ADVISER

35................Inquiry by the Council .... ... ... ... ... ... ... ... ... ... A 14
36................Ordinary meetings of Council ... ... ... ... ... ... ... ... ... A 14
37................Advice by Legal Adviser ... ... ... ... ... ... ... ... ... ... A 14

First Schedule. Forms ......................... ... ... ... ... ... ... ... A15
Second Schedule. Fees.......................... ... ... ... ... ... ... ... A 20





DENTISTS (REGISTRATION AND DISCIPLINARY
PROCEDURE) REGULATIONS

(Cap. 156, section 29)

[1st October, 1959.]

PART I

CITATION AND INTERPRETATION

1. These regulations may be cited as the Dentists (Registration

and Disciplinary Procedure) Regulations.

2. In these regulations, unless the context otherwise requires-

'Committee' means the Preliminary Investigation Committee constituted
under regulation 12;

'defendant' means any registered dentist or applicant for registration
against or in respect of whom a complaint or information has been
received by the Secretary in accordance with regulation 13;

'notice of inquiry- means a notice served in accordance with regulation
17.

PART II

REGISTER AND CERTIFICATES

3. The register shall be-

(a)in accordance with Form 1 in the First Schedule, in the case of
a dentist resident in Hong Kong; and

(b)in accordance with Form 1A in the First Schedule, in the case
of a dentist resident outside Hong Kong,

or as near thereto as shall be convenient.

4. (1) Subject to paragraph (2), the fees payable under the

Ordinance and these regulations shall be the fees prescribed in the
Second Schedule.

(2) Notwithstanding paragraph (1), no fee shall be payable for

an alteration to the register consequent upon a change in marital status.

5. (1) An application for registration shall be-

(a) if the applicant is resident in Hong Kong-

(i) in accordance with Form 2 in the First Schedule; and

(ii) completed in the presence of a barrister-at-law,
commissioner for oaths, justice of the peace, minister of
religion, registered dentist or solicitor; or





(b) if the applicant is resident outside Hong Kong-
(i) in accordance with Form 2A in the First Schedule;
and
(ii) completed in the presence of a commissioner for
oaths or notary public.

(2) An application under paragraph (1) shall be delivered to the
Registrar, together with 4 copies of a photograph of the applicant of
a size not greater than 50 x 70 mm and not less than 1 1/2
inches by 40 x 60 mm.

6. (1) The Registrar shall refer every application to the
Council and the Council may require an applicant to undergo such
oral, practical or written examination as it may determine under
section 8(2) of the Ordinance.

(2) An applicant required to undergo an oral, practical or
written examination shall pay the entrance fee prescribed in the
Second Schedule.

(3) Where an applicant has passed any examination required
of him under paragraph (2), the Council shall so inform the Registrar
and the applicant's application for registration shall then be dealt
with under section 9 of the Ordinance.

7. A certificate of registration shall be in accordance with
Form 3 in the First Schedule.

8. A practising certificate shall be in such form as may be
determined by the Registrar.

8A. A certificate of standing shall be in such form as may be
determined by the Council.

8B. On application and on payment of the appropriate fee
prescribed in the Second Schedule-
(a) the Registrar shall issue-
(i) a certified copy of any entry in the register;
(ii) a duplicate certificate of registration;
(iii) a certified copy of a certificate of registration; and
(b) the Secretary may issue-
(i) a certificate of standing;
(ii) a certificate verifying registration.

9. When the Registrar makes any alteration to the register
under section 15(1) of the Ordinance, he shall retain on the register
until otherwise directed by the Council the entry before such altera-
tion was made, in addition to the entry as altered.





10. (1) A registered dentist may apply to the Registrar to have
inserted in the register any degree or qualification recognized by the
Council, in addition to any degree or qualification already entered on
the register.

(2) On receipt of such application, the Registrar shall refer the
application to the Council which, after such inquiry as it may consider
desirable, shall direct the Registrar either to enter or to refuse to enter
such degree or qualification on the register.

11. The statement required to be transmitted by a body corporate
carrying on the business of dentistry to the Registrar in accordance
with section 12(3) of the Ordinance shall be in accordance with Form 5
in the First Schedule.

PART III

PROCEEDINGS PREPARATORY To HEARING BY THE
COUNCIL

12. (1) For the purposes of performing the functions conferred
upon it by these regulations, there shall be established a committee
known as the Preliminary Investigation Committee consisting of

(a)1 member of the Council elected by the Council, who shall be
the chairman of the Committee;

(b) 2 dental sugeons qualified to be registered under section
8(1)(a) or (b) of the Ordinance, ordinarily resident in the
Colony, who are not members of the Council and who
shall be appointed by the Director.

(i) from a panel of not less than 12 such dental
nominated by the Hong Kong Dental Association; or

(ii) in the event of the Hong Kong Dental Association
failing to nominate at-least 12 such registered dentists at
the discretion of the Director.

(2) Save as provided in paragraphs (3), (4) and (5) the members of
the Committee shall hold office for 12 months but at the end of such
period they may be re-elected or re-appointed, as the case may be.

(3) If during the period of his office a member of the Com-
mittee appointed under paragraph (1)(b) becomes a member of the
Council he shall cease to be a member of the Committee.

(4)(a) Where for any reason a person elected or appointed to the
Committee under paragraph (1) is or will be unable temporarily
to exercise his functions as such member, another person may
be elected by the Council or, as the case





may be, appointed by the Director, to be temporarily a
member of the Committee.

(b)If the person so unable temporarily to exercise his function as
a member of the Committee was elected to the Committee
under paragraph (1)(a) the person elected to be temporarily a
member of the Committee shall be another member of the
Council, who shall, during the period of his membership of the
Committee, be chairman of the Committee.

(c) If the person so unable temporarily to exercise his func-
tions as a member of the Committee was appointed to the
Committee under paragraph (1)(b) the person appointed
to be temporarily a member of the Committee shall be a
registered dentist qualified to be registered under section
8(1) (b) of the Ordinance ordinarily resident in the
Colony, who Is not a member of the Council, nominated by
the Hong Kong Dental Association.

(5) If-

(a)at the time the membership of any person elected or appointed
to be a member of the Committee under paragraph (1)
terminates by virtue of paragraph (2) or paragraph (3), or

(b)at the time the membership or any person elected or appointed
to be temporarily a member of the Committee under paragraph
(4) terminates,

the Committee is considering any complaint or information under these
regulations, then if such person is not thereupon elected or re-elected
or, as the case may be, appointed or re-appointed, to be member of the
Committee, the membership of such person shall continue by virtue of
this paragraph for the purposes of the consideration of such complaint
or information by the Committee, but for no other purpose, until the
Committee has discharged its functions in respect of such complaint or
information.

(6) A person elected or appointed to be a member of the
Committee may at any time resign his membership of the Com-
mittee by notice in writing addressed to the Secretary or, as the case
may be, the Director, save that, if at the time such notice is given
the Committee is considering any complaint or information the
person so resigning shall, if so required by the Council or, as the case
may be, the Director, continue to be a member of the Committee
for the purposes of the consideration of such complaint or informa-
tion but for no other purpose, until the Committee has discharged
its functions in respect of the complaint or information.

(7) No member of the Committee shall attend any meeting of the
Council as a member of the Council during the hearing or determination
of any complaint or information against any person





which is referred to the Council by the Committee for determination if
such member has attended any meeting of the Committee at which such
complaint or information was considered.

(8) The Committee shall meet from time to time as directed by the
chairman of the Committee who may at any time adjourn any meeting of
the Committee.

13. Where a complaint is made to or information is received by the
Secretary that a registered dentist

(a)has been convicted in the Colony, or elsewhere of any offence
punishable with imprisonment;

(b) has been guilty of unprofessional conduct.'

(c) has obtained registration by fraud or misrepresentation;

(d)was not at the time of his registration entitled to be registered;
or

(e)is practising dentistry in premises or under conditions which
are unsuitable for such practice,

or that an applicant for registration-

(i) has been convicted in the Colony or elsewhere of any offence
punishable with imprisonment;

(ii) has been guilty of unprofessional conduct; of

(iii)is the subject of an existing order made under section 17(1)(i)
or (ii) of the repealed Ordinance,

the Secretary shall submit the complaint or information to the
Committee.

14. (1) Where, in a complaint or information submitted by the
Secretary to the chairman of the Committee under regulation 13, any
allegation is made which in the opinion of the chairman of the
Committee gives rise to a question whether a registered dentist or an
applicant for registration has been guilty of unprofessional conduct, the
chairman of the Committee may require that the complaint or information
be formulated in writing setting out the grounds thereof and, except
where the complaint or information is in writing under the hand of a
public officer, supported by one or more statutory declarations as to the
facts of the case.

(2) Each statutory declaration referred to in paragraph (1)-

(a)shall state the address and description of the declarant; and

(b)if any fact declared is not within the personal knowledge of
the declarant, shall state the source of the declarant's
information and the grounds for his belief in the truth of the
facts; and

(c) shall be duly stamped.





15. (1) Where a complaint or information is submitted to the
chairman of the Committee by the Secretary, the chairman of the
Committee shall, unless it appears to him that the complaint or
information is frivolous or groundless and should not proceed further,
direct that the complaint or information be referred to the Committee for
its consideration and shall fix a date upon which it is proposed that the
Committee shall meet to consider the complaint or information.

(2) Where the chairman of the Committee directs that a complaint or
information be referred to the Committee, he shall direct the Secretary to,
and the Secretary when so directed shall

(a)notify the defendant of the receipt of the complaint or
information;

(b) inform him of the substance thereof;

(c)forward to him a copy of any statutory declaration furnished
under regulation 14(1);

(d)inform him of the date upon which the Committee is due to
meet for the purpose of considering the complaint or
information; and

(e)invite him to submit to the Committee any explanation of his
conduct or of any other matter alleged in the complaint or
information which he may have to offer.

15A. (1) At the meeting at which the complaint or information is
considered by the Committee, the Secretary shall put before the
Committee the complaint or information, any statutory declaration
received therewith, any explanation submitted by the defendant and any
other document or matter in the nature of evidence relevant to or in
support of the complaint or information and which is available.

(2) The Committee, having regard to any explanation or declaration
made by the defendant, shall consider the complaint or information, any
statutory declaration received therewith and any document or matter put
before it by the Secretary under paragraph (1) and, subject to the
provisions of this regulation, shall determine either

(a) that no inquiry shall be held; or

(b)that the complaint or information shall in whole or in part be
referred to the Council for inquiry.

(3) Before coming to a determination under paragraph (2),

c

the Committee may cause to be made such further investigations and
may obtain such additional advice or assistance as it considers
necessary.

16. If the Committee determine that no inquiry shall be held, the
chairman of the Committee shall direct the Secretary to, and the
Secretary when so directed shall, inform any complainant and the
defendant of the decision of the Committee and no inquiry shall be held.





17. (1) If the Committee determine that an inquiry shall be
held it shall refer the case to the Council and the chairman of the
Committee shall notify the Chairman of the Council of the matters
into which inquiry is to be made.

(2) Where a case has been referred to the Council under
paragraph (1), the Chairman of the Council shall fix a date upon
which it is proposed that the inquiry shall be held and shall direct
the Secretary to, and the Secretary when so directed shall, within
1 month of the determination of the Committee, serve on the
defendant a notice of inquiry in accordance with Form 6 in the
First Schedule together with a copy of these regulations.

(3) A notice of inquiry shall-
(a)specify in the form of a charge or charges the matters into
which inquiry is to be made; and
(b)state the date, time and place at which the inquiry is
proposed to be held.

(4) Except with the consent in writing of the defendant, an
inquiry shall not be held less than 28 days after the date of service
of the notice of inquiry.

(5) Service of a notice of inquiry on the defendant may be
by registered post addressed to him at the address shown on the
c
register or at his address last known to the Secretary if different.

(6) Within the time stipulated for service of the notice of
inquiry, the Secretary shall send a copy of the notice of inquiry to
any complainant.

18. (1) The Chairman of the Council may adjourn any inquiry
to such date as he thinks fit.

(2) Notice of any such adjournment shall be given to the
defendant and to any complainant.

19. (1) Where, after a complaint or information has been
referred to the Council for inquiry, further information is sub-
sequently produced in writing which suggests that an inquiry should
not be held, the Council may refer back the case to the Committee
for further consideration.

(2) As soon as may be after the giving of any such direction,
the chairman of the Committee shall direct the Secretary to, and
the Secretary when so directed shall, give notice thereof to any
complainant and to the defendant.

20. The defendant and any complainant shall furnish to the
Secretary, not less than 10 days before the date of an inquiry or such
lesser period as the Council may determine, 2 copies of all documents
upon which he intends to rely at the hearing of the said inquiry.





21. The Secretary on the request of the defendant or a com-
plainant and on the payment of his reasonable charge therefor shall
send to the defendant or to the complainant, as the case may be,
copies of any document sent to the Secretary by the other party for
the purposes of an inquiry.

22. Any party may at any time give to any other party notice
to produce any document alleged to be in the possession of that
party and, on failure to produce such document, may prove the
contents thereof by any alternative method.

23. (1) Where before the hearing or at any stage of the hear-
ing it appears to the Council that a notice of inquiry is defective,
the Chairman may give such directions for the amendment of the
notice as may be thought necessary to meet the circumstances of
the case unless, having regard to the merits of the case, he is of the
opinion that the required amendments cannot be made without
injustice to the defendant.

(2) The Secretary as soon as is practicable, after the amend-
ment of a notice of inquiry, shall give notice in writing thereof to
the defendant and to any complainant.

PART IV

PROCEEDINGS AT HEARING OF THE COUNCIL

24. (1) A shorthand writer may be appointed by the Council
to prepare a verbatim record of the proceedings.

(2) If a verbatim record of any proceedings or any part of any
proceedings has been prepared the Chairman, on application to him
by any party and on payment to him of a fee 75 cents for each folio
of 72 words or part thereof, shall furnish such party with a copy of
such record.

25. (1) At the opening of an inquiry the Secretary shall read
the notice of inquiry.

(2) If the defendant is not present or represented by his solicitor
or counsel at the opening of the inquiry, the Secretary shall furnish
to the Council such evidence as the Council may require that the
notice of inquiry was served on the defendant in accordance with
the provisions of regulation 17 and, on being satisfied as to such
evidence, the Council may proceed with the inquiry in the absence
of the defendant.

(3) If the defendant is present at the inquiry the Chairman,
immediately after the charge has been read, shall inform him of
his right to cross-examine witnesses, to give evidence and to call
witnesses on his behalf.





26. (1) After the reading of the notice of inquiry the defendant, or
his solicitor or counsel, may object to any charge on a point of law and,
upon such objection, any other party to the inquiry may reply thereto
and, if any such party replies to such objection, the defendant, or his
solicitor or counsel, shall be permitted to answer such reply.

(2) If such objection is upheld by the Council the charge to which
such objection relates shall be considered only subject to such
objection.

27. Subject to the provisions of regulations 25 and 26, the following
order of procedure shall be observed

(a) the complainant, or his solicitor or counsel, or in their
absence, or if there is no complainant, the Secretary, shall
present the case against the defendant and adduce the
evidence in support thereof and shall close the case against
the defendant: -Q

Provided that, on the application of the Director, the
Attorney General may appoint a legal officer within the
meaning of the Legal Officers Ordinance to carry out the
duties of the Secretary in respect of that inquiry in the
absence of a complainant and his solicitor or counsel;

(b) at the conclusion of the presentation of the case against the
defendant, he or his solicitor or counsel may make either or
both of the following submissions in relation to any charge in
respect of which evidence has been adduced

(i) that sufficient evidence has not been adduced upon
which the Council can find that the facts alleged in that charge
have been proved;

(ii) that the facts alleged in the charge are not such as to
constitute the offence charged,

and where such submission is made, a reply thereto may be
made by the complainant, or by his solicitor or counsel, or in
their absence by the Secretary, and the defendant may answer
such reply;

(c)if a submission is made under paragraph (b), the Council shall
consider and determine whether the submission shall be
upheld and

(i) the Chairman shall announce the determination of the
Council; and

(ii) if the Council upholds the submission in respect of any
charge, the finding shall be recorded that the defendant is not
guilty on that charge; and

(iii) if the Council rejects the submission, the Chairman
shall call upon the defendant to state his case;





(d)the defendant, or his solicitor or counsel, may then adduce
evidence in support of his case and may address the
Council:
Provided that only one address may be made under
this paragraph, and where evidence has been adduced by
or on behalf of the defendant such address may be made
either before or after such evidence has been adduced;

(e)at the conclusion of the case of the defendant, the com-
plainant, or his solicitor or counsel, or in their absence
the Secretary, may address the Council in reply, only if
evidence has been adduced by or on behalf of the defend-
ant other than by his own evidence, or with the special
leave of the Council.

28. (1) At the conclusion of the proceedings under regulation
27, the Council shall consider and determine whether to postpone
judgment.

(2) If the Council decides to postpone judgment, the judgment
of the Council shall stand postponed until such future meeting of
the Council as the Council may decide, and the Chairman shall
announce the decision of the Council in such terms as the Council
may approve.

(3) If the Council decides not to postpone judgment, the
Council shall consider and determine whether the facts alleged in
any charge before the Council have been proved to its satisfaction
and whether the defendant is guilty of the offence charged.

(4) When the Council has come to its decision under para-
graph (3), the Chairman shall announce the decision of the Council
in such terms as the Council may approve.

29. (1) Where under the provisions of regulation 28(2), the
judgment of the Council in respect of a charge stands postponed to a
future meeting of the Council, the Secretary, not less than 1 week
before the date fixed for such future meeting, shall serve on the
defendant a notice specifying the date, time and place fixed for the
meeting of the Council and inviting him to appear at such meeting;
such notice shall be served in the manner provided by regulation 17
for the service of a notice of inquiry.

(2) If there is a complainant in respect of the charge, a copy of
the notice shall be sent to such complainant.

(3) At such future meeting the Chairman may invite the
Secretary to recall, for the information of the Council, the position
in which the case stands and the Council may hear any other party
to the proceedings.

(4) The Council shall then consider and determine its judgment
in accordance with the provisions of regulation 28 and shall
announce its decision in the manner set forth in that regulation.





30. (1) After the announcement of the decision of the Council
in respect of the charge, if such decision be a finding of guilty of the
offence charged, the Council shall consider and determine whether
or not to postpone sentence on the defendant.

(2) If the Council decides to postpone sentence, the sentence
of the Council shall stand postponed until such future meeting of
the Council as the Council may decide, and the Chairman shall
announce the decision of the Council in such terms as the Council
may approve.

31. (1) At any meeting of the Council at which sentence on
a defendant is to be decided by the Council, before the Council shall
decide such sentence an opportunity shall be given to the defendant,
or his solicitor or counsel, to address the Council by way of mitiga-
tion and to adduce evidence as to the circumstances leading to the
offence and as to the character and antecedents of the defendant.

(IA) At any such meeting-
(a)the Secretary or other person presenting the case to the
Council may produce to the Council the records of any
meeting of the Council at which an order was made against
the defendant pursuant to section 18 of the Ordinance; and

(b)the defendant, in person or by his solicitor or counsel, may
address the Council by way of mitigation and may adduce
evidence as to the circumstances leading to any such
previous order.

(2) The Council shall then consider and determine the sentence
on the defendant and the Chairman shall announce the decision of
the Council in such terms as the Council may approve.

32. (1) Where, in accordance with the provisions of regulation
30, the decision of the Council in regard to the sentence in respect
of any charge stands postponed to a future meeting of the Council,
the Secretary, not less than 1 week before the date fixed for such
future meeting, shall serve on the defendant a notice specifying the
date, time and place fixed for the meeting of the Council and inviting
him to appear at such meeting; such notice shall be served in the
manner provided by regulation 17 for the service of a notice of inquiry.

(2) If there is a complainant in respect of the charge, a copy of
the notice shall be sent to such complainant.

33. (1) Evidence may be taken by the Council by oral state-
ment on oath or by written deposition or statement.

(2) A summons to any person requiring him to attend an
inquiry to give evidence or produce any document or other thing
in his possession, in accordance with the provisions of section 19
of the Ordinance, may be in accordance with Form 7 in the First
Schedule.





(3) Every witness shall be examined by the party producing
him and may then be cross-examined by the other party and only
upon matters arising out of such cross-examination may be re-
examined by the party producing him.

(4) The Council may decline to admit the evidence of any
deponent to a document who is not present for, or who declines
to submit to, cross-examination.

(5) The Chairman, and members of the Council through the
Chairman, may put such questions to the parties or to any witness
as they may think desirable.

34. (1) In the taking of the votes of the Council on any
question to be determined by them, the Chairman shall call upon
the members to signify their votes by raising their right hands,
and shall thereupon declare the determination of the Council in
respect of such question.

(2) Where the determination of the Council so declared by the
Chairman is challenged by any member of the Council, the Chairman
shall call upon each member severally to declare his vote, announce
his own vote and announce the number of members of the Council
who have voted each way, and the result of the vote.

(3) Where on any question to be determined by the Council
the votes are equal, the question shall be deemed to have been
decided in favour of the defendant.

(4) No person other than members of the Council and the
Legal Adviser shall be present when the Council votes on any
matter.

PART V
DUTIES OF LEGAL ADVISER

35. The Legal Adviser shall be present at every inquiry held by
the Council in accordance with the provisions of section 9 or section
18 of the Ordinance and no such inquiry shall commence if the Legal
Adviser is not present.

36. The Chairman may give to the Legal Adviser prior notice
that his advice may be required at any meeting of the Council, other
than an inquiry under section 9 or section 18 of the Ordinance, or
at any meeting of the Committee and, if such notice is given, the
Legal Adviser shall be present at such meeting.

37. (1) When the Legal Adviser advises the Council on any
question of law as to evidence, procedure or any other matter in any
inquiry under section 9 or section 18 of the Ordinance he shall do
so in the presence of every party to the proceedings or the person
representing each party or, if the advice is tendered after the Council
has commenced to deliberate as to its findings, every such party or





person as aforesaid shall be informed of the advice that the Legal
Adviser has tendered.

(2) In any case where the Council does not accept the advice of the
Legal Adviser on any such question as aforesaid, every such party or
person shall be informed of this fact.

FIRST SCHEDULE

FORM 1 [reg. 3.1

DENTISTS REGISTRATION ORDINANCE
(Chapter 156)

REGISTER

(FOR DENTISTS RESIDENT IN HONG KONG)

Principal and 1 1
of
other Qualification Registra ion Photograph Remarks
Namepractising and date No.
addresses

FORM I A [reg. 3.1

DENTISTS REGISTRATION ORDINANCE
(Chapter 156)

REGISTER

(FOR DENTISTS KONG)

Q

AddressAddress Clla- Certificate
Name (for corre- Photograph Remarks

(Permanent)spondence) dot No.





2 [reg. S.]

DENTISTS REGISTRATION ORDINANCE
(Chapter 156)

APPLICATION FOR REGISTRATION AS A
DENTIST BY
AN APPLICANT RESIDENT IN HONG KONG

.1........................................
...........................................................

Of ...............................................................................................
apply for registration as a registered dentist in accordance with section 9 of the
Dentists Registration Ordinance.

2. 1 have not been convicted in Hong Kong or elsewhere of any offence
punishable with imprisonment, nor have I ever been found guilty of misconduct in
a professional respect.

3. 1 hold the following qualifications

... ............. 1

............................ .... 1 1 1

Declared at Hong Kong

this ..day of
19
Before me,

Barrister-at-law, Commissioner for Oaths, Justice of the
Peace, Minister of Religion, Registered Dentist or Solicitor.

Photograph

2A [reg. 5.1

DENTISTS REGISTRATION ORDINANCE
(Chapter 156)

APPLICATION FOR AS A DENTIST BY
AN RESIDENT OUTSIDE HONG KONG

1...................................... ------

of ................................................. .........

apply for registration as a registered dentist in accordance with section 9 of the
Dentists Registration Ordinance.

2.(a) My permanent address is

1 ..........................; and

(b) My address for correspondence in Hong Kong is .....................

.................. -. ~ 1

3. 1 have not been convicted in Hong Kong or elsewhere of any offence
punishable with imprisonment, nor have I ever been found guilty of misconduct in a
professional respect.





4. 1 hold the following qualifications-

......................... 1

Declared at .................................

this ..day of
19
Before me,

or Notary Public

p

at ....................................

3 [s. 10 & reg. 7.1

DENTISTS REGISTRATION ORDINANCE
(Chapter 156)

CERTIFICATE OF REGISTRATION

No . .............................................

1 hereby certify that the following is a true copy of particulars extracted from
the entry in the Register

Name Address Date of Registration Qualifications

Fee paid: $450, or exempt under section 30 for the reason
stated below

Photograph

...................

Registrar.



4
[Deleted, L.N. 177177]





5 [reg. 11.1

DENTISTS REGISTRATION ORDINANCE
(Chapter 156)

PARTICULARS OF DIRECTORS OR MANAGERS OR PERSONS
WHO DENTAL OPERATIONS

Presented by (a) ....................................................................................

........................................

Particulars of the directors or managers (b) of (a) .......................................

Company of (c) ........................or of persons who perform

dental operations in connexion with the business of the said company.

Address
Names in full
Business Residential

(Signature) .............................................

(State whether director or
manager or secretary).

Dated this day of 19

(a) Registered name of company.

(b)-Director- includes any person who occupies the position of a director by whatever name called, and any person
in accordance with whose directions or instructions the directors of a company are accustomed to act.

(c) Registered address

(d)State whether director, manager or a person who performs dental operations in connexion with the business of
the company.

6 [reg. 17.]

DENTISTS REGISTRATION ORDINANCE
(Chapter 156)

NOTICE OF INQUIRY

[Date.
] Sir/Madam,

On behalf of the Dental Council of Hong Kong notice is hereby given to you
that, in consequence of a complaint made against you to the Council/ information
received by the Council, an inquiry is to be held into the following against you:

charge relates to conviction) That you were on the ........................

day of .......19 at (specify court recording the conviction)

convicted of (set out particulars of the conviction in sufficient detail to identify
the case).
or

(If the charge relates to conduct) That you (set out briefly the facts alleged):
and that in relation to the facts alleged you have been guilty of unprofessional
conduct.







or





(If the charge relates to obtaining registration by fraud or misrepresentation)
That you (set out briefly the facts alleged): and that in relation to the facts alleged
you obtained registration by fraud or misrepresentation.

or

(If the charge alleges that the registered dentist was not qualified, at the time
of his registration, to be registered) That you (set out briefly the facts alleged): and
that in relation to the facts alleged you were not at the time of your registration
qualified to be registered.

or

(If the charge alleges that the registered dentist is practising dentistry in
premises or under conditions which are unsuitable for such practice) That you (set
out briefly the facts alleged): and that in relation to the facts alleged you are
practising dentistry in premises under such conditions which are unsuitable for such
practice.

a?,

(If the charge alleges that an applicant for registration has been convicted
in the Colony or elsewhere of any offence punishable with imprisonment, or has
been guilt ' v of unprofessional conduct or is the subject of an existing order made

under section 17(1)(i) or (ii) of the repealed Ordinance) That on the ......

day of .......19 .you made application to the Secretary for

registration in accordance with section 9 of the Dentists Registration Ordinance,
whereas (set out briefly, the facts alleged): and that in relation to the facts alleged
your name should not be entered upon the register.

(Where there is more than one charge, the charges are to be numbered
consecutively).

Notice is further given to you that on (clay of the week) the ..................

day of ..........19 a meeting of the Dental Council of
Hong Kong will be held at .. ~ .................. , at

.....a.m./p.m. to consider the above-mentioned chargers) against you,

and d. ... to ... determine whether or not the said Council should take any action
against you under (state whether section 9 or 18) of the Dentists Registration
Ordinance.

You are hereby invited to answer in writing the above-mentioned charge(s)
and also to appear before the Council at the place and time specified above, for the
purpose of answering such charge(s). You may appear in person or by counsel or
solicitor. The Council has power, if you do not appear, to hear and decide upon the
said charge(s) in your absence.

Any answer, admission, or other statement or communication which you may
desire to make with respect to the said charge(s) should be addressed to the
Secretary.

If you desire to make any application that the inquiry should be postponed,
you should send the application to the Secretary as soon as may be, stating the
grounds on which you desire a postponement. Any such application will be
considered by the President of the Dental Council.

A copy of the Dentists (Registration and Disciplinary Procedure) Regulations
is sent herewith for your information.







1 have the honour to be,
Sir/Madam,
Your obedient servant.

....................

Secretary.





FORM 7 [reg. 33.]

DENTISTS REGISTRATION ORDINANCE
(Chapter 156)

SUMMONS TO
WITNESS

In the matter of a Disciplinary Inquiry under section 9/section 18 of the
Ordinance:

And in the matter of (1) ..................................................................

TO (2) ......1

You are hereby summoned to appear before the Dental Council of Hong
Kong at .............................................................................................

upon the .................day of ..1 at o'clock

in the .....noon to give evidence touching the matter under

inquiry (3) and also to bring with you and produce (4) ..............................

Given under my hand this day of

Chairman, Denial Council of Hong Kong.

NOTE: (1) Insert name of registered dentist.
(2) Insert name and address of witness.
(3) Delete if not required.
(4) Specify the books, documents or other things to be produced.

SECOND SCHEDULE [ss. 9(2) & 11 A,
regs. 4, 6 & S B.]
FEES

Entrance for any examination ... ... ... ... ... ... ... $300
Registration ... ... ... ... ... ... ... ... ... ... ... ... ... $450

Re-registration ... ... ... ... ... ... ... ... ... ... ... ... ... $250
Certificate o anding ... ... ... ... ... ... ... ... ... ... ... $100
Certificate verifying registration ... ... ... ... ... ... ... ... ... $100
Alteration to the register ... ... - . ... ... ... ... ... ... ...

Certified copy of an entry in the register - ... ... ... ... ... ... $100

Duplicate certificate of registration ... ... ... ... $100
Certified copy of certificate of registration ... ... ... ... ... $100



Practising certificate for a dentist whose n c is on the register for dentists
resident in Hong Kong, but who is not employed in the public service $100

Practising certificate for a dentist whose name is on the register for
dentists resident in Hong Kong, who is employed in the public service
and who is not practising privately for gain ...... ... ... ... $ 25



Practising certificate for a dentist whose name is on thb.-,register for dentists resident
outside Hong Kong ... ... ... ... ... ... $ 40


G.N.A. 54/59. G.N.A. 70/62. L.N. 25/66. L.N. 118/68. L.N. 177/77. G.N.A. 60/59. Citation. Interpretation. L.N. 118/68. L.N. 118/68. L.N. 177/77. Form of register. L.N. 177/77. First Schedule, Form 1. First Schedule, Form 1A. Fees. L.N. 177/77. Second Schedule. Application for registration. L.N. 177/77. First Schedule, Form 2. First Schedule, Form 2A. Examination. L.N. 177/77. Second Schedule. Certificate of registration. L.N. 177/77. First Schedule, Form 3. Practising certificate. L.N. 177/77. Certificate of standing. L.N. 177/77. Copies of entries and certificates. L.N. 177/77. Second Schedule. Alteration of register. Qualifications. Statement by body corporate. First Schedule. Form 5. Preliminary Investigation Committee. L.N. 118/68. L.N. 177/77. Submission or receipt of complaint or information. L.N. 118/68. Complaint or information touching conduct. L.N. 118/68. Reference of complaint or information to the Committee. L.N. 118/68. Consideration of complaint or information by the Committee. L.N. 118/68. Determination of Committee that no inquiry be held. L.N. 118/68. Determination of Committee that inquiry be held. L.N. 118/68. First Schedule, Form 6. Adjournment of inquiry. L.N. 118/68. Reference back to Committee. L.N. 118/68. Documents to be furnished to Council. L.N. 118/68. Documents to be available to each party. L.N. 118/68. Notice to produce. Amendment of notice. L.N. 118/68. Record of proceedings. L.N. 118/68. Opening of inquiry. Objections on point of law. Order of procedure. (Cap. 87.) Postponement of judgment. Notice of determination of judgment. Postponement of sentence. Address in mitigation. L.N. 177/77. Notice of postponement of sentence. Evidence. First Schedule, Form 7. Voting. L.N. 118/68. Inquiry by the Council. Ordinary meetings of Council. Advice by Legal Advisor. L.N. 177/77. L.N. 177/77. L.N. 177/77. L.N. 177/77. L.N. 177/77. L.N. 118/68. L.N. 177/77.

G.N.A. 54/59. G.N.A. 70/62. L.N. 25/66. L.N. 118/68. L.N. 177/77. G.N.A. 60/59. Citation. Interpretation. L.N. 118/68. L.N. 118/68. L.N. 177/77. Form of register. L.N. 177/77. First Schedule, Form 1. First Schedule, Form 1A. Fees. L.N. 177/77. Second Schedule. Application for registration. L.N. 177/77. First Schedule, Form 2. First Schedule, Form 2A. Examination. L.N. 177/77. Second Schedule. Certificate of registration. L.N. 177/77. First Schedule, Form 3. Practising certificate. L.N. 177/77. Certificate of standing. L.N. 177/77. Copies of entries and certificates. L.N. 177/77. Second Schedule. Alteration of register. Qualifications. Statement by body corporate. First Schedule. Form 5. Preliminary Investigation Committee. L.N. 118/68. L.N. 177/77. Submission or receipt of complaint or information. L.N. 118/68. Complaint or information touching conduct. L.N. 118/68. Reference of complaint or information to the Committee. L.N. 118/68. Consideration of complaint or information by the Committee. L.N. 118/68. Determination of Committee that no inquiry be held. L.N. 118/68. Determination of Committee that inquiry be held. L.N. 118/68. First Schedule, Form 6. Adjournment of inquiry. L.N. 118/68. Reference back to Committee. L.N. 118/68. Documents to be furnished to Council. L.N. 118/68. Documents to be available to each party. L.N. 118/68. Notice to produce. Amendment of notice. L.N. 118/68. Record of proceedings. L.N. 118/68. Opening of inquiry. Objections on point of law. Order of procedure. (Cap. 87.) Postponement of judgment. Notice of determination of judgment. Postponement of sentence. Address in mitigation. L.N. 177/77. Notice of postponement of sentence. Evidence. First Schedule, Form 7. Voting. L.N. 118/68. Inquiry by the Council. Ordinary meetings of Council. Advice by Legal Advisor. L.N. 177/77. L.N. 177/77. L.N. 177/77. L.N. 177/77. L.N. 177/77. L.N. 118/68. L.N. 177/77.

https://oelawhk.lib.hku.hk/items/show/2712

DENTISTS REGISTRATION ORDINANCE

LAWS OF HONG KONG

DENTISTS REGISTRATION ORDINANCE

CHAPTER 156





CHAPTER 156

DENTISTS REGISTRATION ORDINANCE

ARRANGEMENT OF SECTIONS

Section Page
1. Short title ........................................... 3
2. Interpretation ........................3
3, Dentists to be registered ............. 4
4. Establishment and composition of Dental Council 5
5. Meetings of the Council ...............6
6. Registrar of Dentists ................................. 6
7. Keeping of register ...................7
8. Persons who are qualified to be registered ..................................... 7
9. Application for registration .......... 8
10. Certificate of registration .......... 8
11. Privileges of registered dentists .... 9
1 1A. Person not to practise without practising certificate 9
1 1B. Recovery of practising fees ........ 10
12. Dental companies ....................11
13. Publication of register and evidence of registration 12
14. Exhibition of certificate of registration 12
15. Correction of register ................................................................................ 12
16. Inspection of premises used for the practice of dentistry 13
17. Premises unsuitable for the practice of dentistry 13
18. Disciplinary inquiries by the Council 13
19. Powers of Council with regard to obtaining evidence and the conduct of
proceedings ..............................15
20. Penalty for failure to give evidence .Is
21. Appearance of counsel, etc . .........is
22. Provisions relating to orders of the Council 15
23. Appeals ..............................16
24. Penalty for fraudulent registration ..16
25. Penalty for falsely pretending to be or taking or using the name or title of a
dentist ..................................17
26. Penalty for registered dentist falsely describing his vocation 17





Section Page

27. Covering ............................17
28. Forfeiture ..........................18
29. Regulations .........................18
30. Exemptions from sections 9, 10 and 14 19
31. Exemptions ..........................20





CHAPTER 156

DENTISTS REGISTRATION

Toamend the law relating to dentists by making more comprehensive provisions.

[1 October 19591 G.N.A. 60 of 1959

Originally 29 of 1959 24 of 1962, 10 of 1966, 12 of 1968, 49 of 1977, 79 of 1984, 68 of 1986,
62 of 1987, R. Ed. 1987,4 of 1988, L.N. 76 of 1989

1. Short title

This Ordinance may be cited as the Dentists Registration Ordinance.

2. Interpretation

(1) In this Ordinance, unless the context otherwise requires-

'certificate of registration' means a certificate of registration or a duplicate
certificate of registration issued under section 10;

'Chairman' means the chairman of the Council established under section 4 and
includes any person elected to act as Chairman under section 4(5C); (Added 12
of 1968 s. 2. Amended 4 of 1988 s. 2)

'complainant' means any person from whom a complaint against, or information in
respect of a registered dentist or an applicant for registration has been received
by the Secretary in accordance with regulations made under section 29; (Added
12 of 1968 s. 2)

'Council' means the Dental Council of Hong Kong established under section 4;

'dangerous drugs' means any drug to which the Dangerous Drugs Ordinance (Cap.
134) applies;

'due inquiry' means an inquiry by the Council conducted substantially in
accordance with the procedure provided by regulations made under section
29(h); (Amended 12 of 1968 s. 2)

'Legal Adviser' means the person appointed to be Legal Adviser to the Council
under section 4; (Added 12 of 1968 s. 2)

'Medical Council' means the Medical Council of Hong Kong established under
section 3 of the Medical Registration Ordinance (Cap. 161);

'practising certificate' means a certificate issued under section 11 A; (Added 49 of
1977 s. 2)





'prescribed' means provided by regulations made under section 29;

'register' means the register of dentists kept in accordance with section 7;
'registered' means admitted to the register in accordance with section 9;

'registered address' means the address appearing upon the certificate of
registration issued under section 10;

'registered dentist' means a person whose name appears for the time being on

the register;
'Registrar' means the Registrar of Dentists as provided for under section 6;

'repealed Ordinance' means the Dentists Registration Ordinance 1940 (1 of

1940, see Cap. 156, 1950 Ed.);

'Secretary' means the Secretary of the Council appointed under section 4.

(Added 12 of 1968 s.
2)

(2) A person shall be deemed to practise dentistry within the meaning of this
Ordinance, who, for the sake of gain or otherwise, holds himself out, whether directly
or by implication, as practising or being prepared to practise dentistry, or treats or
attempts to treat or professes to treat, cure, relieve or prevent lesions or pain of the
human teeth or jaws; or performs or attempts to perform any operation thereon, or
inserts or attempts to insert any artificial teeth or appliances for the restoration,
regulation or improvement of the teeth or accessory structures.

3. Dentists to be registered

(1) Subject to the provisions of any regulations made under section 29(1), any
person, not being a registered dentist, who

(a) practises dentistry within Hong Kong commits an offence and is

liable-
(i)on summary conviction to a fine of $50,000 and to imprisonment
for 12 months; or

(ii)on conviction upon indictment to imprisonment for 3 years; or

(b) practises dentistry on a person within Hong Kong which results

in personal injury to that person commits an offence and is
liable-

(i) on summary conviction to a fine of $100,000 and to imprisonment
for 2 years; or

(ii)on conviction upon indictment to imprisonment for 5 years.
(Amended 12 of 1968 s. 3; 79 of 1984 s. 7;68 of
1986 s. 9)

(2) Nothing in this section shall operate to prevent the extraction of teeth for the
relief of pain, or the application of remedies for such purposes, by a medical
practitioner registered under the Medical Registration Ordinance (Cap. 161).





(3) For the purposes of this section a person who fraudulently procures himself
to be registered under this Ordinance shall be deemed not to have been so
registered. (Added 68 of 1986s.9)

4. Establishment and composition of Dental Council

(1) There shall be established within Hong Kong a council to be called the
Dental Council of Hong Kong. (Amended 79 of 1984 s. 2)

(2) The Council shall consist of

(a) the Registrar; (Replaced 4 of 1988 s. 3)

(b)a consultant dental surgeon of the Dental Service of the Department
of Health appointed by the Governor; (Replaced 4 of 1988 s. 3.
Amended L.N. 76 of 1989)

(ba) a registered dentist, who is a full-time member of the teaching staff of
the Faculty of Dentistry of the University of Hong Kong, nominated
by the University of Hong Kong and appointed by the Governor;
(Added 79 of 1984 s. 2)

(c)2 medical practitioners appointed by the Governor; (Amended 4 of
1988 s. 3)

(d)6 registered dentists qualified to be registered under section 8(1)(a),
(b), (ba) or (c) and appointed by the Governor- (Amended 62 of 1987
s. 2; 4 of 1988 s. 3)

(i) from a panel of not less than 12 such registered dentists
nominated by the Hong Kong Dental Association; or

(ii) in the event of the Hong Kong Dental Association failing to
nominate at least 12 such registered dentists, at the discretion of
the Governor; (Replaced 49 of 1977 s. 3. Amended 79 of 1984
s. 2; 4 of 1988 s. 3)

(e)one lay member who shall be appointed by the Governor. (Added 4 of
1988 s. 3)

(3) Members of the Council appointed under subsection (2)(c), (d) and (e)
shall hold office for a period of 3 years but shall be eligible for re-appointment from
time to time. (Amended 4 of 1988 s. 3)

(4) If the place of a member of the Council appointed under subsection (2)(c),
(d) or (e) becomes vacant before the expiration of his term of office. the vacancy
may be filled by appointment by the Governor, and any person so appointed shall
hold office so long only as the member in whose place he is appointed would have
held office. (Amended 4 of 1988 s. 3)

(5) The Chairman of the Council shall

(a) be elected by the members from amongst themselves;

(b)subject to subsection (5D), hold office for 3 years or until he ceases
to hold office as a member, whichever is the earlier; and

(c) be eligible for re-election. (Replaced 4 of 1988 s. 3)





(5A) If the office of Chairman becomes vacant due to effluxion of time, or as a
result of resignation or otherwise, the Secretary shall convene a meeting of the
Council within 3 months of the occurrence of such vacancy for the purpose of
electing a Chairman. (Added 4 of 1988 s. 3)

(5B) The Secretary shall preside at a meeting held under subsection (5A) until
the Chairman is elected and assumes office, but he shall not have an original or a
casting vote. (Added 4 of 1988 s. 3)

(5C) If the Chairman is unable to perform the functions of his office for any
period due to absence from Hong Kong or any other reason, the members of the
Council shall at a meeting of the Council elect one of themselves to act in his place
for the duration of that period and notwithstanding any provision in this Ordinance
the Secretary may, where necessary, convene a meeting for the purpose of such
election. (Added 4 of 1988s.3)

(5D) The Chairman may at any time resign his office by giving notice in writing
to the Secretary. (Added4 of 1988s.3)

(6) There shall be a Secretary of the Council and a Legal Adviser to the Council
who shall be appointed by the Governor.

5. Meetings of the Council

(1) The Council shall meet at such times and such places as the Chairman may
appoint, and the Council shall also meet at the request in writing of at least 4
members, addressed to the Chairman. (Amended 4 of 1988 s. 4)

(2) At any meeting of the Council 4 members, including not less than 1 member
appointed under section 4(2)(d), shall be a quorum.

(3) The validity of any proceedings of the Council shall not be affected by any
vacancy among the members thereof or by any defect in the appointment of a
member thereof.

(4) All questions coming or arising before a meeting of the Council shall be
decided by a majority of the members of the Council present and voting thereon.

(5) The Chairman at any meeting of the Council shall have an original vote and
also, if upon any question the votes shall be equally divided, a casting vote except
in an inquiry under section 9 or 18 at which he shall have only an original vote.
(Amended 4 of 1988 s. 4)

6. Registrar of Dentists

(1) For the purposes of this Ordinance, there shall be a Registrar of Dentists,
who shall perform such duties in connection with the register of dentists as may be
prescribed.

(2) The consultant dental surgeon in charge of the Dental Service of the
Department of Health shall be the Registrar. (Amended4 of 1988s. 5; L.N. 76 of
1989)





7. Keeping of register

(1) The Registrar shall cause a register of dentists to be kept in the form
prescribed and he shall be responsible for the maintenance and custody thereof.

(2) In respect of any person who is registered by virtue of section 8(1)(d), the
register shall indicate the paragraph of section 7* of the repealed Ordinance under
which such person was first registered.

8. Persons who are qualified to he registered

(1) Subject to the provisions of this Ordinance, the following persons and no
others shall be qualified to be registered under this Ordinance

(a) any person who holds a degree in dentistry of the University of

Hong Kong; (Replaced 79 of 1984 s. 3)

(b) any person who holds a degree, diploma or other document

which is-

(i) issued by an examining body in the United Kingdom or

Commonwealth or the Republic of Ireland; and
(ii) recognized by the General Dental Council of the United
Kingdom as qualifying the holder to be registered in the
Dentists Register of the United Kingdom; (Replaced 79 of
1984s.3)

(ba) any person who holds a degree, diploma or other document

which is-

(i) issued by any examining body; and (Amended 62 of 1987

s.3)
(ii) recognized by the Council as qualifying the holder to be
registered under this Ordinance; (Added 79 of 1984 s. 3)

(e) any person who shall by reason of his academic qualification,

professional experience and skill, satisfy the Council that he is a fit
person to be registered under this Ordinance:

Provided that every person applying for registration under this
paragraph shall furnish such evidence of good character as shall
satisfy the Council;

(d) any person who was at any time registered under the repealed

Ordinance.

(2) Notwithstanding anything contained in subsection (1), the Council may
require any applicant for registration to pass such examinations as it may determine.
(Added49 of 1977s. 4)

* As amended by 24 of 1950, Schedule, and 55 of 1955,
s. 4.





9. Application for registration

(1) Any person qualified to be registered may apply to the Registrar for
registration. Every such application shall be made in such manner and shall be
accompanied by such documents, photographs and particulars as may be
prescribed.

(2) Where such person has complied with the provisions of subsection (1) and
with any regulations relating thereto, and has paid the prescribed fee, he shall,
subject to the provisions of subsection (3), be admitted by the Council to the
register.

(3) If, after due inquiry, the Council is satisfied that any applicant for
registration

(a)has been convicted in Hong Kong or elsewhere of any offence
punishable with imprisonment; or

(b) has been guilty of unprofessional conduct; or

(c)is the subject of an existing order made under section 17(1)(i) or (ii)+
of the repealed Ordinance,

the Council may, in its discretion, order that the name of the applicant be not entered
upon the register.

(4) Such of the provisions of section 18 as are capable of application to an
inquiry held for the purposes of this section shall apply to such inquiry, and any
such provision may be construed with such modifications not affecting the
substance as may be necessary to render it conveniently applicable.

10. Certificate of registration

(1) When a person has been registered, the Council shall issue to him a
certificate of registration in such form as may be prescribed.

(2) A registered dentist who requires a certified copy of his certificate of
registration in order to comply with the provisions of section 14(1) shall apply in
writing to the Registrar enclosing one passport size photograph and stating the
address of the premises at which he proposes to practise, and the Registrar may
thereupon issue to the registered dentist a certified copy of his certificate of
registration.

(3) (a)The registered address appearing upon the certificate of registration
shall be the principal address at which the registered dentist carries
on his practice;

(b)every registered dentist shall report to the Registrar every address at
which he carries on the practice of dentistry for gain;

(c)every registered dentist shall report to the Registrar any change of
his registered address or the change of any other address at

+ As amended by 55 of 1955, s. 8.





which he carries on the practice of dentistry for gain within 2 months
of such change;

(d)upon a report of any change of a registered address being made to
the Registrar in accordance with paragraph (c) the Registrar shall
cause the registered address upon the certificate of registration or
upon any certified copy thereof or upon both such certificate of
registration and upon such certified copy thereof as the case may be
to be amended accordingly;

(e)any registered dentist who fails to make a report in accordance with
paragraph (b) or (c) commits an offence and is liable on summary
conviction to a fine of $500. (Amended 68 of 1986 s. 10)

(4) If a certificate of registration has been lost, destroyed or defaced, the
registered dentist may apply in writing to the Registrar to issue to him a duplicate
certificate of registration and the Registrar upon being satisfied as to such loss,
destruction or defacement, shall issue to the registered dentist a duplicate certificate
of registration in the same form as is prescribed for a certificate of registration,
marked on the face thereof with the word 'duplicate'.

(5) If it appears to the Registrar that a certificate of registration or a certified
copy of a certificate of registration is defaced or that the photograph thereon is not a
reasonable likeness of the registered dentist to whom the certificate of registration
relates the Registrar by notice in writing may require the registered dentist to lodge
his certificate of registration or certified copy, as the case may be, with the Registrar
and to apply for the issue of a duplicate certificate of registration or of another
certified copy, and any registered dentist who on being so required fails to do so
within 7 days of the service of such notice commits an offence and is liable on
summary conviction to a fine of $100. (Amended 68 of 1986 s. 10)

11. Privileges of registered dentists

(1) Subject to section 11 A(7), every registered dentist shall be entitled to
recover in due course of law reasonable charges for professional aid, advice and
visits and the value of any medicine or any dental or medical appliances rendered,
made or supplied by him to his patients. (Amended 49 of 1977s. 5)

(2) No person shall be entitled to recover in any court any such charges as are
referred to in subsection (1) unless at the date when such charges accrued he was a
registered dentist.

11A. Person not to practise without practising certificate

(1) Subject to this section, a person to whom this section applies shall not
practise as a dentist in Hong Kong, unless he is the holder of a practising

certificate which is then in force.(Amended62 of 1987s. 4)





(2) Subject to the payment of the prescribed fee for the issue of a practising
certificate, the Secretary, on application made to him for that purpose by a person to
whom this section applies, shall issue to him a certificate to the effect that he is,
subject to any conditions and restrictions specified in the certificate,-

(a) entitled to practise dentistry in Hong Kong; or

(b)in the case of a person deemed to be a registered dentist under section
30(3)(a), entitled to practise dentistry for the purpose of teaching or
performing hospital work in the Faculty of Dentistry of the University
of HongKong. (Amended62of 1987s. 4)

(3) Where a practising certificate is issued pursuant to an application made
during the course of a year in respect of that year, the certificate shall, subject to
subsection (5), be in force from the time of its issue until the end of that year.

(4) Where a practising certificate is issued pursuant to an application made
during the course of a year in respect of the following year, the certificate shall,
subject to subsection (5), be in force for a period of 12 months commencing on 1
January in that following year.

(5) If at any time during the currency of a practising certificate issued under this
section, the holder of the certificate ceases to be registered, the certificate shall
thereupon be deemed to be cancelled.

(6) Any person who is required under this section to be the holder of a
practising certificate under this section shall be deemed to have obtained the
certificate when he has duly applied to the Secretary and paid the prescribed fee for
the issue of the practising certificate.

(7) Notwithstanding section 11(1) a person who is required under this section
to be the holder of a practising certificate shall not be entitled to recover any fees,
costs or other remuneration on any cause of action unless he was, at the time when
the cause of action arose, the holder of a valid practising certificate.

(8) This section applies to

(a) any person whose name appears on the register; and

(b)any person deemed to be a registered dentist by virtue of section
30(3)(a). (Replaced 62 of 1987s. 4)

(Added49 of 1977s. 6)

IIB. Recovery of practising fees

(1) If any person to whom section 1 1A applies contravenes subsection (1) of
that section, the amount of the prescribed fee payable by him under subsection (2)
of that section shall be recoverable as a civil debt.

(2) In any proceedings under this section a certificate purporting to be under
the hand of the Secretary to the effect that the person concerned had not





paid the prescribed fee for the issue of a practising certificate shall, until the contrary
is proved, be evidence of non-payment of the fee.

(3) On recovery of a prescribed fee under this section the Secretary shall, if the
name of the person concerned appears on the register or if he is deemed to be a
registered dentist under section 30(3)(a), issue to him an appropriate practising
certificate. (Replaced 62 of 1987 s. 5)

(Added49 of 1977s. 6. Amended62of 1987s. 5)

12. Dental companies

(1) A body corporate may carry on the business of dentistry if-

(a)it carries on no business other than dentistry or some business
ancillary to the business of dentistry; and

(b)a majority of the directors and all persons practising dentistry are
registered dentists:

Provided that a body corporate which was carrying on the business of dentistry
before the date of commencement of this Ordinance shall not be disqualified from
carrying on the business of dentistry under this section by reason only that it carries
on some business other than dentistry or a business ancillary to that business, if
that other business is a business which the body was lawfully entitled at the date of
coming into operation of this Ordinance to carry on.

(2) Save as aforesaid it shall not be lawful for any body corporate to carry on
the business of dentistry, and any body corporate which carries on the business of
dentistry in contravention of the provisions of this section and every director and
manager thereof, subject to subsection (M), commits an offence and is liable on
summary conviction to a fine of $2,000 for each offence. (Amended 68 of 1986 s. 11)

(M) Where a person is charged with an offence under subsection (2) by reason
of being a director or manager, it shall be a defence for him to prove that the offence
alleged to be committed by the body corporate was committed without his
knowledge. (Added68of1986s.11)

(3) Every body corporate carrying on the business of dentistry shall within 7
days of 1 January in every year transmit to the Registrar a statement in the
prescribed form containing the names and addresses of all persons who are directors
or managers of the company, or who perform dental operations in connection with
the business of the company, and, if any such body corporate fails so to do, it shall
be deemed to be carrying on the business of dentistry in contravention of the
provisions of this section.

(4) Nothing in this section shall prevent the carrying on of the business of
dentistry by the operating staff of any hospital of any description (including an
institution for out-patients only), or of any dental school, which is approved for the
purposes of this section by the Governor in Council.





13. Publication of register and evidence of registration

(1) As soon as may be after 1 January of every year, the Registrar shall
prepare and publish in the Gazette a list of the names, registered addresses,
qualifications and dates of the qualifications of all persons whose names appear
on the register on 1 January immediately preceding the publication of the list in
the Gazette.
(2) As soon as may be after 1 July of every year, the Registrar shall
prepare and publish in the Gazette a list of the names, registered addresses,
qualifications and dates of the qualifications of all persons whose names were
added to the register between 1 January and 1 July of such year.
(3) The publication of a list referred to in subsection (1) or (2) shall be
prima facie evidence that each person named in such list is registered.
(4) The absence of the name of any person from the list last published
under subsection (1) and from any list subsequently published under subsec-
tion (2) shall be prima facie evidence that such person is not registered.
(5) A certificate under the hand of the Registrar that the name of a person
has been entered on or removed from the register shall be conclusive evidence
that a person is or is not registered as the case may be.

14. Exhibition of certificate of registration

(1) Every registered dentist shall cause to be exhibited in a conspicuous
place in any premises in which he practises dentistry for gain the certificate of
registration issued to him under subsection (1) of section 10 or a certified copy
of such certificate issued under subsection (2) of that section and any registered
dentist who fails to comply with the provisions of this section commits an
offence and is liable on summary conviction to a fine of 51,000 and, in the case
of a continued non-compliance, to a fine of $50 for every day during which such
non-compliance continues.
(2) Any person who displays or causes or permits to be displayed in any
premises a certificate of registration or a certified copy of a certificate of
registration bearing his name or photograph at any time when his name does
not appear on the register commits an offence and is liable on summary
conviction to a fine of $1,000.
(Amended 68 of 1986 s. 12)

15. Correction of register

(1) The Registrar shall from time to time insert in the register any
alteration or addition which may come to his knowledge in the name, addresses
or qualifications of any person registered.
(2) The Registrar shall make such amendments to the register as are made
necessary by any decision of the Council.





(3) The Council may order the removal from the register of the name of any
person who

(a) is deceased; or

(b)is not practising dentistry in Hong Kong; or (Amended 79 of
1984s.7)

(ba) being a person required to be the holder of a practising certificate,
has practised dentistry in Hong Kong for a period exceeding 6
months without having obtained such a certificate; or (Added49 of
19 77 s. 7)

(c)has not supplied to the Registrar an address in Hong Kong at which
all notices from the Council may be served on him: (Amended 79 of
1984 s. 7)

Provided that any person failing to acknowledge within 12
months of the date of dispatch the receipt of a registered letter or
telegram addressed to him at the last address supplied by him to the
Registrar shall be deemed not to have supplied the Registrar with an
address under this paragraph.

16. Inspection of premises used for the practice of dentistry

(1) It shall be lawful for any public officer thereunto authorized by the Council
to enter and inspect any premises used or proposed to be used for the practice of
dentistry. Such officer shall produce, on demand, a written authority, signed by the
Chairman of the Secretary authorizing such entry and inspection. (Amended4 of
1988s. 6)

(2) Any person wilfully obstructing or resisting an officer duly authorized by
the Council in the inspection of premises used or proposed to be used for the
practice of dentistry commits an offence and is liable on summary conviction to afine
of $500. (Amended 68 of 1986 s.13)

17. Premises unsuitable for the practice of dentistry

No registered dentist shall practise dentistry in premises or under conditions
which are unsuitable for such practice.

18. Disciplinary inquiries by the Council

(1) If, after due inquiry into any case referred to it by the Preliminary
Investigation Committee in accordance with regulations made under section 29, the
Council is satisfied that any registered dentist- (Amended 12 of 1968 s. 4)

(a)has been convicted in Hong Kong or elsewhere of any offence
punishable with imprisonment; or (Amended 79 of 1984 s. 7)

(b) has been guilty of unprofessional conduct; or





(c) has obtained registration by fraud or misrepresentation; or
(d)was not at the time of his registration qualified to be registered;
or
(e) has contravened the provisions of section 17,
the Council may, in its discretion-
(i)order the name of the registered dentist to be removed from the
register; or
(ii)order the name of the registered dentist to be removed from the
register for such period as it may think fit; or
(iii) order the registered dentist to be reprimanded; or
(iv) postpone judgment on the case for a period, or periods in the
aggregate, not exceeding 2 years,
and may, in any case, make such order as the Council thinks fit with regard to
the payment of the costs of the Secretary, a complainant, a counsel or solicitor
present at the inquiry and the registered dentist or any one or more of them,
and any costs awarded may be recovered summarily as a civil debt in
accordance with the Magistrates Ordinance (Cap. 227). (Amended 49 of 1977
s.8)
(2) For the purposes of subsection (1), 'unprofessional conduct' means
an act or omission of a registered dentist which would be reasonably regarded
as disgraceful or dishonourable by registered dentists of good repute and
competency.
(3) Nothing in this section shall be deemed to require the Council to
inquire into the question whether the registered dentist was properly convicted
but the Council may consider any record of the case in which such conviction
was recorded and any other evidence which may be available and is relevant as
showing the nature and gravity of the offence.
(4) In any inquiry under this section as to whether a person has been
guilty of unprofessional conduct, any finding of fact which is shown to have
been made in any matrimonial proceedings in a court of the Commonwealth
having unlimited jurisdiction in civil matters, or on appeal from a decision in
such proceedings, shall be conclusive evidence of the fact found.
(5) Within 1 month after the expiry of the time within which an appeal
against an order made by the Council in accordance with the provisions of
subsection (1) may be made to the Court of Appeal in accordance with the
provisions of section 23, or if such appeal has been made, within 1 month after
the decision of the Court of Appeal affirming or varying such order, the
Council shall cause the order, or the order as so varied, as the case may be, to
be published in the Gazette and may cause an account of the proceedings at the
inquiry at which such order was made to be so published. There shall also be
published in the Gazette together with such order sufficient particulars to
acquaint the general public of the nature of the offence to which the order
relates.





19. Powers of Council with regard to obtaining
evidence and the conduct of proceedings

(1) For the purposes of an inquiry under section 9 or 18, the Council shall
have the following powers-
(a) to hear, receive and examine evidence on oath;
(b)to summon any person to attend the inquiry to give evidence
or produce any document or other thing in his possession and to
examine him as a witness or require him to produce any
document or other thing in his possession, subject to all just
exceptions;
(c)to admit or exclude the public or any member of the public from
the inquiry;
(d) to admit or exclude the press from the inquiry;
(e)to award any person summoned to attend the inquiry such
sum or sums as in the opinion of the Council may have been
reasonably expended by him by reason of his attendance.
(2) Summonses to witnesses may be in the prescribed form and shall be
signed by the Chairman.

20. Penalty for failure to give evidence

Any person who being summoned to attend as a witness or produce a
book, document or any other thing at any inquiry under section 9 or 18 refuses
or neglects to do so or to answer any question put to him by or with the
concurrence of the Council commits an offence and is liable on summary
conviction to a fine of $1,000 and to imprisonment for 6 months: (Amended
68 of 1986 s. 14)
Provided that no person shall be bound to incriminate himself and every
witness shall, in respect of any evidence given by him before the Council, be
entitled to the same privileges to which he would be entitled if giving evidence
before a court of justice.

21. Appearance of counsel, etc.

The complainant in any inquiry under section 9 or 18 and the person
whose conduct is the subject of such inquiry shall be entitled to be represented
by counsel or a solicitor throughout the inquiry.

22. Provisions relating to orders of the Council

(1) The Registrar shall cause a copy of any order made under section 9(3)
or 18(1) to be served forthwith upon the person concerned, either personally or
by registered post addressed to his registered address.





(2) The Registrar shall not remove the name of a registered dentist from the
register before the expiry of 1 month after the date of service of an order of the
Council made under section 18(1) on the person concerned and in the case of an
appeal shall await the decision of the Court of Appeal.

(3) Any person whose name has been removed from the register under the
provisions of this Ordinance, or whose name prior to the commencement of this
Ordinance had been removed or erased under the provisions of the repealed
Ordinance from the register kept in accordance with the provisions of that Ordinance
may apply to the Council for the restoration of his name to the register, and the
Council, in its absolute discretion and after such inquiry and subject to such
conditions as it may consider desirable, may either allow or refuse the application,
and, if it allows the same, shall order the Registrar to restore the name of the
applicant to the register, and thereupon the Registrar shall restore the name
accordingly.

(4) Any order made by the Council as aforesaid shall be signed by the
Registrar.

23. Appeals

(1) Any person whose name has been ordered not to be entered upon the
register under section 9(3) or any registered dentist who is aggrieved by any order
made in respect of him under section 15 or 18 may appeal to the Court of Appeal and
the Court of Appeal may thereupon affirm, reverse or vary the order appealed
against.

(2) The decision of the Court of Appeal upon such appeal shall be final.

(3) The practice in relation to any such appeal shall be subject to any rules of
court made under the Supreme Court Ordinance (Cap. 4):

Provided that the Court of Appeal shall not have power to hear any appeal
against an order made under section 9 or 18 unless notice of such appeal was given
within 1 month of the service of the order in accordance with section 22(1).

(4) In deciding any appeal under this section the Court of Appeal may make
such order for costs as it considers reasonable. (Added49 of 1977 s.9)

24. Penalty for fraudulent registration

Any person who fraudulently procures or attempts to procure himself or any
other person to be registered under this Ordinance commits an offence and is liable
on conviction upon indictment to imprisonment for 3 years.

(Amended 68 of 1986 s. 15)





25.Penalty for falsely pretending to he or taking
or using the name or title of a dentist

Any person who is neither a registered dentist nor deemed to be one under this
Ordinance and who wilfully or falsely pretends to be or takes or uses the name or
title of a dentist, dental surgeon, qualified dentist, doctor of dental surgery,
professor of dentistry, surgeon dentist, or any name, title, addition or description
implying, whether in itself or in the circumstances in which it is used, that such
person is a dentist or that such person is qualified to heal or treat dental disorders or
derangements, whether by dentistry or any other means of any kind or description
whatsoever, commits an offence and is liable on summary conviction to a fine of $
10,000 and to imprisonment for 6 months.

(Amended 68 of 1986 s. 16; 62 of 1987 s. 6)

26. Penalty for registered dentist falsely
describing his vocation

A registered dentist not qualified to be registered under section 8(1)(a), (b),
(ba) or (c) shall not make use, in describing his vocation, of any name, title, addition,
description or term other than that of 'registered dentist or the
abbreviated form 'dentist' . Any such registered dentist who wilfully or falsely
pretends to be or takes or uses the name or title of a dental surgeon, surgeon dentist,
qualified dentist, doctor of dental surgery, professor of dentistry or any name, title or
description implying in itself or in the circumstances in which it is used that such
registered dentist possesses or holds any qualification to practise other than that he
is registered as a dentist commits an offence and is liable on summary conviction to a
fine of $1,000 and to imprisonment for 6 months: (Amended 49 of 1977s. 10; 68 of
1986s. 17)

Provided that, notwithstanding the foregoing provisions of this section, the
Council may, by writing under the hand of the Secretary, authorize a registered
dentist not qualified to be registered under section 8(1)(a), (b), (ba) or (c) to use
such title or titles associated with his academic qualifications as the Council may
think fit.

(Amended 79 of 1984 s. 4; 62 of 1987 s. 7)

27. Covering

Any registered dentist who practises dentistry in premises in which an
unregistered person practises dentistry commits an offence and is liable on summary
conviction to a fine of $1,000 and to imprisonment for 6 months.

(Amended 68 of 1986 s. 18)





28. Forfeiture

(1) Where a person has been convicted of an offence against section 3(1),
a magistrate may, on application made on behalf of the Crown, order that all
dental materials and equipment in the possession or under the control of such
person shall be forfeited to the Crown.
(2) Upon the making of an order for forfeiture under this section, the
materials and equipment to which such order relates shall be deemed to be the
property of the Crown free from the rights of any person.

29. Regulations

(1) The Governor in Council may by regulation provide for-
(a) the procedure to be adopted at meetings of the Council;
(b) the duties of the Registrar;
(e) the form of the register and the mode in which it shall be kept;
(d)any fee required to be paid under this Ordinance; (Replaced 49
of 1977s. 11)
(da) the disposal of any fee paid or recovered under this Ordinance;
(Added49 of 1977 s. 11)
(e) the manner in which applications for registration shall be made;
(f)the receipt of complaints or information about any registered
dentist or any applicant for registration and the establishment
of a committee to be known as the Preliminary Investigation
Committee to make a preliminary investigation into any such
complaint or information and to determine whether or not there
shall be an inquiry under section 18; (Replaced 12 of 1968 s. 5)
(g)the prohibition of a member of the Preliminary Investigation
Committee who is also a member of the Council from attending
any meeting of the Council whilst it is inquiring under section 18
into a complaint or information, in the preliminary investigation
of which he took part; (Replaced 12 of 1968 s. 5)
(h) the procedure to be followed in relation to-
(i) the submission of complaints and information to the
Preliminary Investigation Committee;
(ii) the preliminary investigation of any complaint or
information by the Preliminary Investigation Committee;
(iii)the formulation of charges arising out of complaints and
information;
(iv)the reference to the Council by the Preliminary Investiga-
tion Committee of cases arising out of complaints or
information;
(v)inquiries held by the Council under this Ordinance;
(Replaced 12 of 1968 s. 5)





(i)any certificate, form or other document required for carrying out the
purposes of this Ordinance; (Replaced 12 of 1968 s. 5)

the duties of the Legal Adviser to the Council; (Replaced 12 of
1968s.5)

(k) the duties of the Secretary of the Council; (Added 12 of 1968 s. 5)

(1)the establishment of classes of ancillary dental workers to undertake
dental work of kinds prescribed by the regulations, being dental work
amounting to the practice of dentistry, within the meaning of section
2(2), and in particular--

(i) the qualifications for becoming a member of any such class;

(ii) the dental work which a member of any such class may undertake
and the conditions, if any, under which he may do so; (iii) the
establishment of a roll or record of such classes; and (iv) the title
to be used by a member of any such class indicating his
membership thereof; and (Added 12 of 1968 s. 5)

(m)generally, the carrying into effect of the provisions of this Ordinance.
(Added 12 of 1968 s. 5)

(2) Any regulations made under subsection (1)(d) may prescribe different fees
to be payable by different categories of dentists. (Added49 of 1977s.]])

30. Exemptions from sections 9, 10 and 14

(1) All dentists in the public service of Hong Kong who possess any of the
qualifications mentioned in section 8(1)(a), (b), (ba) or (e) shall, while in the
discharge of their duties or while practising dentistry otherwise than for gain in a
charitable clinic approved by the Council, be exempt from the payment of fees under
section 9(2), and from sections 10(3) and (5) and 14.

(2) All dentists of Her Majesty's navy, army or air force residing in Hong Kong
who possess any of the qualifications mentioned in section 8(1)(a), (b), (ba) or (c)
shall, while in the discharge of their duties or while practising dentistry otherwise
than for gain in a charitable clinic approved by the Council, be deemed to be
registered dentists for the purpose of section 3, and sections 9, 10 and 14 shall not
apply to such dentists unless they practise dentistry privately in Hong Kong.

(3) All persons on the full-time teaching staff of the Faculty of Dentistry of the
University of Hong Kong

(a)shall, while in the discharge of their teaching duties or while
performing hospital work in the Faculty of Dentistry, be deemed to be
registered dentists for the purpose of section 3; and

(b)shall be exempt from the payment of fees under section 9(2), and from
sections 10(3) and (5) and 14, unless they practise dentistry privately
within HongKong. (Added62of 1987s. 8)

(Amended 24 of 1962 s. 4; 79 of 1984 s. 5; 62 of 1987 s. 8)





31. Exemptions

(1) Nothing in this Ordinance shall operate to prevent the practice of medicine
or surgery by a medical practitioner registered under the Medical Registration
Ordinance(Cap. 161).

(2) Nothing in this Ordinance shall operate to prevent the training of medical
students, dental students, dental therapists or dental hygienists in the practice of
dentistry under the supervision of a registered dentist or a person deemed to be a
registered dentist during a course of training operated by an institution approved by
the Governor for the purpose of this section. (Replaced 79 of 1984s. 6. Amended62
of 1987s. 9)

(3) Nothing in this Ordinance shall operate to prevent the performance by
dental therapists employed in the public service of minor dental work of such a
character as may be authorized in writing by a government consultant dental
surgeon appointed by the Director of Health for that purpose. (Amended 10 of 1966
s. 3; 79 of 1984 s. 6; L.N. 76 of 1989)

https://oelawhk.lib.hku.hk/items/show/2711

BANKING ORDINANCE (VARIATION OF CAPITAL ADEQUACY RATIOS) NOTICE

BANKING ORDINANCE (VARIATION OF CAPITAL
ADEQUACY RATIOS) NOTICE

(Cap. 155, sections 98(3) and 101(2))

[31 December 1989]

L.N. 413 of 1989

1. Citation

This notice may be cited as the Banking Ordinance (Variation of Capital
Adequacy Ratios) Notice.

2. Capital adequacy ratio

The percentage specified in section 98(1) of the Ordinance is increased to 8%.

3. Commissioner may increase capital adequacy
ratio for particular authorized institutions

(1) The percentage specified in section 101(1)(a) of the Ordinance is increased
to 12%.

(2) The percentage specified in section 101(1)(b) of the Ordinance is increased
to 16%.

https://oelawhk.lib.hku.hk/items/show/2710

BANKING ORDINANCE (DESIGNATION OF PUBLIC STATUTORY CORPORATION) NOTICE

BANKING ORDINANCE (DESIGNATION OF PUBLIC
STATUTORY CORPORATION) NOTICE

(Cap. 155, section 79(1))

[1 September 1986.]

1. This notice may be cited as the Banking Ordinance (Designation
of Public Statutory Corporation) Notice.

2. The Mass Transit Railway Corporation is designated for the
purposes of the definition of 'non-listed company' in section 79(1) of
the Ordinance as a public statutory corporation deemed not to be a non-
listed company.
L.N. 208/86. Citation. Designation of public statutory corporation.

L.N. 208/86. Citation. Designation of public statutory corporation.

https://oelawhk.lib.hku.hk/items/show/2709

BANKING ORDINANCE (DEPOSIT-TAKING EXEMPTIONS) (CONSOLIDATION) NOTICE

BANKING ORDINANCE (DEPOSIT-TAKING
EXEMPTIONS) (CONSOLIDATION) NOTICE

(Cap. 155, section 13(1))

[1 September 1986.]

1. This notice may be cited as the Banking Ordinance (Deposit-
taking Exemptions) (Consolidation) Notice.

2. The following persons are exempt from section 12 of the
Ordinance, namely-

(a)each person specified in the First Schedule subject to the
conditions, if any, specified in that Schedule in relation to that
person;

(b)the company known as South Australian Finance (HK)
Limited (referred to in the Second Schedule as 'the company')
subject to the conditions specified in the Second Schedule;

(c)the company known as Jardine Matheson & Company Limited
subject to the conditions specified in the Third Schedule.

FIRST SCHEDULE [para. 2(a).]

PERSONS EXEMPT FROM
SECTION 12

1. The Bishop of Victoria, Hong Kong, the sole trustee of the fund entitled
the Duppuy Fund, and all persons concerned with the administration of this fund.

2. Arabian Gulf Investments (Far East) Limited subject to the following
conditions

(1) that in carrying on any business of taking deposits of money in Hong Kong
or elsewhere, Arabian Gulf Investments (Far East) Limited shall not

(a)issue, or have in its possession for the purposes of issue, any advertisement
which to its knowledge is or contains an invitation to members of the
public

(i) to deposit money; or

(ii) to enter into, or offer to enter into, any agreement to deposit
money;

(b)issue, or have in its possession for the purposes of issue, any document
which to its knowledge contains such an advertisement; or

(c)in any other manner issue or make an invitation to members of the public
to do any of the acts referred to in paragraph (a),

where such issue, possession or making is not in contravention of section 92 of the
Ordinance, except as the Financial Secretary may approve in writing from time to
time;

(2) that The Hongkong and Shanghai Banking Corporation or its nominee is
and shall at all times continue to be a beneficial owner of not less than 20% of the
issued and paid up share capital of Arabian Gulf Investments (Far East) Limited; and

(3) that The Hongkong and Shanghai Banking Corporation shall, by prior
written notice to the Financial Secretary, advise of any proposal or action which
may result in condition (2) not continuing to be fulfilled.





SECOND SCHEDULE [para. 2(b).]

CONDITIONS TO WHICH EXEMPTION IS SUBJECT

1. The beneficial owner of the company (whether directly or indirectly) shall
be

(a) the Crown in right of the State of South Australia: or

(b) a minister or statutory authority of that State.

2. In carrying on any business of taking deposits in Hong Kong or elsewhere,
the company shall not

(a)issue, or have in its possession for the purposes of issue, any advertisement
which to its knowledge is or contains an invitation to members of the
public

(i) to make any deposit; or

(ii) to enter into, or offer to enter into, any agreement to make any
deposit;

(b)issue, or have in its possession for the purposes of issue, any document
which to its knowledge contains such an advertisement; or

(c)in any other manner issue or make an invitation to members of the public
to do any of the acts referred to in sub-paragraph (a),

where such issue, possession or making is not in contravention of section 92 of the
Ordinance, except as the Financial Secretary may approve in writing from time to
time.

3. In carrying on any business of taking deposits in Hong Kong or elsewhere,
no deposit shall be taken by the company from any Hong Kong resident except
such a resident which is a company

(a) owned by or under the control of;

(b) the assets of which are charged in favour of, or

(c)the obligations of which in respect of borrowed moneys are owed to, or
guaranteed by,

the South Australian Government Financing Authority or the Treasurer of the State
of South Australia.

4. In carrying on any business of taking deposits in Hong Kong, the company
shall not take any deposit which is less than US$10,000,000, or an equivalent
amount in any other foreign currency.

5. The company shall not take any deposit in Hong Kong unless it is
denominated and repayable in a currency other than the Hong Kong dollar.

6. The obligations of the company to repay the principal of, and to pay
interest on, any deposit taken by it in Hong Kong shall be guaranteed by

(a) the South Australian Government Financing Authority;

(b) the Treasurer of that State; or

(c)a statutory authority of that State the liabilities of which are guaranteed by
that Treasurer.

THIRD SCHEDULE [para. 2(c).]







CONDITIONS TO WHICH EXEMPTION IS SUBJECT

1. In carrying on any business of taking deposits Jardine Matheson & Company
Limited shall not take any deposit except from-





(a)a company, included in a list of companies submitted to and approved by
the Commissioner of Banking or which may be included in such list from
time to time subject to the approval of the Commissioner; or

(b) any employee of any company included in such list.

2. Jardine Matheson Company Limited shall furnish to the Commissioner of
Banking at any time he may require, any particulars, relating to any company
included in such list; as he may require to be furnished to him, verified in such
manner as he may require.
L.N. 209/86. L.N. 66/87. L.N. 125/87. Citation. Exemptions. L.N. 209/86. First Schedule. L.N. 66/87. Second Schedule. L.N. 125/87. Third Schedule.

L.N. 209/86. L.N. 66/87. L.N. 125/87. Citation. Exemptions. L.N. 209/86. First Schedule. L.N. 66/87. Second Schedule. L.N. 125/87. Third Schedule.

https://oelawhk.lib.hku.hk/items/show/2708

BANKING ORDINANCE

LAWS OF HONG KONG

BANKING ORDINANCE

CHAPTER 155





CHAPTER 155

BANKING ORDINANCE

ARRANGEMENT OF SECTIONS

Section..................................... Page

PART 1

PRELIMINARY

1. Short title and commencement .............. ... ... ... ... ... ... ... 7

2, Interpretation ............................... ... ... ... ... ... ... 7

3. Application .......................... ... ... ... ... ... ... ... ... 12

PART 11

APPOINTMENTS, FUNCTIONS OF COMMISSIONER,
REPORTS BY COMMISSIONER AND POWER OF
GOVERNOR To GIVE DIRECTIONS

4...................Banking Advisory Committee ... ... ... ... ... ... ... ... 14

5, Deposit-taking Companies Advisory Committee... ... ... ... ... ... ... 14

6.................Commissioner of Banking ....... ... ... ... ... ... ... ... ... ... 15

7...................Functions of Commissioner ... ... ... ... ... ... ... ... ... 15

8. Commissioner may employ assistants ...... ... ... ... ... ... ... ... ... 15

9.................Reports by Commissioner ....... ... ... ... ... ... ... ... ... ... 16

10. Power of Governor to give directions ... ... ... ... ... ... ... 16

PART 111

BANKING BUSINESS AND BUSINESS OF TAKING DEPOSITS TO BE
CARRIED ON BY AUTHORIZED INSTITUTIONS ONLY

11. Banking business restricted to licensed banks ... ... ... ... ... ... ... ... 16

12. Restriction on business of taking deposits ... ... ... ... ... ... ... ... ... 17

13. Power to grant exemptions ... ... ... ... ... ... ... ... ... ... ... ... 17

14. Deposit-taking company not to take deposits less than specified sum ... ... ... is

PARTIV

LICENSING AND REGISTRATION OF AUTHORIZED INSTITUTIONS
AND KEEPING OF REGISTER

15..................Application for banking licence ... ... ... ... ... ... ... 19
16..................Grant or refusal of banking licence ... . ... ... ... ... ... 19
17..................Amendment of conditions of banking licence ... ... ... ... ... ... ... 20

is. Minimum paid-up share capital for grant of banking licence ... ... ... ... ... 20

19. Banking licence fees ... ... ... ... ... ... ... ... ... ... ... ... ... 20

20. Application for registration as deposit-taking company ... ... ... ... ... ... 21







21. Registration or refusal of registration of deposit-taking company ... ... ... ... 21

22. Amendment of conditions of registration ... ... ... ... ... ... ... ... ... 22





Section ........................... Page

23. Registration fees....................... ... ... ... ... ... ... ... 23

24. Application for deposit-taking licence ... ... ... ... ... ... ... ... 23
25. Grand or refusal of deposit-taking licence .................. ... ... ... ... 24

26 Deposit-taking licence fees ............... ... ... ... ... ... ... ... ... 24

27. Register of authorized institutions, etc . ... ... ... ... ... ... ... ... 25

28. Publication of names entered in or removed from register and suspensions ... 26

PART V

REVOCATION OF LICENCE OR
REGISTRATION
OF AUTHORIZED INSTITUTION

29...................Revocation of banking licence ... ... ... ... ... ... ... ... 26

30. Procedure on and effect of revocation of banking licence ... ... ... ... ... 27

31.................Revocation of registration ... ... ... ... ... ... ... ... ... ... ... 27

32......................Revocation of deposit-taking licence ... ... ... ... ... ... ... ... ... 28

33. Procedure on and effect of revocation of registration or deposit-taking licence 30

PART VI

SUSPENSION OF DEPOSIT-TAKING COMPANY

34............Interpretation .................. ... ... ... ... ... ... ... ... 30

35. Temporary suspension of registration or deposit-taking licence in an emergency 30
36. Suspension of registration or deposit-taking licence for a period up to 6 months 31

37. Opportunity of being heard ... ... ... ... ... ... ... ... ... ... ... 31

38. Effect of suspension............. ... ... ... ... ... ... ... ... ... ... 31

PART VII

TRANSFER OF LICENCE OR
REGISTRATION
OF AUTHORIZED INSTITUTIONS

39............Interpretation .................. ... ... ... ... ... ... 1 ... ... 32

40.....................Transfer of licence or registration ... ... ... ... ... ... ... ... ... 32

41................Application for transfer .... ... ... ... ... ... ... ... ... ... ... 32
42................Certificate of transfer, etc . ... ... ... ... ... ... ... ... ... ... ... 33

43. Liabilities and privileges of transferer and transferee ... ... ... ... ... ... 33

PART VIII

LOCAL BRANCHES, LOCAL REPRESENTATIVE OFFICES
AND FEES

44...........................Control of establishment, etc. of local branches ... ... ... ... ... ... 33

45.....................Fees in respect of local branches ... ... ... ... ... ... ... ... 34







46................................Control of establishment, etc. of local representative offices ... ... ... ... 34

47. Supply of information and examination of local representative offices ... ... ...
35
48. Fees in respect of local representative offices 36





Section Page
PART IX
OVERSEAS BRANCHES, OVERSEAS REPRESENTATIVE OFFICES AND FEES
49. Control of establishment, etc. of overseas branches and overseas representative

offices ............................... ... ... ... ... ... ... ... ... 37

50. Conditions regarding overseas branches and overseas representative offices 38

51. Fees in respect of overseas branches and overseas representative offices ... 40

PART X

POWERS OF CONTROL OVER AUTHORIZED
INSTITUTIONS

52.................Powers of Commissioner ...... ... ... ... ... ... ... ... ... 40
53.................Powers of Governor in Council ... ... ... ... ... ... ... ... ... ... 42

54. Remuneration and expenses of Commissioner and others in certain cases 42

55. Examination and investigation of authorized institutions, etc. ... ... ... ... 43

56............................Production of authorized institution's books, etc . ... ... ... ... ... ... 43

57..............................Control of authorized institution by the Commissioner ... ... ... ... ... 44

58. Authorized institution under control of Commissioner to co-operate with

Commissioner .............................. ... ... ... ... ... ... 45

PART XI

AUDITS AND MEETINGS

59........Audit ................................ ... ... ... ... ... ... ... ... 46

60. Publication of audited balance sheet, etc, . ... ... ... ... ... ... ... ... ...

61. Meetings............................... ... ... ... ... ... ... ... ... ... 48

62. Comissioner may make complaint where there is misconduct, etc. by auditor 48

PART XII

DISCLOSURE OF INFORMATION BY AUTHORIZED
INSTITUTIONS

63. Returns and information to be submitted to the Commissioner ... ... ... ... 48

64.....................Information on sharcholding, etc . ... ... ... ... ... ... ... ... ... 50

65................Alteration in constitution ... ... ... ... ... ... ... ... ... ... ... 51

66. Authorized institution to notify Commissioner when it ceases to take deposits 52

67.........................Duty to report inability to meet obligations ... ... ... ... ... ... ... 52
68.........................Examination by authorities outside Hong Kong ... ... ... ... ... ... ... 52

PARTXIII

OWNERSHIP AND MANAGEMENT OF AUTHORIZED
INSTITUTIONS







69.......................Amalgamation, etc. requires approval ... ... ... ... ... ... ... ... 52

70. Commissioner's approval required for exercise of certain acquired voting power 54
71. Chief executives, directors and secretaries require Commissioner's approval 55

72.......................................Controllers of authorized institutions require Commissioner's approval ... 56





Section Page

73. Certain persons prohibited from acting as employees of authorized institutions

except with consent of Commissioner ........ ... ... ... ... ... ... 57

74. Appointment of chief executive ....... . ... ... ... ... ... ... 57

PART XIV

SHARE CAPITAL, RESERVE AND
DIVIDEND
OF AUTHORIZED INSTITUTIONS

75. Maintenance of reserve .................. ... ... ... ... ... ... ... 58

76. Maintenance of adequate provision for bad and doubtful debts and for

diminution of value of assets ......... ... ... ... ... ... ... ... ... 59

77. Minimum paid-up share capital of licensed banks ... ... ... ... ... ... 59
78. Restriction on distribution of extraordinary profits ... ... ... ... ... ... 59

PART XV

LIMITATIONS ON LOANS BY AND
INTERESTS
OF AUTHORIZED INSTITUTIONS

79. Interpretation and application .......... ... ... ... ... ... ... ... ... 60

80. Advance against security of own shares, etc . ... ... ... ... ... ... ... 61

81. Limitation on advances by authorized institutions ... ... 62

82. Commissioner may publish guidelines on business practices of authorized

institutions ............................... ... ... ... ... ... ... ... 67

83. Limitation on advances to directors, etc. of bank ... ... ... ... ... ... 68

84. Limitation on advances to directors, etc. of deposit-taking companies ... ... ... 69

85. Limitation on advances to employees...... ... ... ... ... ... ... ... ... 72

86. Powers of Commissioner where moneys placed with foreign bank ... ... 72

87. Limitation on shareholding by authorized institutions ... ... ... ... ... ... 73

88. Limitation on holding of interest in land by authorized institutions ... ... ... 74

89. Limitation on shareholding and holding of interest in land in the case of a

registered deposit-taking company ..... ... ... ... ... ... ... ... .. 75

90. Limitation on aggregate holdings under sections 83, 87 and 88 ... ... ... ... 75
91. Proof of compliance with sections 81, 83, 84, 87, 88, 89 and 90 ... ... 76

PART XVI

ADVERTISEMENTS, REPRESENTATIONS AND USE OF
TITLE 'BANK'

92. Offence to issue advertisements and documents relating to deposits ... ... 77

93. Fraudulent inducement to make a deposit ... ... ... ... ... ... ... 78

94. Liability in tort for inducing persons to make a deposit in certain cases ... .. 1 78

95. False, etc. advertisements by authorized institution ... ... ... ... ... ... 80

96. Certain representations prohibited ...... ... ... ... ... ... ... ... ... 80

97. Restrictions on.use.of title.'bank' . ... ... ... ... ... ... ... ... ... ...80






Section...................................... Page

PART XVII

CAPITAL ADEQUACY RATIO OF AUTHORIZED
INSTITUTIONS

98. Capital adequacy ratio .................. ... ... ... ... ... ... ... ... 81

99. Failure to keep to capital adequacy ratio ... ... ... ... ... ... ... ... 81

100............Remedial action .............. ... ... ... ... ... ... ... ... ... ... 82

101. Commissioner may increase capital adequacy ratio for particular authorized

institutions ............................... ... ... ... ... ... ... ... 82

PART XVIII

LIQUIDITY RATIO OF AUTHORIZED INSTITUTIONS
AND MATTERS AFFECTING LIQUIDITY RATIO

102. Liquidity ratio.................... ... ... ... ... 1 . .. 1 ... ... ... 83

103...................Failure to keep to liquidity ratio ... ... ... ... ... ... ... ... ... ... 83

104............Remedial action .............. ... ... ... ... ... ... ... ... ... ... 84

105. Commissioner may vary liquidity ratio for particular authorized institutions 84
106. Authorized institutions not to create certain charges and to notify Commissioner of

certain civil proceedings................ ... ... ... ... ... ... ... 85

PART XIX

UNINCORPORATED BANKS

107. Grant of banking licence to unincorporated banks ... ... ... ... ... ... 86

108. Application for banking licence under section 107 ... ... ... ... ... ... 86

109. Banking licence fee for unincorporated bank ... ... ... ... ... ... ... 86

110. Auditor .......................... ... ... ... ... . ... ... 86

111. General application of Ordinance to unincorporate banks and members ... .....87
112. Application of sections of Ordinance to unincorporated banks ... ... ... ... 87

113..................Prohibition on use of word 'bank .. ... ... ... ... ... ... ... ... ... 88
114..................Prohibition on total of deposits .. ... ... ... ... ... ... ... ... ... 88

115. Death of member of unincorporated bank ... ... ... ... ... ... ... 88

116. Bankruptcy of unincorporated bank ... ... ... ... ... ... ... ... ... 89

PART XX

INVESTIGATIONS OF AUTHORIZED INSTITUTIONS

117. Investigations on behalf of the Financial Secretary ... ... ... ... ... ... 90

118. Powers of the inspector and offences in connection with the investigation ... ... 92


PART XXI

MISCELLANEOUS

119. Governor in Council to decide whether or not banking business or business of

taking deposits is being conducted .... ... ... ... ... ... ... ... ... 93

120. Official secrecy ... ... ... ... ... ... ... ... ... ... ... ... ... ... 93





Section...................................... Page

121................................Disclosure of information relating to authorized institutions ... ... ... ... 95

122.......................Winding-up of authorized institutions ... ... ... ... ... ... ... ... 96

123. Offences by directors, managers, trustees, employees and agents ... ... ... ... 97

124.........................Prohibition on receipt of commission by staff ... ... ... ... ... ... ... 97

125...................Search warrants and seizures ... ... ... ... ... ... ... ... ... ... 98

126. Defence where director or manager, etc. prosecuted ... ... ... ... ... ... 98

127..........Indemnity ...................... ... ... ... ... ... ... ... ... ... 99

128.....................Execution of instruments under seal ... ... ... ... ... ... ... ... ... 99

129. Validity of contract in contravention of this Ordinance or any Ordinance repealed

by this Ordinance .......................... ... ... ... ... ... ... 99

130. Action for recovery of deposits, etc . ... ... ... ... ... ... ... ... ... ... 99

131. Recovery of fees, expenses, etc . ... ... ... ... ... ... ... ... ... ... ... 100
132. Use of English language .... ... ... ... ... ... ... ... ... ... ... 100

133..............Power to specify forms ..... ... ... ... ... ... ... ... ... ... ... ... 101
134..............Service of documents .......... ... ... ... ... ... ... ... ... ... ... 101

135.................Power to amend Schedules ... ... ... ... ... ... ... ... ... ... ... 101
136.................Consent of Attorney General... ... ... ... ... ... ... ... ... ... ... 101
137.................Amendments Incorporated] ... ... ... ... ... ... ... ... ... ... ... 101

137A. Exclusion of provisions of Gambling Ordinance ... ... ... ... ... ... ... 101

PART XXII

TRANSITIONAL, SAVINGS AND
REPEAL

138.............Interpretation ............. ... ... ... ... ... ... ... ... ... 101

139.................................Appointed members of former committees to continue in office ... ... ... 102

140........................Former Commissioner to continue in office ... ... ... ... ... ... ... 103

141. Authorized and employed persons to continue to be authorized and employed 103
142. Former applications for licences, etc. deemed to be applications under this

Ordinance ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 103

143....................................Former licences, etc. deemed to be licences, etc. under this Ordinance ... ... 104
144. Date of payment of certain fees 104

145. Conditions attached to former licences, etc. deemed to be conditions under

this Ordinance ... ... ... ... ... ... ... ... ... ... ... ... ... ... 105

146. Suspension of former registration, etc. deemed to be suspension under this

Ordinance ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 106

147. Actions, etc. under Part IV of former Banking Ordinance deemed to be
actions under Part X of this Ordinance ... ... ... ... ... ... ... ... ... 106

148. Transitional provisions in relation to section 81 ... ... ... ... ... ... ... 107

148A. Transitional provisions in relation to section 87 ... ... . ... ... ... ... 108

149. Repeat .......................... ... ... ... ... ... 108

First Schedule- Specified Sum ... ... ... ... ... ... ... ... ... ... ... ... 108
Second Schedule. Fees ... ... ... ... ...
... ... ... ... ... ... ... ... ... 109
Third Schedule. Capital Adequacy Ratio ... ... ... ... ... ... ... ... ... ... 109
Fourth Schedule. Liquidity Ratio ... ... ... ... ... ... ... ... ... ... ... ... 112
Fifth Schedule. Perpetual Subordinated Debt ... ... ... ... ... ... ... ... ... 113





CHAPTER 155

BANKING

To regulate banking business and the business of taking deposits and
to make provision for the supervision of authorized institutions so
as to provide a measure of protection to depositors and to promote
the general stability and effective working of the banking system,
and to provide for matters incidental thereto or connected
therewith.

[The Ordinance, other than Part XVII: 1 September 1986.]

PART 1

PRELIMINARY

1. (1) This Ordinance may be cited as the Banking Ordinance.

(2) This Ordinance shall come into operation on a day to be
appointed by the Governor by notice in the Gazette and the Governor
may appoint different days for different provisions.

2. (1) In this Ordinance, unless the context otherwise requires

,,accounts' means any accounts, whether kept in writing or print or by
any machine or device;

'advertisement' means any form of advertising, whether notified or
published

(a)in a newspaper, magazine, journal or other periodical
publication;

(b) by the display of posters or notices;

(e) by means of circulars, brochures, pamphlets or handbills;

(d)by an exhibition of photographs or cinematograph films; or

(e) by way of sound broadcasting or television,

and references to the issue of an advertisement shall be construed
accordingly;

'approved currency' means a currency

(a) freely convertible into Hong Kong dollars; or

(b) approved by the Commissioner; (Added, 64 of 1987, s. 2)

'auditor' means a professional accountant holding a practising
certificate under the Professional Accountants Ordinance;





'authorized institution' means

(a) a bank;
(b) a deposit-taking company.

'authorized institution incorporated in Hong Kong' means an
authorized institution incorporated in Hong Kong by or under the
Companies Ordinance or any other Ordinance and any reference to
a bank incorporated in Hong Kong or a deposit taking company
incorporated in Hong Kong shall be construed accordingly;

'authorized institution incorporated outside Hong Kong' means an
authorized institution incorporated by or under the law or
other authority in any place outside Hong Kong, and in this
respect 'incorporated' includes established and any reference
to a bank incorporated outside Hong Kong king
company incorporated outside Hong Kong rued
accordingly;

'automated teller machine' means a terminal device, whether installed
by a bank or by some other person, which is linked directly or
indirectly to a computer system used by a bank and which provides
facilities to customers of the bank;

'bank' means a company which holds a valid banking licence, ande
includes an unincorporated bank;

'Banking Advisory Committee' means the Banking Advisory Committee
established by section 4;

'banking business' means the business of either or both of the
following--

(a)receiving from the general public money on current, deposit,
savings or other similar account repayable on demand or
within less than 3 months or at call or notice of less than 3
months;

(b) paying or collecting cheques drawn by or paid in by
customers;

'banking licence' means a banking licence granted under section 16 or
107;

'capital adequacy ratio' means the capital adequacy ratio referred to in
section 98;

'certificate of deposit' means a document relating to money, in any
currency, which has been deposited with the issuer or some other
person, being a document which recognizes an obligation to pay a
stated amount to bearer or to order, with or without interest, and
being a document by the delivery of which, with or without
endorsement, the right to receive that stated amount. with or
without interest, is transferable;

'chief executive', in relation to an authorized institution, means the chief
executive appointed under section 74 in respect of the institution;





'Commissioner' means the Commissioner of Banking appointed under
section 6;

'company' means a body corporate

(a) incorporated under the Companies Ordinance;

(b) incorporated by any other Ordinance; or

(c) incorporated or established outside Hong Kong;

'controller', in relation to a company, including a company which is an
authorized institution, means any person

(a)in accordance with whose directions or instructions the
directors of the company or of another company of which it is
a subsidiary are accustomed to act; or

(b)who is entitled to exercise, or control the exercise, of more
than 50 per cent of the voting power at any general meeting of
the company or of another company of which it is a
subsidiary,

and references in this Ordinance to 'control' shall be construed
accordingly:

Provided that a person shall not be deemed to be a person in
accordance with whose directions or instructions the directors of a
company are accustomed to act by reason only that the directors of
the company act on advice given by him in a professional capacity;

'deposit'

(a) means a loan of money-

(i) at interest, at no interest or at negative interest; or

(ii) repayable at a premium or repayable with any
consideration in money or money's worth; but

(b) does not include a loan of money-

(i) upon terms involving the issue, by any company, of
debentures or other securities in respect of which a
prospectus has been registered under the Companies
Ordinance; (Replaced, 64 of 1987, s. 2)

(ii) upon terms referable to the provision of property or
services; or

(iii) by one company to another (neither company being an
authorized institution) at a time when one is a subsidiary of
the other or both are subsidiaries of another company,

and references in this Ordinance to the taking or the making of a
deposit shall be construed accordingly;

'depositor' means a person entitled to repayment of a deposit, whether
made by him or not;

'Deposit-taking Companies Advisory Committee' means the Deposit-
taking Companies Advisory Committee established by section 5;





'deposit-taking company' means

(a) a registered deposit-taking company; or

(b) a licensed deposit-taking company;

'deposit-taking licence' means a deposit-taking licence granted under
section 25;

'director' includes any person who occupies the position of director,
whatever the title of his office;

'document' includes a circular, brochure, pamphlet, poster, handbill,
prospectus and any other document which is directed at or likely to
be read by members of the public; and also includes any
newspaper, magazine, journal or other periodical publication;

'functions' includes powers and duties;

'holding company' and 'subsidiary' have the same meaning as in the
Companies Ordinance;

'issue', in relation to an advertisement or document, includes publish,
circulate, distribute or disseminate the advertisement or document;
and also includes causing the advertisement or document to be
issued;

'licence', in relation to

(a)an authorized institution which is a bank, means a banking
licence; and

(b) an authorized institution which is a deposit-taking company, reasons
a deposit-taking licence,

and references in this Ordinance to a licensed authorized
institution shall be construed accordingly;

'licensed' means licensed under this Ordinance;

'liquidity ratio' means the liquidity ratio referred to in section 102;

'local branch', in relation to

(a) an authorized institution which is a bank, means-

(i) in the case of a bank incorporated in Hong Kong, a place
of business thereof in Hong Kong, other than its principal
place of business in Hong Kong, at which it carries on
banking business; and

(ii) in the case of a bank incorporated outside Hong Kong, a
place of business thereof in Hong Kong, other than its
principal place of business in Hong Kong or a local
representative office thereof, at which it carries on banking
business,

but in either case does not mean an automated teller machine;
and





(b) an authorized institution which is a deposit-taking com-
pany, means a place of business in Hong Kong of a
deposit-taking company, other than its principal place of
business in Hong Kong, at which it carries on the business of
taking deposits;

'local representative office' means an office in Hong Kong of a bank
incorporated outside Hong Kong which is not

(a) licensed under section 16;

(b) a deposit-taking company; and

(c)recognized as the central bank of the place in which it is
incorporated;

'manager' in relation to an authorized institution means its chief
executive and any other person employed by the institution who,
under the immediate authority of a director or of the chief executive,
exercises managerial functions or is responsible for maintaining
accounts or other records of the institution;

'money at call' means money payable within not more than 24 hours of
a demand therefor, but does not include money payable on
demand;

'overseas branch' means a branch outside Hong Kong of an authorized
institution incorporated in Hong Kong, at which it carries on
banking business or a business of taking deposits, as the case may
be, whether or not the business of the branch is limited by the laws
or regulations of the place in which the branch is situated and
whether or not the branch is referred to as an agency in such place;

'overseas representative office' means an office outside Hong Kong,
other than an overseas branch, of an authorized institution
incorporated in Hong Kong;

'perpetual subordinated debt' means any of the debt instruments
specified in the Fifth Schedule;

'register' means the register maintained under section 27;

'registered' means registered under this Ordinance;

'share' means share in the share capital of a company, and includes
stock except where a distinction between stock or shares is
expressed or implied; and the expression 'shareholder' includes a
stockholder;

'short-term deposit' means a deposit with an original term to maturity of
less than 3 months or with a period of call or notice
of less than 3 months;

'specified sum', in relation to

(a) a registered deposit-taking company, means the sum referred
to in section 14(1)(a); and





(b)licensed deposit taking company means the sum referred to in
section 14(1)(b);

'Unified Exchange' has the same meaning as in the Stock Exchanges
Unification Ordinance;
'unincorporated bank' means an unincorporated person or body of
persons holding a valid banking licence granted under section

107.

(2) For the purposes of this Ordinance-

(a) the taking of deposits includes holding out as being prepared
to take deposits;

(b)an advertisement issued by any person by way of display or
exhibition in a public place shall be treated as being issued by
him on every day on which he causes or authorizes it to be
displayed or exhibited;

(c)an advertisement or document which consists of or contains
information likely to lead, directly or indirectly, members of the
public to

(i) make deposits; or

(ii) enter into, or offer to enter into, agreements to make
deposits,

shall be treated as being an advertisement or document which
is or contains an advertisement to members of the public so to
do; and

(d)an advertisement or document issued by one person on behalf
of or to the order of another shall be treated as an
advertisement or document, as the case may be, issued by that
other person.

(3) Without limiting the generality of any other meaning which
'insolvent' may have, an authorized institution shall, for the purposes
of this Ordinance, be deemed to be insolvent if it has ceased to pay its
debts in the ordinary course of business or it cannot pay its debts as
they become due.

(4) Where, under this Ordinance, an authorized institution is
required to provide facilities to any person for the purpose of any
investigation or examination of the institution, such facilities shall
include photocopying facilities.

3. (1) Part 111 of this Ordinance shall not apply to the taking of any
deposit by

(a)a trust company registered under Part VIII of the Trustee
Ordinance;

(b)a credit union registered under the Credit Unions Ordinance;





(c)a company, where such deposit is secured by a mortgage, or
charge, registered or to be registered under the Companies
Ordinance;

(d)a person bona fide carrying on insurance business where such
deposit is taken in the ordinary course of such business;

(e)a person bona fide operating a superannuation or provident
fund where such deposit is taken for the purposes of such
fund;

(f)a public utility company specified in the Third Schedule to the
Inland Revenue Ordinance where such deposit is taken from a
consumer;

(g)an employer where such deposit is taken from a bona fide
employee;

(h)a solicitor, where such deposit is taken from a client, or as a
stakeholder, in the ordinary course of his practice; (Amended,
64 of 1987, s. 3)

(i) the Urban Council or the Regional Council;

(j)a person who is a dealer within the meaning of the Securities
Ordinance where section 84 of that Ordinance applies to such
deposit, or a mutual fund corporation or unit trust authorized
under section 15(1)(r) of that Ordinance;

(k)a person who is registered as a dealer under the Commodities
Trading Ordinance where such deposit is taken from a client in
the ordinary course of his business as a dealer;

(1) any person for remittance outside Hong Kong; or

(Replaced, 64 of 1987, s. 3)

(m)the Exchange Fund established by the Exchange Fund
Ordinance. (Replaced, 64 of 1987,.s. 3)

(2) Part 111 of this Ordinance shall not apply to the taking of any
deposit from

(a) an authorized institution;

(b)a bank incorporated or established outside Hong Kong that is
not licensed under this Ordinance;

(c)a money lender licensed under the Money Lenders Ordinance
in the ordinary course of his business as a money lender; or

(d)a pawnbroker licensed under the Pawnbrokers Ordinance in
the ordinary course of his business as a pawnbroker.

(3) Notwithstanding anything in the Hongkong and Shanghai
Banking Corporation Ordinance, this Ordinance shall apply to The
Hongkong and Shanghai Banking Corporation.






(4) Where there is any conflict or inconsistency between this
Ordinance and the Hongkong and Shanghai Banking Corporation
Ordinance the provisions of this Ordinance shall prevail.

(5) An authorized institution which is incorporated or registered by
or under the Companies Ordinance shall be subject to that Ordinance as
well as to this Ordinance, except that where there is any conflict or
inconsistency between this Ordinance and the Companies Ordinance the
provisions of this Ordinance shall prevail.

PART II

APPOINTMENTS, FUNCTIONS OF COMMISSIONER, REPORTS BY
COMMISSIONER AND POWER OF GOVERNOR TO GIVE DIRECTIONS

4. (1) There is hereby established a Banking Advisory Committee
for the purpose of advising the Governor upon any matter connected
with this Ordinance, in particular in relation to banks and the carrying on
of banking business, and of advising the Governor in Council on each
annual report submitted under section 9(1) and in any case where the
advice of the Committee is sought under section 53(2).

(2) The Banking Advisory Committee shall consist of the Financial
Secretary, who shall be the chairman, the Secretary for Monetary Affairs,
the Commissioner, and such other persons, not being less than 4 nor
more than 12, as the Governor may from time to time appoint.

(3) The members of the Banking Advisory Committee appointed by
the Governor shall hold office for such period and upon such terms as
the Governor may specify in their appointments.

(4) In the absence of the chairman at any meeting of the Banking
Advisory Committee, the Secretary for Monetary Affairs shall act as the
chairman.

5. (1) There is hereby established a Deposit-taking Com-
panies Advisory Committee for the purpose of advising the Gover-
nor upon any matter connected with this Ordinance, in particular in
relation to deposit-taking companies and the carrying on of a
business of taking deposits by such companies, and of advising the
Governor in Council on each annual report submitted under section
9(1) and in any case where the advice of the Committee is sought
under section 53(2).

(2) The Deposit-taking Companies Advisory Committee shall
consist of the Financial Secretary, who shall be the chairman, the
Secretary for Monetary Affairs, the Commissioner, and such other
persons, not being less than 4 nor more than 12, as the Governor may
from time to time appoint.





(3) The members of the Deposit-taking Companies Advisory
Committee appointed by the Governor shall hold office for such
period and upon such terms as the Governor may specify in their
appointments.

(4) In the absence of the chairman at any meeting of the
Deposit-taking Companies Advisory Committee, the Secretary for
Monetary Affairs shall act as the chairman.

6. There shall be a Commissioner of Banking who shall be a
public officer appointed by the Governor.

7. (1) The principal function of the Commissioner shall be
to promote the general stability and effective working of the banking
system.

(2) Without limiting the generality of subsection (1), the
Commissioner shall-

(a)be responsible for supervising compliance with the provi-
sions of this Ordinance;

(b)take all reasonable steps to ensure that the principal places
of business, local branches, overseas branches and over-
seas representative offices of all authorized institutions and
local representative offices are operated in a responsible,
honest and business-like manner;

(c)promote and encourage proper standards of conduct and
sound and prudent business practices amongst authorized
institutions;

(d)suppress or aid in suppressing illegal, dishonourable or
improper practices in relation to the business practices of
authorized institutions;

(e)co-operate with and assist recognized banking supervisory
authorities of any place outside Hong Kong, whenever
appropriate, to the extent permitted by this or any other
Ordinance; and

consider and propose reforms of the law relating to bank-
ing business and the business of taking deposits.

(3) The Commissioner may from time to time cause to be
prepared and published by notice in the Gazette, for the guidance of
authorized institutions, guidelines not inconsistent with this Ordin-
ance, indicating the manner in which he proposes to exercise
functions conferred or imposed by this Ordinance upon him.

8. The Commissioner may authorize or employ any person to
assist him in the exercise of his functions under this Ordinance,
either generally or in any particular case.





9. (1) The Commissioner shall, as soon as practicable after
each 31 December, prepare and furnish to the Financial Secretary
for presentation to the Governor in Council a report on the working
of this Ordinance and on the activities of his office during the
preceding year and, in that report, may set out any measures that he
considers necessary for improving the working of this Ordinance
and of the activities of his office.

(2) In the report under subsection (1), the Commissioner shall
draw attention to any breach or avoidance of this Ordinance that
has come to his notice during the preceding year or any irregularity
discovered by him in the accounts and records of the financial
transactions of any authorized institution for that period which is, in
his opinion, of sufficient importance to justify him so doing.

(3) The Commissioner shall, at such times as he considers
necessary, report to the Financial Secretary on improvements that
he considers to be desirable in the operation and management of his
office.

(4) The Governor may, at any time, request the Commissioner
to report to him on any matter relating to the working of this
Ordinance or the activities of the office of the Commissioner, and the
Commissioner shall, forthwith, prepare and furnish a report to the
Governor accordingly.

(5) The Financial Secretary shall present to the Governor in
Council each report furnished to him under subsection (1) as soon as
practicable after it is so furnished.

(6) Where the Governor in Council is presented under subsec-
tion (5) with a report furnished under subsection (1) to the Financial
Secretary, the Governor in Council may, as he thinks fit, publish the
report, in whole or in part, in such manner as he thinks fit or decline
to publish any part of the report.

10. (1) The Governor may give to the Financial Secretary and
the Commissioner such directions as he thinks fit with respect to the
exercise of their respective functions under this Ordinance, either
generally or in any particular case.

(2) The Financial Secretary and the Commissioner shall, in the
exercise of their respective functions under this Ordinance, comply
with any directions given by the Governor under this section.

PART 111

BANKING BUSINESS AND BUSINESS OF TAKING DEPOSITS TO BE
CARRIED ON BY AUTHORIZED INSTITUTIONS ONLY

11. (1) No banking business shall be carried on in Hong
Kong except by a bank.

(2) Any person who and every director and every manager of a
company which contravenes this section commits an offence and is
liable-





(a)on conviction upon indictment to a fine of $500,000 and to
imprisonment for 5 years; or

(b)on summary conviction to a fine of $50,000 and to
imprisonment for 6 months.

12. (1) No business of taking deposits shall be carried on in Hong
Kong except by an authorized institution.

(2) A registered deposit-taking company shall not take any short-
term deposit in Hong Kong.

(3) A registered deposit-taking company shall not, without the written
permission of the Commissioner, repay any deposit within a period of
less than 3 months from the date on which the deposit was
taken by the company.

(4) No deposit-taking company shall receive money on savings
account.

(5) Subject to section 14, a licensed deposit-taking company may take or
hold short-term deposits.

(6) Any person who contravenes subsection (1), and every director
and every manager of a deposit-taking company which contravenes
subsection (2), (3) or (4) commits an offence and is liable

(a)on conviction upon indictment to a fine of $500,000 and to
imprisonment for 5 years; or

(b)on summary conviction to a fine of $50,000 and to
imprisonment for 6 months.

(7) Any person who enters into a contract or arrangement, or uses
any device or scheme, which has the effect of, or is designed to have the
effect of, avoiding subsection (1), (2), (3) or (4) commits an offence and is
liable

(a)on conviction upon indictment to a fine of $500,000 and to
imprisonment for 5 years; or

(b)on summary conviction to a fine of $50,000 and to
imprisonment for 6 months.

(8) For the purposes of any proceedings for an offence under
subsection (6), if it is proved that a person took deposits on at least 5
occasions within any period of 30 days, that person shall, until the
contrary is proved, be deemed to have been carrying on a business of
taking deposits.

13. (1) The Financial Secretary may, by notice in the Gazette, exempt
any person or class of persons from section 12(1) and, if the Financial
Secretary thinks fit, in that notice also exempt that person or class of
persons from section 92(1) in respect of the business of taking deposits
to which the exemption from section 12(1) relates. (Replaced, 64 of 1987, s.
4)





(2) An exemption under subsection (1) shall be subject to such
conditions as are specified in the notice.

(3) The Financial Secretary may at any time by notice in the Gazette

(a) revoke an exemption under subsection (1); or

(b)revoke, vary, or add to, any condition subject to which such
exemption is granted,

14. (1) Subject to subsection (2)-

(a)a registered deposit-taking company shall not take any deposit
from a depositor of a sum less than the amount specified in item
2 of the First Schedule; and



(b)a licensed deposit taking company shall not take any deposit
from a depositor of a sum less than the amount specified in item
3 of the First schedule/



(2) A deposit-taking company may take a deposit from a depositor
of a sum less than the specified sum applying at the date of that deposit
if the amount standing to the credit of the depositor with the company at
the time any such deposit is taken is not less than the specified sum
applying at the date of that deposit.

(3) Except where a depositor withdraws the whole amount standing
to his credit with a deposit-taking company the company, shall not at the
time of the withdrawal of any sum permit the amount of the balance
standing to the credit of the depositor to be less than the specified sum.

(4) Notwithstanding subsection (3), where a depositor has an amount
standing to his credit with a deposit-taking company at a time when the
specified sum is amended by being increased the company may permit the amount of
the balance to be reduced by withdrawals to any amount that is not less
than the specified sum as it was before being so amended.

(5) Every director and every manager of a deposit-taking company
which contravenes subsection (1) or (3) commits an offence and is liable

(a)on conviction upon indictment to a fine of $500,000 and to
imprisonment for 2 years; or

(b)on summary conviction to a fine of $50,000 and to
imprisonment for 6 months.

(6) Any person who holds himself out, whether as a broker or agent
of a deposit-taking company or otherwise, as being prepared to take
from any person, any sum less than the specified sum for the purpose of
making a deposit of that sum, or of that sum and other sums, with the
company commits an offence and is liable--



(a)on conviction upon indictment to a fine of $500,000 and to
imprisonment for 2 years; or





(b)on summary conviction to a fine of $50,000 and to
imprisonment for 6 months.

(7) Any person who enters into a contract or arrangement, or uses
any device or scheme, which has the effect of, or is designed to have the
effect of, avoiding subsection (1) or (3) commits an offence and is liable

(a)on conviction upon indictment to a fine of $500,000 and to
imprisonment for 5 years; or

(b)on summary conviction to a fine of $50,000 and to
imprisonment for 6 months.

PART IV

LICENSING AND REGISTRATION OF AUTHORIZED
INSTITUTIONS AND KEEPING OF REGISTER

15. (1) A company which wishes to carry on, or a body of persons
proposing to form a company for the purpose of carrying on, banking
business in Hong Kong shall apply to the Governor in Council, through
the Commissioner, for a banking licence or, in the case of a body of
persons proposing to form a company, for an intimation that a banking
licence will be granted to the company upon its incorporation.

(2) There shall be lodged with the Commissioner in respect of an
application for a banking licence or for an intimation that a banking
licence will be granted

(a)a copy of the charter, Ordinance (other than the Companies
Ordinance), statutes, memorandum of association and articles
of association, or other instrument, under which the company
is or is to be incorporated, which shall be verified in such
manner as the Commissioner or the Governor in Council may
require; and

(b)such other documents and information as may be required by
the Commissioner or the Governor in Council.

(3) After receiving an application for a banking licence, the
Commissioner shall forward to the Governor in Council the application
and his advice as to whether or not the applicant should be granted a
banking licence or, in the case of a proposed company, whether or not
the company upon incorporation should be granted a banking licence.

16. (1) After receiving an application forwarded under section 15
and the advice of the Commissioner in respect thereof the Governor in
Council may

(a)grant a banking licence or, in the case of a proposed company,
intimate his intention to grant a banking licence upon receipt
of notice of its incorporation;





(b)grant a banking licence subject to such conditions as he may
think proper to attach thereto in any particular case or, in the
case of a proposed company, intimate his intention, upon
receipt of notice of its incorporation, to grant a banking
licence subject to the attachment of such conditions; or

(c)without assigning any reason therefor, refuse to grant a
banking licence or, in the case of a proposed company,
intimate his intention to refuse to grant a banking licence upon
receipt of notice of its incorporation.

(2) Every director and every manager of a bank which contravenes
any condition attached under subsection (1)(b) to its banking licence
commits an offence and is liable

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

(b) 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.

17. (1) Without limiting the generality of section 16(1)(b), the
Governor in Council may at any time, by notice in writing served upon a
bank, attach to its banking licence such conditions, or amend or cancel
any conditions attached to the banking licence, as he may think proper.

(2) Every director and every manager of a bank which contravenes
any condition attached under this section to its banking licence commits
an offence and is liable--

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

(b) 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.

18. (1) No company which is incorporated in Hong Kong shall be
granted a banking licence unless its share capital issued and paid-up is
not less than $100,000,000 or an equivalent amount in any other approved
currency' deduction having been made in respect of a debit balance, if
any, appearing in the most recent audited profit and loss account of the
company. (Amended, 64 of 1987, s. 5)

(2) The Governor in Council may, by notice in the Gazette, amend
the amount of share capital issued and paid-up specified in subsection
(1).

19. (1) Every bank shall pay the annual banking licence fee specified
in the Second Schedule.

(2) The fee payable under this section shall be paid within 14 days
after the grant of the banking licence and thereafter upon every

anniversary of the date of its grant.(Amended, 64 of 1987, s.6)





20. (1) Every company shall, before it commences a business of taking
deposits, apply for registration in accordance with this section.

(2) There shall be lodged with the Commissioner in respect of an
application for registration

(a) a copy of the memorandum and articles of association or
other document constituting the company; and

(b) such other documents and information as may be required
by the Commissioner.

21. (1) Subject to subsection (2), the Commissioner shall, on
receipt of an application in accordance with section 20, register a company
as a registered deposit-taking company subject to such conditions as
he may think proper to attach thereto in any particular case.

(2) The Commissioner shall refuse to register a company under
subsection (1) if

(a) the paid-up share capital of the company as determined
under subsection (3), is less than $10,000,000, or an equivalent amount in
any other approved currency; (Amended, 64 of 1987, s.7)

(b)the objects of the company as stated in its memorandum or
constitution do not include the object of carrying on a business
of taking deposits;

(c) the name of the company, or the name under which the
company is carrying on or intends to carry on business in Hong
Kong, contains

(i) any word which by virtue of any Ordinance cannot
be contained in the name of any company; or


(ii) any word which by virtue of any Ordinance cannot without
consent be contained in the name of any company and in
respect of which such consent has not been given; or

(d)it appears to the Commissioner that, by reason of any circumstances
whatsoever, the company is not a fit and proper body to be
registered.

(3) For the purposes of determining the paid-up share capital of

(a) a company which has made an application for registration,
there shall be deducted from such share capital any debit
balance appearing in the most recent audited profit and

loss account lodged by the company with the application; and
(Amended, 64 of 1987, s. 7)

(b) a registered deposit-taking company, there shall be deducted from
such, share capital any debit balance appearing in the most
recent audited profit and loss

account of the company.(Amended, 64 of 1987, s. 7)





(4) The Governor in Council may, by notice in the Gazette, amend
the amount of paid-up share capital specified in subsection (2)(a).

(5) The registration of a company under subsection (1) as a registered
deposit-taking company shall be effected by entering in the register the
relevant particulars specified in section 27 and the Commissioner shall
notify the company in writing of the registration and date of registration.

(6) Where the Commissioner refuses to register a company under
subsection (2), he shall notify the company in writing of the refusal.

(7) Any company aggrieved by the refusal of the Commissioner to
register it under subsection (2), or by the imposition by him of
conditions under subsection (1), may appeal to the Governor in Council
against the refusal or the conditions but that refusal or, as the case may
be, those conditions shall take effect immediately, notwithstanding that
an appeal has been or may be made under this subsection.

(8) Every director and every manager of a deposit-taking company
which contravenes any condition attached under subsection (1) to its
registration commits an offence and is liable

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

(b) 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.

22. (1) Without limiting the generality of section 21(1), the
Commissioner may at any time, by notice in writing served on a
registered deposit-taking company, attach to the registration of the
company such conditions, or amend or cancel any conditions attached
to the registration, as he may think proper.

(2) Any company aggrieved by any conditions to which its
registration is made subject by the Commissioner under subsection (1)
may appeal against the conditions to the Governor in Council, but those
conditions shall take effect immediately notwithstanding that an appeal
has been or may be made under this subsection.

(3) Every director and every manager of a deposit-taking company
which contravenes any condition attached under this section to its
registration commits an offence and is liable

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

(b) on summary conviction to a fine of S50,000,

and, in the case of a continuing offence, to a further fine of $5,000 for
every day during which the offence continues.





23. (1) A registered deposit-taking company shall, within 14 days
after the receipt of a notice of registration under section 2 1 (5), pay to
the Director of Accounting Services the registration fee specified in the
Second Schedule.

(2) Every registered deposit-taking company shall pay to the Director of
Accounting Services annually the renewal of registration fee specified in
the Second Schedule

(a)in the case of a company which was carrying on a business of
taking deposits on 1 April 1976, on 1 April in each year; and
(Amended, 64 of 1987, s. 8)

(b)in the case of any other company, upon the anniversary of the
date of registration of such company. (Amended, 64 of 1987,
s. 8)

24. (1) Every company shall, before it commences a business of
taking deposits as a licensed deposit-taking company, apply for a
deposit-taking licence in accordance with this section.

(2) An application for a deposit-taking licence shall be made to the
Financial Secretary, through the Commissioner, and there
shall be lodged with the application such documents and information as
may be required by the Financial Secretary or the Commissioner.

(3) An application for a deposit-taking licence may be made only by a
registered deposit-taking company which has

(a) an issued share capital of not less than $100,000,000 or an
equivalent amount in any other approved currency; and
(Amended, 64 of 1987, s. 9)

(b) a paid-up share capital of not less than $75,000,000 or an
equivalent amount in any other approved currency.
(Amended, 64 of 1987, s. 9)

(4) For the purposes of determining the issued share capital or paid-
up share capital of

(a) a registered deposit-taking company which has made an
application for a deposit-taking licence, there shall be
deducted from any such share capital any debit balance
appearing in the most recent audited profit and loss account of
the company; and (Amended, 64 of 1987, s. 9)

(b) a licensed deposit-taking company, there shall be deducted
from any such share capital any debit balance appearing in the
most recent audited profit and loss account of the
company. (Amended, 64 of 1987, s. 9)

(5) The Governor in Council may, by notice in the Gazette,

amend the amount of issued share capital or paid-up share capital
specified in subsection (3).

(6) After receiving an application for a deposit-taking licence, the
Commissioner shall forward to the Financial Secretary the





application and his advice as to whether or not the applicant should be
granted a deposit-taking licence.

25. (1) After receiving an application forwarded under section 24 and
the advice of the Commissioner in respect thereof, the Financial Secretary
may

(a) grant a deposit-taking licence to a registered deposit taking
company subject to such conditions as he may think proper to
attach thereto in any particular case; or

(b) without assigning any reason therefor, refuse to grant a deposit-
taking licence.

(2) On the grant of a deposit-taking licence to a registered deposit-
taking company, the company shall cease to be a registered deposit-
taking company.

(3) Without limiting the generality of the power to attach conditions
under subsection (1)(a), the Financial Secretary may at any time, by
notice in writing served upon a licensed deposit-taking company, attach
to the deposit-taking licence held by that company such conditions, or
amend or cancel any conditions attached to the deposit-taking licence, as he
may he may think proper.

(4) Where the Financial Secretary refuses to grant a deposittaking
licence under subsection (1)(b), he shall notify the registered deposit-
taking company in writing of the refusal.

(5) Any registered deposit-taking company aggrieved by the refusal
of the Financial Secretary to grant deposit-taking licence to it under
subsection (1), or by the imposition by him of conditions under subsection
(1) or (3), may appeal to the Governor in Council against the refusal or
the conditions, but that refusal or, as the case may be, those conditions
shall take effect immediately, notwithstanding that an appeal has been or
may be made under this subsection.

(6) Every director and every manager of a licensed deposittaking
company which contravenes any condition attached under subsection
(1)(a) or (3) to its deposit-taking licence commits an offence and is liable

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

(b) 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.

26. (1) A licensed deposit-taking company shall, within 14 days
after the grant to it of a deposit-taking licence, pay to the

Director of Accounting Services the deposit-taking licence fee specified
in the Second Schedule.

(2) Every licensed deposit-taking company shall pay to the
Director of Accounting Services annually the renewal of deposit





taking licence fee specified in the Second Schedule upon the anniversary
of the date of grant of the deposit-taking licence. (Amended, 64 qf 1987, s
10)

27. (1) The Commissioner shall maintain a register, in such form as
he thinks fit, which shall contain

(a) the name and business address of every bank;

(b) the name and business address of every local representative
office;

(c) the name and business address of every registered deposit-taking
company;

(d) the name and business address of every licensed deposit-taking company;
and

(e) such other particulars of banks, local representative

offices, registered deposit-taking companies or licensed

deposit-taking companies as the Commissioner thinks fit.

(2) The register shall be kept at the office of the Commissioner or at
such other place as may be notified by the Commissioner in the Gazette.

(3) Any member of the public may, with effect from such date and
during such hours as shall be notified by the Commissioner in the
Gazette, on payment of the fee specified in the Second Schedule--

(a)inspect the register or obtain a copy of an entry in the register
or an extract from the register; or

(b)inspect or obtain a copy of or an extract from any document
lodged with the Commissioner under section 15 (other than any
document or information referred to in subsection (2)(b) of
that section) and section 20 (other than any document or
information referred to in subsection (2)(b) of that section).

(4) A document purporting to be a copy of any entry in or extract
from the register, or of any document lodged with the Commissioner by
a company under this Ordinance, and purporting to be certified by the
Commissioner shall be admitted in evidence in criminal or civil
proceedings before any court on its production without further proof,
and

(a)until the contrary is proved, the court before which such
document is produced shall presume

(i) that the document is certified by the Commissioner;
and

(ii) that the document is a true copy of the entry in or extract
from the register, or of the document lodged with the
Commissioner, to which it refers; and

(b)such document shall be prima facie evidence of all matters
contained therein.





28. (1) Where the name of a bank, local representative office,
registered deposit-taking company or licensed deposit-taking company is
entered in the register, the Commissioner shall
publish in the GazJIte notice of such entry.

(2) Where a company ceases to be a registered deposit-taking
company by virtue of section 25(2), the Commissioner shall-

(a) remove from the register the name of the former registered deposit-
taking company; and

(b) publish in the Gazette notice of such removal.

(3) Where the licence or registration of an authorized institution is
revoked under this Ordinance, the Commissioner shall

(a) remove from the register the name of the former authorized
institution concerned; and

(b) publish in the Gazette notice of such removal.

(4) Where the registration of a registered deposit-taking com-
pany or the deposit-taking licence of a licensed deposit-taking
company is suspended under his Ordinance, the Commissioner
shall-

(a)make a notation in the register against the name of the deposit-
taking company concerned that its registration or deposit-
taking licence, as the case may be, has been so suspended and, if
such suspension is for a specified period, shall, in that notation,
give particulars of such period; and

(b) publish in the Gazette notice of such notation.

(5) Where approval for the establishment of a local representative
office is revoked under this Ordinance, the Commissioner shall

(a) remove from the register the name of the local representative
office; and

(b) publish in the Gazette notice of such removal.

(6) On the date of commencement of this Ordinance, the
Commissioner shall publish in the Gazette

(a) the name of every bank, local representative office, regis-
tered deposit-taking company and licensed deposit-taking
company entered in the register; and

(b) every notation in the register referred to in subsection (4).

PART V

REVOCATION OF LiCENCE OR REGISTRATION OF
AUTHORIZED INSTITUTION

29. The Governor in Council may revoke a banking licence-





(a) if he is satisfied that the holder of the banking licence

(i) has ceased to carry on banking business in Hong Kong;
or

(ii) proposes to make, or has made, any composition or
arrangement with its creditors or is insolvent or is being or
has been wound up or is otherwise dissolved; or

(b) if

(i) where the Commissioner has made a report to him under
section 52(1)(D); or

(ii) where the Financial Secretary has referred a report and
his recommendations thereon to the Governor in Council
under section 117(5)(c),

he considers it is in the public interest to revoke the banking
licence.

30. (1) Where the banking licence of a bank is revoked the
Commissioner shall notify the bank in writing of such revocation and the
bank shall, on and from the date specified in that notice, cease to carry
on any banking business in Hong Kong.

(2) Subsection (1) shall not prejudice the enforcement by any
person of any right or claim against the bank or by the bank of any right
or claim against any person.

31. (1) Subject to section 33(1), the Commissioner may revoke the
registration of a registered deposit-taking company if

(a) the company---

(i) has ceased to carry on a business of taking deposits; or

(ii) proposes to make, or has made, any composition or
arrangement with its creditors or is insolvent or is being or
has been wound up or is otherwise dissolved;

(b)the paid-up share capital of the company is less than the
amount specified in section 21(2)(a);

(c)the objects of the company as stated in its memorandum of
association or constitution no longer include the object of
carrying on a business of taking deposits;

(d) it appears to him that-

(i) the company is not a fit and proper body to remain registered,

(ii) the company has not provided him, whether before or
after being registered, with such information relating to it, and to
any circumstances likely to affect its method of business, as is
required by or under this Ordinance;





(iii) the chief executive of the company, with intent to defeat
or delay its creditors, has departed out of Hong Kong, or
being out of Hong Kong has remained out of Hong Kong, or
has departed from his dwelling-place or usual place of
business, or otherwise has failed or refused to attend any
meeting of the governing board, by whatever name called, of
the institution or any meeting otherwise required by or under
this Ordinance; or

(iv) the business of the company is being carried on in a
manner detrimental to the interests of its depositors;

(e) the company has contravened section 14(1) or (3);

the company has failed to pay the registration fee or renewal
of registration fee in accordance with section 23;

(g)the company has failed to comply with section 60 or Part XVII
or XVIII;

(h)the company makes a report to him under section 67 that it is
likely to become unable to meet its obligations or is about to
suspend payment or it appears to him that the company is so
unable or has suspended payment;

(i)the Financial Secretary has referred a report and his
recommendation thereon to the Commissioner under section
117(5)(e).

(2) Without limiting the generality of subsection (1), the
Commissioner may revoke the registration of a registered deposittaking
company on being requested in writing by the company to do so, if he is
satisfied that the interests of depositors of that company are adequately
safeguarded.

(3) Any company aggrieved by the revocation by the
Commissioner of its registration under subsection (1) may appeal to the
Governor in Council against the revocation, but that revocation shall
take effect immediately, notwithstanding that an appeal has been or may
be made under this subsection.

32. (1) Subject to section 33(1), the Financial Secretary may

revoke the deposit-taking licence of a licensed deposit-taking com-

pany if-


(a) the company-

(i) has ceased to carry on a business of taking deposits; or

(ii) proposes to make, or has made, any composition or
arrangement with its creditors or is insolvent or is being or
has been wound up or is otherwise dissolved;

(b) the issued share capital or paid-up share capital of the
company is less than the amount specified in section 24(3);





(c)the objects of the company as stated in its memorandum of
association or constitution no longer include the object of
carrying on a business of taking deposits,

(d)it appears to him that-

(i) the company is not a fit and proper body to remain
licensed;

(ii) the company has not provided him, whether before
or after being licensed, with such information relating to it,
and to any circumstances likely to affect its method of
business, as is required by or under this Ordinance;

(iii) the chief executive of the company, with intent to defeat
or delay its creditors, has departed out of Hong Kong, or
being out of Hong Kong has remained out of Hong Kong, or
has departed from his dwelling-place or usual place of
business, or otherwise has failed or refused to attend any
meeting of the governing board, by whatever name called, of
the institution or any meeting otherwise required by or under
this Ordinance; or

(iv) the business of the company is being carried on in a
manner detrimental to the interests of its depositors;


(e) the company has contravened section 14(1) or (3);

(f) the company has filed to pay the deposit-taking licence
fee or renewal of deposit-taking licence fee in accordance
with section 26;

(g) the company has failed to comply with section 60 or Part XVII or
XVIII;

(h)the cempany makes a report to the Commissioner under
section 67 that it is likely to become unable to meet its
obligations or is about to suspend payment or it appears to the
Financial Secretary that the company is so unable or
has suspended payment;

(i) he is of the opinion that, having regard to a report under
section 117 in respect of the company, it is proper for him
to do so.

(2) Without limiting the generality of subsection (1), the
Financial Secretary may revoke the deposit-taking licence of a
licensed deposit-taking company on being requested in writing by
the company to do so, if he is satisfied that the interests of depositors
of that company are adequateFy---safeguarded.

(3) Any company aggrieved by the revocation by the Financial
Secretary of its deposit-taking licence under subsection (1) may
appeal to the Governor in Council against the revocation, but that
revocation shall take effect immediately, notwithstanding that an
appeal has been or may be made under this subsection.





33. (1) Before exercising his powers under section 31(1) or 32(1), the
Commissioner or the Financial Secretary, as the case may be, shall inform
the deposit-taking company concerned of the grounds therefor and give
it an opportunity, within such period as the Commissioner or the
Financial Secretary, as the case may be, may specify in writing, being a
period reasonable in the circumstances, of being heard.

(2) Where the registration of a registered deposit-taking com-
pany or the deposit-taking licence of a licensed deposit-taking
company is revoked the Commissioner shall notify the company in
writing of such revocation and the company shall, on and from the
date specified in tha notice, cease to carry on a business of taking
deposits.

(3) Without prejudice to any other provision of this Ordinance, a
company referred to in subsection (2) may continue to hold until
maturity any deposit taken prior to the date referred to in that subsection.

PART VI

SUSPENSION OF DEPOSIT-TAKING
COMPANY

34. In this Part, 'the designated authority' means the Com-
missioner in the case of a registered deposit-taking company, and
the Financial Secretary in the case of a licensed deposit-taking
company.

35. (1) In any case where-

(a)the powers of the designated authority under section 31(1) or
32(1) have become exercisable with respect to a deposit-taking
company; and

(b)the designated authority considers that urgent action is
expedient,

he may, by notice in writing served on the company-

(i) suspend the registration of the company if it is a registered
deposit-taking company; or

(ii) suspend the deposit-taking licence of the company if it is a
licensed deposit-taking company,

for a period not exceeding 14 days and he may if he thinks fit, by
reason of the urgency of the matter or otherwise, do so without
giving the company an opportunity to be heard.

(2) Any notice of suspension under subsection (1) may be
accompanied by a notice stating that the designated authority is
considering whether to exercise his powers under section 31(1), 32(1) or
36.





(3) Any such accompanying notice as is mentioned in subsection
(2) shall inform the company of its rights under sections 33(1) and 37 and the
manner in which it may exercise its rights.

(4) Any suspension under this section or section 36 shall cease on
such date prior to the expiration of the period thereof as the designated
authority may, by notice in writing served on the company, determine.

36. (1) Subject to section 37, in any case where the powers of the
designated authority under section 31(1) or 32(1) have become
exercisable with respect to a deposit-taking company, the designated
authority may, by notice in writing served on the company, suspend
its registration or deposit-taking licence for a period not exceeding 6 months.

(2) A suspension under this section may, before the expiration of
the period thereof, be renewed by the designated authority

(a) by notice in writing served on the company the subject of
the suspension; and

(b)for a period not exceeding 6 months commencing immediately
upon the expiration of the suspension.

(3) Any company aggrieved by the suspension by the de-
signed authority of its registration or deposit-taking licence under
this section may appeal to the Governor in Council against the
suspension, but that suspension shall take effect immediately,
notwithstanding that an appeal has been or may be made under this
subsection.

37. Before exercising his powers under section 36, the designated
authority shall inform the deposit-taking company concerned of the
grounds therefor and give it an opportunity, within
such period as the designated authority may specify in writing, being
a period reasonable in the circumstances, of being heard.

38. (1) Without prejudice to any other provision of this
Ordinance, where the registration or deposit taking licence of a
company is suspended under section 35 or 36 the company shall, on
and from the date specified in the notification to it by the designated
authority of such suspension, cease to carry on a business of taking
deposits, until and unless the period of suspension is terminated
without revocation of the registration or deposit-taking licence of
the company and without a further period of suspension under this Part.

(2) Without prejudice to any other provision of this Ordin-
ance, a company referred to in subsection (1) may continue to hold
until maturity any deposit taken prior to the date referred to in that
subsection.

(3) Notwithstanding the suspension of the registration or
deposit-taking licence of a company it shall continue to be a
deposit-taking company for the purpose of section 23 or 26, as the






deposit-taking company for~le purposes of section 23 or 26, as the





case may be, and also of Parts VIII and IX and all the duties imposed on
a registered deposit-taking company or a licensed deposit-taking company,
as the case may be, under this Ordinance, during the period of its suspension.

PART VII

TRANSFER OF LiCENCE OR REGISTRATION OF AUTHORIZED
INSTITUTIONS

39. In this Part-
'designated authority' means-

(a)the Governor in Council in the case of an authorized institution
which is a bank;

(b)the Commissioner in the case of an authorized institution which
is a registered deposit-taking company;

(c)the Financial Secretary in the case of an authorized institution
which is a licensed deposit-taking company;

'licence' does not include a banking licence granted under section
107.

40. (1) Subject to this Ordinance, the licence or registration of an
authorized institution may be transferred from that institution to another
person.

(2) A transfer of the licence or registration of an authorized
institution shall not take effect until the designated authority grants the
transfer or until such later date as the designated authority specifies.

41. (1) The person to whom it is proposed to transfer a licence or
registration shall lodge an application for the transfer of the licence or
registration with the designated authority, which application shall, in the
case of a licence, be made through the Commissioner.

(2) Subject to such modifications as may be necessary, the
provisions of

(a)sections 15 to 19 inclusive shall apply to an application for the
transfer of a banking licence as if that application were an
application for the grant of a banking licence under section
15(1);

(b)sections 20 to 23 inclusive shall apply to an application for the
transfer of registration as if that application were an application
for registration under section 20(1);

(c)sections 24 to 26 inclusive shall apply to an application
by a registered deposit-taking company for the transfer
of a deposit-taking licence as if that application were an
application for the grant of a deposit-taking licence under
section 24(1); and(Replaced, 64 of 1987, s. 11)
(d) sections 24 to 26 inclusive shall apply to an application by
a person other than a registered deposit-taking company
for the transfer of a deposit-taking licence as if-

(i) that person were a registered deposit-taking com-
pany;and

(ii) that application were an application for the grant of a
deposit-taking
s. 11)

42. Where the designated authority grants the transfer of a licence
or of registration, the Commissioner shall

(a)issue a certificate of transfer to the applicant; and

(b)comply with such provisions of section 28 in respect of the
transfer of the licence or registration as he may think
appropriate.

43. Upon the issue of a certificate of transfer under section 42

(a)the applicant shall have and may exercise the same privileges,
and be subject to the same liabilities and penalties, under this
Ordinance as if the licence or registration transferred had been
originally granted to the applicant; and

(b)the person whose licence or registration is transferred shall
cease to be licensed or registered, but the transfer shall not
affect the liability of that or any other person for any act or
omission done, caused, permitted or made prior to the transfer.

PART VIII

LOCAL BRANCHES, LOCAL REPRESENTATIVE OFFICES
AND FEES

44. (1) An authorized institution shall not establish or maintain any
local branch thereof without the approval of the Commissioner.

(2) Subsection (1) applies to every authorized institution whether
the institution was licensed or registered before, on or after the
commencement of this Ordinance, and subsections (4) and (5) apply to
an approval granted under subsection (1) whether the approval was
granted before, on or after such commencement.

(3) Approval under subsection (1) shall be deemed to have been
granted in respect of any local branch lawfully established prior to the
commencement of this Ordinance.

(4) The Commissioner may at any time, by notice in writing served
upon an authorized institution, attach to an approval granted under
subsection (1), or deemed to have been granted under subsec-





tion (3), in respect of any local branch thereof such conditions, or
amend or cancel any conditions so attached, as he may think proper.

(5) The Commissioner may at any time revoke, in such case as
he thinks fit, an approval granted under subsection (1), or deemed to
have been granted under subsection (3), in respect of any local
branch.

(6) Where the Commissioner refuses to grant approval under
subsection (1) or revokes an approval under subsection (5), he shall
notify the authorized institution concerned in writing of the refusal
or revocation.

(7) Any authorized institution aggrieved by the refusal to
grant approval under subsection (1) or by the revocation of an
approval under subsection (5) by the Commissioner, or by any
conditions to which an approval is made subject by the Commis-
sioner under subsection (4), may appeal to the Governor in Council
against the refusal, the revocation or the conditions, but that refusal,
that revocation or, as the case may be, those conditions shall take
effect immediately, notwithstanding that an appeal has been or may
be made under this subsection.

(8) Every director and every manager of an authorized in-
stitution which contravenes subsection (1) or any condition attached
under subsection (4) commits an offence and is liable-

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

(b) 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.

45. (1) Where the establishment by an authorized institution
of a local branch is approved under section 44, the institution shall
pay to the Director of Accounting Services the fee specified in the
Second Schedule in relation to that branch and thereafter, so long as
the branch continues to be maintained by the institution, it shall pay
to the Director of Accounting Services the fee specified in the Second
Schedule on the anniversary in each year of the date on which the
institution was licensed or registered, as the case may be.

(2) An authorized institution that is maintaining, at the com-
mencement of this Ordinance, a local branch to which section 44(3)
applies shall, so long as the branch continues to be maintained by
the institution, pay to the Director of Accounting Services the fee
specified in the Second Schedule on the anniversary in each year of
the date on which the institution was licensed or registered, as the
case may be.

46. (1) A bank incorporated outside Hong Kong which is not
licensed under section 16 and is not recognized as the central bank of
the place in which it is incorporated shall not establish or maintain
any local representative office thereof without the approval of the
Commissioner.





(2) Approval under subsection (1) shall be deemed to have
been granted in respect of any local representative office lawfully
established prior to the commencement of this Ordinance.

(3) Approval under subsection (1) shall not be granted unless
the Commissioner is satisfied that the bank is adequately supervised
by a recognized banking supervisory authority of the place in which
the bank is incorporated or established.

(4) The Commissioner may at any time, by notice in writing
served upon a bank, attach to an approval granted under subsection
(1), or deemed to have been granted under subsection (2), in respect
of any local representative office thereof such conditions, or amend
or cancel any conditions so attached, as he may think proper.

(5) The Commissioner may at any time revoke, in such case as
he thinks fit, an approval granted under subsection (1), or deemed to
have been granted under subsection (2), in respect of any local
representative office.

(6) Where the Commissioner refuses to grant approval under
subsection (1) or revokes an approval under subsection (5), he shall
notify the bank concerned in writing of the refusal or revocation.

(7) Any bank aggrieved by the refusal to grant approval under
subsection (1) or by the revocation of an approval under subsection
(5) by the Commissioner, or by any conditions to which an approval
is made subject by the Commissioner under subsection (4), may
appeal to the Governor in Council against the refusal, the revoca-
tion or the conditions, but that refusal, that revocation or, as the
case may be, those conditions shall take effect immediately, notwith-
standing that an appeal has been or may be made under this
subsection.

(8) Any person in charge, or who appears to be in charge, of a
local representative office established or maintained in contraven-
tion of subsection (1) or in respect of which any condition attached
under subsection (4) is contravened, commits an offence and is
liable-

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

(b) 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.

47. (1) A bank incorporated outside Hong Kong which main-
tains a local representative office thereof pursuant to section 46
shall-

(a)submit to the Commissioner such information as he may
require regarding the functions and activities of the repre-
sentative office;





(b)if the Commissioner wishes to examine the functions and
activities of the representative office, for that purpose afford
to the person carrying out the examination access to the
documents maintained by the representative office and to
such information and facilities as may be required to conduct
the examination, and shall produce to the person carrying out
the examination such documents or other information as he
may require.

(2) Any person who fails to comply with any requirement of the
Commissioner under this section commits an offence and is liable

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

(b) 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.

(3) Any person who signs any document for the purposes of this
section which he knows or reasonably ought to know to be false in a
material particular commits an offence and is liable

(a)on conviction upon indictment to a fine of $500,000 and to
imprisonment for 2 years; or

(b)on summary conviction to a fine of 550,000 and to
imprisonment for 6 months.

(4) If a bank produces any book, account, document, security or
information whatsoever under this section which is false in a material
particular, every director and every manager of the bank commits an
offence and is liable

(a)on conviction upon indictment to a fine of $500,000 and to
imprisonment for 2 years; or

(b)on summary conviction to a fine of $50,000 and to
imprisonment for 6 months.

48. (1) Where the establishment by a bank incorporated outside
Hong Kong of a local representative office is approved under section
46(1), the bank shall pay to the Director of Accounting Services the fee
specified in the Second Schedule in relation to that representative office
and thereafter, so long as the representative office continues to be
maintained by the bank, the bank shall pay to the Director of Accounting
Services the fee specified in the Second Schedule on the anniversary in
each year of the date of the grant of the approval under that section.

(2) A bank incorporated outside Hong Kong that is maintaining, at
the commencement of this Ordinance, a local representative office to
which section 46(2) applies and which representative office was
established prior to 1 April 1982 shall, so long as the representative
office continues to be maintained by the bank, pay to the Director of
Accounting Services the fee specified in the Second Schedule on 1 April
of each year.





(3) A bank incorporated outside Hong Kong that is maintaining, at
the commencement of this Ordinance, a local representative office to
which section 46(2) applies and which representative office was
established on or after 1 April 1982 shall, so long as the representative
office continues to be maintained by the bank, pay to the Director of
Accounting Services the fee specified in the Second Schedule on the
anniversary in each year of the date of the grant of approval, under
section 12C(1) of the Banking Ordinance 1964 repealed by this
Ordinance, of the establishment of that local representative office.

PART IX

OVERSEAS BRANCHES, OVERSEAS REPRESENTATIVE OFFICES
AND FEES

49. (1) Without prejudice to section 44, an authorized institution
which is incorporated in Hong Kong shall be subject to a condition that
the institution shall not establish or maintain any overseas branch or
overseas representative office thereof without the approval of the
Commissioner.

(2) Subsection (1) applies to every authorized institution
incorporated in Hong Kong whether the institution was licensed or
registered before, on or after the commencement of this Ordinance, and
subsections (4) and (5) apply to an approval granted under subsection
(1) whether the approval was granted before, on or after such
commencement.

(3) Approval under subsection (1) shall be deemed to have been
granted in respect of any overseas branch or overseas representative
office lawfully established prior to the commencement of this Ordinance.

(4) The Commissioner may at any time, by notice in writing served
upon an authorized institution, attach to an approval granted under
subsection (1), or deemed to have been granted under subsection (3), in
respect of any overseas branch or overseas representative office thereof
such conditions, or amend or cancel any conditions so attached, as he
may think proper.

(5) The Commissioner may at any time revoke, in such case as he
thinks fit, an approval granted under subsection (1), or deemed to have
been granted under subsection (3), in respect of any overseas branch or
overseas representative office.

(6) Where the Commissioner refuses to grant approval under
subsection (1) or revokes an approval under subsection (5), he shall
notify the authorized institution concerned in writing of the refusal or
revocation.

(7) Any authorized institution aggrieved by the refusal to grant
approval under subsection (1) or by the revocation of an approval under
subsection (5) by the Commissioner, or by any conditions to which an
approval is made subject by the Commis





sioner under subsection (4), may appeal to the Governor in Council
against the refusal, the revocation or the conditions, but that refusal,
that revocation or, as the case may be, those conditions shall take effect
immediately, notwithstanding that an appeal has been or may be made
under this subsection.

(8) Every director and every manager of an authorized institution
which contravenes the condition in subsection (1) or any condition
attached under subsection (4) commits an offence and is liable

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

(b) 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.

50. (1) Every authorized institution incorporated in Hong Kong
which maintains an overseas branch thereof shall be subject to a
condition that

(a)the institution shall submit to the Commissioner a return in
such form, and at such intervals, as he may specify showing
the assets and liabilities of the overseas branch;

(b)the institution shall submit to the Commissioner such further
information as he may consider necessary for the proper
understanding of the functions and activities of the overseas
branch, and that such information shall be submitted within
such period and in such manner as the Commissioner may
require;

(c)if the Commissioner requires any return submitted to him
pursuant to paragraph (a), or any information submitted to him
pursuant to a requirement under paragraph (b), to be
accompanied by a certificate of an auditor, the institution shall
submit a certificate of the auditor appointed under section
59(1) or of the auditors appointed under section 59(1) and (2),
as the case may be, as to whether or not, in the opinion of the
auditor or auditors, the return or information is correctly
compiled from the books and records of the overseas branch;

(d)if the Commissioner wishes to examine the books, accounts
and transactions of the overseas branch, the institution shall
for that purpose afford the person carrying out the
examination at the place where the branch is maintained
access to the books and accounts of the branch, to
documents of title to the assets and other documents and to
all securities held by the branch in respect of its customers'
transactions and its cash and to such information and facilities
as may be required to conduct the examination, and that the
institution shall produce to the





person carrying out the examination such books, accounts,
documents, securities, cash or other information as he may
require:

Provided that, so far as is consistent with the conduct of
the examination, such books, accounts, documents, securities
and cash shall not be required to be produced at such times
and such places as shall interfere with the proper conduct of
the normal daily business of the overseas branch.

(2) Every authorized institution incorporated in Hong Kong which
maintains an overseas representative office thereof shall be subject to a
condition that

(a)the institution shall submit to the Commissioner such
information as he may require regarding the functions and
activities of the overseas representative office;

(b)if the Commissioner wishes to examine the functions and
activities of the overseas representative office, the institution
shall for that purpose afford the person carrying out the
examination at the place where the representative office is
maintained access to the documents maintained by the
representative office and to such information and facilities as
may be required to conduct the examination, and that the
institution shall produce to the person carrying out the
examination such documents or other information as he may
require.

(3) This section applies to every authorized institution incorporated
in Hong Kong whether the institution was licensed or registered before,
on or after the commencement of this Ordinance.

(4) Every director and every manager of an authorized institution
which contravenes any condition in subsection (1) or (2), or fails to
comply with any requirement under those subsections, commits an
offence and is liable

(a)on conviction upon indictment to a fine of $200,000 and to
imprisonment for 12 months; or

(b)on summary conviction to a fine of $50,000 and to
imprisonment for 6 months,

and, in the case of a continuing offence, to a further fine of $5,000 for
every day during which the offence continues.

(5) If an authorized institution produces any book, account.
document, security or information whatsoever under this section which
is false in a material particular, every director and every manager of the
institution commits an offence and is liable-

(a)on conviction upon indictment to a fine of $500,000 and to
imprisonment for 2 years; or





(b)on summary conviction to a fine of $50,000 and to
imprisonment for 6 months.

(6) Any person who signs any document for the purposes of this
section which he knows or reasonably ought to know to be false in a
material particular commits an offence and is liable

(a)on conviction upon indictment to a fine of $500,000 and to
imprisonment for 2 years; or

(b)on summary conviction to a fine of $50,000 and to
imprisonment for 6 months.

51. (1) Whenever the establishment by an authorized institution
incorporated in Hong Kong of an overseas branch or overseas
representative office is approved under section 49(1), the institution
shall pay to the Director of Accounting Services the fee specified in the
Second Schedule in relation to that branch or representative office and
thereafter, so long as the branch or representative office continues to be
maintained by the institution, it shall pay to the Director of Accounting
Services the fee specified in the Second Schedule on the anniversary in
each year of the date on which the institution was licensed or registered,
as the case may be.

(2) An authorized institution incorporated in Hong Kong that is
maintaining, at the commencement of this Ordinance, an overseas
branch or overseas representative office to which section 49(3) applies
shall, so long as the branch or representative office continues to be
maintained by the institution, pay to the Director of Accounting
Services the fee specified in the Second Schedule on the anniversary in
each year of the date on which the institution was licensed or registered,
as the case may be.

PART X

POWERS OF CONTROL OVER AUTHORIZED INSTITUTIONS

52. (1) Where-

(a) an authorized institution informs the Commissioner-

(i) that it is likely to become unable to meet its obligations;
or

(ii) that it is insolvent or about to suspend payment;

(b)an authorized institution becomes unable to meet its
obligations or suspends payment;

(c)after an examination or investigation is made under section 55,
the Commissioner is of the opinion that an authorized
institution

(i) is carrying on its business in a manner detrimental to the
interests of its depositors or of its creditors;

(ii) is insolvent or is likely to become unable to meet its
obligations or is about to suspend payment;





(iii) has contravened or failed to comply with any of the
provisions of this Ordinance; or

(iv) has contravened or failed to comply with any condition
attached to its licence or registration, the condition specified
in section 49(1), the condition specified in section 50(1) or the
condition specified in section 50(2); or

(d)the Financial Secretary advises the Commissioner that he
considers it in the public interest to do so,

the Commissioner, after consultation with the Financial Secretary, may
exercise such one or more of the following powers as may from time to
time appear to him to be necessary

(A)to require the institution forthwith to take any action or to do
any act or thing whatsoever in relation to its business as he
may consider necessary;

(B)to appoint a person to advise the institution in the proper
conduct of its business;

(C)to assume control of and carry on the business of the
institution, or direct some other person to assume control of
and carry on the business of the institution;

(D) to report the circumstances to the Governor in Council.

(2) Except in the circumstances specified in subsection (1)(a), the
Commissioner shall not exercise the power conferred by subsection
(1)(D) unless he has given to the authorized institution not less than 7
days' notice in writing of his intention to exercise such power and a
statement in writing of his reasons for the exercise thereof, and has
afforded the institution an opportunity to submit to him representations
in writing thereon, and any such representations shall form part of his
report to the Governor in Council.

(3) Any person aggrieved by the exercise by the Commissioner of
any of the powers conferred on him by subsection (1)(A), (B) and (C)
may appeal to the Governor in Council against the exercise of those
powers, but that exercise of those powers 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 fails to comply with any requirement of the Commissioner under
subsection (1)(A) commits an offence and is liable

(a)on conviction upon indictment to a fine of 51,000,000 and to
imprisonment for 5 years and, in the case of a continuing
offence, to a further fine of $50,000 for every day during which
the offence continues; or

(b)on summary conviction to a fine of $50,000 and to
imprisonment for 2 years and, in the case of a continuing
offence, to a further fine of $5,000 for every day during which
the offence continues.





53. (1) Where-

(a)the Commissioner makes a report to the Governor in Council
under section 52(1)(D);

(b)any person appeals to the Governor in Council under section
52(3); or

(c)the Financial Secretary refers a report and his
recommendations thereon to the Governor in Council under
section 11 7(5)(c),

the Governor in Council may, without prejudice to the powers conferred
on him, the Commissioner or the Financial Secretary, as the case may be,
by section 29(b), 31(1)(i) or 32(1)(i) or Part VI, exercise one or more of the
following powers

(i)to confirm, vary or reverse any requirement, appointment or
direction made by the Commissioner;

(ii)to make such order as he may think fit in relation to the affairs
of the authorized institution and exercise any power which the
Commissioner may exercise under section 52(1);

(iii) to direct the Financial Secretary to present a petition to the
High Court for the winding-up of the authorized institution or
former authorized institution by the High Court.

(2) The Governor in Council may, before considering any report or
appeal under subsection (1), seek the advice of the Banking Advisory
Committee or the Deposit-taking Companies Advisory Committee, or
both, but shall not be bound to follow any such advice.

(3) Every director and every manager of an authorized institution
which fails to comply with an order of the Governor in Council under
subsection (1)(ii) commits an offence and is liable--

(a)on conviction upon indictment to a fine of $1,000,000 and to
imprisonment for 5 years and, in the case of a continuing
offence, to a further fine of $50,000 for every day during which
the offence continues; or

(b)on summary conviction to a fine of $50,000 and to
imprisonment for 2 years and, in the case of a continuing
offence, to a further fine of $5,000 for every day during which
the offence continues.

54. (1) The Commissioner, after consultation with the Financial
Secretary, may at any time, whether or not the appointment of such
person has terminated, fix the remuneration and expenses to be paid by
an authorized institution to any person appointed by the Commissioner
under section 52(1) or by the Governor in Council under section 53(1) to
advise the institution in the proper conduct of its business.

(2) Where the Commissioner has assumed control of the business
of an authorized institution under section 52(1)(C) or pursuant to an
order of the Governor in Council under section 53(1)(ii) or some other
person has assumed control of the business of





an authorized institution pursuant to a direction under section
52(1)(C) or an order of the Governor in Council under section
53(1)(ii), the Commissioner, after consultation with the Financial
Secretary, may at any time, whether or not he or such other person
has ceased to be in control of the business of the institution, fix the
remuneration and expenses to be paid by the institution to him, and
to any person employed or authorized by him under section 8 to
assist him in the control of and the carrying on of the business of the
institution, or to such other person, as the case may be.

(3) Any authorized institution aggrieved by a decision of the
Commissioner under subsection (1) or (2) may appeal to the
Governor in Council against the decision.

55. (1) Without limiting the generality of section 52, the
Commissioner may at any time, with or without prior notice to the
authorized institution, examine the books, accounts and transac-
tions of any authorized institution and, in the case of an authorized
institution incorporated in Hong Kong, any local branch, overseas
branch, overseas representative office or subsidiary, whether local or
overseas, of such institution.

(2) Without limiting the generality of section 52, the Commis-
sioner shall investigate the books, accounts and transactions of an
authorized institution-

(a)if shareholders of the institution holding not less than
one-third of the total number of issued shares in the
institution, or depositors holding not less than one-tenth of
the gross amount of the total deposit liabilities in Hong
Kong of the institution or a sum equal to the aggregate of
the paid-up share capital of the institution and its pub-
lished reserve, whichever is the greater, apply to him to
make such an investigation and submit to him such evi-
dence as he considers necessary to justify the investigation
and furnish such security for the payment of the costs of
the investigation as he may require; or
(b)if the institution suspends payment or informs him of its
intention to suspend payment.

(3) Where an investigation is made by the Commissioner
pursuant to subsection (2), the Financial Secretary may order that
all expenses incurred in such investigation shall be defrayed---

(a) by the authorized institution; or
(b)if the investigation was made pursuant to subsection (2)(a),
either wholly by the persons who applied for the making of
the investigation or partly by the authorized institution in
such proportions as he considers to be just.

56. (1) For the purposes of an examination or investigation
under section 55, an authorized institution and, in the case of
an authorized institution incorporated in Hong Kong, any local
branch, overseas branch, overseas representative office or sub-





sidiary, whether local or overseas, of such institution shall afford the
person carrying out the examination or investigation access to its books
and accounts, to documents of title to its assets and other documents,
to all securities held by it in respect of its customers' transactions and its
cash and to such information and facilities as may be required to
conduct the examination or investigation, and shall produce to the
person carrying out the examination or investigation such books,
accounts, documents, securities, cash or other information as he may
require:

Provided that, so far as is consistent with the conduct of the
examination or investigation, such books, accounts, documents,
securities and cash shall not be required to be produced at such times
and such places as shall interfere with the proper conduct of the normal
daily business of the institution, local branch, overseas branch,
overseas representative office or subsidiary. as the case may be.
(Amended, 64 of 1987, s. 12)

(2) Every director and every manager of an authorized institution
which, without reasonable excuse, contravenes this section (which
contravention shall include a contravention by any of the institution's
local branches, overseas branches, overseas representative offices or
subsidiaries) commits an offence and is liable(Amended, 64 of 1987, s.
12)

(a)on conviction upon indictment to a fine of $100.000 and to
imprisonment for 12 months; or

(b)on summary conviction to a fine of $50,000 and to
imprisonment for 6 months,

and, in the case of a continuing offence, to a further fine of $5,000 for
every day during which the offence continues.

(3) If any authorized institution or any local branch, overseas
branch, overseas representative office or subsidiary of the institution
produces any book, account, document, security or information
whatsoever under this section which is false in a material particular.
every director and every manager of the institution commits an offence
and is liable- (Amended, 64 of 1987, s. 12)

(a)on conviction upon indictment to a fine of $500,000 and to
imprisonment for 2 years; or

(b)on summary conviction to a fine of $50,000 and to
imprisonment for 6 months.

57. (1) Where the Commissioner has assumed control of the
business of an authorized institution under section 52(1)(C) or pursuant
to an order of the Governor in Council under section 53(1)(ii) or some
other person has assumed control of the business of an authorized
institution pursuant to a direction under section 52(1)(C) or an order of
the Governor in Council under section 53(1)(ii). then, subject to
subsection (2), the Commissioner or such other person, as the case may
be, shall remain in control and continue to carry on the business of that
institution in the name and





on behalf of the institution until it is no longer necessary, in the
opinion of the Financial Secretary, for the Commissioner or such
other person to remain in control of the institution.

(2) Where the Commissioner has assumed control of the
business of an authorized institution under section 52(1)(C) or
pursuant to an order of the Governor in Council under section
53(1)(ii) or some other person has assumed control of the business of
an authorized institution pursuant to a direction under section
52(1)(C) or an order of the Governor in Council under section
53(1)(ii), the Governor in Council, upon the application of the
institution, may, if he is satisfied that it is no longer necessary for the
protection of the depositors of the institution that the Commissioner
or such other person should remain in control of the business of the
institution, order that the Commissioner or such other person shall
cease to control the business of the institution as from a date
specified in the order.

(3) Where the Commissioner has assumed control of the
business of an authorized institution under section 52(1)(C) or
pursuant to an order of the Governor in Council under section
53(1)(ii) or some other person has assumed control of the business of
an authorized institution pursuant to a direction under section
52(1)(C) or an order of the Governor in Council under section
53(1)(ii) or any such control has been relinquished pursuant to any
of the provisions of this section, the Financial Secretary shall cause
to be published in the Gazette a notification of the fact of the
assumption or cessation of such control, as the case may be.

58. (1) Where the Commissioner has assumed control of the
business of an authorized institution under section 52(1)(C) or
pursuant to an order of the Governor in Council under section
53(1)(ii), or some other person has assumed control of the business
of an authorized institution pursuant to a direction under section
52(1)(C) or an order of the Governor in Council under section
53(1)(ii), the institution shall submit its business to the control of the
Commissioner or such other person and shall provide him with the
services of such members of its staff and such other facilities as he
may consider necessary for carrying on the business of the institu-
tion and in connection therewith the directors and managers shall
comply with and carry out any directions which the Commissioner
or such other person may give to them.

(2) Without limiting the generality of subsection (1), where by
reason of the absence of directors or for any reason whatsoever the
seal of an authorized institution whose business is-

(a)in the control of the Commissioner under section 52(1)(C)
or pursuant to an order of the Governor in Council under
section 53(1)(ii); or

(b)in the control of some other person pursuant to a direction
under section 52(1)(C) or an order of the Governor in
Council under section 53(1)(ii),





cannot be affixed to an instrument in accordance with the institution's
articles of association or regulations, the seal may be affixed in the
presence of, and its affixing may be attested by, the Commissioner or
such other person or a person authorized for the purpose by the
Commissioner or such other person.

(3) Where the seal of an authorized institution has been affixed to
an instrument, and the affixing thereof has been attested, in accordance
with subsection (2), no person shall be concerned to see that the seal
could not be affixed in accordance with the institution's articles of
association or regulations.

(4) Every director and every manager-

(a)of an authorized institution which contravenes subsection (1);
or

(b)who fails without reasonable excuse to comply with or to carry
out any direction given by the Commissioner or some other
person under subsection (1),

commits an offence and is liable-

(i)on conviction upon indictment to a fine of $1,000,000 and to
imprisonment for 5 years and, in the case of a continuing
offence, to a further fine of $50,000 for every day during which
the offence continues; or

(ii)on summary conviction to a fine of $50,000 and to
imprisonment for 2 years and, in the case of a continuing
offence, to a further fine of $5,000 for every day during which
the offence continues.

PART XI

AUDITS AND MEETINGS

59. (1) Every authorized institution which is a company, and
its auditors, shall comply with the Companies Ordinance with
respect to the audit of a company's accounts, whether or not the
institution is incorporated under that Ordinance.

(2) The Commissioner may, after consultation with the authorized
institution, appoint another auditor to act in addition to the auditor
appointed by the institution in accordance with the Companies
Ordinance or, in the case of an authorized institution which is an
unincorporated bank, section 110.

(3) The Commissioner may at any time, whether or not the
appointment of such person has terminated, fix the remuneration and
expenses to be paid by an authorized institution to any auditor
appointed by the Commissioner under subsection (2).

(4) Any authorized institution aggrieved by a decision of the
Commissioner under subsection (3) may appeal to the Governor in
Council against the decision.





(5) 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.

60. (1) Every authorized institution shall, not later than 6 months
after the close of each financial year, publish in one English language
daily newspaper and one Chinese language daily newspaper, each of
which shall be a newspaper circulating in Hong Kong

(a)a copy of its audited annual balance sheet for that year, and
any notes thereon, a copy of the profit and loss account and a
copy of the report of the auditor made pursuant to section 141
of the Companies Ordinance or section 110 of this Ordinance.,

(b)the full and correct names of all persons who are directors or
managers for the time being of the institution; and

(c)the names of all subsidiaries, for the time being, of the
institution,

and shall thereafter exhibit them throughout the year in a conspicuous
position in the principal place of business of the institution in Hong
Kong and in each local branch, together with, in the case of an
authorized institution which is a company limited by shares or limited by
guarantee and having a share capital, a copy of the report of the
directors laid before the company in general meeting in accordance with
section 129D(1) of the Companies Ordinance.

(2) A copy of each of the documents referred to in subsection (1)
shall be lodged with the Commissioner by an authorized institution, prior
to first exhibition thereof under subsection (1), with a list of the names of
all companies of which, for the time being, its directors are also directors.

(3) If, in the case of an authorized institution incorporated outside
Hong Kong, the Commissioner is satisfied that a report has been duly
made by an auditor, or any person exercising a similar function in
accordance with the law of the place in which the institution is
incorporated, upon the annual balance sheet and accounts of the
institution and a copy of such report and the report of the directors of
such institution is sent to the Commissioner, he may by notice in writing
exempt any such institution from this section and section 59(1) subject
to such conditions as he may think proper to attach thereto.

(4) The Commissioner may require any authorized institution to
submit such further information as he may think necessary for the
proper understanding of the balance sheet and profit and loss





accounts sent by that institution under subsection (2); and such
information shall be submitted within such period and in such manner as
the Commissioner may require.

(5) The annual balance sheet of an authorized institution, copies of
which are required by subsection (1) to be exhibited, shall be in such
form as the Commissioner may approve.

(6) Every director and every manager of an authorized institution
which contravenes subsection (1), (2), (3) or (5) commits an offence and
is liable

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

(b) 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.

(7) Every director and every manager of an authorized institution
which fails without reasonable excuse to comply with any requirement
under subsection (4) commits an offence and is liable on conviction
upon indictment or on summary conviction to a fine of $50,000 and to
imprisonment for 6 months and, in the case of a continuing offence, to a
further fine of $2,500 for every day during which the offence continues.

61. (1) The directors of an authorized institution, any auditor of the
institution, including an auditor appointed under section 59(2), or any
other auditor who has acted for the institution for any period not earlier
than 9 months before the date of the notice, or the Commissioner,
may, by notice in writing to the other parties mentioned herein, request a
meeting to discuss matters relating to the institution.

(2) Any meeting to he held in pursuance of a notice under
subsection (1) may proceed notwithstanding the non-attendance of not more
than one of the parties served with that notice.

62. Notwithstanding any other provision of this Ordinance or the
Professional Accountants Ordinance, the Commissioner may, where he
is of the opinion that there are grounds for a complaint under section 34
of that Ordinance in respect of any auditor of an authorized institution,
including an auditor appointed under section 59(2) or approved under
section 63(3)(b), make such complaint to the Registrar under that
Ordinance



PART XII

DISCLOSURE OF INFORMATION BY AUTHORIZED INSTITUTIONS

63. (1) Every authorized institution shall submit to the
Cornmissioner





(a)not later than 14 days after the last day of each calendar
month a return showing the assets and liabilities of its
principal place of business in Hong Kong and all local
branches thereof at the close of business on the last business
day of that month; and

(b)not later than 14 days after the last day of each quarter ending
on 31 March, 30 June, 30 September and 31 December
respectively, or upon any other day which may be approved
by the Commissioner, a return relating to its principal place of
business in Hong Kong and all local branches thereof as at
the close of business on the last business day of the
preceding quarter:

Provided that the Commissioner may by permission in writing allow
the returns referred to in paragraphs (a) and (b) to be submitted at less
frequent intervals.

(2) The Commissioner may require an authorized institution to
submit such further information as he may consider necessary for the
proper understanding of the financial position of the institution
and such information shall be submitted within such period and in
such manner as the Commissioner may require.

(3) The Commissioner may require any return submitted to him
pursuant to subsection (1), or any information submitted to him
pursuant to a requirement under subsection (2), to be accompanied by a
certificate

(a) of the auditor appointed under section 59(1) or of the auditors
appointed under section 59(1) and (2), as the case may be; and

(b) in the case of an authorized institution which has been
exempted under section 60(3) from section 59(1), of an auditor
approved by the Commissioner for the purposes of this
paragraph, (Amended, 64 of 1987, s. 13)

as to all or any of the following-

(i) whether or not, in the opinion of the auditor or auditors, the
return or information is correctly compiled from the books or
records of the institution and, if not correctly compiled, the
nature and extent of the incorrectness;

(ii) whether or not, during the period to which the return or
information relates, there appears to the auditor or auditors to
be any contravention by the institution of any of its duties
under Part XII, XIV, XV, XVII or XVIII of this Ordinance,
and, if it so appears, the nature of the contravention and the
evidence therefor;

(iii) whether or not, during the period to which the return or
information relates, there was any matter which, in the opinion
of the auditor or auditors, adversely affects the financial
position of the institution to a material extent, and if there was,
the nature of the matter and the reason why the auditors are of
that opinion.





(4) Notwithstanding section 120, the Commissioner may prepare
and publish consolidated statements aggregating the figures in the
returns furnished under subsection (1).

(5) Every director and every manager of an authorized institution
which contravenes subsection (1), or fails to comply with any
requirement under subsection (3), 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.

(6) Every director and every manager of an authorized institution
which fails without reasonable excuse to comply with any requirement
under subsection (2) commits an offence and is liable

(a)on conviction upon indictment to a fine of $200,000 and to
imprisonment for 2 years and, in the case of a continuing
offence, to a further fine of $10,000 for every day during which
the offence continues; or

(b)on summary conviction to a fine of $50,000 and to
imprisonment for 6 months and, in the case of a continuing
offence, to a further fine of $5,000 for every day during which
the offence continues.

(7) Any person who signs any document for the purposes of this
section which he knows or reasonably ought to know to be false in a
material particular commits an offence and is liable

(a)on conviction upon indictment to a fine of $500,000 and to
imprisonment for 2 years; or

(b)on summary conviction to a fine of $50,000 and to
imprisonment for 6 months.

64. (1) Every authorized institution
incorporation

KONG shall, if so required by the Commissioner, inform him of the name
and address of, and the nature of the business carried on by, every
company

(a)in which the institution holds the beneficial ownership,
directly or indirectly, of an aggregate of 20 per cent or more of
the share capital;

(b)where any director or manager of that company is also a
director or manager of the institution;

(c)where the name of that company has common features with
the name of the institution;

(d)which, by whatever means, acts in concert with the institution
to promote the institution's business; or

(e)the controller of which is also the controller of the institution.





(2) The Commissioner may require any authorized institution which
has submitted to him information pursuant to subsection (1) to submit to
him such further information as he may consider necessary to Obtain, in
the interests of depositors of the institution about the assets, liabilities
and transactions of any such company.

(3) Information that is required to be submitted under this section
shall be submitted within such period and in such manner as the
Commissioner may require.

(4) Every director and every manager of an authorized institution
which fails without reasonable excuse to comply with any requirement
under this section commits an offence and is liable

(a)on conviction upon indictment to a fine of $200,000 and to
imprisonment for 2 years and, in the case of a continuing
offence, to a further fine of $10,000 for every day during which
the offence continues; or

(b)on summary conviction to a fine of $50,000 and to
imprisonment for 6 months and, in the case of a continuing
offence, to a further fine of $5,000 for every day during which
the offence continues.

(5) Any person who signs any document for the purposes of this
section which he knows or reasonably ought to know to be false in a
material particular commits an offence and is liable

(a)on conviction upon indictment to a fine of $500,000 and to
imprisonment for 2 years; or

(b)on summary conviction to a fine of $50,000 and to
imprisonment for 6 months.

(6) If an authorized institution produces any book, account,
document, security or information under this section which is false in a
material particular, every director and every manager of the institution
commits an offence and is liable

(a)on conviction upon indictment to a fine of $500,000 and to
imprisonment for 2 years; or

(b)on summary conviction to a fine of $50,000 and to
imprisonment for 6 months.

65. (1) An authorized institution, within 30 days after the making of
any alteration to the memorandum of association, articles of association
or other instrument under which it is incorporated, shall furnish to the
Commissioner particulars of such alteration in writing, verified by a
director of the institution.

(2) Every director and every manager of an authorized institution
which contravenes this section 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.





66. (1) An authorized institution which ceases to carry on the
business of taking deposits or, as the case may be, banking business,
shall forthwith notify the Commissioner in writing of that fact.

(2) Every director and every manager of an authorized institution
which fails to comply with this section commits an offence and is liable
on conviction upon indictment or on summary conviction to a fine of
$10,000.

67. (1) If any authorized institution is likely to become unable to
meet its obligations or if it is about to suspend payment it shall forthwith
report all relevant facts, circumstances and information to the
Commissioner.

(2) Every director and every manager of an authorized institution
which fails without reasonable excuse to comply with 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 and, in the case of a continuing
offence, to a further fine of $10,000 for every day during which
the offence continues; or

(b)on summary conviction to a fine of $50,000 and to
imprisonment for 6 months and, in the case of a continuing
offence, to a further fine of $5,000 for every day during which
the offence continues.

68. The appropriate recognized banking supervisory authority of a
place outside Hong Kong may, with the approval of the Commissioner,
examine the books, accounts and transactions of the principal place of
business in Hong Kong or any local branch, or the documents of any
local representative office

(a)of an authorized institution which is incorporated in that
place; or

(b)of an authorized institution which is incorporated in or outside
Hong Kong and is a subsidiary of a bank or other body
corporate which is incorporated in that place.

PART XIII

OWNERSHIP AND MANAGEMENT OF AUTHORIZED
INSTITUTIONS

69. (1) An authorized institution incorporated in Hong Kong shall
not in the case of an authorized institution which is a bank or
licensed deposit-taking company, without the prior approval in writing
of the Financial Secretary, and in the case of an authorized institution
which is a registered deposit-taking company, without the prior
approval of the 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 agreement 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 subsection (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
55,000 for every day during which the offence continues.

(6) If an authorized institution produces any information
whatsoever under this section which is false in a material particular,
every director and every manager of the institution commits an offence
and is liable

(a)on conviction upon indictment to a fine of $500,000 and to
imprisonment for 2 years; or





(b)on summary conviction to a fine of $50,000 and to impri-
sonment for 6 months.
(Replaced, 64 of 1987, s. 14)

70. (1) Subject to subsection (2), a person who, after the
commencement of this Ordinance, becomes, by whatever means and
whether alone or in concert with others, entitled to exercise or
control the exercise of 10 per cent or more of the voting power at any
general meeting of an authorized institution incorporated in Hong
Kong, shall not exercise such of that voting power which he has
acquired after that commencement unless he has made an applica-
tion to the Commissioner for the Commissioner's approval to
exercise such of that voting power he has so acquired and has
received such approval, which approval may be given in a general or
a particular case, shall be conveyed to the applicant as soon as
practicable, and shall be subject to such conditions as the Com-
missioner may think proper to attach thereto.

(2) Subsection (1) shall not apply to voting power acquired by
any person after the commencement of this Ordinance where the
voting power was so acquired in pursuance of an agreement entered
into before that commencement.

(3) Where a person has acquired voting power in respect of an
authorized institution such that the person is subject to subsection
(1), the institution shall forthwith inform the Commissioner of the
name of that person.

(4) Where the Commissioner refuses to give an approval
under subsection (1), he shall notify the person and authorized
institution concerned in writing of his refusal as soon as practicable.

(5) Any person aggrieved by the refusal to grant approval
under subsection (1) by the Commissioner or the imposition of
conditions by him under that subsection may appeal to the Gover-
nor in Council against the refusal or conditions, but that refusal or,
as the case may be, those conditions shall take effect. immediately,
notwithstanding that an appeal has been or may be made under this
subsection.

(6) Nothing done in contravention of subsection (1), or in
reliance on the exercise in contravention of that subsection of any
voting power, shall be invalid by reason only of that contravention.

(7) Any person who contravenes subsection (1) commits an
offence and is liable-

(a)on conviction upon indictment to a fine of 5500,000 and to
imprisonment for 5 years; or

(b)on summary conviction to a fine of $50,000 and to impri-
sonment for 6 months.

(8) Every director and every manager of an authorized institu-
tion which fails to comply with subsection (3) 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 impri-
sonment for 6 months.

71. (1) No person shall-

(a)become the chief executive of an authorized institution, or
a director or secretary of an authorized institution in-
corporated in Hong Kong, without the consent in writing
of the Commissioner; or (Replaced, 64 of 1987, s. 15)

(b)if he becomes such chief executive, director or secretary
without such consent, act or continue to act as such chief
executive, director or secretary, as the case may be, without
such consent, (Replaced, 64 of 1987, s. 15)

and for the purposes of this subsection consent may be given subject
to such conditions as the Commissioner may think proper to attach
thereto and shall be conveyed to the person, and the institution,
concerned as soon as practicable.

(2) Where the Commissioner refuses to give consent under
subsection (1), he shall notify the person concerned in writing of his
refusal as soon as practicable.

(3) The Commissioner may by notice in writing to the person
and the authorized institution concerned withdraw any consent
given under subsection (1), or amend any condition attached to any
such consent, if the Commissioner-

(a)has given to the chief executive, director or secretary
concerned not less than 7 days' advance notice of his
intention to do so, specifying his reasons; and

(b)has taken into account before so doing any written repre-
sentation received by him from the chief executive, director
or secretary concerned,

and in any such case the chief executive, director or secretary
concerned shall cease to act as such or, as the case may be, shall
comply with the amended conditions. (Amended, 64 of 1987, s. 15)

(4) A person aggrieved-

(a)by a refusal to grant consent, or by conditions attached to
a consent, under subsection (1);

(b) by the withdrawal of consent under subsection (3); or

(e)by the amendment under subsection (3) of conditions
attached to a consent,

may appeal to the Governor in Council against the refusal, condi-
tions, withdrawal or amendment, as the case may be, but such
refusal, conditions, withdrawal or amendment shall take effect
immediately notwithstanding that an appeal has been or may be
made under this subsection.(Amended, 64 of 1987, s. 15)





(5) Any person who contravenes subsection (1) or (3) 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 impri-
sonment for 6 months,

and, in the case of a continuing offence, to a further fine of $5,000 for
every day during which the offence continues.

(6)(a) A person shall not be regarded for the purposes of
subsection (1) as becoming a director of an authorized
institution if he is appointed to serve as a director of it
immediately on the expiration of a previous term by him as a
director.

(b)A person who is a director or secretary of an authorized
institution immediately prior to the commencement of this
Ordinance shall for the purposes of this section be regarded as
having the consent of the Commissioner under subsection (1)
to continue to act as director or secretary, as the case may be.

(c)A person who is the chief executive of an authorized
institution immediately prior to the commencement of the
Banking (Amendment) Ordinance 1987 shall for the purposes
of this section be regarded as having the consent of the
Commissioner under subsection (1) to continue to act as chief
executive. (Added, 64 of 1987, s. 15)

(7) For the purposes of this section, where a person has the consent
of the Commissioner under subsection (1) or by virtue of subsection
(6)(c) to be or continue to act as the chief executive of an authorized
institution, and is such chief executive, he is not required to have the
consent of the Commissioner under subsection (1) to be or continue to
act as a director or secretary, as the case may be, of that institution.
(Added, 64 of 1987, s. 15)

72. (1) Any person who is a controller of an authorized institution
incorporated in Hong Kong, irrespective of whether he became such
controller before, on or after the commencement of this Ordinance, shall
not, as such controller, give any directions or instructions to the
directors of the institution

(a)in the case of a person who became such controller before or
on the commencement of this Ordinance, after the expiration of
3 months after that commencement or such further period as
the Commissioner may allow in any particular case; and

(b)in the case of a person who becomes such controller after the
commencement of this Ordinance, at any time after he has
become such controller,

unless he has made an application to the Commissioner for the
Commissioner's approval to give such directions and instructions





and has received such approval, which approval may be given in a
general or a particular case, shall be conveyed to the applicant and to
the institution concemed as soon as practicable in writing, and shall be
subject to such conditions as the Commissioner may think proper to
attach thereto.

(2) Where the Commissioner refuses to give an approval under
subsection (1), he shall notify the person and authorized institution
concerned in writing of his refusal as soon as practicable.

(3) Any person aggrieved by the refusal by the Commissioner to
grant approval under subsection (1), or by the imposition by the
Commissioner of conditions under that subsection, may appeal to the
Governor in Council against the refusal or the conditions but that refusal
or, as the case may be, those conditions shall take effect immediately,
notwithstanding that an appeal has been or may be made under this
subsection.

(4) Any person who 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,

and, in the case of a continuing offence, to a further fine of $5,000 for
every day during which the offence continues.

73. (1) No person who-

(a)is bankrupt or has entered into a composition with his
creditors;

(b)has been convicted in any place of an offence involving fraud
or dishonesty; or

(c)has been a director, or otherwise concerned in the
management, of any authorized institution which has been
wound up by a court or whose licence or registration, as the
case may be, has been revoked,

shall, without the consent in writing of the Commissioner, become an
employee of an authorized institution or, if becoming such an employee
without such consent, act, or continue to act, as such employee.

(2) Any person who contravenes this section commits an offence
and is liable

(a)on conviction upon indictment to a fine of 100,000 and to
imprisonment for 12 months; or

(b)on summary conviction to a fine of $50,000 and to
imprisonment for 6 months.

74. (1) Every authorized institution shall appoint a chief executive of
the institution who shall be





(a) an individual; and

(b) ordinarily resident in Hong Kong,

except that, in the case of an authorized institution incorporated outside
Hong Kong, such chief executive is only required to be the chief
executive in respect of the business in Hong Kong of the institution.

(2) Every director and every manager of an authorized institution
which contravenes subsection (1) 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 which the offence continues.

PART XIV

SHARE CAPITAL, RESERVE AND DIVIDEND OF AUTHORIZED
INSTITUTIONS

75. (1) Every bank incorporated in Hong Kong shall, before any
dividend is declared, appropriate to its reserve out of the profit of each
year, after due provision has been made for taxation

(a) a sum equal to not less than one-third of such profit; or

(b)such lesser sum, if any, as may be necessary so that the
aggregate of the bank's paid-up share capital and its reserve is
not less than $200,000,000 or an equivalent amount in any other
approved currency. (Amended, 64 of 1987, s. 16)

(2) Every deposit-taking company which is incorporated in
Hong Kong shall, before any dividend is declared, appropriate to
reserve out of the profit of each year, after due provision has been made
for taxation

(a) a sum equal to not less than one-third of such profit; or

(b) such lesser sum, if any, as may be necessary so that-

(i) in the case of a registered deposit-taking company,
the aggregate of the company's paid-up share capital and
its reserve is not less than $20,000,000 or an equivalent
amount in any other approved currency; and
(ii) in the case of a licensed deposit-taking company,
the aggregate of the company's paid-up share capital and
its reserve is not less than $150,000,000 or an equivalent
amount in any other approved currency. (Amended 64
of 1987, s. 16)

(3) No deposit-taking company incorporated in Hong Kong
shall pay any dividend out of the profits of a year previous to the
year in respect of which the dividend is declared unless the aggregate
of the company's paid-up share capital and reserve after such
payment will be-



(a) not less than $20,000,000 or an equivalent amount in any
other approved currency in the case of a registered deposit-
taking company. and

(b) not less than $150,000,000 or an equivalent amount in any
other approved currency in the case of a licensed deposit-taking
company. (Amended, 64 of 1987, s. 16)

(4) Every director and every manager of a bank which contravenes
subsection (1), and of a deposit-taking company which contravenes
subsection (2) or (3), 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.

76. (1) Every authorized institution shall at all times maintain
adequate provision

(a)for its bad and doubtful debts, if any; and

(b)against the diminution, if any, of the value of its assets, or the
materializing of its contingent liabilities.

(2) Every director and every manager of an authorized institution
which contravenes this section commits an offence and is liable-

(a)on conviction upon indictment to a fine of S200,000 and to
imprisonment for 2 years; or

(b)on summary conviction to a fine of $50,000 and to
imprisonment for 6 months.

77. (1) A bank incorporated in Hong Kong shall not carry on
banking business in Hong Kong unless its share capital issued and
paid-up is not less than $100,000,000 or an equivalent amount in any
other approved currency, deduction having been made in respect of a debit
balance, if any, appearing in the most recent audited annual accounts of
the bank. (Amended, 64 of 1987, s. 17)

(2) Every director and every manager of a bank which contravenes
this section commits an offence and is liable on conviction upon
indictment to a fine of $500,000 and to imprisonment for 5 years and, in
the case of a continuing offence, to a further fine of $25,000 for every
day during which the offence continues.

78. (1) A bank that is incorporated in Hong Kong shall not
distribute any extraordinary profits unless the aggregate of its paid-up
share capital and reserves after such distribution will be not less than
$200,000,000 or an equivalent amount in any other approved currency.
(Amended, 64 of 1987, s. 18)

(2) A deposit-taking company that is incorporated in Hong
Kong shall not distribute any extraordinary profits unless the aggregate
of its paid-up share capital and reserves after such distribution will be
not less than-











(a) $20,000,000 or an equivalent amount in any other
approved currency in the case of a registered deposit-
taking company; and

(b) $150,000,000 or an equivalent amount in any other
approved currency in the case of a licensed deposit taking
company. (Amended, 64 of 1987, s. 18)

(3) Every director and every manager of a bank which contravenes
subsection (1), and of a deposit-taking company which contravenes
subsection (2), 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.

PART XV

LIMITATIONS ON LOANS BY AND INTERESTS OF AUTHORIZED
INSTITUTIONS

79. (1) In this Part-

'non-listed company' means a company not listed on the Unified
Exchange:

Provided that any public statutory corporation designated for
the purposes of this definition by the Financial Secretary by notice
in the Gazette shall be deemed not to be a non-listed company;

'relative' means

(a)any ascendant or descendant, any spouse or former spouse of
any such ascendant or descendant, and any parent, brother or
sister of any such spouse or former spouse;

(b)any brother or sister, aunt or uncle and any nephew or niece;

(c)any spouse or former spouse, any ascendant of any such
spouse or former spouse, and any brother or sister, aunt or
uncle or nephew or niece of any such spouse or former
spouse,

and, for the purposes of this definition, any step-child shall be
deemed to be the child of both its natural parent and of its step-
parent and any adopted child to be the child of the adopting parent,
and a spouse shall include anyone living as such;

'reserves' in relation to any authorized institution means reserves which
appear in the accounts of the institution, and does not include any
reserves which are represented by the writing down of the value of
assets or by provision for the depreciation of fixed assets;





'value' means-

(a)in the case of shares in a company other than a trust
company registered under Part VIII of the Trustee Ordin-
ance, the total of the current book value and the amount
for the time being remaining unpaid on the shares; and

(b) in any other case, the current book value.

(2) In determining the paid-up capital and reserves of an
authorized institution for the purposes of this Part, there shall be
deducted any loss disclosed in the most recent balance sheet of the
institution lodged with the Commissioner under section 60(2).

(3) For the purposes of sections 83, 84 and 85, 'unsecured'
means granted without security, or, in respect of any advance, loan
or credit facility granted or financial guarantee or other liability
incurred with security, any part thereof which at any time exceeds
the market value of assets constituting that security; and 'Security'
means such security as would, in the opinion of the Commissioner,
be acceptable to a prudent banker.

(4) Subject to paragraph (a) of the proviso to section 81(2), in
relation to any authorized institution that is incorporated outside
Hong Kong, this Part shall apply, save for the purpose of deter-
mining the paid-up capital or reserves of the institution, only to its
principal place of business in Hong Kong and its local branches, and
shall do so as if that principal place of business and those branches
were collectively a separate authorized institution. (Amended, 64
of 1987, s. 19)

80. (1) An authorized institution shall not grant any ad-
vances, loans or credit facilities, including irrevocable documentary
letters of credit to the extent to which they are not covered by
marginal cash deposits, or give any financial guarantee or incur any
other liability, against the security of its own shares.

(2) An authorized institution shall not, except with the ap-
proval in writing of the Commissioner, which approval shall be
subject to such conditions as the Commissioner may think proper to
attach thereto, grant any advances, loans or credit facilities, in-
cluding irrevocable documentary letters of credit to the extent to
which they are not covered by marginal cash deposits, or give any
financial guarantee or incur any other liability, against the security
of the shares of-

(a) any holding company of the institution;

(b) any subsidiary of the institution; or

(c)any other subsidiary of any holding company of the
institution.

(3) Every director and every manager of an authorized institu-
tion which contravenes subsection (1) or (2) commits an offence and
is liable-





(a)on conviction upon indictment to a fine of $100,000 and to
imprisonment for 12 months; or

(b)on summary conviction to a fine of $50.000 and to
imprisonment for 6 months.

81. (1) The financial exposure of an authorized institution to

(a) any one person;

(b) two or more companies which-

(i) are subsidiaries of the same holding company; or
(ii) have the same controller (not being a company);

(c)any holding company and one or more of its subsidiaries; or

(d)any one person (not being a company) and one or more
companies of which that person is the controller,

shall not exceed an amount equivalent to 25 per cent of the paid-up
capital and reserves of the institution.

(2) The financial exposure of an authorized institution to any such
person, company or combination thereof as is referred to in subsection
(1)(a), (b), (c) or (d), shall for the purposes of this section be taken to
be the aggregate of-

(a)all advances by the authorized institution to; and

(b)the value of the authorized institution's holdings of shares and
debentures (within the meaning of those terms in section 2 of
the Companies Ordinance) and other debt securities as defined
in paragraph 1 of the Third Schedule issued by, (Amended, 64
of 1987, s. 20)

that person, company or combination:

Provided that this section shall not apply to

(a)transactions between authorized institutions, for which
purpose section 79(4) shall not apply to any such authorized
institution that is incorporated outside Hong Kong;
(Replaced, 64 of 1987, s. 20)

(b)transactions to the extent to which they are covered by a form
of guarantee acceptable to the Commissioner;

(e)an authorized institution the liabilities of which are assured by
a letter of comfort accepted by the Commissioner under
subsection (3) or (4), so long as the institution conforms with
any limitation on the aggregate amount of any investments and
advances which the institution may make, being a limitation
imposed by the Commissioner under subsection (5)(a) or (7)
or by the terms of a letter of comfort;





(d)the purchase of bills of exchange or documents of title to
goods where the holder of such bills or documents is entitled
to payment outside Hong Kong for goods exported from Hong
Kong;

(e)any advances made against any bills or documents referred to
in paragraph (d); (Replaced, 64 of 1987, s. 20)

(f)any financial exposure to the Government; (Replaced, 64
of 1984, s. 20.)

(g)any financial exposure to any eligible, Government as defined in
paragraph 1 of the Third Schedule; or (Replaced, 64 of 1987, s. 20)

(h)transactions between an authorized institution and a bank
incorporated outside Hong Kong which is not licensed under
this Ordinance where any such bank is, in the opinion of the
Commissioner, adequately supervised by a banking
supervisory authority in its place of incorporation.

(3) The Commissioner may, for the purposes of paragraph (c) of the
proviso to subsection (2), where the authorized institution is a bank,
accept a letter of comfort if that letter of comfort

(a) is given by another bank which-

(i) is a shareholder in the bank for the benefit of which the
letter of comfort is given;

(ii) controls any body corporate which is a shareholder in
the bank for the benefit of which the letter of comfort is given;
or

(iii) is a bank controlled by a body corporate which is either
a shareholder in the bank for the benefit of which the letter of
comfort is given or controls any body corporate which is a
shareholder in that bank; or

(b)is given by another bank incorporated in Hong Kong, or by a
bank incorporated outside Hong Kong which is not licensed
under this Ordinance but is, in the opinion of the
Commissioner, adequately supervised by a banking
supervisory authority in its place of incorporation; and

(c)has been given pursuant to a resolution of the board of
directors of the other bank and with the knowledge of the
banking supervisory authority of the place where the other
bank is incorporated.

(4) The Commissioner may, for the purposes of paragraph (c) of the
proviso to subsection (2), where the authorized institution is a deposit-
taking company accept a letter of comfort if that letter of comfort

(a) is given by a bank which-
(i) is a shareholder in the deposit-taking company;





(ii) controls any body corporate which is a shareholder in
the deposit-taking company; or

(iii) is a bank controlled by a body corporate which is either
a shareholder in the deposit-taking company or
controls any body corporate which is a shareholder in the
deposit-taking company; or

(b)is given by a bank incorporated in Hong Kong, or by a bank
incorporated outside Hong Kong which is not licensed under
this Ordinance but is, in the opinion of the Commissioner,
adequately supervised by a banking supervisory authority
in its place of incorporation; and

(c)has been given pursuant to a resolution of the board of
directors of the bank and with the knowledge of the banking
supervisory authority of the place where the bank is
incorporated.

(5) In accepting any letter of comfort under subsection (3) or (4) the
Commissioner-

(a)shall limit the aggregate amount of any advances and
investments which the authorized institution concerned may
make, grant or incur to such aggregate amount as he may in his
discretion specify, (but subject, however, to any direction
given him by the Financial Secretary under subsection (6))
and, without limiting the generality of such discretion, such
amount may be determined

(i) in relation to the paid-up capital and reserves of the bank
giving the letter of comfort as determined by reference to any
accounts furnished to the Commissioner by the bank either at
the time when the letter of comfort is submitted to the
Commissioner for his determination, or subsequently;

(ii) having regard to-

(A)the extent of the beneficial shareholding of the bank
giving the letter of comfort in the authorized
institution for the benefit of which it is given where
subsection (3)(a)(i) or (4)(a)(i), as the case may be,
applies;

(B)the extent of any beneficial shareholding relevant in
determining control for the purposes of subsection
(3)(a)(ii) or (iii) or (4)(a)(ii) or (iii), as the case may be;

(C)the paid-up capital and reserves of the authorized
institution for the benefit of which the letter of
comfort is given;

(D)the laws and practices applicable to the transactions
of the bank giving the letter of comfort;

(b)may require the bank giving the letter of comfort to submit, at
such intervals as the Commissioner may determine, such
accounts as he may specify,





and in notifying such acceptance to the authorized institution for the
benefit of which the letter of comfort is given he shall also notify it of
the limit imposed under paragraph (a) and any requirement under
paragraph (b).

(6) The Financial Secretary may at any time direct the Commissioner
either generally or in any particular case as to the limits to be imposed in
the exercise of his functions under subsection (5)(a) and it shall be the
duty of the Commissioner to comply with any such direction.

(7) The Commissioner may at any time, by notice to an authorized
institution, the liabilities of which are assured by a letter of comfort
accepted by the Commissioner under subsection (3) or (4), as the case
may be--

(a)where any limit has been specified for the purposes of
subsection (5)(a) or any requirement imposed under
subsection (5)(b), specify a new limit or vary such a
requirement; but he shall not impose a more restrictive limit
unless he is of the opinion that

(i) the institution has failed to comply with such limit or
requirement; or

(ii) it is in the interests of depositors so to do; or

(b)where any such limit has not been so specified or such a
requirement imposed, specify such limit or impose such
requirement,

and the provisions of subsection (3) or (4), as the case may be, shall
apply in relation to the exercise of the powers of the Commissioner
under this subsection as they do in relation to the exercise of his
powers under subsection (3) or (4), as the case may be.

(8) Notwithstanding subsection (1), where the aggregate amount of
any advances and investments immediately prior

(a)to the specification of any new limit under subsection (7) did
not exceed, the amount previously specified;

(b)to the imposition of a limit under subsection (5) or (7) did not
exceed the aggregate amount then permissible under this
section; or

(c)to the withdrawal by the bank giving a letter of comfort
accepted by the Commissioner under subsection (3) or (4), as
the case may be, did not exceed the aggregate amount
permissible by this section,

and immediately after such specification or withdrawal did exceed the
amount permissible under this section, the authorized institution may

(i) permit any advances included in computing such aggregate to
be outstanding until the maturity thereof, or until they may
lawfully be terminated without penalty to the institution, as
the case may be; and





(ii)retain any investments included in computing such aggre-
gate, for a period of not more than 3 months, or such
longer period as may be approved by the Commissioner in
writing in any particular case, from the date of the specifi-
cation of the new limit, the imposition of the limit or, as
the case may be, the withdrawal of the bank referred to in
paragraph (e):
Provided that, in either case, no new advances or investments
which are to be included in computing such aggregate are granted,
incurred or made while the amount permissible under this section is
so exceeded.
(9) No letter of comfort accepted by the Commissioner under
subsection (3) or (4) in accordance with his powers under this section
shall authorize any advances or investments which exceed in aggre-
gate any limitations on such aggregate amount assured in the letter
of comfort.
(10) For the purposes of this section-
(a)the expression 'person' includes any partnership, any
public body and any body of persons, corporate or unin-
corporate;
(b) the expression 'advances' shall include-
(i) any kind of advance, loan, (whether by way of
deposit or otherwise) or credit facility, including an ir-
revocable letter of credit to the extent to which it is not
covered by a marginal cash deposit, given by an authorized
institution; and
(ii) any financial guarantee given, or liability incurred,
by an authorized institution;
(e)the expression 'investments' shall mean any such holding
by an authorized institution as is referred to in subsection
(2)(b);
(d)advances, loans, facilities, guarantees or liabilities shall be
deemed to be granted to and to be outstanding in relation
to any person liable or contingently liable thereon whether
as principal debtor, guarantor, or otherwise:
Provided that the reference in this paragraph to a
guarantor shall not include a person (not being an author-
ized institution) who guarantees the obligations of another
under-
(i) a hire purchase agreement, that is to say an agree-
ment for the bailment of goods under which the bailee may
buy the goods, or under which the property in the goods
will or may pass to the bailee; or
(ii) a conditional sale agreement, that is to say an
agreement for the sale of goods under which the purchase
price or part of it is payable by instalments, and the
property in the goods is to remain in the seller (notwith-
standing that the buyer is to be in possession of the goods)





until such conditions as to payment of instalments or
otherwise as may be specified in the agreement are fulfilled;
and

(e)the expression 'letter of comfort' means a letter of com-
fort whether or not it is enforceable at law.

(11) Every director and every manager of an authorized institu-
tion 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 and, in the case of a continuing
offence, to a further fine of $10,000 for every day during
which the offence continues; or

(b)on summary conviction to a fine of $50,000 and to impri-
sonment for 6 months and, in the case of a continuing
offence, to a further fine of $5,000 for every day during
which the offence continues.

(12) Any document purporting to be certified by the Commis-
sioner as a true copy of any accounts, being accounts of the nature
referred to in subsection (5), shall be admissible in evidence in any
proceedings arising out of a contravention or alleged contravention
of subsection (1) as truth of the matters stated in those accounts.

82. (1) Without prejudice to section 7(3) or to the other
provisions of this Part, the Commissioner may, after consultation
with the Financial Secretary, by notice in the Gazette from time to
time publish for the guidance of authorized institutions, guidelines,
not inconsistent with this Ordinance, specifying business practices
which should not be engaged in by authorized institutions because,
in his opinion, such business practices will or may cause the
soundness of the financial position of authorized institutions to be
dependent upon the soundness of the financial position of a single
party.

(2) For the purposes of subsection (1), guidelines given in a
notice under that subsection-

(a)may be expressed to apply to all authorized institutions or
to a class of authorized institutions specified in the notice;
and

(b)may specify what constitutes a single party for the
purposes of any such guidelines and, without prejudice to
the generality of that power, any class or description of
persons or business may constitute such a single party.

(3) Where an authorized institution engages in business prac-
tices specified in a notice under subsection (1), the Governor in
Council, the Financial Secretary or the Commissioner, as the case
may be, may, where he is of the opinion that the case is of sufficient
importance to justify him so doing, exercise any of his powers under
Part V, VI or X in respect of the institution.





83. (1) Subject to subsection (4A), a bank shall not grant any
facility specified in subsection (3) to or on behalf of any person or
body specified in subsection (4) if the aggregate amount of such
facilities for the time being granted by that bank to or on behalf of
any one or more such persons or bodies would thereby exceed 10 per
cent of the paid-up capital and reserves of the bank. (Amended, 64
of 1987, s. 21)

(2) Subject to subsection (1), a bank shall not grant any facility
specified in subsection (3) to or on behalf of any person specified in
subsection (4)(a), (b), (c), (d), (e) or (f) if the aggregate amount of such
facilities for the time being granted by that bank to or on behalf of that
person would thereby exceed $250,000.

(3) For the purposes of subsections (1) and (2), the following
facilities are specified-

(a) the granting, or permitting to be outstanding, of unsecured
advances, unsecured loans or unsecured credit facilities
including unsecured irrevocable documentary letters of credit;

(b) the giving of unsecured financial guarantees; and

(c) the incurring of any other unsecured liability.

(4) For the purposes of subsections (1) and (2), the following
persons and bodies are specified

(a)any director of the bank;

(b)any relative of any such director;

(c)any employee of the bank who is responsible, either
individually or as a member of a committee, for determining
loan applications;

(d) any relative of any such employee;

(e)any controller (other than an authorized institution, or a bank
incorporated outside Hong Kong which is not licensed under
this Ordinance but is approved by the Commissioner for the
purposes of this paragraph) of the bank; (Replaced, 64 of
1987, s. 21)

(f) any relative of an individual who is a controller of the bank;

(g)any firm, partnership or non-listed company (other than a firm,
partnership or non-listed company which is an authorized
institution, or a bank incorporated outside Hong Kong which
is not licensed under this Ordinance but is approved by the
Commissioner for the purposes of this paragraph) in which the
bank or any of its directors or any relative of any of its
directors is interested as director, partner, manager or agent;
and

(h)any individual, firm, partnership or non-listed company of
which any director of the bank or any relative of any such
director is a guarantor.





(4A) The Commissioner may, by notice in writing to a bank, and
subject to such conditions as he may think proper to attach thereto in
any particular case, permit the bank to grant, without complying with
subsection (1), any facility specified in subsection (3) (or such of those
facilities as he specifies in the notice) to or on behalf of any person or
body specified in subsection (4)(g) (or such of those persons or bodies
as he specifies in the notice); and where the bank, in pursuance of such
notice and in accordance with such conditions, grants any such facility
to or on behalf of any s h person or body it shall not thereby contravene
subsection (1) (Added, 64 of 1987, s.21)

(5) The provisions of this section shall apply to a facility granted to
or on behalf of a person or body jointly with another person or body as
they apply to a facility granted to or on behalf of a person or body
severally.

(6) For the purposes of subsections (2) and (4), a facility granted to
or on behalf of any firm, partnership or non-listed company which a
person specified in subsection (4)(a), (b), (c), (d), (e) or (f) is able to
control, shall be deemed to be granted to that person or on his behalf.

(7) Every director and every manager of a bank which contravenes
subsection (1) or (2) commits an offence and is liable

(a)on conviction upon indictment to a fine of $200,000 and to
imprisonment for 2 years and, in the case of a continuing
offence, to a further fine of $10,000 for every day during which
the offence continues; or

(b)on summary conviction to a fine of $50,000 and to
imprisonment for 6 months and, in the case of a continuing
offence, to a further fine of $5,000 for every day during which
the offence continues.

84. (1) Subject to subsection (6A), a licensed deposit-taking
company shall not grant any facility specified in subsection (3) to or
on behalf of any person or body specified in subsection (6)(g) or (h)
if the aggregate amount of such facilities for the time being granted
by the licensed deposit taking company to or on behalf of any one or
more such persons or bodies would thereby exceed 10 per cent of the
paid-up capital and reserves of the licensed deposit-taking company.
(Amended, 64 of 1987, s. 22)

(2) A licensed deposit-taking company shall not grant any facility
specified in subsection (3) to or on half of any person specified in
subsection (6)(a), (b), (c), (d), (e) or (f).

(3) For the purposes of subsections (1) and (2), the following
facilities are specified

(a)the granting, or permitting to be outstanding, of unsecured
advances, unsecured loans or unsecured credit facilities
including unsecured irrevocable documentary letters of credit;





(b) the giving of unsecured financial guarantees; and

(c) the incurring of any other unsecured liability.

(4) Subject to subsection (6B), a registered deposit-taking company
shall not grant any of the following facilities to or on behalf of any
person specified in subsection (6)- (Amended, 64 of 1987,s.22)

(a)the granting, or permitting to be outstanding, of advances,
loans or credit facilities including irrevocable documentary
letters of credit;

(b) the giving of financial guarantees; and

(c) the incurring of any other liability.

(5) Nothing in subsection (4) shall prohibit the granting of-

(a)any of the facilities specified in that subsection where the
facility is fully secured by a licensed bank or by a bank
incorporated outside Hong Kong which is not licensed under
this Ordinance and which is a shareholder in the deposit-
taking company; or

(b)a secured loan to an employee of the deposit-taking company
for the purchase by him of a private residence for himself or his
family if no such loan by the deposit-taking company is
outstanding to such employee in relation to any other
residence.

(6) For the purposes of subsections (1), (2) and (4), the following
persons and bodies are specified

(a) any director of the deposit-taking company;

(b) any relative of any such director;

(c)any employee of the deposit-taking company who is
responsible, either individually or as a member of a
committee, for determining loan applications;

(d)any relative of any such employee;

(e)any controller (other than an authorized institution, or a bank
incorporated outside Hong Kong which is not licensed under
this Ordinance but is approved by the Commissioner for the
purposes of this paragraph) of the deposit-taking company;
(Replaced, 64 of 1987, s. 22)

(f)any relative of an individual who is a controller of the
deposit-taking company

(g) any firm, partnership or non-listed company (other than a
firm, partnership or non-listed company which is an auth-
orized institution, or a bank incorporated outside Hong
Kong which is not licensed under this Ordinance but is
approved by the Commissioner for the purposes of this
paragraph) in which the deposit-taking company or any of
its directors or any relative of any of its directors is
interested as director, partner, manager or agent; and





(h)any individual, firm, partnership or non-listed company of
which any director of the deposit-taking company or any
relative of any such director is a guarantor.

(6A) The Commissioner may, by notice in writing to a licensed deposit-taking
company, and subject to such conditions as he may think proper to
attach thereto in any particular case, permit the company to grant, without complying
with subsection (1) any facility specified in subsection (3) (or such of those
facilities as he specifies in the notice) to or on behalf of any person or body
specified in subsection (6)(g) (or such of those persons or bodies as
he specifies in the notice); and where the company, in pursuance of
such notice and in accordance with such conditions, grants any such
facility to or on behalf of any such person or body it shall not thereby
contravene subsection (1) (Added, 64 of 1987, s. 22)



(6B) The Commissioner may, by notice in writing to a registered
deposit-taking company, and subject to such conditions as he may think
proper to attach thereto in any particular case, permit the company to
grant any of the facilities specified in subsection (4)(a), (b) or (e) (or such
of those facilities as he specifies in the notice) to or on behalf of any
person or body specified in subsection (6)(g) (or such of those persons
or bodies as he specifies in the notice); and where the company, in
pursuance of such notice and in accordance with such conditions grants
any such facility to or on behalf of any such person or body it shall not
thereby contravene subsection (4). (Added, 64 of 1987, s. 22)

(7) The provisions of this section shall apply to a facility granted to
or on behalf of a person or body jointly with another person or body as
they apply to a facility granted to or on behalf of a person or body
severally.

(8) For the purposes of subsections (2) and (6), a facility granted to
or on behalf of any firm, partnership or non-listed company which a
person specified in subsection (6)(a), (b), (c), (d), (e) or (f) is able to
control, shall be deemed to be granted to that person or on his behalf.

(9) Every director and every manager of a deposit-taking company which
contravenes subsection (1), (2) or (4) commits an offence and is
liable-

(a)on conviction upon indictment to a fine of $200,000 and to
imprisonment for 2 years and, in the case of a continuing
offence, to a further fine of $10,000 for every day during which
the offence continues; or

(b)on summary conviction to a fine of $50,000 and to
imprisonment for 6 months and, in the case of a continuing
offence, to a further fine of $5,000 for every day during which
the offence continues.





85. (1) An authorized institution shall not grant to any one of
its employees any facility specified in subsection (2) to an aggregate
amount of such facilities in excess of one year's salary for the
employee.

(2) For the purposes of subsection (1) the following facilities
are specified-

(a)the granting, or permitting to be outstanding, of unsecured
advances, unsecured loans or unsecured credit facilities
including unsecured irrevocable documentary letters of
credit;

(b)the giving of unsecured financial guarantees; and

(c)the incurring of any other unsecured liability.

(3) Every director and every manager of an authorized institu-
tion which contravenes this section commits an offence and is
liable-

(a)on conviction upon indictment to a fine of $100,000 and to
imprisonment for 12 months; or

(b)on summary conviction to a fine of $50,000 and to impri-
sonment for 6 months,

and, in the case of a continuing offence, to a further fine of $5,000 for
every day during which the offence continues.

86.(1) Where the Commissioner-

(a)has reason to believe that an authorized institution has
granted to any foreign bank any advances, loans (whether
by way of deposit or otherwise) or credit facilities; and

(b)is of the opinion that the extent or manner in which such
advances, loans or credit facilities have been made is not in
the interests of the depositors of the authorized institution,

he may, by notice in writing to the institution, exercise his powers
under this section.

(2)A notice under this section may-

(a)prohibit the authorized institution from granting, after the
date of the service of the notice. any advances, loans or
credit facilities to the foreign bank specified in the notice
and any other foreign bank so specified which the Com-
missioner has reason to believe is associated with the
first-mentioned foreign bank;

(b)where any moneys are held at call, demand or notice by the
authorized institution with any bank specified by the
Commissioner in pursuance of his powers under para-
graph (a), direct the institution forthwith to demand repay-
ment of such moneys in accordance with the terms upon
which they are held;





(c)prohibit the authorized institution from permitting to be
outstanding with any bank specified by the Commissioner
in pursuance of his powers under paragraph (a)-
(i) any moneys which should have been repaid to the
institution by virtue of a direction under paragraph (b);
(ii) any advances, loans or credit facilities repayable or
terminable upon the elapse of any time or the occurrence
of any event, after the elapse of such time or the occurrence
of such event.
(3) A requirement under subsection (2)(a) shall not prohibit
the grant of any advance or loan after the date of service of the
notice in pursuance of any agreement entered into prior to such date
unless the Commissioner otherwise directs; but it shall be the duty of
the authorized institution to notify the Commissioner of any rele-
vant agreement within 7 days of the receipt by it of a notice under
this section.
(4) In this section---
'foreign bank' means-
(a)any bank incorporated outside Hong Kong which is not
licensed under this Ordinance;
(b)any undertaking of an authorized institution, including
that of the institution to which notice is given under this
section, which is situated outside Hong Kong.
(5) Every director and every manager of an authorized institu-
tion which fails without reasonable excuse to comply with any
requirement of the Commissioner in the exercise of his powers under
this section commits an offence and is liable-
(a)on conviction upon indictment to a fine of $200,000 and to
imprisonment for 2 years and, in the case of a continuing
offence, to a further fine of $10,000 for every day during
which the offence continues; or
(b)on summary conviction to a fine of $50,000 and to impri-
sonment for 6 months and, in the case of a continuing
offence, to a further fine of $5,000 for every day during
which the offence continues.

87. (1) Subject to subsection (2), an authorized institution
shall not acquire or hold any part of the share capital of any other
company or companies to an aggregate value in excess of 25 per cent
of the paid-up capital and reserves of the institution, except such
share capital as the institution may hold as security for facilities
granted by it or acquire in the course of the satisfaction of debts due
to it: (Amended, 64 of 1987, s. 23)
Provided that all share capital acquired in the course of the
satisfaction of debts due to it shall be disposed of at the earliest
suitable opportunity, and in any event not later than 18 months after
the acquisition thereof or within such further period as the Commis-
sioner approves in writing in any particular case.





(2) Subsection (1) shall not apply-

(a)where an authorized institution acquires or holds any part of
the share capital of any company or companies under an
underwriting or subunderwriting contract for a period not
exceeding 3 months, or such further period as the
Commissioner approves in writing in any particular case; or

(b)to any holding, approved in writing by the Commissioner, of
share capital in

(i) another authorized institution; or

(ii) a subsidiary formed by the authorized institution
concerned for the carrying out of nominee, executor or trustee
functions, or of other functions incidental to banking business
or to the business of taking deposits.

(3) Every director and every manager of an authorized institution
which contravenes this section commits an offence and is liable--

(a)on conviction upon indictment to a fine of $200,000 and to
imprisonment for 2 years and, in the case of a continuing
offence, to a further fine of $10,000 for every day during which
the offence continues; or

(b)on summary conviction to a fine of $50,000 and to
imprisonment for 6 months and, in the case of a continuing
offence, to a further fine of $5,000 for every day during which
the offence continues.

(4) In this section, 'share capital' includes perpetual subordinated
debt.

88. (1) An authorized institution shall not purchase or hold any
interest or interests in land situated in or outside Hong Kong of a value
or to an aggregate value, as the case may be, in excess of 25 per cent of
the paid-up capital and reserves of the institution.

(2) Subject to subsection (4), an authorized institution may, in
addition to the value of any land permitted to be purchased or held
under subsection (1), purchase or hold interests in land situated in or
outside Hong Kong to any value, where the occupation of such land is,
in the opinion of the Commissioner, necessary for conducting the
business of the institution or providing housing or amenities for the
staff of the institution.

(3) For the purposes of subsection (2), but without limiting the
generality thereof, the Commissioner may in his discretion regard as
necessary for conducting the business of an authorized institution the
whole of any premises in which an office of the institution is situated.

(4) The aggregate value of interests in land purchased or held by a
deposit-taking company under subsections (1) and (2) shall not exceed
the aggregate amount of the paid-up capital and reserves of the deposit-
taking company.





(5) There shall not be taken into account in the assessment of the
value of interests in land for the purposes of this section the value of
any interest in land mortgaged to the authorized institution to secure a
debt due to the institution nor the value of any interest in land acquired
pursuant to entry into possession of land so mortgaged, provided that
the interest acquired is disposed of at the earliest suitable opportunity,
and in any event not later than 18 months after its acquisition or within
such further period as the Commissioner may, in writing, allow in any
particular case.

(6) Every director and every manager of an authorized institution
which contravenes this section commits an offence and is liable

(a)on conviction upon indictment to a fine of $200,000 and to
imprisonment for 2 years and, in the case of a continuing
offence, to a further fine of $10,000 for every day during which
the offence continues; or

(b)on summary conviction to a fine of $50,000 and to
imprisonment for 6 months and, in the case of a continuing
offence, to a further fine of $5,000 for every day during which
the offence continues.

89. In the case of a registered deposit-taking company,
notwithstanding anything contained in sections 87 and 88. the
aggregate value of

(a)share capital acquired or held under section 87(1); and

(b)interests in land purchased or held under section 88(1) or (2),

shall not exceed the aggregate amount of its paid-up capital and
reserves.

90. (1) In the case of a bank, notwithstanding anything contained in
sections 83, 87 and 88

(a)the aggregate total of-

(i) the amount outstanding of all facilities specified in
section 83(3) granted to or on behalf of persons or bodies
specified in section 83(4);

(ii) the value of all holdings of share capital specified in
section 87; and

(iii) the value of all holdings of interests in land specified in
section 88(1),

shall not at any time exceed 55 per cent of the paid-up capital
and reserves of a bank; and

(b)the aggregate total of-





(i) the amount outstanding of all facilities specified in
section 83(3) granted to or on behalf of persons or bodies
specified in section 83(4);

(ii) the value of all holdings of share capital specified in
section 87; and

(iii) the value of all holdings of interests in land specified in
section 88(1) and (2),

shall not at any time exceed 80 per cent of the paid-up capital
and reserves of a bank.

(2) In assessing the aggregate total which is permissible under
subsection (1) there shall not be taken into account any matter which is
excluded from the operation of section 83, 87 or 88 by virtue of any of
the provisions thereof or of section 79(2).

(3) Every director and every manager of a bank which contravenes
this section commits an offence and is liable

(a)on conviction upon indictment to a fine of 5200,000 and to
imprisonment for 2 years and, in the case of a continuing
offence, to a further fine of $10,000 for every day during which
the offence continues; or

(b)on summary conviction to a fine of $50,000 and to
imprisonment for 6 months and, in the case of a continuing
offence, to a further fine of $5,000 for every day during which
the offence continues.

91. (1) Any authorized institution, if at any time called upon in
writing by the Commissioner so to do, shall satisfy him by the
production of such evidence or information as he may require, that

(a)in the case of an authorized institution which is a bank, the
bank is not in contravention of any of the provisions of section
81, 83, 87, 88 or 90; and

(b)in the case of an authorized institution which is a deposit-
taking company, the deposit-taking company is not in
contravention of any of the provisions of section 81, 84, 87,
88 or 89.

(2) Any authorized institution, if at any time called upon in writing
by the Commissioner so to do, shall satisfy him by the production of
such evidence or information as he may require, whether or not the
institution is engaging in any business practices specified in a notice
under section 82.

(3) Every director and every manager of an authorized institution
which fails or refuses without reasonable excuse to comply with
subsection (1) or (2) commits an offence and is liable

(a)on conviction upon indictment to a fine of $200,000 and to
imprisonment for 2 years and, in the case of a continuing
offence, to a further fine of $10,000 for every day during which
the offence continues; or





(b)on summary conviction to a fine of $50,000 and to
imprisonment for 6 months and, in the case of a continuing
offence, to a further fine of 55,000 for every day during which
the offence continues.

PART XVI

ADVERTISEMENTS, REPRESENTATIONS AND
USE OF
TITLE 'BANK'

92. (1) Subject to subsection (5), no person shall-

(a)issue, or have in his possession for the purposes of issue, any
advertisement which to his knowledge is or contains an
invitation to members of the public

(i) to make any deposit; or

(ii) to enter into, or offer to enter into, any agreement to
make any deposit;

(b)issue, or have in his possession for the purposes of issue, any
document which to his knowledge contains such an
advertisement; or

(c)in any other manner issue or make an invitation to members of
the public to do any of the acts referred to in paragraph (a).

(2) Any person who contravenes subsection (1) commits an
offence and is liable on conviction upon indictment or on summary
conviction to a fine of $10,000.

(3) For the purposes of any proceedings under this section, an
advertisement or document in which a person named in the
advertisement or document holds himself out as being prepared to take
in Hong Kong any deposit shall, subject to subsection (4), be presumed,
unless such named person proves to the contrary, to have been issued
by him.

(4) A person shall not be taken to contravene this section by
reason only that he issues, or has in his possession for the purposes of
issue, to purchasers copies of any newspaper, magazine, journal or other
periodical publication of general and regular circulation, which contain
an advertisement to which this section applies.

(5) This section shall not apply to-

(a)any advertisement or invitation to make a deposit or to enter
into, or offer to enter into, any agreement to make a deposit
with an authorized institution; or (Amended, 64 of 1987, s.
24)

(b)any advertisement or invitation, or any document containing
any advertisement or invitation, to which section 4(1) of the
Protection of Investors Ordinance would, but for section
4(2)(g) of that Ordinance, apply.





(6) Where any advertisement or invitation, or any document
containing any advertisement or invitation, relates to the taking of
any deposit and the taking of any such deposit is not, by virtue of
section 3(1) or (2), a taking to which Part 111 applies then, to the
extent that such advertisement, invitation or document, as the case
may be, relates to the taking of any such deposit, this section shall
not apply to such advertisement, invitation or document, as the case
may be. (Added, 64 of 1987, s. 24)

93. (1) Any person who, by any fraudulent or reckless mis-
representation, induces another person-

(a) to make a deposit with him or any other person; or

(b)to enter into or to offer to enter into any agreement to
make a deposit with him or any other person,

commits an offence and is liable on conviction upon indictment to a
fine of $1,000,000 and to imprisonment for 7 years.

(2) For the purposes of subsection (1), 'fraudulent or reckless
misrepresentation' means-

(a) any statement-
(i) which, to the knowledge of the maker of the state-
ment, was false, misleading or deceptive; or
(ii) which was false, misleading or deceptive and was
made recklessly;

(b) any promise-
(i) which the maker of the promise had no intention of
fulfilling;
(ii) which, to the knowledge of the maker of the
promise, was not capable of being fulfilled; or
(iii) which was made recklessly;

(c) any forecast-
(i) which, to the knowledge of the maker of the fore-
cast, was not justified on the basis of facts known to him at
the time when he made it; or
(ii) which was not justified on the facts known to the
maker of the forecast at the time when he made it and was
made recklessly; or

(d)any statement or forecast from which the maker intention-
ally or recklessly omitted a material fact with the result
that the statement or forecast was thereby rendered false,
misleading or deceptive.

94. (1) Any person who, by any fraudulent, reckless or negli-
gent misrepresentation, induces another person to make a deposit
with him or any other person shall be liable to pay compensation to
the person so induced for any pecuniary loss that such person has
sustained by reason of his reliance on that misrepresentation.





(2) For the purposes of subsection (1), fraudulent reckless or
negligent misrepresentation' means

(a) any statement-

(i) which, to the knowledge of the maker of the statement,
was false, misleading or deceptive;

(ii) which was false, misleading or deceptive and was made
recklessly; or

(iii) which was false, misleading or deceptive and was made
without reasonable care having been taken to ensure its
accuracy;

(b) any promise-

(i) which the maker of the promise had no intention of
fulfilling;

(ii) which, to the knowledge of the maker of the promise,
was not capable of being fulfilled; or

(iii) which was made recklessly or without reasonable care
having been taken to ensure that it could be fulfilled;

(c) any forecast-

(i) which, to the knowledge of the maker of the forecast, was
not justified on the basis of facts known to him at the time
when he made it; or

(ii) which was not justified on the facts known to the maker
of the forecast at the time when he made it and was made
recklessly or without reasonable care having been taken to
ascertain the accuracy of those facts; or

(d)any statement or forecast from which the maker intentionally,
recklessly or negligently omitted a material fact with the result
that the statement or forecast was thereby rendered false,
misleading or deceptive.

(3) For the purposes of this section, where any statement, promise
or forecast to which this section relates was made by a company, every
person who was a director or controller of the company at the time when
the statement, promise or forecast was made shall, until the contrary is
proved, be deemed to have caused or permitted it to be made.

(4) This section does not affect any liability of any person at
common law.

(5) An action may be brought under this section notwithstanding
that the evidence on which the action is or will be based, if
substantiated, discloses the commission of an offence and no person
has been charged with or convicted of the offence.

(6) For the purposes of this section 'company' means, in addition
to a company as defined in section 2, any other body of persons,
corporate or unincorporate.





95. (1) Where the Commissioner is of the opinion that any
advertisement issued in connexion with the business of an authorized
institution makes a statement or any representation that is false,
misleading or deceptive, he may, by notice in writing served on the
institution, require the institution to withdraw or, as the circumstances
require, remove, and to cease issuing such advertisements and an
authorized institution served with such a notice shall, accordingly,
comply with that notice.

(2) Any authorized institution aggrieved by a notice served under
subsection (1) may appeal to the Financial Secretary against the
requirement contained therein, but the notice shall take effect
immediately notwithstanding that an appeal has been or may be made
under this subsection.

(3) Every director and every manager of an authorized institution
which fails or refuses to comply with any notice served under this
section on it commits an offence and is liable

(a)on conviction upon indictment to a fine of 5200,000 and to
imprisonment for 2 years and, in the case of a continuing
offence, to a further fine of 510,000 for every day during which
the offence continues; or

(b)on summary conviction to a fine of $50,000 and to
imprisonment for 6 months and, in the case of a continuing
offence, to a further fine of $5,000 for every day during which
the offence continues.

96. (1) An authorized institution shall not in any communication,
whether written or oral, represent or imply, or permit to be represented or
implied, in any manner to any person that the institution has in any
respect been approved by the Government, the Financial Secretary or
the Commissioner.

(2) Subsection (1) is not contravened by reason only that a
statement is made to the effect that an authorized institution is licensed
or registered.

(3) Every director and every manager of an authorized institution
which contravenes subsection (1) without reasonable excuse 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.


97. (1) Any person, other than a bank, an institution which is
recognized as the central bank of the place in which it is incorporated, or
a local representative office maintained in accordance with this
Ordinance, who, without the written consent of the Commissioner-





(a)uses the word 'bank' or any of its derivatives in English, or
any translation thereof in any language or uses the Chinese
expression 'ngan hong' or uses the letters 'b', a n', 'k' in
that order, in the description or title under which such person
is carrying on business in Hong Kong; or

(b)makes any representation in any bill head, letter paper, notice,
advertisement or in any other manner whatsoever that such
person is a bank or is carrying on banking business in Hong
Kong,

commits an offence and is liable-

(i)on conviction upon indictment to a fine of $200,000 and to
imprisonment for 12 months; or

(ii)on summary conviction to a fine of $50,000 and to
imprisonment for 6 months.

(2) Nothing in this section shall apply to any association of
banks formed for the protection or promotion of their mutual
interests or to any association of employees of banks formed for the
protection or promotion of the mutual interests of such employees.


PART XVII

CAPITAL ADEQUACY RATIO OF AUTHORIZED INSTITUTIONS

98. (1) Subject to this Part and Part X, an authorized institution
incorporated in Hong Kong shall not, at any time, have a capital
adequacy ratio of less than 5 per cent as calculated in accordance with
the provisions of the Third Schedule and subsection (2).

(2) For the purposes of calculating the capital adequacy ratio of an
authorized institution which has any subsidiary, the accounts of the
institution are not required to be on a consolidated basis unless the
Commissioner otherwise determines in any particular case.

(3) The Financial Secretary may, by notice in the Gazette, vary the
percentage specified in subsection (1).

99. (1) Where an authorized institution contravenes section 98(1), it
shall forthwith notify the Commissioner of that contravention and
provide him with such particulars of that contravention as he may
require.

(2) Where the Commissioner is notified under subsection (1) of a
contravention of section 98(1), he shall forthwith notify the Financial
Secretary of that contravention and provide him with such particulars of
that contravention as he may require.





(3) Every director and every manager of an authorized institution
which contravenes subsection (1) commits an offence and is liable on
conviction upon indictment to a fine of $500,000 and to imprisonment for
5 years and, in the case of a continuing offence, to a further fine of
$10,000 for every day during which the offence continues.

100. (1) Where an authorized institution contravenes section 98(1),
the institution and the Commissioner shall enter into discussions for the
purposes of determining what remedial action is required to be taken by
the institution for it to comply with that section, but the Commissioner
shall not be bound by any such discussions.

(2) The Commissioner may, after holding such discussions as he
thinks fit under subsection (1), by notice in writing served on the
authorized institution, require the institution to take such remedial action
as is specified in the notice for the purpose of having the institution
comply with section 98(1).

(3) Any authorized institution aggrieved by any requirement
contained in a notice under subsection (2) served on it by the
Commissioner may appeal, by notice in writing served on the
Commissioner and the Financial Secretary stating the grounds of
the appeal, to the Financial Secretary against the requirement, but
that requirement shall take effect immediately, notwithstanding that
an appeal has been or may be made under this subsection.

(4) The Financial Secretary shall determine an appeal under
subsection (3) by confirming, varying or reversing the requirement
the subject of the appeal.

(5) Every director and every manager of an authorized institution
which contravenes any requirement contained in a notice under
subsection (2) commits an offence and is liable on conviction upon
indictment to a fine of $500,000 and to imprisonment for 5 years and, in
the case of a continuing offence, to a further fine of $10,000 for every
day during which the offence continues.

101. (1) The Commissioner may, after consultation with an authorized
institution, by notice in writing served on it vary the capital adequacy
ratio specified in section 98(1) in relation to that institution by increasing
the ratio to-

(a)in the case of an authorized institution which is a bank, not
more than 8 per cent; and

(b)in the case of an authorized institution which is a
deposit-taking company, not more than 10 per cent,

and, where the ratio is so varied, the other provisions of this Part shall, in
relation to that institution, apply as if the ratio specified in section 98(1)
were the ratio as so varied. (Amended, 64 of 1987, s. 25)







(2) The Financial Secretary may, by notice in the Gazette, vary any
percentage specified in subsection (1).

(3) An authorized institution aggrieved by a variation of the capital
adequacy ratio contained in a notice under subsection (1) served on it
by the Commissioner may appeal, by notice in writing served on the
Commissioner and the Financial Secretary stating the grounds of the
appeal, to the Financial Secretary against the variation, but that variation
shall take effect immediately, notwithstanding that an appeal has been or
may be made under this subsection.

(4) The Financial Secretary shall determine an appeal under
subsection (3) by confirming, varying or reversing the variation of
capital adequacy ratio the subject of the appeal.

PART XVIII

LIQUIDITY RATIO OF AUTHORIZED INSTITUTIONS
AND
MATTERS AFFECTING LIQUIDITY RATIO

102. (1) Subject to this Part and Part X, every authorized institution
shall maintain a liquidity ratio of not less than 25 per cent in each
calendar month as calculated in accordance with the provisions of the
Fourth Schedule and this Part.

(2) The liquidity ratio of an authorized institution shall be calculated
for each calendar month on the basis of the sum of its liquefiable assets
and the sum of its qualifying liabilities, within the meaning of the Fourth
Schedule, for each working day of the calendar month concerned except
that the Commissioner may, as he thinks fit, by notice in writing served
on an authorized institution, permit the institution to calculate its
liquidity ratio by reference to such days during the calendar month
concerned as the Commissioner may specify in the notice:

Provided that if any such specified day is a public holiday the
immediately preceding working day shall be taken for the purposes of
such calculation.

(3) In relation to an authorized institution that operates in Hong
Kong and also elsewhere, this Part shall apply only to its principal place
of business in Hong Kong and its local branches and shall do so as if
that principal place of business and those branches were collectively a
separate authorized institution.

(4) The Financial Secretary may, by notice in the Gazette, vary the
percentage specified in subsection (1).

103. (1) Where an authorized institution contravenes section 102(1),
it shall forthwith notify the Commissioner of that contraven





tion and provide him with such particulars of that contravention as he
may require.

(2) Where the Commissioner is notified under subsection (1) of a
contravention of section 102(1), he shall forthwith notify the Financial
Secretary of that contravention and provide him with such particulars of
that contravention as he may require.

(3) Every director and every manager of an authorized institution
which contravenes subsection (1) commits an offence and is liable on
conviction upon indictment to a fine of $500,000 and to imprisonment for
5 years and, in the case of a continuing offence, to a further fine of
$10,000 for every day during which the offence continues.

104. (1) Where an authorized institution contravenes section 102(1),
the institution and the Commissioner shall enter into discussions for the
purposes of determining what remedial action is required to be taken by
the institution for it to comply with that section, but the Commissioner
shall not be bound by any such discussions.

1 (2) The Commissioner may, after holding such discussions as he
thinks fit under subsection (1), by notice in writing served on the
authorized institution, require the institution to take such remedial action
as is specified in the notice for the purpose of having the institution
comply with section 102(1).

(3) Any authorized institution aggrieved by any requirement
contained in a notice under subsection (2) served on it by the
Commissioner may appeal, by notice in writing served on the Commissioner
and the Financial Secretary stating the grounds of the
appeal, to the Financial Secretary against the requirement, but that
requirement shall take effect immediately, notwithstanding that an
appeal has been or may be made under this subsection.

(4) The Financial Secretary shall determine an appeal under
subsection (3) by confirming, varying or reversing the requirement
the subject of the appeal.

(5) Every director and every manager of an authorized institution
which contravenes any requirement contained in a notice under
subsection (2) commits an offence and is liable on conviction upon
indictment to a fine of $500,000 and to imprisonment for 5 years and, in
the case of a continuing offence, to a further fine of $10,000 for every
day during which the offence continues.

105. (1) The Commissioner may, by notice in writing served on an
authorized institution, vary the liquidity ratio specified in section 102(1)
in relation to that institution by increasing or decreasing the ratio and,
where the ratio is so varied, sections 102, 103 and 104 shall, in relation to
that institution, apply as if the ratio specified in section 102(1) were the
ratio as so varied.





(2) Where the Commissioner varies under subsection (1) the
liquidity ratio of any authorized institution, he shall forthwith provide
the Financial Secretary with particulars of the variation.

(3) An authorized institution aggrieved by a variation of the
liquidity ratio contained in a notice under subsection (1) served on it by
the Commissioner may appeal, by notice in writing served on the
Commissioner and the Financial Secretary stating the grounds of the
appeal, to the Financial Secretary against the variation, but that variation
shall take effect immediately, notwithstanding that an appeal has been or
may be made under this subsection.

(4) The Financial Secretary shall determine an appeal under
subsection (3) by confirming, varying or reversing the variation of
liquidity ratio the subject of the appeal.

106. (1) Subject to subsection (2), an authorized institution
incorporated in Hong Kong shall not, except with the approval of the
Commissioner, which approval shall be subject to such conditions as he
may think proper to attach thereto, by whatever means cause the sum
total of all amounts secured by way of charge over its assets (excluding
contra items) to exceed 5 per cent of the sum total of the value of those
assets.

(2) Where, immediately upon the commencement of this Ordinance,
the sum total of all amounts secured by way of charge over the assets
(excluding contra items) of an authorized institution incorporated in
Hong Kong exceeds 5 per cent of the sum total of the value of those
assets, the institution shall be deemed to have an approval under
subsection (1) until-

(a) the expiration of 3 months after that commencement, or such
further period as the Commissioner may allow in any particular
case; or

(b) it receives an approval under subsection (1),

whichever first occurs.

(3) Where any civil proceedings have been instituted against any
authorized institution incorporated in Hong Kong, irrespective of
whether the proceedings have been instituted before, on or after the
commencement of this Ordinance, the institution shall, if those
proceedings materially affect, or could materially affect, the financial
position of the institution, forthwith notify the Commissioner of those
proceedings and provide the Commissioner with such particulars of
those proceedings as he may require.

(4) Every director and every manager of an authorized institution
which contravenes subsection (1) or (3) commits an offence and is liable

(a)on conviction upon indictment to a fine of $200,000 and to
imprisonment for 2 years and, in the case of a continuing
offence, to a further fine of $10,000 for every day during which
the offence continues; and





(b)on summary conviction to a fine of $50,000 and to
imprisonment for 6 months and, in the case of a continuing
offence, to a further fine of $5,000 for every day during which
the offence continues.

(5)For the purposes of subsections (1) and (2)-
'assets' includes assets outside Hong Kong;
'charge' includes lien, encumbrance, equitable interest and third party
right;
'value' shall have the same meaning assigned to it in section 79(1).

PART XIX

UNINCORPORATED BANKS

107. (1) The Governor in Council may, for the purposes of and in
accordance with section 115(2), grant a banking licence to carry on
banking business in Hong Kong to any unincorporated person or body
of persons.

(2) A banking licence may be granted under subsection (1),
notwithstanding that the unincorporated person or body of persons
does not comply and does not propose to comply with the provisions of
section 18, 75, 77, Part XVII or XVIII.

108. (1) An application for a banking licence under section 107 shall
be made to the Governor in Council through the Commissioner.

(2) An application for a banking licence under section 107 shall be
accompanied by such documents and information as the Commissioner
or the Governor in Council may require.

109. (1) An unincorporated bank shall pay the annual banking
licence fee specified in the Second Schedule.

(2) The fees payable under this section shall be paid upon the grant
of a banking licence and thereafter upon every anniversary of the date of
the grant of such banking licence.

110. (1) Every unincorporated bank shall appoint annually an auditor.

(2) The duties of the auditor so appointed shall be-

(a)to carry out for the year in respect of which he is appointed an
audit of the accounts of the bank;

(b)to make a report to the directors of the bank on the audited
accounts, the balance sheet and the profit and loss account of
the bank; and





(c)in every such report to state-

(i) whether or not all the information and explanations which
were in the opinion of the auditor necessary for the purposes
of the audit have been obtained;

(ii) whether or not, according to the best of the
information and explanations given to him, the balance sheet
and profit and loss account referred to in the report give in his
opinion a true and fair view of the state of the affairs of the
bank at the date of the balance sheet, and of the profit or loss
for its financial year, regard being had, inter alia, to the
provisions of this Ordinance;

(iii) whether or not in his opinion proper books of account
have been kept by the bank so far as appears from the audit of
the accounts; and

(iv) whether or not in his opinion proper returns, adequate
for the purposes of the audit, have been received by him from
branches of the bank not visited.

(3) Every director and every manager of a bank 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.

111. (1) An unincorporated bank shall, subject to the provisions of this
Part, be deenied to be a bank for the purposes of this Ordinance.

(2) Any person to whom, and any member or partner of any
unincorporated body of persons to which, a banking licence is granted
under section 107 shall be deemed for the purposes of this Ordinance to
be a director of a bank.

112. An unincorporated bank shall, subject to the provisions of this
Ordinance, be subject to all the provisions of this Ordinance, mutatis
mutandis, except-

(a) section 55(2)(a);

(b) sections 75, 76, 77, 78, 79, 80, 81, 83, 85, 86, 87, 88, 90 and 91;
(c) section 65;
(d) section 60(1)(c);
(e) Parts XVII and XVIII; and

any other provision of this Ordinance which is inconsistent
with the provisions of this Part or which is inapplicable in the
case of an unincorporated bank.





113. (1) An unincorporated bank shall not use the word
'bank' or any of its derivatives in English, or any translation
thereof in any language or use the Chinese expression 'ngan hong''
, or use the letters 'b', 'a', 'n', 'k' in that order, in the
description or title under which it carries on business in Hong Kong.

(2) Every director and every manager of an unincorporated bank
which contravenes subsection (1) commits an offence and is liable-

(a)on conviction upon indic ment to a fine of 100,000 and to
imprisonment for 2 years; or

(b)on summary conviction to a fine of S50,000 and to imprisonment
for 6 months.

114. (1) An unincorporation bank shall not accept or hold deposits in
excess, at any one time, of $2,000,000 or such other sum as the Governor
in Council may from time to time specify either generally or in any
particular case.

(2) Every director and every manager of a bank which contravenes
subsection (1) commits an offence and is liable

(a)on conviction upon indictment to a fine of $100,000 and to
imprisonment for 12 months; or

(b)on summary conviction to a fine of $50,000 and to
imprisonment for 6 months,

and, in the case of a continuing offence, to a further fine of $5,000 for
every day during which the offence continues.

115. (1) Upon the death of a member or partner of an unincorporated
bank, the banking licence issued to the unincorporated bank shall become
void and of no effect upon a date 6 calendar months after the date of the
death except for the purpose of winding-up the banking business of the
unincorporated bank.

(2) Notwithstanding subsection (1), the Governor in Council may
issue a new banking licence under section 107 to the remaining members
or partners of that body of persons or to a body of persons consisting
of the remaining members of that body of persons and other members or
partners who have acquired their interest in the business and assets of
the unincorporated bank of which the deceased was a member under the will
or upon the intestacy of the deceased.

(3) The remaining members or partners of an unincorporated bank
shall notify the Commissioner of the death of a member or
partner of the unincorporated bank within 1 month after the death.


(4) Every director and every manage of a bank which con-
travenes subsection (3) commits an offence and is liable on convic-
tion 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.





116. Where-
(a)the Commissioner has assumed control of the business of an
authorized institution which is an unincorporated bank under
section 52(1)(C) or pursuant to an order of the Governor in
Council under section 53(1)(ii) or some other person has
assumed control of the business of such a bank pursuant to a
direction of the Commissioner under section 52(1)(C) or an
order of the Governor in Council under section 53(1)(ii); and

(b)within 3 months thereafter, whilst the Commissioner or such
other person continues to be in control of the business of
such bank, a bankruptcy petition is presented against the
bank under the Bankruptcy Ordinance, and on that petition a
receiving order is at any time made under that Ordinance
against the bank,

then-

(i)if the date on which the Commissioner or such other person
as is referred to in paragraph (a) assumed control of the
business of such bank preceded the time of the first of the
acts of bankruptcy (within the meaning of the Bankruptcy
Ordinance) proved to have been committed by such bank
within the 3 months next preceding the date of the
presentation of the bankruptcy petition, the bankruptcy of the
bank shall, for the purposes of sections 40, 43, 47(2) and (3),
and 48, of the Bankruptcy Ordinance, be deemed,
notwithstanding the provisions of section 42 of the
Bankruptcy Ordinance, to have relation back to and to
commence at the time the Commissioner or such other person
assumed control of the business of such bank;

(ii)section 45(1) of the Bankruptcy Ordinance shall apply as if it
included, as an alternative to the reference to notice of the
presentation of any bankruptcy petition by or against the
debtor or notice of the commission of any available act of
bankruptcy by the debtor, a reference, in the case of a debtor
which is an unincorporated bank, to notice that the
Commissioner or such other person as is referred to in
paragraph (a) has so assumed control of the business of the
debtor;

(iii)section 49(1) of the Bankruptcy Ordinance shall apply as if it
included, as an alternative to the reference to the person first
referred to therein being adjudged bankrupt on a bankruptcy
petition presented within 3 months after the date specified
therein, a reference, in a case where such person is an
unincorporated bank, to the assumption as aforesaid by the
Commissioner or such other person as is referred to in
paragraph (a) of control of the business of such person within
3 months after such date;

(iv)section 50(1) of the Bankruptcy Ordinance shall apply as if it
included, as an alternative to the reference in sub-





paragraph (ii) of the proviso thereto to notice of any available
act of bankruptcy committed by the bankrupt before the time
referred to therein, a reference, in the case of a bankrupt which
is an unincorporated bank, to notice that, before the said time,
the Commissioner or such other person as is referred to in
paragraph (a) has so assumed control of the business of the
bankrupt;

(v)section 51 of the Bankruptcy Ordinance shall apply as if it
included, as an alternative to the reference to notice of the
presentation of a bankruptcy petition, a reference, in a case
where the person referred to therein is an unincorporated
bank, to notice that the Commissioner or such other person as
is referred to in paragraph (a) has so assumed control of the
business of such person; and

(vi)sections 129, 133, 134, 135 and 136 of the Bankruptcy
Ordinance shall apply as if, in a case where the person referred to
therein is an unincorporated bank, the reference or references
therein to the presentation of a bankruptcy petition included in
each case a reference to the assumption as aforesaid by the
Commissioner or such other person as is referred to in
paragraph (a) of control of the business of such person.

PART XX

INVESTIGATIONS OF AUTHORIZED
INSTITUTIONS

117. (1) If it appears to the Commissioner that it is in the interests of
depositors of an authorized institution or a former authorized institution
or in the public interest that an inquiry should be made into the affairs of
that institution he may make a report to that effect to the Financial
Secretary.

(2) The Financial Secretary, on receipt of a report under subsection
(1), may appoint a competent person to investigate and report

(a)to him; and

(b)in the case of an authorized institution which is or has been a
registered deposit-taking company, to the Commissioner,

on the state and conduct of the business of the authorized institution
concerned, or any particular aspect of that business specified by him.

(3) The Financial Secretary may, from time to time after making an
appointment under subsection (2), and before the person so appointed
reports to him, require that person to inquire into any further aspect of
the authorized institution concerned.

(4) The person appointed under subsection (2) shall be paid such
remuneration and allowances and be appointed on such terms as the
Financial Secretary shall from time to time determine.





(5) On receipt of the report of the person appointed under
subsection (2) the Financial Secretary may, without limiting the
generality of the exercise by him of any other powers which he may
exercise under this Ordinance

(a)if he is of the opinion that it is in the public interest to do so,
cause the whoie or any part of a report under this section to be
published in such manner as he thinks fit:

Provided that nothing in a report published under this
paragraph shall enable any particular customer of an
authorized institution to be identified or reveal details of the
affairs of any such customer without the consent of that
customer;

(b)require the person appointed under subsection (2) to report
further on any matters arising from the report;

(c)refer the report to the Governor in Council with the
recommendation that the Governor in Council should exercise
one or more of his powers under, in the case of an authorized
institution which is a bank, sections 29 and 53 or, in the case
of an authorized institution which is a deposit-taking company,
section 53;

(d)if it appears that an offence may have been committed by any
person, refer the report to the Attorney General;

(e)in the case of an authorized institution which is a registered
deposit-taking company, refer the report to the Commissioner
with the recommendation that the Commissioner should
exercise one or more of his powers under section 31 and Part
VI;

(f) apply to the High Court for a winding-up order under section
122(5).

(6) The Financial Secretary shall not exercise his powers under
subsection (2) in the case of a former authorized institution which
ceased to be an authorized institution 12 months or more before the date
of the report under subsection (1).

(7) Any person who-

(a)with intent to defeat the purposes of this section or to delay or
obstruct the carrying out of an investigation under this
section

(i) conceals, destroys, mutilates or alters a document
relating to a matter which is the subject of an investigation by
a person appointed under subsection (2); or

(ii) sends, or causes to be sent, or conspires with another
person to send, out of Hong Kong any such document; or

(b)knowingly furnishes to a person appointed under subsection
(2) any information which is false or misleading in a material
particular,





commits an offence and is liable on conviction upon indictment or
on summary conviction to a fine of $20,000 and to imprisonment for
2 years.

118. (1) Subject to this section, the inspector may determine
the manner in which an inquiry under section 117 is to proceed.

(2) If the inspector thinks it necessary for the purposes of his
investigation, he may also investigate the business of any company
which is or has at any relevant time been-

(a)a holding company or subsidiary of the body whose
business is under investigation;

(b) a subsidiary of a holding company of that body; or

(c) a holding company of a subsidiary of that body.

(3) It shall be the duty of every director, manager, employee,
or agent of a company whose business is under investigation
(whether by virtue of section 117(2) or subsection (2)) and any
person who has in his possession books, papers or information
relevant to the investigation-

(a)to produce to the inspector all books and papers relating to
the company concerned which are in his custody or power;

(b) to attend before the inspector when required to do so; and

(c)to answer truthfully and to the best of his ability any
questions which may be put to him by the inspector and
which are relevant to the investigation:

Provided that an inspector shall not require the disclosure by a
solicitor or counsel of any privileged communication, whether oral
or written, made to or by him in that capacity.

(4) Anything said by any person in answer to a question put
by the inspector under subsection (3)(c) shall be inadmissible in any
criminal proceedings other than criminal proceedings brought under
this section.

(5) Any director, manager, employee or agent of a company
and any other person who-

(a)without reasonable excuse fails to produce any books or
papers which it is his duty to produce under subsection (3);
or

(b)without reasonable excuse fails to attend before the inspec-
tor when required to do so under this section; or

(c)fails to answer to the best of his ability any question which
is put to him by an inspector with respect to a business
which is under investigation under section 117 or to the
business of any body corporate which is being investigated
by virtue of subsection (2),





commits an offence and is liable on conviction upon indictment or on
summary conviction to a fine of $20,000 and to imprisonment for 6
months.

(6) In this section-

(a)'inspector' means a person appointed under section 117(2);

(b)any reference to a director, manager, employee or agent of a
company includes a reference to a person who has been but
no longer is a director, manager, employee or agent of that
company;

(e)'agent' in relation to a company whose business is under
investigation includes its bankers and solicitors and any
persons, whether officers of the body or not, who are
employed as its auditors.

PART XXI

MISCELLANEOUS

119. (1) In the event of any dispute as to whether a person is
carrying on a banking business or a business of taking deposits, the
matter, except in the case of a prosecution for any offence against this
Ordinance, shall be submitted to the Governor in Council for his
determination; and the decision of the Governor in Council shall be final
and conclusive for all purposes of this Ordinance.

(2) A submission under subsection (1) may be made by the
Financial Secretary or by any bank or deposit-taking company or
person which or who is interested in the determination of the matter.

120. (1) Except as may be necessary for the exercise of any function
under this Ordinance or for carrying into effect the provisions of this
Ordinance, every person to whom this subsection applies- (Amended,
64 of 1987, s. 26)

(a) shall preserve and aid in preserving secrecy regard to
all matters relating to the affairs of any company that may
come to his knowledge in the exercise of any function
under this Ordinance;

(b)shall not communicate any such matter to any person other
than the person to whom such matter relates; and

(c)shall not suffer or permit any person to have access to any
records in the possession, custody or control of any person to
whom this subsection applies.

(2)Subsection (1) shall apply to-

(a) any public officer;







(b)any person authorized or employed by the Commissioner
under section 8;

(c)any person appointed under section 52(1)(B), or by order of the
Governor in Council under section 53(1)(ii), to advise an
authorized institution in the proper conduct of its business;

(d) any person who has assumed control of the business of an

any

authorized institution pursuant to a direction under section
52(1)(C) or an order of the Governor in Council under section
53(1)(ii);


(e) any person appointed under section 117(2); and

(f) any person
employed by or assisting a person to whom this subsection
applies by virtue of paragraph (b), (e), (d), or (e),



who exercises any function under this Ordinance.

(3) Where under section 52(1)(C) or under section 53(1)(ii) the
Commissioner assumes control of and carries on the business of an
authorized institution or any other person is directed so to do,
subsection (1) shall not apply if the Commissioner or such other person
is required to comply with a notice to furnish returns and information
under section 51 of the Inland Revenue Ordinance.

(4) No person who exercises any function in the course of an
examination or investigation under section 47, 50, 55 or 117 or who
receives reports, returns or information submitted under section 47. 50,
55, 56, 63 or 64 shall be required to produce in any court any book,
account or other document whatsoever or to divulge or communicate to
any court any matter or thing coming under his notice in the exercise of
his functions under this Ordinance, except as may be necessary in the
course of a prosecution for any offence or of a winding-up by the High
Court under section 122.

(5) Subsection (1) shall not apply-

(a)to the disclosure of information in the form of a summary of
similar information provided by a number of authorized
institutions if the summary is so framed as to prevent
particulars relating to the business of any particular authorized
institution being ascertained from it;

(b)to the disclosure of information with a view to the institution
of, or otherwise for the purposes of, any criminal proceedings,
whether under this Ordinance or otherwise;

(c)in connection with any other legal proceedings arising out of
this Ordinance;

(d)to the disclosure of information to the police or the
Independent Commission Against Corruption, at the request
of the Attorney General, relevant to the proper investigation
of any criminal complaint;





(e)to the disclosure of information by the Commissioner to the
Registrar, the Council or the Disciplinary Committee under the
Professional Accountants Ordinance in respect of any
complaint that can be made under section 34 of that Ordinance in
respect of any auditor of an authorized institution, including an
auditor appointed under section 59(2) or approved under section
63(3)(b);

to the disclosure of information to the Financial Secretary, the
Secretary for Monetary Affair or to any public officer authorized
by the Financial Secretary for the purposes of this paragraph or to
the Disciplinary Committee referred to in paragraph (e) where,
in the opinion of the Commissioner, it is desirable or expedient
that information should be disclosed in the interests of
depositors or the public interest; or

(g) to the disclosure of information concerning an authorized institution, to its
auditor or former auditor, during a meeting called under section 61.

(6) Any person who-

(a) contravenes subsection (1); or

(b)aids, abets, counsels or procures any person to contravene
subsection (1),

commits an offence and is liable---
(i) on conviction upon indictment to a fine of $500,000 and to
imprisonment for 2 years; or

(ii) on summary conviction to a fine of $50,000 and to
imprisonment for 6 months.

121. (1) Subject to subsection (3) and notwithstanding section 120,
the Commissioner may, if he considers that it is in the interests of the
depositors of the authorized institution, provide to the appropriate
recognized banking supervisory authority of a place outside Hong Kong
which is, in his opinion, subject to adequate secrecy provisions in that
place information on matters relating to the affairs of an authorized
institution

(a)which is incorporated, or which has its principal place of
business, in that place;

(b)which is incorporated in or outside Hong Kong and is a
subsidiary or associate of a bank incorporated in that place; or


(c)which is incorporated in Hong Kong and which has, or is
proposing to establish, in that place an overseas branch,
overseas representative office, subsidiary or associate of that
authorized institution, and where, in the case of a subsidiary or
associate, such subsidiary or associate is or would be subject
to supervision by that recognized banking supervisory
authority.





(2) Subject to subsection (3) and notwithstanding section 120, the
Commissioner may, if he considers that it is in the interests of customers
of the representative office, provide to the appropriate recognized
banking supervisory authority of a place outside Hong Kong which is, in
his opinion, subject to adequate secrecy provisions in that place
information on matters relating to the affairs of a local representative
office which is maintained by a bank incorporated in that place.

(3) Under no circumstances shall the Commissioner provide
any information under this section relating to
the affairs of any individual customer of an authorized institution or local
representative office.

122. (1) The provisions of the Companies Ordinance with regard to a
creditors' voluntary winding-up shall not apply to authorized
institutions.

(2) On a petition by the Financial Secretary, acting in accordance
with a direction of the Governor in Council under section 53(1)(iii), the
High Court may

(a)on any ground specified in section 177 of the Companies
Ordinance; or

(b)if it is satisfied that it is in the public interest that the
authorized institution or former authorized institution should be
wound up,

order the winding-up of an authorized institution or former authorized
institution in accordance with the provisions of the Companies
Ordinance relating to the winding-up of companies.

(3) Where before the presentation of a petition for the winding-up of
an authorized institution by the court, whether or not the petition is
presented by the Financial Secretary, the Commissioner has assumed
control of the business of the institution under section 52(1)(C) or
pursuant to an order of the Governor in Council under section 53(1)(ii) or
some other person has assumed control of the business of the institution
pursuant to a direction of the Commissioner under section 52(1)(C) or an
order of the Governor in Council under section 53(1)(ii) and such control
has continued at all times until the presentation of the petition, and a
winding-up order is made thereon, then, notwithstanding the provisions
of section 184(2) of the Companies Ordinance, the winding-up of the
institution by the court shall, for the purposes of sections 170, 179, 182,
183, 266, 267, 269 and 274, and paragraphs (d), (e), (h), (i), (j), (k), (1),
(m), (n) and (o) of section 271(1), of the Companies Ordinance, be deemed
to have commenced at the time the Commissioner or such other person
assumed control of the business of the institution.

(4) Where the Commissioner has assumed control of the business
of an authorized institution under section 52(1)(C) or pursuant to an
order of the Governor in Council. under section 53(1)(ii) or some other
person has assumed control of the business of





an authorized institution pursuant to a direction of the Commissioner
under section 52(1)(C) or an order of the Governor in Council under
section 53(1)(ii), nothing in section 182 of the Companies Ordinance
shall invalidate any disposition of the property of the institution made
by it under the direction of the Commissioner or such person acting
bona fide in the course of the carrying on of the business of the
institution.

(5) Where the Financial Secretary is entitled to petition the

High Court by virtue Of section 117(5)(f), the High Court may wind
up a deposit-taking company or former deposit-taking company in
accordance with the provisions of the Companies Ordinance relating
to the winding-up of companies if-

(a) the company is unable to pay sums due and payable to its depositors
or is able to pay such sums only by defaulting on its
obligations; or

(b) the value of the company's assets is less than the amount of its liabilities.

(6) Nothing in this section shall authorize the winding-up of a former deposit-taking
company which does not continue to have any liability in respect of any
deposit for which it had a liability at the time when it was registered
or licensed.

123. Any director, manager, trustee, employee or agent of any
authorized institution who, with intent to deceive--

(a)wilfully makes, or causes to be made, a false entry in any book
of record or in any report, slip, document or statement of the
business, affairs, transactions, condition, assets or accounts of
the institution;

(b)wilfully omits to make an entry in any book of record or in any
report, slip, document or statement of the business, affairs,
transactions, condition, assets or accounts of the institution,
or wilfully causes any such entry to be omitted; or

(c)wilfully alters, abstracts, conceals or destroys an entry in any
book of record, or in any report, slip, document or statement of
the business, affairs, transactions, condition. assets or
accounts of the institution, or wilfully causes any such entry to
be altered, abstracted, concealed or destroyed,

commits an offence and is liable-

(i)on conviction upon indictment to a fine of $500,000 and to
imprisonment for 5 years; or


(ii)on summary conviction to a fine of S50,000 and to
imprisonment for 2 years.

124. Any director or employee of an authorized institution, who asks
for or receives, consents or agrees to receive any gift. commission,
emolument, service, gratuity, money, property or thing





of value for his own personal benefit or advantage or for that of any of
his relatives, for procuring or endeavouring to procure for any person
any advance, loan, financial guarantee or credit facility from that
institution or the purchase or discount of any draft, note, cheque, bill of
exchange or other obligation by that institution, or for permitting any
person to overdraw any account with that institution, commits an
offence and is liable

(a)on conviction upon indictment to a fine of $100,000 and to
imprisonment for 5 years; or

(b)on summary conviction to a fine of $50,000 and to
imprisonment for 2 years.

125. (1) If a magistrate is satisfied by information on oath that there
is reasonable ground for suspecting that an offence under this
Ordinance has been committed, the magistrate may issue a warrant
empowering any police officer to enter and search any premises
specified in the warrant.

(2) A police officer to whom a warrant is issued under subsection
(1) may

(a)break open any outer or inner door of or in any premises
which he is empowered by the warrant to enter and search;

(b)inspect, seize and remove anything which the police officer
has reasonable grounds for believing to be or to contain
evidence of an offence under this Ordinance. and

(c)remove by force any person who obstructs any entry, search,
inspection, seizure or removal which he is empowered by this
subsection to make.

(3) A person from whom any books, accounts or other documents
have been seized and removed under subsection (2) shall, pending any
proceedings for an offence under this Ordinance, be entitled to take
copies of or extracts from such books, accounts or other documents.

(4) Any person who obstructs a police officer in the exercise of any
power conferred on him by subsection (2) commits an offence and is
liable on conviction upon indictment or on summary conviction to a fine
of $50,000 and to imprisonment for 6 months.

126. (1) Subject t subsection (2), any person who is prose
cuted in respect of any offence under this Ordinance shall have a
good defence if he proves that the offence was committed without his
consent or connivance and that he exercised all such diligence to prevent the
commission of the offence as he ought to have exercised having regard
to his position in the authorized institution in respect
of which the offence was committed.

(2) Subsection (1) shall not apply to an offence under section

46(8), 47(2) or (3), 50(6), 64(5), 72(4) 73(2), 97(1), 117(7), 118(5),

120, 123 or 124.




127. No liability shall be incurred by

(a) any public officer;

(b)any person authorized or employed by the Commissioner
under section 8;

(c)any person appointed under section 52(1)(B), or by order of
the Governor in Council under section 53(1)(ii), to advise an
authorized institution in the proper conduct of its business;

(d)any person who has assumed control of the business of an
authorized institution pursuant to a direction under section
52(1)(C) or an order of the Governor in Council under section
53(1)(ii); or

(e) any person appointed under section 117(2),

as a result of anything done or omitted to be done by him bona fide in
the exercise or purported exercise of any functions conferred or imposed
by or under this Ordinance.

128. Notwithstanding anything contained in the articles of
association or regulations of any authorized institution incorporated in
Hong Kong with respect to the execution of instruments under its seal,
but without prejudice to anything in such articles or regulations not
inconsistent herewith, the seal of the institution shall not be affixed to
any instrument except in the presence of a director of the institution and
of one other person being either a director or an officer of the institution
duly authorized in that behalf, and that director and such other person
shall sign every instrument to which the seal of the institution is so
affixed in their presence.

129. (1) The contravention of any prohibition in this Ordinance or in
any Ordinance repealed by this Ordinance on the entering into of any
contract shall not render that contract unenforceable. (Amended, 64
of 1987, s. 27)

(2) Subsection (1) shall be deemed to have had effect from 1 April
1976, so, however, that nothing in that subsection as read with this
subsection shall have effect in relation to any legal proceedings
commenced before the commencement of this Ordinance.

130. (1) Notwithstanding any rule of law, any deposit taken in
contravention of section 12 or 14, and any interest accrued thereon, may
be recovered by the depositor as money had and received.

(2) Where the licence or, as the case may be, the registration of an
authorized institution is revoked or suspended under this Ordinance,
such revocation or suspension shall not affect any right

(a) of any person against the institution; or

(b) of the institution against any person.





131. (1) There shall be recoverable at the suit of the Attorney
General as a civil debt due to the Crown from the authorized institution
concerned; or in the case of an unincoporatedbank, from the directors
jointly and severally thereof-

(a)the amount of any fees payable under section 19, 23, 26, 45,
48. 51 or 109;

(b)any remuneration and expenses payable by the authorized
institution to any person appointed under section 52(1)(B) or
by order of the Governor in Council under section 53(1)(ii) to
advise the institution in the proper conduct of its business;

(c)any remuneration and expenses payable by the authorized
institution to the Commissioner or to any person employed or
authorized by the Commissioner under section 8 to assist him
in the control and carrying on of the business of the
institution or to any other person who has assumed control of
the business of the institution pursuant to a direction under
section 52(1)(C) or an order of the Governor in Council under
section 53(1)(ii);

(d)any expenses ordered by the Financial Secretary to be
defrayed by the authorized institution under section 55(3);
and

(e)any remuneration payable by the authorized institution to an
auditor appointed under section 59(2).

(21) There shall be recoverable, at the suit of the Attorney General,
as a civil debt due from the applicants, jointly and severally, to the
Crown, any expenses ordered by the Financial Secretary to be defrayed
by the applicants under section 55(3).

(3) Any sum recoverable under this section at the suit of the
Attorney General shall be a debt due to the Crown within the meaning
of section 265(1)(a) of the Companies Ordinance and section 38(1)(a) of
the Bankruptcy Ordinance.

132. (1) All entries in books and accounts kept by authorized
institutions shall be recorded in the English language and the Arabic
system of numerals shall be employed.

(2) All forms and information required to be sent and all returns
required to be made to the Commissioner pursuant to any of the
provisions of this Ordinance shall be compiled in the English language
and the Arabic system of numerals and.. if any such form, information or
return is a translation, be certified to the satisfaction of the
Commissioner as a true and correct translation.

(3) Every director and every manager of an authorized institution
which contravenes subsection (1) or (2) commits an offence and is liable
on conviction upon indictment or on summary conviction to a fine of
S50,000 and, in the case of a continuing offence, to a further fine of
$5,000 for every day during which the offence continues.





133. The Commissioner may specify the form of application for
licensing or registration and of any notice, certificate or other document
required for the purposes of this Ordinance.

134. Without limiting the generality of section 356 of the Companies
Ordinance, a document may be served on an authorized institution by
leaving it at or sending it by post to its principal place of business in
Hong Kong.

135. (1) The Governor in Council may, by notice in the Gazette,
amend the First Schedule.

(2) The Legislative Council may, by resolution, amend the Second
Schedule.

(3) The Financial Secretary may, by notice in the Gazette, amend
the Third and Fourth Schedules.

(4) The Commissioner may, by notice in the Gazette, amend the
Fifth Schedule.

136. No prosecution in respect of any offence under this Ordinance
shall be instituted without the consent in writing of the Attorney
General.

137. [Amendments Incorporated]

137A. (1) Subject to subsection (2), the Gambling Ordinance shall
not apply to any transaction proposed to be entered into, or entered
into, by an authorized institution.

(2) Subsection (1) shall not apply to a transaction, or a transaction
belonging to a class of transactions, specified by the Commissioner by
notice in the Gazette as being a transaction, or a class of transactions,
as the case may be, to which that subsection shall not apply.

(Added, 64 of 1987, s. 28)

PART XXII

TRANSITIONAL, SAVINGS AND
REPEAL

138. In this Part, unless the context otherwise requires-

'flormer bank' means a bank which, immediately before the
commencement of this Ordinance, held a former banking licence;

'former Banking Advisory Committee' means the Banking Advisory
Committee established by section 3 of the former Banking
Ordinance and as constituted immediately before the
commencement of this Ordinance;





'former banking licence' means a licence granted under section 7 or
42 of the form er Banking Ordinance and in force immediately
before the commencement of this Ordinance;

'former Banking Ordinance' means the Banking Ordinance 1964
repealed by this Ordinance;

'former Commissioner' means the person who was, immediately before
the commencement of this Ordinance, the Commissioner of Banking
under section 4 of the former Banking Ordinance and, for the
purposes of this Part, any reference in the former Deposit-taking
Companies Ordinance to the Commissioner of Deposit-taking
Companies shall be deemed to be a reference to such Commissioner
of Banking;

'former Deposit-taking Companies Advisory Committee' means the
Deposit-taking Companies Advisory Committee established by
section 4 of the former Deposit-taking Companies Ordinance and as
constituted immediately before the commencement of this
Ordinance;

'former deposit-taking licence' means a licence granted under section
16B of the former Deposit-taking Companies Ordinance and in force
immediately before the commencement of this Ordinance;

'former Deposit-taking Companies Ordinance' means the Deposittaking
Companies Ordinance 1976 repealed by this Ordinance;

'former registration' means registration under section 10 of the former
Deposit-taking Companies Ordinance which was in force
immediately before the commencement of this Ordinance.

139. (1) Any member of the former Banking Advisory Committee
who was such a member by virtue of an appointment under section 3(2)
of the former Banking Ordinance shall, on and from the commencement
of this Ordinance, be deemed to be a member of the Banking Advisory
Committee as if, on that commencement, he had been appointed under
section 4(2) to be a member of the Banking Advisory Committee for the
period he had left to serve, immediately before that commencement, as a
member of the former Banking Advisory Committee and, for that
purpose and for that period, the terms on which he was so appointed as
a member of the former Banking Advisory Committee shall be the terms
on which he shall be a member of the Banking Advisory Committee.

(2) Any member of the former Deposit-taking Companies Advisory
Committee who was such a member by virtue of an appointment under
section 5(1)(c) of the former Deposit-taking Companies Ordinance shall,
on and from the commencement of this Ordinance, be deemed to be a
member of the Deposit-taking Companies Advisory Committee as if, on
that commencement, he





had been appointed under section 5(2) to be a member of the
Deposit-taking Companies Advisory Committee for the period he
had left to serve, immediately before that commencement, as a
member of the former Deposit-taking Companies Advisory Com-
mittee and, for that purpose and for that period, the terms on which
he was so appointed as a member of the former Deposit-taking
Companies Advisory Committee shall be the terms on which he shall
be a member of the Deposit-taking Companies Advisory Com-
mittee.

140. The former Commissioner shall, on and from the commen-
cement of this Ordinance, be deemed to be the Commissioner as if,
on that commencement, he had been appointed under section 6 to be
the Commissioner of Banking, and the provisions of this Ordinance
shall apply accordingly.

141. Any person who was, immediately before the commence-
ment of this Ordinance, authorized or employed under section 4A of
the former Banking Ordinance to assist the former Commissioner in
the exercise of his functions and duties under the former Banking
Ordinance, either generally or in any particular case, shall, on and
from the commencement of this Ordinance, be deemed, in the like
capacity, to be authorized or employed to assist the Commissioner
in the exercise of his functions under this Ordinance as if, on that
commencement, he had been, in the like capacity, authorized or
employed under section 8 to assist the Commissioner in the exercise
of his functions under this Ordinance for the period he had left,
immediately before that commencement, to be so authorized or
employed under the former Banking Ordinance.

142. Where, immediately before the commencement of this
Ordinance, there was in existence-

(a)an application for a former banking licence under section 6
of the former Banking Ordinance in relation to which the
Governor in Council had not granted or refused a former
banking licence under section 7 of the former Banking
Ordinance;

(b)an application for former registration under section 9 of
the former Deposit-taking Companies Ordinance in rela-
tion to which there has not been any registration or refusal
of registration by the Commissioner under section 10 of
the former Deposit-taking Companies Ordinance; or

(c)an application for a former deposit-taking licence under
section 16A of the former Deposit-taking Companies
Ordinance in relation to which the Financial Secretary had
not granted or refused a former deposit-taking licence
under section 16B of the former Deposit-taking Com-
panies Ordinance,





then-

(i)in the case of an application referred to in paragraph (a), the
application shall be deemed to be an application under section
15 for a banking licence;

(ii)in the case of an application referred to in paragraph (b), the
application shall be deemed to be an application under section
20 for registration; and

(iii)in the case of an application referred to in paragraph (e), the
application shall be deemed to be an application under section
24 for a deposit-taking licence,

and the provisions of this Ordinance shall apply accordingly.

143. (1) Any former banking licence shall, on and from the
commencement of this Ordinance, be deemed to be

(a)in the case of a former banking licence granted under section 7
of the former Banking Ordinance, a banking licence granted
under section 16; and

(b) in the case of a former banking licence issued under section
42 of former Banking Ordinance, a banking licence
granted under section 107,

and the provisions of this Ordinance shall apply accordingly.

(2) Any former registration shall, on and from the commencement of
this Ordinance, be deeTed to be registration under section 21, and the
provisions of this Ordinance shall apply accordingly.

(3) Any former deposit-taking licence shall, on and from the
commencement of this Ordinance, be deemed to be a deposit-taking
licence granted under section 25, and the provisions of this Ordinance
shall apply accordingly.

(4) Notwithstanding Part VII of the former Deposit-taking
Companies Ordinance, any former registration or former deposittaking
licence which was, immediately before the commencement of this
Ordinance, suspended under that Part shall, on and from that
commencement, but subject to section 146, be deemed, for the purposes
of subsections (2) and (3) and the definitions of 'former registration'
and 'former deposit-taking licence' in section 138, to be in force
immediately before that commencement.

144. Where, under this Ordinance, a bank. (including an un-
incorporated bank), registered deposit-taking company or licensed
deposit-taking company is required to pay any fee specified in the
Second Schedule, irrespective of whether the words 'authorized
institution' are used to create any such requirement, by reference to the
anniversary of the date on which the bank, registered deposittaking
company or licensed deposit-taking company was licensed or
registered, as the case may be, or words to that effect, and the





banking licence, registration or deposit-taking licence, as the case may
be, held by that bank, registered deposit-taking company or licensed
deposit-taking company is deemed by virtue of section 143 to be a
banking licence, registration or deposit-taking licence, as the case may
be, then, for the purposes of paying any such fee, and notwithstanding
any other provision of this Ordinance, such reference to the anniversary
of the date on which the bank, registered deposit-taking company or
licensed deposit-taking company was licensed or registered shall be the
anniversary of the date on which the bank, registered deposit-taking
company or licensed deposittaking company was licensed or registered,
as the case may be, under the former Banking Ordinance or former
Deposit-taking Companies Ordinance, as the case may be.

145. (1) Where, immediately before the commencement of this
Ordinance, there was in force any condition attached to a former
banking licence under section 7(1)(b) or 7A of the former Banking
Ordinance and, on and from that commencement, the former banking
licence is deemed by virtue of section 143 to be a banking licence, then,
on and from that commencement, any such condition shall be deemed to
be a condition attached to the banking licence as if, on that
commencement, the Governor in Council had attached such condition
under section 17 to the banking licence, and the provisions of this
Ordinance shall apply accordingly.

(2) Where, immediately before the commencement of this
Ordinance, there was in force any condition attached to a former deposit-
taking licence under section 16B(1)(a) or (3) of the former Deposit-taking
Companies Ordinance and, on and from that commencement, the former
deposit-taking licence is deemed by virtue of section 143 to be a deposit-
taking licence, then, on and from that commencement, any such
condition shall be deemed to be a condition attached to the deposit-
taking licence as if, on that commencement, the Financial Secretary had
attached such condition under section 25(3) to the deposit-taking
licence, and the provisions of this Ordinance shall apply accordingly.

(3) Where any local branch to which section 44(3) applies had in
force, immediately before the commencement of this Ordinance, an
approval under section 12A(I) or (3) of the former Banking Ordinance or
section 16H(I) or (3) of the former Deposit-taking Companies Ordinance
to which was attached any condition under section 12A(4) of the former
Banking Ordinance or section 16H(4) of the former Deposit-taking
Companies Ordinance and which condition was in force immediately
before that commencement, then, on and from that commencement, any
such condition shall be deemed to be attached to the approval under
section 44 of -the local branch as if, on that commencement, the
Commissioner had attached such condition under section 44(4) to the
approval, and the provisions of this Ordinance shall apply accordingly.





(4) Where any local representative office to which section 46(2)
applies had in force, immediately before the commencement of this
Ordinance, an approval under section 12C(I) or (2) of the former Banking
Ordinance to which was attached any condition under section l2Q4) of
the former Banking Ordinance and which condition was in force
immediately before that commencement, then, on and from that
commencement, any such condition shall be deemed to be attached to
the approval under section 46 of the local representative office as if, on
that commencement, the Commissioner had attached such condition
under section 46(4) to the approval, and the provisions of this
Ordinance shall apply accordingly.

(5) Where any overseas branch or overseas representative office to
which section 49(3) applies had in force, immediately before the
commencement of this Ordinance, an approval under section 12F(I) or
(3) of the former Banking Ordinance or section 16J(1) or (3) of the former
Deposit-taking Companies Ordinance to which was attached any
condition under section 12F(4) of the former Banking Ordinance or
section 16J(4) of the former Deposit-taking Companies Ordinance and
which condition was in force immediately before that commencement,
then, on and from that commencement, any such condition shall be
deemed to be attached to the approval under section 49 of the overseas
branch or overseas representative office, as the case may be, as if, on
that commencement, the Commissioner had attached such condition
under section 49(4) to the approval, and the provisions of this
Ordinance shall apply accordingly.

146. Where any former registration or former deposit-taking licence
which is, on and from the commencement of this Ordinance, deemed by
virtue of section 143 to be registration or a deposit-taking licence, was,
immediately before that commencement, suspended under Part VII of the
former Deposit-taking Companies Ordinance, then, on and from that
commencement, that registration or that deposit-taking licence, as the
case may be, shall, in the like manner, be deemed to be suspended under
Part VI for the period concerned of such suspension left to serve
immediately before that commencement as if, on that commencement
and for that period, the designated authority under Part VI had
suspended that registration or deposit-taking licence, as the case may
be, and the provisions of this Ordinance shall apply accordingly.

147. Where an act, matter or thing has been done under Part IV of
the former Banking Ordinance by the Commissioner, the Financial
Secretary or the Governor in Council to or in relation to a former bank
and, on and from the commencement of this Ordinance, the former
banking licence held by the former bank is deemed by virtue of section
143 to be a banking licence, then, on and from that commencement, to
the extent that but for the enactment of this





Ordinance that act, matter or thing would on or after that commencement
have had any force or effect or been in operation, shall, in the like
manner, be deemed to have been done under Part X by the
Commissioner, the Financial Secretary or the Governor in Council, as the
case may be, to or in relation to the bank which holds that banking
licence as if, on that commencement, that act, matter or thing were, to
that extent, done under Part X by the Commissioner, the Financial
Secretary or the Governor in Council, as the case may be, to or in relation
to the bank, and the provisions of this Ordinance shall apply
accordingly.

148. (1) A letter of comfort which was, immediately before the
commencement of this Ordinance, deemed by virtue of section 23(5) of
the former Banking Ordinance to at all times to have been accepted
under paragraph (M) of the proviso to section 23(1) of the former
Banking Ordinance shall, on and from that commencement, be deemed at
all times to have been accepted under paragraph (c) of the proviso to
section 81(2), and the provisions of this Ordinance shall, subject to
subsection (2), apply accordingly.

(2) Where the former Commissioner had not, before the
commencement of this Ordinance, exercised his powers under section
23(6) of the former Banking Ordinance in relation to the former bank for
which a letter of comfort referred to in subsection (1) was provided, then,
on and from that commencement, and until such time as the
Commissioner exercises his powers under section 81(7) in relation to the
bank for which that letter of comfort is provided, the provisions of
section 81(5) shall not apply in relation thereto.

(3) A letter of comfort which was, immediately before the
commencement of this Ordinance, deemed by virtue of section 22(5) of
the former Deposit-taking Companies Ordinance to at all times to have
been accepted under paragraph (M) of the proviso to section 22(1) of the
former Deposit-taking Companies Ordinance shall, on and from that
commencement, be deemed at all times to have been accepted under
paragraph (c) of the proviso to section 81(2), and the provisions of this
Ordinance shall, subject to subsection (4), apply accordingly.

(4) Where the former Commissioner had not, before the
commencement of this Ordinance, exercised his powers under section
22(6) of the former Deposit-taking Companies Ordinance in relation to
the former deposit-taking company for which a letter of comfort referred
to in subsection (3) was provided, then, on and from that
commencement, and until such time as the Commissioner exercises his
powers under section 81(7) in relation to the deposittaking company for
which the letter of comfort is provided, the provisions of section 81(5)
shall not apply in relation thereto.

(5) Where at the commencement of this Ordinance the financial
exposure of an authorized institution to any persons exceeds that which
is permitted by section 81, but would not do so if no





account were taken of investments (as defined in subsection (10) of that
section) that were made by the institution before such commencement,
then those investments may be disregarded for the purposes of
calculating the financial exposure of the institution under that section for

(a)a period of not more than 3 months from the commencement of
this Ordinance; or

(b)such longer period as may be approved by the Commissioner
in writing in any particular case,

provided that the institution does not in any such period further
increase its financial exposure, within the meaning of that section, to the
same persons.

148A. (1) Where, immediately before 1 September 1986, any period
allowed under the proviso to section 27(1) of the former Banking
Ordinance, or under section 23B(3) of the former Deposittaking
Companies Ordinance, had not expired then, on and from that date, the
unexpired portion of that period shall be deemed to be a further period
approved under, and for the purposes of, the proviso to section 87(1) as
if, on that date, the Commissioner had given such approval under the
proviso to section 87(1), and the provisions of this Ordinance shall
apply accordingly.

(2) Where, immediately before 1 September 1986, any period allowed
under section 23B(2) of the former Deposit-taking Companies Ordinance
had not expired then, on and from that date, the unexpired portion of that
period shall be deemed to be a further period approved under, and for
the purposes of, section 87(2)(a) as if, on that date, the Commissioner
had given such approval under section 87(2)(a), and the provisions of
this Ordinance shall apply accordingly.

(3) Where, immediately before 1 September 1986, there was in force
any approval under section 27(2) of the former Banking Ordinance then,
on and from that date, any such approval shall be deemed to be an
approval under, and for the purposes of, section 87(2)(b) as if, on that
date, the Commissioner had given such approval under section 87(2)(b).

(Added, 64 of 1987, s. 29)

149. The Banking Ordinance 1964 and the Deposit-taking Companies
Ordinance 1976 And all subsidiary legislation made under either of those
Ordinances are repealed.

FIRST SCHEDULE [ss. 14 & 135(1).]
SPECIFIED SUM


1.The sum for the purposes of section 14(1)(a) is $100,000 or an equivalent
amount in any other currency.

2.The sum for the purposes of section 14(1)(b) is $500,000 or an equivalent
amount in any other currency.





SECOND SCHEDULE [ss. 19, 23, 26, 27,
45, 48, 51, 109,
135(2) & 144.]
FEES

1. Annual banking licence fee for bank, other than an unincorporated

bank (section 19(1)) ............... 360,000

2. Registration fee (section 23(1)) . 50,000

3. Renewal of registration fee (section 23(2)) 50,000
4. Deposit-taking licence fee (section 26(1)) 170,000
5. Renewal of deposit-taking licence fee (section 26(2)) 170,000

6. Inspection fee (section 27(3)) ........ 10

7. Fee for a copy or extract, per page (section 27(3)) 5

8. Fee for the establishment of a local branch of a bank (section 45(1)) 17,000
9. Annual fee for maintaining a local branch of a bank (section 45(1)

and (2)) ...... . ............... 17.000

10. Fee for the establishment of a local branch of a deposit-taking

company (section 45(1)) ....................................................
8,500

11. Annual fee for maintaining a local branch of a deposit-taking

company (section 45(1) and (2)) ...........................................
8,500

12. Fee for the establishment of a local resentative office (section
48(1)) .....................................
17,000

13. Annual fee for maintaining a local representative office (section
48(1), (2) and (3)) .......... 17,000

14. Fee for the establishment of an overseas branch of a bank (section

51(1)) ....................................................
34,000

15. Annual fee for maintaining an overseas branch of a bank (section

51(1) and (2)) .. . ............. 34,000

16. Fee for the establishment of an overseas branch of a deposit-taking

company (section 51(1)) ..............................................
17,000

17. Annual fee for maintaining an overseas branch of a deposit-taking
company (section 5 1 (1) and (2)) ......................................
17,000

18. Fee for the establishment of an overseas representative office of a

bank (section 51(1)) ................... ...................................
8,500

19. Annual fee for maintaining an overseas representative office of a

bank (section 51 (1) and (2)) .......................................
9,500

20. Fee for the establishment of an overseas representative office of a

deposit-taking company (section 51 (1)) 8,500

21. Annual fee for maintaining an overseas representative office of a
deposit-taking company (section 51 (1) and(2)) 8,500

22. Annual banking licence fee for unincorporated bank (Section 109(1)) .. 5,000

THIRD SCHEDULE [ss. 98 & 135(3).]

CAPITAL ADEQUACY RATIO

1. In this Schedule-

'book value' in relation to any thing referred to in this Schedule means its current
book value, after deducting any provision made in the books against a
reduction in its value;





'debt securities' means any securities other than shares or stocks;
'eligible bank' means-

(a)any authorized institution which is a bank or licensed deposit-taking
company (other than any deposit-taking company the licence of which is
for the time being suspended under this Ordinance); and (Amended, L.N.
412187)

(b)any bank incorporated outside Hong Kong which is not licensed under this
Ordinance, except a bank which is, in the opinion of the Commissioner.
riot adequately supervised by an appropriate, recognized banking
supervisory authority of the place in which it is incorporated;

'eligible Government' means-

(a) the Government; and

(b)any other government, except a government which is, in the opinion of
the Commissioner, one that should not be accepted for the purposes of
this Schedule;

'guarantee' includes indemnity;

'registered deposit-taking company' does not include any deposit-taking company

the registration of which is for the time being suspended under this Ordinance.

2. The capital adequacy ratio of an authorized institution shall be calculated as
the ratio, expressed as a percentage, of its capital base, as specified in paragraph 3,
to its risk assets, as specified in paragraph 4.

3. The capital base of an authorized institution shall be determined by taking
the sum, calculated in Hong Kong dollars, of the book value of

(a) its paid-up capital;

(b)its general reserves, including inner reserves, share premium account and
revaluation reserves;

(c) its undistributed profits as shown in the latest audited accounts, less-

(i) any dividends subsequently declared, or paid, but not provided; and

(ii) any net loss for the period since the end of the period covered by
the latest audited accounts;

(d)where the Commissioner determines under section 98(2) that the accounts
of the institution are to be on a consolidated basis, its minority interests;
and

(e)its perpetual subordinated debt, but not exceeding the equivalent of half of
the total of the amounts referred to in sub-paragraphs (a), (b), (c) and (d),

and by deducting therefrom the sum, calculated in Hong Kong dollars, of the book
value of

(i)its shareholding in any company which is a subsidiary or the holding
company of the institution, other than any shareholding that falls to be
deducted under sub-paragraph (ii);

(ii) its loans to, shares and debentures issued by, and guarantees of liabilities of,
connected companies of the institution, where in the opinion of the
Commissioner the institution has made the loans, is holding the shares or
debentures or, as the case may be, has given the guarantees, other than in
the ordinary course of business; and for the purposes of this sub-paragraph






',shares' and 'debentures' shall have the meaning assigned to them by
section 2 of the Companies Ordinance, and a company shall be treated as a
connected company of the institution if it is a subsidiary or the holding
company of the institution, or is otherwise of a description failing within
section 64(1)(a), (b), (c), (d) or (e); and

(iii) the intangible assets of the institution.

4. The risk assets of an authorized institution shall be the sum of all the
products achieved by

(a)taking the book value, calculated in Hong Kong dollars, of each of the
items referred to in the Table in relation to that institution; and

(b)in relation to each item, multiplying that value by the risk weight specified
in the Table for the category to which that item belongs:

Provided that no item that has been deducted under paragraph 3(i),
(5) or (iii) in calculating the capital base of the institution shall be taken
into account for the purposes of this paragraph.





TABLE
Category I-risk weight 0.0

Item Nature of item
Government certificates of indebtedness held by the institution for
note
issue.
(b) Currency notes and coins held by the institution.
(C) Gold in any form which is an asset of the institution and which it has
contracted to sell to customers.
(d) Shares, stocks and debt securities which are an asset of the institution
and which it has contracted to sell to customers.
(e) Liabilities of the institution, whether contingent or otherwise, in
respect
of forward foreign exchange contracts, interest rate swap contracts,
currency swap contracts, option contracts and futures contracts.
Liabilities of the institution, whether contingent or otherwise, in
respect
of-
(i) bills received by the institution for the purpose of the collection
of funds;
(ii) letters of guarantee in respect of the import of goods, in relation
to which the institution is liable under import bills;
(iii) trust receipts in respect of the movement of goods, in relation
to
which the institution either has made loans which are outstanding or is
liable under letters of credit.
(9) Underwriting commitments of the institution that have subsisted for
less than 3 months.

Category II-risk weight 0.2

Item Nature of item
(a) Loans made by the institution to eligible banks and eligible govern-
ments, being loans that mature or are callable within 1 year and are not
subordinated to the claims of ordinary creditors of the borrowers.
(b) Debt securities held by the institution that were issued by eligible banks
or eligible governments, are redeemable within 1 year and are not
subordinated to the claims of ordinary creditors of the issuers.
(C) Loans made by the institution that are guaranteed by an eligible bank
or eligible government and mature or are callable within 1 year.
(d) Debt securities held by the institution that are guaranteed by an eligible
bank or eligible government and are redeemable within 1 year.
(e) Guarantees given by the institution in respect of the financial liabilities
of eligible banks and eligible governments.
Contingent liabilities of the institution that are guaranteed by eligible
banks or eligible governments.
(9) Loans by, and contingent liabilities of, the institution that are secured
by cash deposits of equivalent value with the institution.

Category III-risk weight 0.5

Item Nature of item
(a) Bills, certificates, notes, paper and debt securities held by the
institution

which-
(i) are negotiable;
(ii) have a remaining term to maturity of not less than 1 year and
not more than 10 years; and
(iii) have been issued, guaranteed or accepted by eligible banks or
eligible governments.





Item Nature of item

(b) Import bills and export bills held by the institution that mature within
6

months or are payable after sight.

(c) Loans made by the institution to registered deposit-taking companies,

being loans that mature or are callable within 1 year and are not
subordinated to the claims of ordinary creditors of the borrowers.

(d) Debt securities held by the institution that were issued by registered

deposit-taking companies, are redeemable within 1 year and are not
subordinated to the claims of ordinary creditors of the issuers.

(e) Loans made by the institution that are guaranteed by registered

deposit-taking companies and mature or are callable within 1 year.

(f) Debt securities held by the institution that are guaranteed by
registered deposit-taking companies and are redeemable within 1
year.

(g) Guarantees given by the institution in respect of the financial liabilities

of registered deposit-taking companies.

(h) Contingent liabilities of the institution that are guaranteed by regis-

tered deposit-taking companies.

(i) Underwriting commitments of the institution that have subsisted for

not less than 3 months.

(j) All contingent liabilities of the institution not specified elsewhere in
this

Table.

Category IV-risk weight 10

Item Nature of item

(a) Equity investments by the institution in any company, not being a

subsidiary of the institution, in which the institution holds the bene-
ficial ownership, directly or indirectly, of not less than 20 per cent of
the
share capital.

Category V-risk weight 1.0

Item Nature of item

(a) All assets not specified elsewhere in this Table.

FOURTH SCHEDULE [ss. 102 & 135(3).]

LIQUIDITY RATIO

1. In this Schedule-
'relevant bank' means
(a) any authorized institution (other than a deposit-taking company the
registration licence of which is for the time being suspended undef this
Ordinance); and (Replaced, L.N. 413/87)

(b)any bank incorporated outside Hong Kong which is not licensed under this
Ordinance, except a bank which is, in the opinion of the Commissioner,
not adequately supervised by an appropriate, recognized banking
supervisory authority in the place in which it is incorporated,

and includes the Exchange Fund established by the Exchange Fund Ordinance;

(Amended, 64 of 1987, s.
30)

'one-month liability' in relation to any authorized institution or relevant bank
means

(a)any liability, other than a contingent liability, the effect of which will or
could be to reduce within 1 month the liquefiable assets of that institution
or relevant bank; and





(b)any contingent liability that in the opinion of the Cornnuissioner may
result in a reduction within 1 month of the liquefiable assets of that
institution or relevant bank.

2. The liquidity ratio of an authorized institution shall be calculated as the
ratio, expressed as a percentage, between its liquefiable assets, as specified in
paragraph 3 and its qualifying liabilities, as specified in paragraph 4.

3. The liquefiable assets of an authorized institution shall be the sum, calculated
in Hong Kong dollars, of such of the following amounts which are free from
encumbrances and freely remittable and payable- (Amended, L.N. 413187)

(a)the amount, if any, by which its total one-month liabilities to relevant
banks are exceeded by the total one-month liabilities of relevant banks to
it;

(b)currency notes and coins held by the institution in Hong Kong dollars or
in any currency freely convertible into Hong Kong dollars;

(c)repayments to the institution in respect of loans that the institution is not
committed to continue, whether by renewal or otherwise, being
repayments- (Amended, L.N. 413187)

(i) which will fall due within 1 month;

(ii) in respect of which the institution has no reason to expect any
default; and

(iii) which are not otherwise taken into account in calculating the
liquefiable assets of the institution;

(d)the amounts that the institution can realize within 1 month (after
deduction of the costs of such realization) for such of its following assets
as are available to meet any or all of its qualifying liabilities

(i) export bills maturing within 6 months, or payable after sight, and
discountable in Hong Kong dollars or in a currency freely convertible into
Hong Kong dollars;

(ii) securities that were issued, or are the subject of any guarantee or
indemnity given, by the Government or by any government approved by
the Commissioner for the purposes of this sub-paragraph;

(iii) other bills, certificates, notes, paper or debt securities which

(A) are negotiable;

(B) have a remaining term to maturity of not more than 10 years;
and

(C)are denominated and traded in Hong Kong dollars or in a
currency freely convertible into Hong Kong dollar,

except for any that are issued by a person or government specified for the
purposes of this sub-paragraph by the Commissioner by notice in writing
served upon the authorized institution;

(iv) gold.

4. The qualifying liabilities of an authorized institution shall be the sum,
calculated in Hong Kong dollars, of

(a)the amount, if any, by which the total one-month liabilities of relevant
banks to the authorized institution are exceeded by its total one-month
liabilities to relevant banks; and (Amended, L.N. 413187)







(b) the total of its other one-month liabilities.

FIFTH SCHEDULE [ss. 2(1) 135(4).]

PERPETUAL SUBORDINATED
DEBT

Issuer Month of issueAmount of issue Short title of issue
1. Bank of November USS250 millions Undated floating rate
Scotland 1985 primary capital notes.

2.Barclays June 1985 US$600 millions Undated floating rate
primary capital notes.





Issuer Month of issue Amount of issue Short title of issue

3. Barclays February 1986US$750 millions Undated floating rate
primary capital notes.
4. Hongkong August 1985US$400 millions Primary capital undated

Shanghai floating rate notes
Bank (I st series).

5. Hongkong NovemberUS$400 millionsPrimary capital undated

Shanghai 1985floating rate notes
Bank (2nd series).

6. Hongkong July 1986 US$400 millions Primary capital
undated
Shanghai floating rate notes
Bank (3rd series).
7. Kleinwort June 1985 US$100millions Perpetual floating rate
Benson notes.
8. Kleinwort April 1986US$125 millions Primary capital
undated
Benson floating rate notes
(Series 2).
9. Lloyds May 1985 US$750 millions Primary capital
undated
floating rate notes.

10. Lloyds NovemberUS$500 millionsGlobal certificate

1985 (45 Primary Capital
Sr. 2) floating rate
notes.

11.Lloyds August 1986 US$600 millions Primary capital
undated
floating rate notes
(Series 3).
12.Midland May 1985 US$750 millions Perpetual floating rate
notes.
13.Midland August 1985US$500 millions Perpetual floating rate
notes.
14.Morgan August 1986 US$200 millions Undated primary
Grenfell capital floating rate
notes.
15.National May 1985 US$500 millions Primary capital
floating
West- rate notes (Series A).
minister
16.National May 1985 US$500 millions Primary capital
floating
West- rate notes (Series B).
minister

17. National NovemberUS$500 millionsPrimary capital floating

West- 1985 rate notes (Series C).
minister

18. RoyalBank December 1985 US$350 millions Undated floating rate
of Scotland primary capital notes.
19. Standard May 1985 US$400 millions Undated primary
Chartered capital floating rate
notes.
20. Standard July 1985






Chartered capital floating rate
notes (Initial tranche

21. Standard November US5300 millions Undated primary
Chartered 1985 capital floating rate
notes (Series 2).
22. Standard December 1985 US$400 millions Undated primary
Chartered capital floating rate
notes (Series 3).





Issuer Month of issue Amount of issue Short title of issue

23. Standard June 1986 HK$80 millions Perpetual floating rate
Chartered notes.
Asia
Limited
24. Rotlischilds September US$200 millions Primary capital
undated
Continua- 1986 guaranteed floating
tion rate notes.
Finance BV

25. Midland November USS300 millions Undated floating rate
1986 primary capital notes
(Series 3).
26. Robert November USS 100 millions Primary capital
undated
Fleming 1986 guaranteed floating
Netherland rate notes.
BV
27. Standard November US$300 millions Undated primary
Chartered 1986 capital floating rate
notes (Series 4)
(Initial tranche
US$200 millions).
28. Wardley August 1987 HK$20 millions Primary capital
undated
Finance floating rate notes.
Limited
29. Bumi Daya September US$1.5 millions Perpetual floating rate
Interna- 1987 notes.
tional
Finance
Limited

(Fifth Schedule replaced, L.N. 246/86. Amended, L.N. 258/86; L.N. 274/86;
L.N. 21/87; L.N. 276/87 and L.N. 373/87)

29. Niaga March 1988 March 1988 US$1.5 Perpetual L.N. 255/88.
Finance millions floating rate
Company notes.
Limited
30. Hamburg LB August 1988 DM 18 millions Undated L.N. 272/88.
International subordinated
Limited zero coupon
notes.
31. Wa Pei July 1988 HK$9.25
millions Perpetual L.N. 285/88.
Finance floating
Company rate notes.
Limited
32. Generale August 1988 US$4 millions Perpetual L.N. 300/88.
BelPan floating
Finance rate notes.
Company
Limited

33. Amro Finance November HK $10 Perpetual L.N. 346/88.
and 1988 millions floating

Securities rate notes.
(Asia)
Limited
34. Standard November 1988 HK $30 Perpetual floating L.N. 5/89.
Chartered millions rate notes.
Finance
Limited
35. SBY Asia August 1988 US$3.5 Perpetual floating L.N. 5/89.
Limited millions rate notes.





36.BNP Inter- December 1988 US $5 Undated sub-
national millions ordinated
Financial floating
Services rate
(Hong Kong) notes.
Limited
(L.N. 66/89)

37. Chiyu Banking August 1989 HK$200 Primary capital
Corporation millions undated floating
Limited rate notes.
(L.N. 283 of 1989)

38.Standard December HK$75 Perpetual floating
Chartered 1989 millions rate note.
Finance
Limited
(Added L.N. 30 of 1990)

39. Staco International January 1990 HK$25 millions Perpetual floating rate notes.
Finance Limited
(Added L.N. 79 of 1990)
40. BNP International December 1989 US$5 millions Undated subordinated
Financial Services floating rate notes.
(Hong Kong)
Limited
(Added L.N. 79 of 1990)
Originally 27 of 1986. L.N. 246/86. L.N. 258/86. L.N. 274/86. L.N. 21/87. L.N. 276/87. 64 of 1987. L.N. 373/87. L.N. 412/87. L.N. 413/87. L.N. 199/86. Short title and commencement. Interpretation. (Cap. 50.) (Cap. 32.) (Cap. 32.) (Cap. 32.) (Cap. 32.) Fifth Schedule. (Cap. 361.) Application. (Cap. 29.) (Cap. 119.) (Cap. 32.) (Cap. 112.) (Cap. 333.) (Cap. 250.) (Cap. 66.) (Cap. 163.) (Cap. 166.) (Cap. 70.) (Cap. 32.) Banking Advisory Committee. Deposit-taking Companies Advisory Committee. Commissioner of Banking. Functions of Commissioner. Commissioner may employ assistants. Reports by Commissioner. Power of Governor to give directions. Banking business restricted to licensed banks. Restriction on business of taking deposits. Power to grant exemptions. Deposit-taking company not to take deposits less than specified sum. First Schedule. Application for banking licence. (Cap. 32.) Grant or refusal of banking licence. Amendment of conditions of banking licence. Minimum paid-up share capital for grant of banking licence. Banking licence fees. Second Schedule. Application for registration as deposit-taking company. Registration or refusal of registration of deposit-taking company. Amendment of conditions of registration. Registration fees. Second Schedule. Application for deposit-taking licence. Grant or refusal of deposit-taking licence. Deposit-taking licence fees. Second Schedule. Register of authorized institution, etc. Second Schedule. Publication of names entered in or removed from register and suspensions. Revocation of banking licence. Procedure on and effect of revocation of banking licence. Revocation of registration. Revocation of deposit-taking licence. Procedure on and effect of revocation of registration or deposit-taking licence. Interpretation. Temporary suspension of registration or deposit-taking licence in an emergency. Suspension of registration or deposit-taking licence for a period up to 6 months. Opportunity of being heard. Effect of suspension. Interpretation. Transfer of licence or registration. Application of transfer. Certificate of transfer, etc. Liabilities and privileges of transferer and transferee. Control of establishment, etc. of local branches. Fees in respect of local branches. Second Schedule. Second Schedule. Control of establishment, etc. of local representative offices. Supply of information and examination of local representative offices. Fees in respect of local representative offices. Second Schedule. (Cap. 155, 1983 Ed.) Control of establishment, etc. of overseas branches and overseas representative offices. Conditions regarding overseas branches and overseas representative offices. Fees in respect of overseas branches and overseas representative offices. Second Schedule. Powers of Commissioner. Powers of Governor in Council. Remuneration and expenses of Commissioner and others in certain cases. Examination and investigation of authorized institutions, etc. Production of authorized institution's books, etc. Control of authorized institution by the Commissioner. Authorized institution under control of Commissioner to co-operate with Commissioner. Audit. (Cap. 32.) Publication of audited balance sheet, etc. (Cap. 32.) Meetings. Commissioner may make complaint where there is misconduct, etc. by auditor. (Cap. 50.) Returns and information to be submitted to the Commissioner. Information on shareholding, etc. Alteration in constitution. Authorized institution to notify Commissioner when it ceases to take deposits. Duty to report inability to meet obligations. Examination by authorities outside Hong Kong. Amalgamation, etc. requires approval. Commissioner's approval required for exercise of certain acquired voting power. Chief executives, directors and secretaries require Commissioner's approval. (64 of 1987.) Controllers of authorized institutions require Commissioner's approval. Certain persons prohibited from acting as employees of authorized institutions except with consent of Commissioner. Appointment of chief executive. Maintenance of reserve. Maintenance of adequate provision for bad and doubtful debts and for diminution of value of assets. Minimum paid-up share capital of licensed banks. Restriction on distribution of extraordinary profits. Interpretation and application. (Cap. 29.) Advance against security of own shares, etc. Limitation on advances by authorized institutions. (Cap. 32.) Third Schedule. Third Schedule. Commissioner may publish guidelines on business practices of authorized institutions. Limitation on advances to directors, etc. of bank. Limitation on advances to directors, etc. of deposit-taking companies. Limitation on advances to employees. Powers of Commissioner where moneys placed with foreign bank. Limitation on shareholding by authorized institutions. Limitation on holding of interest in land by authorized institutions. Limitation on shareholding and holding of interest in land in the case of a registered deposit-taking company. Limitation on aggregate holdings under sections 83, 87 and 88. Proof of compliance with sections 81, 83, 84, 87, 88, 89 and 90. Offence to issue advertisements and documents relating to deposits. (Cap. 335.) Fraudulent inducement to make a deposit. Liability in tort for including persons to make a deposit in certain cases. False, etc. advertisements by authorized institution. Certain representations prohibited. Restrictions on use of title 'bank'. Capital adequacy ratio. Third Schedule. Failure to keep to capital adequacy ratio. Remedial action. Commissioner may increase capital adequacy ratio for particular authorized institutions. Liquidity ratio. Fourth Schedule. Fourth Schedule. Failure to keep to liquidity ratio. Remedial action. Commissioner may vary liquidity ratio for particular authorized institutions. Authorized institutions not to create certain charges and to notify Commissioner of certain civil proceedings. Grant of banking licence to unincorporated banks. Application for banking licence under section 107. Banking licence fee for unincorporated bank. Second Schedule. Auditor. General application of Ordinance to unincorporated banks and members. Application of sections of Ordinance to unincorporated banks. Prohibition on use of word 'bank'. Prohibition on total of deposits. Death of member of unincorporated bank. Bankruptcy of unincorporated banks. (Cap. 6.) Investigations on behalf of the Financial Secretary. Powers of the inspector and offences in connection with the investigation. Governor in Council to decide whether or not banking business or business of taking deposits is being conducted. Official secrecy. (Cap. 112.) (Cap. 50.) Disclosure of information relating to authorized institutions. Winding-up of authorized institutions. (Cap. 32.) (Cap. 32.) Offences by directors, mangers, trustees, employees and agents. Prohibition on receipt of commission by staff. Search warrants and seizures. Defence where director or manager, etc. prosecuted. Indemnity. Execution of instruments under seal. Validity of contract in contravention of this Ordinance or any Ordinance repealed by this Ordinance. Action for recovery of deposits, etc. Recovery of fees, expenses, etc. (Cap. 32.) (Cap. 6.) Use of English language. Power to specify forms. Service of documents. (Cap. 32.) Power to amend Schedules. First Schedule. Second Schedule. Third Schedule. Fourth Schedule. Fifth Schedule. Consent of Attorney General. Exclusion of provisions of Gambling Ordinance. (Cap. 148.) Interpretation. (Cap. 155, 1983 Ed.) (Cap. 328, 1983 Ed.) Appointed members of former committees to continue in office. Former Commissioner to continue in office. Authorized and employed persons to continue to be authorized and employed. Former applications for licences, etc. deemed to be applications under this Ordinance. Former licences, etc. deemed to be licences, etc. under this Ordinance. Date of payment of certain fees. Second Schedule. Conditions attached to former licences, etc. deemed to be conditions under this Ordinance. Suspension of former registration, etc. deemed to be suspension under this Ordinance. Actions, etc. under Part IV of former Banking Ordinance deemed to be actions under Part X of this Ordinance. Transitional provisions in relation to section 81. Transitional provisions in relation to section 87. Repeal. (Cap. 155, 1983 Ed.) (Cap. 328, 1983 Ed.) (Cap. 32.) (Cap. 66.)