BANKING BUSINESS (PROHIBITED CONTROL) ORDINANCE, 1919

BANKING BUSINESS (PROHIBITED CONTROL) ORDINANCE, 1919

No. 1 of 1919, repealed by No. 11 of 1921.

No. 2 of 1919.
An Ordinance to prohibit the carrying on of banking
business for the benefit of or under the control of
persons.

[7th March, 1919.]


1. This Ordinance mav be cited as the Banking business
(Prohibited Control) Ordinance, 1919.

2. In this Ordinance,

(a) Corporation tinder prohibited control means any
corporation-

(i) where the majority, of the directors or the persons
occupying the position of directors, by whatever name called,
are prohibited persons; or

(ii) where the majority of the voting power is in the hands
of persons who are prohibited persons, or who exercise their
voting powers directly or indirectly on behalf of prohibited
persons; or

(iii) where the control is by any means whatever in the
hands of prohibited persons; or

(iv) where the executive is a corporation under prohibited
control, or where the majority of the executive are appointed
by a corporation under prohibited control.
(b) Prohibited person includes every person who is or
at any time has been a subject of any state which on the
31st day of December, 1917, was at war with His Majesty.

3. This Ordinance shaIl continue in force only during the
continuance of the present war and for a period of five years
after the termination thereof.

As amended by No. 5 of 1920.





4.-(1) No banking business shall be carried on within.
the Colony-

(a) by a corporation which is a corporation under
prohibited control within the meaning of this Ordinance; or

(b) by a firm or individual, if the business is one which
is carried on wholly or mainly for the benefit of or under
the control of prohibited persons.

(2) It shall be lawful for the Governor in Council to make
regulations defining what business is to be deemed banking
business for the purposes of this Ordinance.

5. Every person who is concerned in carrying on any
such business in contravention of this Ordinance shall be
guilty of a misdemeanor and shall upon summary conviction
be liable to imprisonment for any term not exceeding twelve
months and to a fine not exceeding five thousand dollars, or
upon conviction on indictment to imprisonment for any
term not exceeding seven years and to a fine not exceeding
five thousand dollars.

6.-(1) Where it appears to the Governor in Council that
any banking business is carried on in contravention of this
Ordinance, he shall order the business to be wound up and
such business shall forthwith be wound up accordingly.

(2) It shall be lawful for the Governor in Council to
make regulations prescribing-
(a) the manner in which such winding-up is to be
carried out ;
(b) the persons by or cinder whom the winding-up is to be
carried out, and the powers, rights and duties to be assigned
to such persons;
(c) the manner and order in which the proceeds of such
winding-up are to be distributed and applied;

(d) the powers to be conferred on the Supreme Court in
relation to such winding-up

(e) the powers to be conferred upon any other authority
in relation to such winding-up;

* As amended by Law Rev. Ord., 1924.
+




(f) the penalties to be imposed upon persons who fail to
discharge the obligations imposed on them by such regula-
tions ; and

(g) generally, the manner in which any questions arising
in such winding-up are to be dealt with.

Any such regulations may confer a discretion on the
person, court, or authority on whom any power, right or
duty is conferred, but otherwise, such regulations shall be
general and shall apply to all cases in which any winding-
up order is made under this section.

7.-(1) Where it appears to the Colonial Secretary that
there is reasonable ground for suspecting that any banking
business has been or is being carried on by any person,
firm or corporation in contravention of this Ordinance, he
may issue an order in writing authorising any person named
in the order-

(a) to inspect all books and documents belonging to or
-under the control of such person, firm or corporation;

(b) to require any person whom he may consider able to
give any information respecting the. business or trade of
such person, firm or corporation to give such information;


(c) if accompanied by a police officer, or if himself a
police officer, to search any premises specified in the said
information as having.been or being used in connexion
with such business or trade ;

(d) to seize and take possession of all books, documents
and things discovered in the course of any such inspection
or search which may appear to furnish any evidence that
any offence under this Ordinance has been committed; and

(e) to do all such acts and things as way be reasonably
necessary for the purpose of effecting such search.

(2) Every person who refuses or neglects to produce any
books or documents belonging to or under his control
or in his possession or physical custody, or to give any
information within his knowledge, on demand, to any
person or persons authorised by any such order in writing
aforesaid to inspect such books or documents or to require

As amended by Law Rev. Ord., 1924.

such information, and every person who obstructs any
inspection, search or seizure authorised by any such order
in writing aforesaid, shall upon summary conviction be
liable to imprisonment for any term not exceeding six
months and to a fine of five hundred dollars.

[Originally No. 2 of 1919. No. 5 of 1920. Law Rev. Ord., 1924.] Short title. Interpretation. 8 & 9 Geo. 5, c. 31, s. 13. Duration. Restrictions in carrying on banking business for the benefit of or under the control of certain persons. 8 & 9 Geo. 5, c. 31, s. 2 (1), (4). Penalty. 8 & 9 Geo. 5, c. 31, s. 2(1). Winding-up. 8 & 9 Geo. 5, c. 31, s.2 (2). Inspection. 8 & 9 Geo. 5, c. 31, s. 2(3).

[Originally No. 2 of 1919. No. 5 of 1920. Law Rev. Ord., 1924.] Short title. Interpretation. 8 & 9 Geo. 5, c. 31, s. 13. Duration. Restrictions in carrying on banking business for the benefit of or under the control of certain persons. 8 & 9 Geo. 5, c. 31, s. 2 (1), (4). Penalty. 8 & 9 Geo. 5, c. 31, s. 2(1). Winding-up. 8 & 9 Geo. 5, c. 31, s.2 (2). Inspection. 8 & 9 Geo. 5, c. 31, s. 2(3).

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1923

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No. 2 of 1919

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