CREDIT UNIONS ORDINANCE

CREDIT UNIONS ORDINANCE

LAWS OF HONG KONG

CREDIT UNIONS ORDINANCE

CHAPTER 119





CHAPTER 119.

CREDIT UNIONS ORDINANCE.

ARRANGEMENT OF SECTIONS.

Section...................................... page.

PART L

PRELIMINARY.

1. Short title and commencement ... ... ... ... ... ... ... ... ... ... 5
2. Interpretation ... ... ... ... ... ... ... ... ... ... ... ... ... ... 5

PART H.

FORMATION AND POWERS OF CREDIT UNIONS

3. Conditions of registration ............. ... ... ... ... ... ... ... 6
4. Memorandum of association ................. ... ... ... ... ... ... 6

5. Registration ........................... ... ... ... ... ... ... ... 6

6. incorporation with limited liability; and effect thereof ... ... ... ... 7

7. Restriction on name ....................... ... ... ... ... ... ... 7

8. Amendment of memorandum of association .... ... ... ... ... ... 7

9. Registered office ...................... ... ... ... ... ... ... ... 7

10.........Powers ............................. ... ... ... ... ... ... ... ... 8

PART Ill.

CAPITAL, SHARES AND MEMBER~.

11..................Capital divided into shares ... ... ... ... ... ... ... ... ... ... 8

12.........................Allotment and subscription for shares ... ... ... ... ... ... ... 8

13.............Disposal of shares ............. ... ... ... ... ... ... ... ... ... 8

14.............................Restriction on disposal of shares by officers, etc . ... ... ... 9

15....................................Membership limited to persons with common occupation, etc . ... ... 9

16...........................Admission to and conditions of membership ... ... ... ... ... ... 9

17.........Minors ............................. ... ... ... ... ... ... ... ... 9

18...............Expulsion of member .......... ... ... ... ... ... ... ... ... ... 10
19...............Cessation of membership ... ... ... ... ... ... ... ... ... ... ... 10

20......................Payment on cessation of membership ... ... ... ... ... ... ... ... 10
21......................Liability on cessation of membership ... ... ... ... ... ... ... ... 10

22...........................Debts owed by members or past members ... ... ... ... ... ... 10

23....................................Payment to nominee or person entitled upon death of member ... ... 11

24....................Record of members and shares ... ... ... ... ... ... ... ... ... 11

PART IV.







MEETINGS AND ELECTION OF BOARD AND COMMITTEES

25....................Annual and special meetings ... ... ... ... ... ... ... ... ... 11

26.........Voting ............................. ... ... ... ... ... ... ... ... 12
27. First meeting 12





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

28.......................................Election and tenure of office of board of directors and committees ... 12

29. Meetings of board and committees, and appointment of officers and

procedure ............................ ... ... ... ... ... ... ... 13

30..................Officers of a credit union ... ... ... ... ... ... ... ... ... ... 14
31..................Composition of the committees ... ... ... ... ... ... ... ... ... 14

32.............Remuneration ................... ... ... ... ... ... ... ... ... 14

PART V.

MANAGEMENT.

Powers and duties of board.

33....................Powers and duties of the board ... ... ... ... ... ... ... ... ... 14

Powers and duties of supervisory committee.

34...........................Powers and duties of supervisory committee ... ... ... ... ... ... 15

Powers and duties of credit committee.

35.........................Powers and duties of credit committee ... ... ... ... ... ... ... is

36.............Approval of loans .............. ... ... ... ... ... ... ... ... ... 15

37....................Acceptable security for loans ... ... ... . ... ... ... ... is

38...........Loan officers .................... ... ... ... ... ... ... ... ... ... 16

PART VI.

LOANS, BORROWING, RESERVE FUND AND DIVIDENDS.

Loans to members.

39...........Purposes of loans ............. ... ... ... ... ... ... ... ... ... ... 16

40...............Restrictions on loans ..... ... ... ... ... ... ... ... ... ... ... 16

41.............Rates of interest .............. ... ... ... ... ... ... ... ... ... 16

42. Unanimous vote required for loans to directors or committee members 16

Borrowing powers.

43.............Borrowing powers ............... ... ... ... ... ... ... ... ... ... 16

44. Power to mortage, etc. as security for borrowed money ... ... ... ... 17

Reserve fund.

45...........Reserve fund .................. ... ... ... ... ... ... ... ... ... 17

Dividends.

46...........................Declaration, limit and payment of dividend ... ... ... ... ... ... 17

PART VIII.







BY-LAWS.

47.........By-laws ............................ ... ... ... ... ... ... ... ... 18

48...............Amendment of by-laws ......... ... ... ... ... ... ... ... ... ... 18

49. Binding effect of the by-laws ... ... ... ... ... ... . ... 19





Section. Page.
PART VIII.
RETURNS, AUDIT, INFORMATION AND INQUIRY.
50. Return of names of officers ... ... ... ... ... ... ... ... ... ... ... 19
51. Return of supervisory annual audit ... ... ... ... ... ... ... ... ... 19
52. Registrar's annual examination ... ... ... ... ... ... ... ... ... ... 19
53. Information for Registrar and verification thereof ... ... ... ... ... ... 19
54. Inquiry, examination and suspension ... ... ... ... ... ... ... ... ... 19

PART m
WINDING-UP.

55...................Winding-up of credit unions ... ... ... ... ... ... ... ... ... 20
56...................Application of Companies Ordinance ... ... ... ... ... ... ... 20

57...............................Credit union may resolve to be wound up by the court ... ... ... ... 20
58...............................Petition by Registrar for winding-up in other cases ... ... 1 ... 21
59...............................Application of rule 22A of Companies (Winding-up) Rules ... ... ... 21
60...............................Winding-up for insolvency or on equitable grounds ... ... ... ... 21

61..........................Qualification as to contribution in winding-up ... ... ... ... ... ... 21

PART X.
APPEALS.

62.....................Appeal against action of Registrar ... ... ... ... ... ... ... ... 21

PART XL
THE CREDIT UNION LEAGUE OF HONG
KONG KONG.

63.....................Incorporation of league of credit unions ... ... ... ... ... ... ... 22

64............Objects of League .............. ... ... ... ... ... ... ... ... ... 22

65........Vesting ............................ ... ... ... ... ... ... ... ... 23

66...................Board of directors and officers ... ... ... ... ... ... ... ... ... 23

67............League by-laws ................. ... ... ... ... ... ... ... ... 23

68.................Registration with Registrar ... ... ... ... ... ... ... ... ... ... 24

69.....................Scaling and signing of documents ... ... ... ... ... ... ... ... 24

70..........Membership ....................... ... ... ... ... ... ... ... ... 24

71.....Levy ............................ ... ... ... ... ... ... ... ... ... 24

72............Stabilization fund ............. ... ... ... ... ... ... ... ... ... 24

73........................Application of other sections to League ... ... ... ... ... ... ... 25

74........Saying ............................. ... ... ... ... ... ... ... ... 25

PART XII.
OFFENCES AND
PENALTIES.

75..........Illegal loans ............ ....... ... ... ... ... ... ... ... ... ... 25

76.................False returns to Registrar ... ... ... ... ... ... ... ... ... ... 25

77............................Prohibition of disclosure of certain information ... ... ... ... ... 25







78..........................Failure to report resolution for winding-up ... ... ... ... ... ... 25

79. Restriction on use of expression 'credit union- or in Chinese 26
80. Penalty 26

81. Criminal liability of officers of credit union ... ... ... ... ... ... ... 26





Section. Page
PART XIII.
REGISTRAR.

82. Appointment of Registrar ... ... ... ... ... ... ... ... ... ... ... 26
83. Register of Credit Unions to be kept ... ... ... ... ... ... ... ... ... 26
84. Forms of records, etc . ... ... ... ... ... ... ... ... ... ... ... ... 26

PART XIV.

REGULATIO
NS.

85. Regulations ... ... ... ... ... ... ... ... ... ... ... ... ... ... 27 Schedule ... ... ... ... ... ... ... ... ...
... ... ... ... ... ... ... ... 27





CHAPTER 119.

CREDIT UNIONS.

Toincorporate and regulate credit unions and the Credit Union
League of Hong Kong, and to provide for matters incidental
thereto.

PART I.

PRELIMINARY.

1. This Ordinance may be cited as the Credit Unions Ordin-
ance and shall come into operation on a day to be appointed by the
Governor by notice in the Gazette.

2. In this Ordinance, unless the context otherwise requires-

'board' means a board of directors of a credit union constituted
under section 28;

'by-laws' means the by-laws made in accordance with Part VII
and approved by the Registrar under subsection (3) of section
5 or the by-laws (if any) prescribed under section 85;

'credit union' means a credit union registered under this Ordinance;

'director' means a director of a board;

'financial year' means the twelve months ending on the 31st day
of March in any year or on such other annual date as may be
provided in the by-laws;

'League' means the Credit Union League of Hong Kong incor-
porated under Part Xl;

'officer' and 'officer of a credit union' mean any of the persons
specified in section 30;

'Registrar' means the Registrar of Credit Unions appointed under
section 82;

',share' means, in relation to a credit union, each sum of five
dollars standing to the credit of a member in the accounts of
that credit union;

',share balance' means the total value of all-

(a) fully paid up shares; and

(b) instalments paid in respect of other shares,

appearing for the time being in the accounts of a credit union;

'treasurer' means the person appointed under section 29 as treas-
urer or as treasurer and secretary of a board.





PART II.

FORMATION AND POWERS OF CREDIT UNIONS.

3. (1) Any fifteen or more persons-

(a) each of whom is not less than sixteen years of age;

(b)at least three of whom are not less than twenty-one years of
age;

(c) who satisfy the requirements of section 15;

(d)who wish to associate themselves together as a credit union
for the objects set forth in subsection (2),

may be registered as a credit union.

(2) The objects of a credit union shall be-

(a) to promote thrift among its members;

(b)to receive the savings of its members either as payment on
shares or as deposits; and

(c)to make loans to its members, exclusively for provident or
productive purposes.

4. (1) The persons referred to in section 3 may apply for the
registration of a credit union to the Registrar.

(2) Such persons shall sign in duplicate before two witnesses (who
shall not be subscribers to the memorandum) a memorandum of
association in the prescribed form and cause both copies thereof to be
filed in the office of the Registrar.

(3) There shall be attached to the memorandum of association two
copies of the by-laws by which it is proposed that the credit union shall
be governed.

(4) The persons signing the memorandum of association shall
appoint a provisional secretary, who shall hold office until a secretary of
the board is appointed under section 29.

5. (1) When the memorandum of association is duly filed, the
Registrar shall consider whether the application complies with this
Ordinance and may make such inquiries as he deems necessary for that
purpose.

(2) The Registrar, after making such inquiries, may register the
credit union, if he is satisfied

(a)that the proposed by-laws do not conflict with any provision
of this Ordinance;

(b)that the proposed by-laws are sufficient to enable the credit
union to carry out its objects;

(c)that the body to which membership is limited is such as to
ensure reasonable personal association amongst the members;





(d)that the applicants have reasonable prospects of carrying out
the objects of a credit union;

(e)that the applicants and the application comply with the
requirements of this Ordinance.

(3) On such registration the Registrar shall send to the provisional
secretary of the credit union

(a) one copy of the memorandum of association;

(b)one copy of the by-laws, with his approval endorsed thereon;
and

(c) a certificate of registration, in the prescribed form.

6. (1) Upon its registration, a credit union shall be a body corporate
with perpetual succession and shall be capable of suing and being sued
in its registered name and, subject to this Ordinance, of doing and
suffering all such other acts and things as bodies corporate may lawfully
do and suffer.

(2) In addition, upon such registration-

(a)all the movable property for the time being vested in any
person in trust for the credit union shall vest in it;

(b)all liabilities incurred by any person as trustee of the credit
union shall become its liabilities; and

(c)all legal proceedings pending by or against any such trustee
may be prosecuted by or against the credit union in its
registered name.

(3) The liability of a member of a credit union shall be limited to the
amount of the shares held by him.

7. No credit union shall be registered under a name identical with
that by which any other existing credit union has been registered, or so
nearly resembling the same as to be likely to deceive, and the expression
'credit union', or the Chinese expression shall be the last words of the
name of every credit union.

8. (1) Subject to this Ordinance, a credit union may, by resolution
passed by two-thirds of the members, present and qualified to vote, at
an annual meeting, or at a special meeting called for the purpose, amend
its memorandum of association.

(2) No such amendment shall be of any effect until approved by the
Registrar and his approval is endorsed by him on the memorandum of
association.

9. Every credit union shall have a registered office in the Colony to
which all communications and notices shall be sent. The credit union
shall send to the Registrar written notice of the address of its registered
office and of every change of the address thereof.





10. For the purpose of carrying out its objects, a credit union
may-

(a)deposit money in any bank in the Colony approved by the
Registrar;
(b)invest in any stock, debenture stock, funds or securities
in which a trustee may invest by virtue of the Trustee
Ordinance;
(c) become a member of any other credit union;
(d) subject to section 43, borrow money;
(e) insure its loans, funds and property against loss;
(f)subject to this Ordinance, under the hands of its president
and treasurer, or vice-president and treasurer, draw, make,
accept, endorse, execute and issue promissory notes, bills
of exchange, bills of lading, warrants and other negotiable
or transferable instruments;
(9)hold, purchase, take on lease, sell, exchange, lease or
otherwise dispose of any land;
(h)do all such other acts and things as are incidental or con-
ducive to or consequential upon the attainment of the
objects mentioned in section 3.

PART 111.

CAPITAL, SHAMS AND MEMBERSHIP.

11. The capital of a credit union shall be unlimited in amount
and shall be divided into shares of a value of five dollars each.

12. (1) Subject to this Ordinance, shares in a credit union
may he allotted, subscribed and paid for in the manner provided
in the by-laws.

(2) Shares in a credit union shall be allotted only to the
members thereof.

(3) No share shall be allotted to a member until he has paid
for it in cash in full without any premium or discount.

(4) A credit union shall not issue to a member a certificate
denoting ownership of a share.

13. (1) Subject to this Ordinance, shares in a credit union
may be transferred or withdrawn by the holder thereof in the
manner provided in the by-laws.

(2) No transfer or withdrawal of shares in a credit union
shall be valid unless approved by the board, which approval shall
be withheld if the transfer or withdrawal would reduce the total
number of members of the credit union to less than fifteen.





(3) A transfer of shares in a credit union may take place only
between the members thereof and no charge in respect of any
transfer shall be imposed by the credit union.

(4) A member of a credit union may not transfer or withdraw
any shares if the transfer or withdrawal would make the total
value of his shares less than his total liability to the credit union,
whether as borrower, pledgor, guarantor or otherwise.

14. (1) No officer or member of a credit union, whilst entrusted
with or participating in the management of the affairs of the credit
union, shall pledge, transfer, withdraw or otherwise dispose of his
shares except in accordance with this Ordinance and the by-laws.

(2) If a credit union is wound up under Part IX, any disposi-
tion of shares by way of pledge, transfer, withdrawal or otherwise
made by an officer or member thereof within the four months
preceding the commencement of the winding-up shall be invalid
and the officer or member shall remain liable to the creditors of
the credit union to the extent of any shares so disposed of.

15. The membership of a credit union shall be limited to
persons having a common bond of occupation, employment, asso-
ciation, or residence within a defined neighbourhood, community,
or rural or urban area:

Provided that a member of a credit union who ceases to have
the common bond to which membership of the credit union is
limited may retain his membership thereof but may not obtain the
grant of any loan therefrom exceeding the value of his shares in the
credit union.

16. (1) A person shall not be admitted to membership of a
credit union unless-
(a)his application for membership has been approved by the
board;
(b)he has paid such entrance fee, not exceeding one dollar,
as may be provided in the by-laws; and

(c)he has subscribed to at least one share and has paid an
amount thereon not less than such initial instalment as
may be provided in the by-laws.

(2) Subject to subsection (1), the conditions of membership
of a credit union shall be in accordance with the by-laws.

17. (1) A minor may be admitted to membership of a credit
union but shall not be qualified to vote at the annual or special
meetings thereof until he has attained the age of sixteen years.

(2) The minority of any person duly admitted as a member
of any credit union shall not debar that person from executing any





document necessary to be executed or given under this Ordinance,
and shall not be a ground for invalidating or avoiding any contract
entered into by any such person with the credit union; and any
such contract entered into by any such person with the credit union,
whether as principal or as surety, shall be enforceable at law by
or against such person notwithstanding his minority.

18. (1) A member of the credit union who contravenes any
provision of this Ordinance or acts in any way detrimental to the
interests of the credit union may be expelled therefrom upon a
resolution passed by two-thirds of the members present and qualified
to vote, at an annual meeting, or at a special meeting called for the
purpose.

(2) The grounds on which his expulsion is being considered
shall be communicated to the member in writing by the board not
less than seven days before the resolution for his expulsion is to be
moved and he shall be given the opportunity to answer, either in
writing before the meeting or orally thereat.

(3) The by-laws of a credit union may make provision in
respect of the expulsion of members therefrom.

19. Subject to this Ordinance, a member of a credit union
who transfers or withdraws all his shares therein or who is expelled
therefrom shall, from the date of such transfer, withdrawal or
expulsion, cease to be a member of the credit union.

20. (1) Subject to this section, any money owed in respect of
shares by a credit union to a past member thereof shall, after
deduction of any money owed by him to the credit union, be paid
to him.

(2) A credit union may, if it thinks fit, postpone the payment
of any money owed to a past member for not more than ninety
days after his membership ends.

(3) No payment shall be made by a credit union to a past
member unless all his liabilities to the credit union, whether as
borrower, pledgor, guarantor or otherwise, have been fully dis-
charged or otherwise fully provided for by a person other than the
credit union.

21. A past member of a credit union shall have no further
rights therein but shall not thereby be released from any remaining
liability to the credit union.

22. (1) Any money owed to a credit union by a member or
a past member shall be a civil debt and recoverable as such in a
court of competent jurisdiction.





(2) A credit union shall have a lien on the shares of a member for
any debt owed to it by him, and may set off any sum standing to the
credit of such member in the accounts of the credit union towards the
payment of such debt.

23. (1) Subject to this section, any money owed in respect of shares
by a credit union to a member thereof who dies shall be paid to the
person nominated in accordance with this section, or, if there is no
person so nominated, to such person as may appear to the board, on
such evidence as it deems satisfactory, to be entitled by law to receive
the same, after deducting such amounts as may be owed by the deceased
member to the credit union.

(2) A member of a credit union over the age of sixteen years may in
writing, signed by him in the presence of two attesting witnesses and
deposited during his lifetime with the treasurer of the credit union,
nominate any person (hereinafter in this section referred to as a nominee)
to receive in the event of his death any money owed to him in respect of
shares by the credit union.

(3) A member of a credit union shall be entitled to appoint only one
nominee unless he holds more than one share.

(4) If more than one nominee is appointed by a member the exact
proportion of the amount available which is to be payable to each
nominee shall be specified at the time of nomination.

(5) If any payment is made under this section to a nominee who is a
minor, a receipt given either by the minor or by his guardian shall be
sufficient discharge to the credit union.

24. A record of members and shares shall be kept by every credit
union and shall contain and be prima facie evidence of

(a) the name, address and occupation of each member;

(b)the number of shares (with the dates of allotment thereof) held
by each member;

(c)the total number of shares and the amount paid up in respect
thereof;

(d)the date on which each member was admitted to membership;

(e) the date on which a member ceased to be such;

(f) every appointment of a nominee under section 23.

PART IV.

MEETINGS AND ELECTION OF BOARD AND COMMITTEES.

25. (1) There shall be an annual meeting of the members of a credit
union within sixty days after the end of the financial year within which
the first meeting of the credit union is held pursuant to section 27 and
thereafter within sixty days after the end of each subsequent financial
year.





(2) Subject to this Ordinance, special meetings of the members
may be called at the times and in the manner provided in the by-laws.

(3) Where in any case, due to the nature of the common
occupation or employment of the persons forming a credit union,
it is not practicable for all the members thereof to be present at
the same instance at its annual or special meetings, substitute
meetings of members may be held on two separate occasions in
the manner provided in the by-laws, and meetings so held shall
together be deemed to be annual or special meetings, whichever is
appropriate.

(4) Subject to section 26, the voting and the procedure at
annual and special meetings shall be in accordance with the by-laws.

26. (1) No member shall have more than one vote at any
annual or special meeting and no voting by proxy shall be allowed
thereat.

(2) Voting at an election of members to the board, the super-
visory committee or the credit committee of a credit union shall be
by secret ballot.

27. (1) The provisional secretary of a credit union shall,
within ten days after the receipt by him of the certificate of registra-
tion issued in accordance with section 5, notify each of the members
of the credit union that he has received it and shall summon the
first meeting of the members, which shall be held within fourteen
days of the date of his receipt of the certificate,

(2) For the purposes of subsection (1), the body of persons
which has been registered as a credit union under section 5 shall be
deemed to be the members of the credit union.

28. (1) At its first meeting after registration, a credit union
shall elect from among its members-
(a)a board consisting of five directors or of such greater
number, not exceeding fifteen, as may be provided in the
by-laws;
(b) a supervisory committee consisting of three members; and
(c) a credit committee consisting of three members.

(2) At the annual meeting in every subsequent financial year
there shall retire from office the number nearest one-third of the
directors, one member of the supervisory committee and one mem-
ber of the credit committee.

(3) The directors and committee members who shall retire in
any year shall be those who have been longest in office since their
last election; as between persons who became directors or com-
mittee members on the same day, those who shall retire shall
(unless they otherwise agree among themselves) be determined by
lot.





(4) A retiring director or committee member shall be eligible for re-
election.

(5) At the annual meeting at which a director or committee member
retires under subsection (2) the credit union shall fill the vacated office
by electing a person thereto from among its members.

(6) Any vacancy occurring-

(a)on the board or the credit committee, shall be filled by
appointment by the board within fourteen days of the
occurrence of such vacancy; or

(b)on the supervisory committee, shall be filled by appointment
by that committee within fourteen days of the occurrence of
such vacancy.

(7) Where an appointment is made under subsection (6) other than
for the purpose of filling a temporary vacancy caused through illness,
absence from the Colony or any other cause, the person so appointed
shall retire at the same time as if he had become a director or committee
member, as the case may be, on the day on which the person in whose
place he is appointed was last elected.

29. (1) Immediately following its election the board shall hold its
first meeting and thereat shall appoint from among its members a
president, a vice-president, a treasurer and a secretary:

Provided that the board may appoint one person to perform the
functions of both treasurer and secretary.

(2) The supervisory committee and the credit committee shaft hold
their first meetings immediately after election and shall appoint for each
committee

(a)a chairman, who shall preside at the meetings of the committee;
and

(b) a secretary.

(3) Subsequent meetings of the board and of each committee shall
be held at least once in every month and at such other times as may be
considered necessary by the president, in the case of the board, or by
the chairman, in the case of each committee, or as may be provided in the
by-laws.

(4) If the president and vice-president are both absent from any
meeting of the board, the, members present may appoint one of
themselves to preside at the meeting.

(5) If the chairman is absent from any meeting of the supervisory
committee or the credit committee, the members present may appoint one
of themselves to preside at the meeting.

(6) The number of members which shall constitute a quorum at a
meeting of the board, the credit committee or the supervisory committee
shall be as provided by the by-laws.





30. The persons for the time being appointed to the offices
referred to in section 29 shall be the officers of the credit union
concerned.

31. (1) No member of the supervisory committee may be a
director of the board or a member of the credit committee.
(2) Neither the president nor the treasurer of the board nor
more than one director of a credit union may be a member of the
credit committee thereof.

32. No director or member of either committee of a credit
union shall, as such, receive remuneration from that credit union:

Provided that the treasurer may be paid such remuneration as
may be determined at an annual meeting of the credit union.

PART V.
MANAGEMENT.

Powers and duties of board.

33. (1) The board of a credit union shall have the general
management of the affairs, funds and records of the credit union
and, except where a contrary intention appears, shall exercise and
perform all the powers and duties conferred and imposed by this
Ordinance and in particular shall-
(a)act and make decisions upon all applications for member-
ship of the credit union;
(b)determine the maximum number of shares which may be
held by any one member, which shall not without the
permission of the board exceed twenty per cent of the
shares of the credit union and which shall apply to all
members;
(c)determine the length of notice (which shall not exceed
ninety days) required from a member of his intention to
transfer or withdraw shares;
(d)determine the maximum length of time in respect of
which loans made by the credit union to its members may
remain outstanding, in whole or in part;
(e)subject to subsection (2) of section 40, determine the
maximum amount of loans which may be made to a
member, with security or without security;
(f)subject to section 41, determine the rates of interest pay-
able during any specified period on such loans;
(g)fix from time to time the amount of any surety bond
which shall be required in respect of any officer or member
concerned with the receipt, management or expenditure of
money for or on behalf of the credit union, and for such
purposes may authorize the payment of any premium on
such bonds by the credit union;





(h)appoint persons to act, under the direction of the board, in the
furtherance of the education of persons in the objects and
practices of credit unions.

(2) The board shall exercise and perform such other powers and
duties as may be conferred or imposed upon it by the by-laws.

Powers and duties of supervisory committee.

34. In addition to such powers and duties as may be conferred or
imposed by the by-laws, the supervisory committee

(a)shall carry out an examination of the affairs and audit the
accounts of the credit union and prepare a balance sheet on
the accounts at least once in each quarter of every financial
year;

(b)shall make or provide for an annual audit of the accounts of
the credit union and submit a report thereon together with a
balance sheet to the annual meeting of the credit union for its
approval;

(c)may, if it deems it to be necessary in the interests of the credit
union, by the unanimous vote of all its members suspend any
director of the board or any member of the credit committee
from the functions of his office and call a special meeting of
the credit union to consider a report of the committee on such
suspension;

(d)may call a special meeting of the credit union to consider any
matter which in the opinion of the committee ought to receive
such consideration.

Powers and duties of credit committee.

35. In addition to such powers and duties as may be conferred or
imposed by the by-laws, the credit committee shall have general
supervision over all loans made to the members of the credit union and,
subject to paragraphs (d), (e) and (f) of subsection (1) of section 33,
shall, in respect of every such loan

(a) fix the amount thereof;

(b) decide on the security (if any) required therefor; and

(c) determine the conditions for repayment thereof.

36. Save as provided in section 38, no loan shall be made to a
member of the credit union except with the prior and unanimous
approval of the members of the credit committee.

37. In addition to or in lieu of any other form of security, the credit
committee may in its discretion accept an endorsement of a note by a
member as guarantor or a pledge of shares by a member as security for a
loan.





38. (1) The credit committee, with the prior approval of the
board, may appoint members of the credit committee as loan
officers to act under the committee's supervision.

(2) Notwithstanding anything contained in section 36, a loan
officer may make loans to members of the credit union in the
manner provided in the by-laws.

PART VI.

LOANS, BORROWING, RESERVE FUND AND DIVIDENDS.

Loans to members.

39. No loan shall be made to a member of a credit union
under this Ordinance other than for provident or productive
purposes.

40. (1) Save as is provided in paragraphs (a) and (b) of
section 10, no credit union shall make a loan to any person who
is not a member thereof.

(2) A loan shall not be made by a credit union to a member
thereof if this would cause the member to owe the credit union
more than ten per cent of the aggregate amount of the share balance,
the reserve fund and any other funds of the credit union.

41. (1) The interest rate on any loan made by a credit union
to a member thereof shall not exceed one per cent per month on
the total of the unpaid balance of any such loan plus an charges
(if any) made by the credit union in making the loan.

(2) The interest rate determined in respect of loans made to
members of a credit union during any specified period shall be
the same for all such loans.

42. No director or member of the supervisory committee or
the credit committee may obtain a loan from the credit union in
excess of the value of his shares except upon the unanimous vote
of a majority of the board, the supervisory committee and the
credit committee, sitting together, such director or member not
being present at the taking of the vote.

Borrowing powers.

43. (1) Subject to this section, a credit union may borrow
money for the carrying out of its objects.

(2) No money shall be borrowed by a credit union save upon
a resolution of its board.

(3) A credit union may not borrow money so that its total
indebtedness would in consequence exceed fifty per cent of its share
balance.





(4) A credit union may not borrow money so that its total
indebtedness would in consequence exceed twenty-five per cent of its
share balance, except in addition to the board's resolution, upon a
resolution passed by not less than three-fourths of the members, present
and qualified to vote, at a special meeting of the credit union called for
the purpose or if sanctioned in writing by not less than two-thirds of the
total number of the members of the credit union qualified to vote.

44. A credit union may mortgage, charge or pledge any of its
property to secure any liability for the repayment of money borrowed in
accordance with section 43.

Reserve fund.

45. (1) The board shall set aside a reserve fund, into which shall be
paid

(a) all entrance fees and fines collected from members; and

(b)during each financial year, not less than twenty per cent of the
net earnings for the previous financial year, before the
declaration or payment of any dividend in relation to the
previous financial year,

until the reserve fund is equal to at least ten per cent of the share
balance of the credit union, and such further amounts of the net earnings
shall be paid into the fund in every year as may be necessary to maintain
that percentage.

(2) The reserve fund shall not be used in making loans to members
of the credit union.

(3) Any income received from any part of the reserve fund which is
deposited or invested shall be paid to the general revenue of the credit
union.

(4) The reserve fund shall be kept as a reserve against losses
incurred from loans made by the credit union which remain outstanding
after the time for their repayment in full has expired and other losses,
other than excess expenditure over income, incurred by the credit union,
and shall not be used for any other purpose except upon the winding-up
of the credit union or with the prior approval in writing of the Registrar:

Provided that during the twelve months next following the date of
its registration, an amount not exceeding the total of the entrance fees
collected from members may be drawn from the reserve fund to meet any
expenses incurred in the formation and organization of a credit union.

Dividends.

46. (1) After provision is made for the reserve fund, in accordance
with section 45, and before the holding of the annual meeting of the
credit union for that year, the board may by resolution recommend that a
dividend, not exceeding six per cent per





annum, shall be paid from the remainder of the net earnings and shall
present any such resolution to that annual meeting.

(2) The annual meeting may declare a dividend for that year, which
shall not exceed the amount recommended by the board.

(3) A dividend so declared shall be paid on all shares fully paid up
and registered in the name of the same member throughout the previous
financial year:

Provided that a member who is registered as owner at the end of a
financial year of shares which became fully paid up during that year
shall be entitled to the proportional part of such dividend calculated
from the fifth day of the month following the date upon which such
shares became fully paid up.

(4) Subject to subsection (3), payment of the dividend (if any) so
declared may be made in such manner and amounts and at such times as
may be provided in the by-laws.

PART VII.

BY-LAWS.

47. (1) The by-laws of every credit union shall be in a form
approved by the Registrar.

(2) The by-laws of a credit union may, and, if so directed by the
Registrar, shall, include provision for all or any of the following

(a)the depositing of all or any specified funds or money of a
credit union in a bank in the Colony approved by the
Registrar;

(b)the imposition of charges on any member whose account
remains inactive for a specified period;

(c)the imposition of fines upon members for failure to meet their
obligations to the credit union;

(d)specifying the purposes for which the profits of the credit
union may be used.

(3) Any by-laws which are prescribed under paragraph (a) of
section 85 shall, subject to such modification as may be approved by the
Registrar, be deemed to be the by-laws of a credit union.

(4) Notwithstanding anything contained in section 20 of the
Interpretation and General Clauses Ordinance, it shall not be necessary
to publish the by-laws of a credit union in the Gazette.

48. (1) By-laws may be amended only by a resolution of two-
thirds.of the members present and qualified to vote, at the annual
meeting of the credit union or at a special meeting thereof called for the
purpose.

(2) No such amendment shall be of any effect until the same has
been approved in writing by the Registrar.





49. The by-laws of a credit union shall bind the credit union
and the members thereof to the same extent as if each member had
subscribed his name and affixed his seal thereto and there were in
such by-laws a covenant on the part of himself, his executors,
administrators and assigns to conform to such by-laws, subject to
the provisions of this Ordinance.

PART VIII.

RETURNS, AUDIT, INFORMATION AND INQUIRY.

50. A record of the name, occupation and address of each
officer of a credit union shall be furnished to the Registrar not
later than ten days after the appointment of the officer.

51. A copy of the audit report and balance sheet, submitted
to the annual meeting in accordance with paragraph (b) of section
34 and approved thereat, shall be furnished to the Registrar not
later than thirty days after the date of such meeting.

52. (1) The accounts of a credit union shall be examined at
least once in every year by or under the direction of the Registrar
and a credit union undergoing such examination shall produce all
cash in hand, books, records and other documents required by the
person conducting the examination.

(2) Every such examination shall include an inquiry into
overdue debts (if any) and a valuation of the assets and liabilities
of the credit union.

(3) A copy of the report of the last examination carded out
under this section and a copy of the audit report and balance sheet
referred to in section 51 shall be posted in a conspicuous place at
the registered office of the credit union for not less than one month.

53. (1) A credit union shall furnish the Registrar with such
statements with respect to its business, finances and other affairs
and with such other information as he may from time to time
require.

(2) Any statement and other information and any record and
report required to be furnished by a credit union to the Registrar
under this Ordinance or the by-laws shall be certified by the super-
visory committee and verified by the president and the treasurer
of the credit union.

54. (1) The Registrar and any person authorized by him
may inquire into the condition and affairs of a credit union and for
this purpose shall be given access to all books, records and other
documents of the credit union and may make such inquiries as are
in his opinion necessary to ascertain its financial condition, its
ability to provide for the payment of its liabilities as they become
due and whether or not it has complied with this Ordinance.





(2) The Registrar may, if he is satisfied, from an inquiry into the
condition and affirs of a credit union, that any of its funds, securities or
other property may have been misappropriated or improperly used or
that the books, records or other documents do not show its true
financial position, appoint an auditor to make such inquiry and audit of
the affairs of the credit union as the Registrar considers necessary.

(3) The Registrar may, after an inquiry under this section, if he is
satisfied that the continuance in business of such credit union would
not be in the interests of its members or of the public, order the credit
union to suspend business for such time as he may decide.

PART IX.

WINDING-UP.

55. No credit union shall be wound up otherwise than in
accordance with this Part.

56. (1) Save as is otherwise provided in this Part, the provisions of
the Companies Ordinance relating to the winding-up of a company shall,
to the extent that such provisions are applicable in the case, apply to the
winding-up of a credit union.

(2) For the purposes of such winding-up, the term 'Registrat in the
Companies Ordinance shall have the meaning assigned to it by this
Ordinance.

(3) The Colonial Secretary shall appoint a person to discharge the
duties of Official Receiver in any such winding-up.

57. (1) Subject to this section, a credit union may-

(a)by instrument in writing signed by three-quarters of its
members qualified to vote at its meetings; or

(b)by resolution passed by three-quarters of its members
qualified to vote and voting at a special meeting called for the
purpose,

resolve that it be wound up by the court.

(2) Every credit union shall give at least ten days prior notice in
writing to the Registrar of its intention to issue any such instrument for
the signature of its members or to hold any such meeting, as the case
may be.

(3) Where a credit union resolves under subsection (1) that it be
wound up by the court, a copy of the instrument or a record of the
resolution, certified by the president and treasurer of the credit union,
shall be delivered forthwith to the Registrar who shall, as soon as
practicable thereafter, petition the court for an order to wind up the
credit union.





58. (1) The Registrar may, if he thinks fit, petition the court for an
order to wind up a credit union if he is satisfied that

(a) the number of members qualified to vote at meetings of
the credit union has been reduced to less than fifteen;

(b)the registration of the credit union was obtained by fraud or
mistake;

(c) it is not a bona fide credit union;

(d) it exists for an illegal purpose;

(e) it is not carrying on business or is not in operation; or

(f) it has wilfully, after notice from the Registrar, contravened any of
the provisions of this Ordinance.

(2) The Registrar may, if he thinks fit, give notice to a credit union
of his intention to petition the court under this section, setting out the
grounds therefor and stating that, unless cause is shown to the contrary
within a specified period, he will petition the court accordingly.

(3) The Registrar may, if he has given notice under subsection (2),
and unless in his opinion sufficient cause to the contrary is shown by
the credit union within the specified period, proceed with the petition.

59. Rule 22A of the Companies (Winding-up) Rules shall not apply in
respeet of a petition under section 57 or 58.

60. Notwithstanding anything contained in section 58, a credit
union may be wound up by the court if

(a) the credit union is unable to pay its debts;

(b)the court is of opinion that it is just and equitable that the
credit union should be wound up.

61. In its application to the winding-up of a credit union subsection
(1) of section 170 of the Companies Ordinance shall be so construed that
a person shall be deemed to have ceased to be a member of the credit
union, in respect of any share validly withdrawn or transferred before
the commencement of the winding-up, with effect from the date of the
receipt by the board of the notice of intention to withdraw or transfer
such share.

PART X.

APPEALS.

62. (1) If the Registrar

(a) refuses to register a credit union under section 5;





(b)fails to register a credit union within thirty days of the receipt
of a memorandum of association duly filed for the purpose;

(c)refuses or fails to give his approval, within thirty days of the
receipt, of any written application therefor, when his approval
is required for any purpose under this Ordinance;

(d)under section 54, orders a credit union to suspend business,

any person aggrieved thereby may, subject to this section, appeal
against such refusal, failure or order to the District Court.

(2) An appeal under this section shall be entered within fourteen
days

(a)after the date of any refusal to register or of any suspension
order, in the case of an appeal under paragraph (a) or (d) of
subsection (1); or

(b)after the date of the expiry of the period of thirty days
mentioned therein, in the case of an appeal under paragraph (b)
or (c) of subsection (1).

(3) The decision of the District Court on any such appeal shall be
final.

PART Xl.

THE CREDIT UNION LEAGUE OF KONG KONG.

63. (1) The body known as the Credit Union League of Hong Kong
(hereinafter in this Part referred to as the former League) shall, on the
date of commencement of this Ordinance, become a body corporate with
perpetual succession and shall be capable of suing and being sued in the
name of the Credit Union League of Hong Kong and, subject to this
Ordinance, of doing and suffering all such other acts and things as
bodies corporate may lawfully do and suffer.

(2) The League shall have and may use a common seal.

64. The objects of the League are-

(a)to protect and assist the credit unions which are members of
the League;

(b)to provide educational and advisory services for credit unions;

(c)to encourage and assist in the organization of credit unions;

(d)to arrange for bonds and insurance on behalf of credit unions
and their employees;

(e)to set up a stabilization fund in accordance with section 72;





(f) to undertake such other services for credit unions and the credit
union movement as shall be consistent with this Ordinance.

65. On the date of commencement of this Ordinance.-

(a)all movable property vested before that date in any person in
trust for the former League shall vest in the League;

(b)all liabilities lawfully incurred before that date by any person as
trustee of the former League shall become liabilities of the
League; and

(c)all legal proceedings pending by or against any such trustee
may be prosecuted by or against the League.

66. (1) There shall be a board of the League consisting of five
directors or of such greater number not exceeding fifteen as may be
provided by the by-laws of the League.

(2) The first board of directors shall consist of the persons-

(a) whose names appear in the first column of the Schedule;

(b)whose residential addresses are specified in the second column
of the Schedule; and

(c)each of whom shall hold the office, if any, specified opposite
each name in the third column of the Schedule.

(3) The first directors of the board shall hold office until either a
board of directors is elected m accordance with the bylaws of the League
or the 1st day of July 1970, whichever is the earlier.

(4) The board of the League shall have the general direction and
management of the affairs, funds and records of the League.

67. (1) The League may make by-laws, which shall be subject to the
approval of the Registrar, for the carrying out of its objects.

(2) Such by-laws shall be consistent with this Ordinance and shall
include provision for membership of the League and for the composition
of and elections to the board.

(3) Notwithstanding anything contained in subsection (1), any

by-laws which are prescribed under paragraph (a) of section 85 shall,
subject to such modification as may be approved by the Registrar, be
deemed to be the by-laws of the league.

(4) The by-laws of the League may, subject to the approval of the
Registrar, be amended from time to time in the manner provided therein.

(5) Notwithstanding anything contained in section 20 of the
Interpretation and General Clauses Ordinance, it shall not be necessary
to publish the by-laws of the League in the Gazette.





68. (1) The League shall forward to the Registrar for registration the
following

(a)notice of the address of the principal office of the League and
any change thereof;

(b)a copy of the by-laws of the League and any amendment
thereto, certified as correct by two members of the board of the
League; and

(c)a list of the name, occupation and address of each member of
the board and each officer of the League and any change
therein, certified as correct by two members of the board of the
League.

(2) A document required to be registered under subsection (1) shall
be forwarded to the Registrar within twenty-eight days of the
commencement of this Ordinance or within twenty-eight days of any
change or amendment, as the case may be.

69. (1) The common seal of the League shall not be affixed to any
instrument except by the authority of a resolution of the board and in
the presence of the president of the board and either the treasurer
thereof or such other person as the board may appoint for the purpose.

(2) The president and the treasurer, or such other person, shall sign
every instrument to which the seal is so affixed.

(3) The board shall be responsible for the safe custody of the
common seal of the League.

70. Subject to this Part, a credit union may become a member of the
League.

71. (1) A credit union which is a member of the League may, for the
purpose of financing the League, provide in its bylaws for a yearly levy
on each of its members.

(2) The amount of such levy and the time and manner of payment
thereof to the League shall be as provided in the by-laws of the League.

72. (1) The League may set up a fund, to be known as the
stabilization fund, which shall be used in the manner set out in this
section

(2) The stabilization fund may be used in providing interest free
loans to a member credit union for the purpose of avoiding a liquidation
thereof or for assisting in any matter connected with such liquidation.

(3) No such loan shall be provided except-

(a)where the League is satisfied that such provision is in the best
interests of the credit union movement; and





(b)on a resolution, passed by at least two-thirds of the members
of the board of the League, determining the amount of the loan
and the conditions under which it is to be provided.

(4) Section 43 shall not apply in respect of any such loan.

73. Save in so far as is otherwise provided in this Part, sections 10,
49, 52, 53, 54, 76, 77, 80 and 81 shall, to the extent that they are
applicable, apply to the League as though it were a credit union.

74. Nothing in this Part shall affect or be deemed to affect the rights
of Her Majesty the Queen, Her Heirs or Successors, or the rights of any
body politic or corporate or of any other persons except such as are
mentioned in this Part and those claiming by, from or under them.

PART XII.

OFFENCES AND PENALTIES.

75. (1) Save as is provided in paragraphs (a) and (b) of section 10,
any director or any member of the supervisory committee or of the credit
committee of a credit union, or any loan officer thereof, who knowingly
makes or permits the making of a loan from any fund of the credit union to
any person who is not a member of the credit union shall be guilty of an
offence and shall be liable on conviction to a fine of three thousand
dollars and to imprisonment for one year.

(2) A person who is convicted of an offence under subsection (1)
shall be liable to the credit union for the amount so loaned, and the
illegality of such a loan shall be no defence in any proceedings by the
credit union for the recovery of that amount.

76. Any person who makes any return or furnishes any information,
statement, record, or other document required by this Ordinance to be
made or furnished to the Registrar knowing the same to be in any
respect false or insufficient shall be guilty of an offence.

77. Any officer of a credit union, or any person entrusted with or
participating in the management thereof, who discloses to any person
any information regarding a transaction of a member of that credit union
therewith, save in so far as may be necessary for the proper conduct of
the business of that credit union, shall be guilty of an offence.

78. Any person who-

(a)contravenes the provisions of subsection (2) of section 57; or





(b)being a president or treasurer of a credit union, fails to deliver
to the Registrar a copy of the instrument or record of the
resolution in accordance with subsection (3) of section 57,

shall be guilty of an offence.

79. Any person, other than a credit union or the League, who trades
or carries on any business under any name or title of which the
expression 'credit union', or the Chinese expression is part shall be
guilty of an offence:

Provided that nothing in this section shall apply to the use by any
person or his successors in interest of any name or title under which he
traded or carried on business at the commencement of this Ordinance.

80. Any person guilty of an offence against this Ordinance for
which no penalty is provided shall be liable on conviction to a fine of
two thousand dollars and, in the case of a continuing offence, to an
additional daily penalty of fifty dollars.

81. Every offence committed by a credit union shall be deemed to
have been also committed by each officer of the credit union who is
bound by this Ordinance or the by-laws of the credit union to fulfill the
duties whereof such an offence is a breach or, if there is no such officer,
then by each of the directors and members of the supervisory committee
and credit committee, unless such officer, director or member is proved
to have been ignorant of, or to have attempted to prevent, the
commission of such offence.

PART XIII.

REGISTRAR.

82. (1) The Governor may appoint a public officer to be the
Registrar of Credit Unions and may appoint other public officers to
assist the Registrar.

(2) The Registrar may delegate to any public officer appointed to
assist him under subsection (1) all or any of the powers and duties
conferred or imposed on him by this Ordinance.

83. (1) The Registrar shall keep at his office a register, to be known
as the Register of Credit Unions, in which shall be entered particulars of
the registration of every credit union.

(2) The Registrar shall keep such other records relating to credit
unions as may be prescribed.

84. A credit union shall keep accounts, balance sheets, forms,
records and books in such form as may be approved by the Registrar.





PART XIV.

REGULATIONS.

85. The Governor in Council may make regulations for all or any of
the following matters

(a)the adoption by all or some credit unions or the League of
such by-laws as may be prescribed hereunder;

(b) the procedure to be followed under this Ordinance;

(c)the examination of the accounts of credit unions by the
Registrar or under his direction;

(d) the qualifications required of any person carrying out an audit
under subsection (2) of section 54;

(e)the fees payable on the registration of a credit union under
this Ordinance;

the scale of fees payable to the Registrar for services rendered
under this Ordinance;

(g)the form of a memorandum of association required under
subsection (2) of section 4 and of a certificate of registration
issued under subsection (3) of section 5;

(h)the records relating to credit unions which are to be kept by
the Registrar;

(i)prescribing anything which is to be or may be prescribed
under this Ordinance;

(j)any other matter necessary or expedient to carry out
effectively the intent and purpose of this Ordinance.

SCHEDULE. [s. 66.1

First Column. Second Column. Third Column.

YAM Tin-yau 363, Prince Edward Road, President
2nd floor, Kowloon

CHU Hau-chak 222, Tai Kok Tsui Road,Vice-President
Yaumati Ferry Workers'
Hostel, Room 114, Kowloon

CHAN kei-yuen 174, Pokfulam Road (Lo Vice-President
Tak Wai), Hong Kong

So Kwok-wing, Andrew 12, Tai Po Road, 5th floor, Treasurer
Kowloon

Kwok Tack-pui 32, Ching On Street, Secretary
4th floor, Lo Fu Ngam,
KowloonCHAN Hoi (Mc/o San Miguel Credit
Union, Hong Kong
Breweries, Sham Tseng,
New Territories





First Column. Second Column.Third Column.

LAU Ming 17, Pokfield Road, Room
G.4, Hong Kong
Yip Ching-ching Block 11, Room 21, Lo Fu
Ngam Resettlement Estate,
Kowloon
Ho Wah Block 20, Room 1223,
12th floor, Tai Wo Hau
Resettlement Estate, Tsuen
Wan, New Territories
YEUNG Kit 22, Sai Hong Lane, Ground
floor, Tai Hang Sai,
Kowloon Tsai
LEUNG Ming Block 14, Room 461, Tai
Hang Tung Resettlement
Estate, Kowloon Tsai
Kwok Hin-kwong Block 1, 68-9175, Cheung
Sha Wan Factory Estate,
Cheung Sha Wan, Kowloon
Sum Tat-cheung Hay Cheuk Lau, 5th floor,
Room 514, 229, Ngau Tau
Kok Road, Kowloon
CHEUNG Siu-kuen Block A, 5th floor, Police
Quarters, 84, Canton Road,
Kowloon
Sum Chuen Block 14, Room 258, Kwum
Tong Resettlement Estate,
Kwun Tong
Originally 39 of 1968. Short title and commencement. Interpretation. Conditions of registration. Memorandum of association. Registration. Incorporation with limited liability; and effect thereof. Restriction on name. Amendment of memorandum of association. Registered office. Powers. (Cap. 29.) Capital divided into shares. Allotment and subscription for shares. Disposal of shares. Restriction on disposal of shares by officers, etc. Membership limited to persons with common occupation, etc. Admission to and conditions of membership. Minors. Expulsion of member. Cessation of membership. Payment on cessation of membership. Liability on cessation of membership. Debts owed by members or past members. Payment to nominee or person entitled upon death of member. Record of members and shares. Annual and special meetings. Voting. First meeting. Election and tenure of office of board of directors and committees. Meetings of board and committees, and appointment of officers and procedure. Officers of a credit union. Composition of the committees. Remuneration. Powers and duties of the board. Powers and duties of supervisory committee. Powers and duties of credit committee. Approval of loans. Acceptable security for loans. Loan officers. Purposes of loans. Restrictions on loans. Rates of interest. Unanimous vote required for loans to directors or committee members. Borrowing powers. Power to mortgage, etc. as security for borrowed money. Reserve fund. Declaration, limit and payment of dividend. By-laws. (Cap. 1.) Amendment of by-laws. Binding effect of the by-laws. Return of names of officers. Return of supervisory annual audit. Registrar's annual examination. Information for Registrar and verification thereof. Inquiry, examination and suspension. Winding-up of credit unions. Application of Companies Ordinance. (Cap. 32.) Credit union may resolve to be wound up by the court. Petition by Registrar for winding-up in other cases. Application of rule 22A of Companies (Winding-up) Rules. (Cap. 32, sub. leg.) Winding-up for insolvency or on equitable grounds. Qualification as to contribution in winding-up. (Cap. 32.) Appeal against action of Registrar. Incorporation of league of credit unions. Objects of League. Vesting. Board of directors and officers. Schedule. League by-laws. (Cap. 1.) Registration with Registrar. Sealing and signing of documents. Membership. Levy. Stabilization fund. Application of other sections to League. Saving. Illegal loans. False returns to Registrar. Prohibition of disclosure of certain information. Failure to report resolution for winding-up. Restriction on use of expression 'credit union' or in Chinese ' '. Penalty. Criminal liability of officers of credit union. Appointment of Registrar. Register of Credit Unions to be kept. Forms of records, etc. Regulations.

Originally 39 of 1968. Short title and commencement. Interpretation. Conditions of registration. Memorandum of association. Registration. Incorporation with limited liability; and effect thereof. Restriction on name. Amendment of memorandum of association. Registered office. Powers. (Cap. 29.) Capital divided into shares. Allotment and subscription for shares. Disposal of shares. Restriction on disposal of shares by officers, etc. Membership limited to persons with common occupation, etc. Admission to and conditions of membership. Minors. Expulsion of member. Cessation of membership. Payment on cessation of membership. Liability on cessation of membership. Debts owed by members or past members. Payment to nominee or person entitled upon death of member. Record of members and shares. Annual and special meetings. Voting. First meeting. Election and tenure of office of board of directors and committees. Meetings of board and committees, and appointment of officers and procedure. Officers of a credit union. Composition of the committees. Remuneration. Powers and duties of the board. Powers and duties of supervisory committee. Powers and duties of credit committee. Approval of loans. Acceptable security for loans. Loan officers. Purposes of loans. Restrictions on loans. Rates of interest. Unanimous vote required for loans to directors or committee members. Borrowing powers. Power to mortgage, etc. as security for borrowed money. Reserve fund. Declaration, limit and payment of dividend. By-laws. (Cap. 1.) Amendment of by-laws. Binding effect of the by-laws. Return of names of officers. Return of supervisory annual audit. Registrar's annual examination. Information for Registrar and verification thereof. Inquiry, examination and suspension. Winding-up of credit unions. Application of Companies Ordinance. (Cap. 32.) Credit union may resolve to be wound up by the court. Petition by Registrar for winding-up in other cases. Application of rule 22A of Companies (Winding-up) Rules. (Cap. 32, sub. leg.) Winding-up for insolvency or on equitable grounds. Qualification as to contribution in winding-up. (Cap. 32.) Appeal against action of Registrar. Incorporation of league of credit unions. Objects of League. Vesting. Board of directors and officers. Schedule. League by-laws. (Cap. 1.) Registration with Registrar. Sealing and signing of documents. Membership. Levy. Stabilization fund. Application of other sections to League. Saving. Illegal loans. False returns to Registrar. Prohibition of disclosure of certain information. Failure to report resolution for winding-up. Restriction on use of expression 'credit union' or in Chinese ' '. Penalty. Criminal liability of officers of credit union. Appointment of Registrar. Register of Credit Unions to be kept. Forms of records, etc. Regulations.

https://oelawhk.lib.hku.hk/items/show/2531

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