PROTECTION OF INVESTORS ORDINANCE

PROTECTION OF INVESTORS ORDINANCE

LAWS OF HONG KONG

PROTECTION OF INVESTORS ORDINANCE

CHAPTER 335





CHAPTER 335
PROTECTION OF INVESTORS

To provide for the protection of investors in securities and other property.

[29 March 1974] L.N. 72 of 1974

Originally 13 of 1974 L.N. 38 of 1974, L.N. 56 of 1974, 9 of 1983, R.Ed. 1983, 10 of 1989, 44
of 1989

1. Short title

This Ordinance may be cited as the Protection of Investors Ordinance.

2. Interpretation

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

'authorized institution' has the same meaning as in the Banking Ordinance
(Cap.155); (Added44of 1989s.2)

'certificate of deposit' has the same meam rig as in the Banking Ordinance
(Cap.155); (Added44of 1989s.2)

'Commission' means the Securities and Futures Commission established under the
Securities and Futures- Commission Ordinance (Cap. 24); (Amended 10 of 1989
s. 65)

'Commissioner' (Repealed 10-of 1989 s. 65)

'Commissioner of Banking' means the Commissioner of Banking appointed under
section 6 of the Banking Ordinance (Cap. 155); (Added 44 of 1989 s.2)

'corporation' has the same meaning as in the Securities Ordinance (Cap. 333);
(AmendedL.N. 38 of 1974)



'credit union' means a credit union registered under the Credit Unions Ordinance
(Cap. 119);
'exempted body' means
(a) the Government;
(b) the Urban Council;
(c) the Regional Council;
(d) any District Board;
(e) the Hong Kong Housing Authority;
(j) the Kowloon-Canton Railway Corporation;
(g) the Mass Transit Railway Corporation;
(h) the Land Development Corporation;





(i)any association, board, commission, committee, company,
corporation, council or other body specified in Part IV of the
Schedule; and

(j)any other corporation not included in paragraph (i) which is listed on
the Unified Exchange and any wholly owned subsidiary of such a
corporation, whether incorporated in Hong Kong or elsewhere;
(Added44of 1989s.2)

'incorporated' includes established; (Added44of 1989s.2)

'issue', in relation to an advertisement, invitation, or document, includes publish,
circulate, distribute, or disseminate the advertisement, invitation, or document;
and also includes causing the advertisement, invitation, or document to be
issued;

'investment arrangements', in relation to property other than securities, means

(a)arrangements the purpose or effect, or pretended purpose or effect,
of which is to enable persons taking part in the arrangements
(whether by becoming owners of the property or otherwise) to
participate in or receive

(i) profits or income alleged to arise or to be likely to arise from the
acquisition, holding, management, or disposal of the property
or any part of the property; or

(ii)sums to be paid or alleged to be likely to be paid out of any
such profits or income;

(b)arrangements specified by the Governor in Council by order under
section 2A, whether or not such arrangements are intended to
generate profits or income; (Replaced 9 of 1983 s. 2)

'invitation' includes an offer, and also includes an invitation made by means of a
telephone call or personal visit;

'multilateral agency' means any body specified in Part 111 of the Schedule; (Added
44 of 1989 s. 2)

mutual fund corporation' has the same meaning as in the Securities Ordinance
(Cap.333); (Added44of 1989s.2)

,,overseas bank' means a bank incorporated outside Hong Kong and not holding a
valid banking licence under the Banking Ordinance (Cap. 155); (Added 44 of
1989 s. 2)

'relevant authority' means a relevant authority of a place outside Hong Kong
which has satisfied the Commissioner of Banking that it is a recognized
banking supervisory authority of that place; (Added 44 of 1989 s. 2)

'securities' has the same meaning as in the Securities Ordinance (Cap. 333);

'subsidiary' has the same meaning as in the Companies Ordinance (Cap. 32);
(Added44of 1989s. 2)

'Unified Exchange' has the same meaning as in the Stock Exchanges

Unification Ordinance(Cap. 361);(Added44of 1989s.2)





'unit trust' has the same meaning as in the Securities Ordinance (Cap. 333).

(Added 44 of 1989 s. 2)

(2) For the purposes of this Ordinance-

(a)'advertisement' includes every form of advertising, whether notified
or published

(i) in a newspaper, magazine, journal, or other periodical
publication;

(ii) by the display of posters or notices;
(iii) by means of circulars, brochures, pamphlets, or handbills;

(iv) by an exhibition of photographs or cinematograph films; or (v)
by way of sound broadcasting or television,

and references to the issue of an advertisement shall be construed
accordingly;

(b)'document' includes a circular, brochure, pamphlet, poster, handbill,
prospectus, and any other document which is directed at or likely to
be read by the public; and also includes any newspaper, magazine,
journal, or other periodical publication;

(c)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;

(d)an advertisement, invitation, or document which consists of or
contains information likely to lead, directly or indirectly, to the doing
by members of the public of any act mentioned in section 3(1)(a) and
(b) shall be treated as being an advertisement, invitation, or
document which is or contains an advertisement or invitation to the
public to do that act;

(e)an advertisement, invitation, or document issued by one person on
behalf of another shall be treated as an advertisement, invitation, or a
document, as the case may be, issued by that other person.

2A. Investment arrangements specified
by Governor in Council

The Governor in Council may by order specify any arrangements as
investment arrangements for the purposes of this Ordinance where the
arrangements

(a) are made in the course of business; and

(b)have the purpose or effect, or pretended purpose or effect, of
enabling persons taking part in the arrangements

(i)to obtain the ownership of any property for valuable
consideration;





(ii) to defer taking possession of the property; and

(iii)to transfer or retransfer the ownership of the property to a
person who is a party to, or is referred to in, the arrangements.

(Added 9 of 1983 s. 3)

Offences

3. Offence fraudulently or recklessly

to induce persons to invest money

(1) Any person who, by any fraudulent or reckless misrepresentation, induces
another person

(a) to enter into or offer to enter into any agreement

(i) for or with a view to acquiring, disposing of, subscribing for or
underwriting securities; or

(ii)the purpose or effect, or pretended purpose or effect, of which
is to secure to any of the parties to the agreement a profit from
the yield of securities or by reference to fluctuations in the value
of securities or property other than securities; or

(b)to take part in or offer to take part in any investment arrangements in
respect of property other than securities,

shall be guilty of an ofrence.

(2) For the purposes of subsection (1) 'Traudulent or reckless
misrepresentation' means

(a) any statement-

(i) which to the knowledge of its maker was false, misleading, or
deceptive; or

(ii) which is 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 (Amended L.N. 56 of 1974)

(iii) which was made recklessly;

(c) any forecast-

(i) which, to the knowledge of the maker of the forecast, was not
justified on the facts known to him at the time when he made it;
or (AmendedL.N. 38 of 1974)





(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
(AmendedL.N. 56 of 1974)

(d)any statement or forecast from which the maker of the statement
intentionally or recklessly omitted a material fact, with the result that
the statement was thereby rendered untrue, misleading, or deceptive,
or, as the case may be, the forecast was thereby not capable of being
justified or was thereby rendered misleading or deceptive.

(3) Any person who is guilty of an offence against this section shall be liable
on conviction on indictment to a fine of $1,000,000 and to imprisonment for 7 years.

[cf. 1958 c. 45 s. 13 U.K.]

4. Ofrence to issue advertisements and documents

relating to investments in certain cases

(1) Subject to subsections (2) and (3), no person shall-

(a)issue, or have in his possession for the purposes of issue, any
advertisement or invitation which to his knowledge is or contains an
invitation to the public to do any of the acts referred to in section
3(1)(a) and (b); or

(b)issue, or have in his possession for the purposes of issue, any
document which to his knowledge contains an advertisement or
invitation to the public to do any of those acts.

(2) Subsection (1) does not apply in relation to

(a)the issue of a prospectus which complies with or is exempt from
compliance with Part 11 of the Companies Ordinance (Cap. 32) or, in
the case of a company incorporated outside Hong Kong, complies
with or is exempt from compliance with Part XII of that Ordinance;

(b)the issue of a document relating to securities of a body corporate
incorporated in Hong Kong that is not a company registered under
the Companies Ordinance (Cap. 32), being a document which

(i) would, if the body corporate were a registered company, be a
prospectus to which section 38 of the Companies Ordinance
(Cap. 32) applies, or would apply if not excluded by subsection
(5)(b) of that section or by section 38A of that Ordinance; and

(ii) contains all the matters which, by virtue of Part XII of that
Ordinance, it would be required to contain if the body corporate
were a company incorporated outside Hong Kong and the
document were a prospectus issued by that company;





(e)the issue of a form of application for shares or debentures of a
company, together with

(i)a prospectus which complies with or is exempt from compliance
with Part II of the Companies Ordinance (Cap. 32) or, in the
case of a company incorporated outside Hong Kong, complies
with or is exempt from compliance with Part XII of that
Ordinance; or

(ii) in the case of a body corporate incorporated in Hong Kong
which is not a registered company, a document containing the
matters specified in paragraph (b)(ii);

(d)the issue of a form of application for the securities of a company in
connection with an invitation made in good faith to a person to enter
into an underwriting agreement with respect to those securities;

(e)the issue of a prospectus which has been approved by the
Commission in relation to a mutual fund corporation or unit trust
authorized by the Commission under the Securities Ordinance (Cap.
333);

the issue of a form of application for the shares of a mutual fund
corporation or the units of a unit trust, being a mutual fund
corporation or unit trust which has been authorized by the
Commission, together with a prospectus approved by the
Commission;

(fa) the issue of any advertisement, invitation or document (being an
advertisement, invitation or document to which this section relates)
made in respect of the issue of a certificate of deposit by an
authorized institution; (Added44of 1989s. 3)

(jb) the issue of any advertisement, invitation or document (being an
advertisement, invitation or document to which this section relates)
made in respect of the issue, whether in Hong Kong or elsewhere, of
a certificate of deposit by a multilateral agency or an overseas bank
which complies with the conditions specified in subsection (6A);
(Added44of 1989s. 3)

(fe) the issue of any advertisement, invitation or document (being an
advertisement, invitation or document to which this section relates)
made in respect of the issue, whether in Hong Kong or elsewhere, of
any instrument specified in Part 11 of the Schedule by an authorized
institution, an exempted body or a multilateral agency which
complies with the conditions specified in subsection (613); or
(Added 44 of 1989 s. 3)

(g)the issue of any advertisement, invitation or document (being an
advertisement, invitation or document to which this section relates)
made in respect of any matter not referred to in





paragraph (fa), (jb) or (fc), where an application for
authorization by the Commission in respect of that issue is
accompanied by such information and documents as may be
required by the Commission and the advertisement, invitation or
document is authorized, subject to such conditions as may be
imposed under subsection (7), by the Commission before issue,
or is required or authorized by or under any other Ordinance.
(Amended 10 of 1989 s. 65. Replaced 44 of 1989 s. 3)
(3) This section does not prohibit the issue or possession of any
advertisement, invitation, or document by reason only-
(a)that it is or contains an advertisement or invitation to which this
section relates made-
(i)subject to subsection (8), with respect to securities, by or on
behalf of a dealer or investment adviser who is registered
under the Securities Ordinance (Cap. 333) or who is a dealer
or investment adviser exempted from registration under that
Ordinance; (Replaced 44 of 1989 s. 3)
(ii) by or on behalf of a corporation to holders of securities or
creditors of, or servants or agents employed by, that
corporation, or a corporation which is deemed to be related
to that corporation by virtue of section 4 of the Securities
Ordinance (Cap. 333), in respect of securities of that
corporation or that related corporation;
(iii) by or on behalf of the manager or trustee of a unit trust
authorized by the Commission pursuant to the Securities
Ordinance (Cap. 333) to holders of units, or creditors, of the trust,
or to servants or agents employed by that manager or trustee;
(iv) by or on behalf of the Government in respect of securities
issued by it;
(v) by or on behalf of a credit union in respect of shares in the
union;
(vi)by or on behalf of a person acting as trustee of a trust (not
being a unit trust) to beneficiaries under the trust; or
(vii) with respect to securities intended to be disposed of to
persons outside Hong Kong or to be disposed of in Hong
Kong only to persons whose business involves the
acquisition, disposal, or holding of securities, whether as
principal or as agent; or
(b)that it is or contains an advertisement or invitation which a
person who is engaged in the business of buying and selling
property other than securities (either as principal or as agent)
may make or give in the ordinary course of that business; but
nothing in this paragraph authorizes any person to do anything





pursuant to or for the purpose of any investment arrangements in
respect of any such property.
(4) Subject to the provisions of this section, any person who contravenes
subsection (1) shall be guilty of an offence and shall be liable on conviction on
indictment to a fine of $500,000 and to imprisonment for 3 years.
(5) A person shall not be taken to contravene this section by reason only
that he-
(a)issues, or has in his possession for the purposes of issue, to
purchasers copies of any newspaper, journal, magazine, or other
periodical publication of general and regular circulation, which
contain an invitation to which this section relates; or
(b)issues advertisements which are or contain, or issues or has in his
possession for the purposes of issue documents which contain,
invitations to which this section relates to persons who are
dealers or investment advisers registered under the Securities
Ordinance (Cap. 333) or who are exempted from registration
under that Ordinance.
(6) For the purposes of any proceedings under this section, an
advertisement, invitation, or document which is or contains an advertisement or
invitation to enter into or offer to enter into any agreement referred to in
section 3(1) with a person specified in the advertisement, invitation, or
document shall, subject to subsection (5), be presumed, unless he proves to the
contrary, to have been issued by him.
(6A) For the purposes of subsection (2)(jb), the following conditions are
specified-
(a)the amount or denomination of the certificate of deposit is not
less than the sum specified in Part I of the Schedule;
(b)in the case of an overseas bank, the Commissioner of Banking
has declared in writing that he is satisfied that bank is likely to be
adequately supervised by the relevant authority of the place in
which it is incorporated or has its principal place of business.
(Added44of 1989s. 3)
(6B) For the purposes of subsection (2)(fe), the following conditions are
specified-
(a)the amount or denomination of the instrument is not less than
the sum specified in Part I of the Schedule;
(b)where the issue of the instrument is made by a corporation
having a share capital, the paid-up share capital of that
corporation is not less than the sum specified in Part V;
(e)where the issue of the instrument is made by a corporation
having a share capital and that corporation is a subsidiary
of another corporation ('parent corporation') having a share
capital-





(i)the paid-up share capital of that subsidiary is not less than the
sum specified in Part V; or

(ii) the issue of that instrument is guaranteed by that parent
corporation, and the paid-up share capital of that parent
corporation is not less than the sum specified in Part V.
(Added44of 1989s. 3)

(7) For the purposes of subsection (2)(g), the Commission may in authorizing
the issue of any advertisement, invitation, or document impose such conditions as
it thinks fit.

(8) For the purposes of subsection (3)(a)(i), the shares of a mutual fund
corporation or the units of a unit trust, being a mutual fund corporation or unit trust
which has not been authorized by the Commission pursuant to the Securities
Ordinance (Cap. 333), together with any prospectus in relation thereto, shall not be
treated as securities referred to therein. (Added44of]989 s.3)

[cf. 1958 c. 45 s. 14(1)-,(6) U.K.]

5. Offence to issue advertisement relating to an investment

management business unless registered

(1) A person shall not-

(a)issue, or have in his possession for the purposes of issue, any
advertisement in which to his knowledge a person other than an
investment adviser registered under the Securities Ordinance (Cap.
333) holds himself out as being prepared

(i) to give investment advice in return for remuneration; or

(ii) to undertake for remuneration the management of investors'
portfolios of securities; or

(b)issue or have in his possession for the purposes of issue any
document which to his knowledge contains such an advertisement.

(2) Any person who contravenes subsection (1) shall be guilty of an offence,
and shall be liable on conviction to a fine of $10,000.

(3) A person shall not be taken to contravene this section by reason only that
he-
(a)issues, or has in his possession for the purposes of issue, to
purchasers copies of any newspaper, journal, magazine, or other
periodical publication of general and regular circulation, which
contain an advertisement to which this section relates; or

(b)issues advertisements which are or contain, or issues or has in his
possession for the purposes of issue documents which contain,
invitations to which this section relates to persons who are dealers
or investment advisers registered under the Securities





Ordinance (Cap. 333) or who are exempted from registration
under that Ordinance.
(4) 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-
(a) to give investment advice in return for remuneration; or
(b)to undertake for remuneration the management of investors'
portfolios of securities,
shall, subject to subsection (3), be presumed, unless he proves to the contrary,
to have been issued by him.

6. Seizure etc. of documents

(1) If a magistrate is satisfied by information on oath that there is
reasonable ground for suspecting that, at premises that are specified in the
information, a person is in possession of any document which relates to an
offence alleged to have been committed against this Ordinance, the magistrate
may grant a warrant empowering an authorized officer of the Commission or
any police officer-
(a)to enter the premises, if necessary by force, at any time within 1
month from the date of the warrant; and
(b)to search for, seize and remove, any document found on the
premises which an authorized officer of the Commission or, as
the case may be, the police officer has reasonable grounds for
believing to have been involved in or connected with the alleged
offence. (Amended 10 of 1989 s. 65)
(2) Any document seized under subsection (1) may be retained for a
period of 6 months or, if within that period any proceedings in respect of an
offence against this Ordinance are commenced and the document is relevant to
those proceedings, until the conclusion of those proceedings.
(3) Notwithstanding subsection (2), a document seized under subsec-
tion (1) may be retained for a period longer than 6 months if the person entitled
to it is not in Hong Kong or his whereabouts are unknown; and if-
(a)that person subsequently returns to Hong Kong or his
whereabouts subsequently become known; and
(b)within 14 days of his return or the discovery of his whereabouts,
any proceedings in respect of an offence against this Ordinance
are commenced, and the document is relevant to those pro-
ceedings,
the document may be retained until the conclusion of those proceedings.
(4) The person to whom a document seized under subsection (1) belongs
shall, unless the document is the subject of an order under subsection (5), be
entitled at all reasonable times to take copies of or extracts from it.





(5) Where any person is convicted of an offence against this Ordinance,
the court dealing with the case may make an order authorizing the destruction,
or the disposal in any other specified manner, of any documents produced to
the court which are shown to its satisfaction to be involved in or connected with
the commission of the offence; but an order under this subsection may not
authorize the destruction or disposal of a document before the conclusion of the
proceedings to which the order relates.
(6) Subject to subsections (2), (3), (4), and (5), section 102 of the Criminal
Procedure Ordinance (Cap. 221) (which makes provision for the disposal of
property connected with offences) shall apply to property which has come into
the possession of an authorized officer of the Commission or the police under
this section in the same way as it applies to property which has come into
the possession of the police in the circumstances mentioned in that section.
(AmendedL.N. 38 of 1974; 10 of 1989 s. 65)
(7) Any person who-
(a)obstructs the exercise of any right of entry or search conferred by
virtue of a warrant under this section; or
(b)obstructs the exercise of any right so conferred to seize any
document,
shall be guilty of an offence and liable on conviction to a fine of $5,000 and to
imprisonment for 6 months.
[cf. 1958 c. 45 s. 14 (8)-(11) U.K.]

7. Liability of directors, etc.

(1) Where an offence against this Ordinance committed by a company or
other body corporate is proved to have been committed with the consent or
connivance of, or to be attributable to any neglect on the part of, any director,
manager, secretary, or other similar officer of the company or body corporate
or any person who was purporting to act in any such capacity, he, as well as
the company or body, shall be guilty of the offence and shall be liable to be
proceeded against and punished accordingly.
(2) Subject to subsection (3), for the purposes of this section, a person is
deemed to be a director of a company or other body corporate if he occupies
the position of a director by whatever name called, or is a person in accordance
with whose directions or instructions the directors of the company or other
body corporate or any of them act.
(3) A person shall not, by reason only that the directors of a company or
other body corporate act on advice given by him in a professional capacity, be
taken to be a person in accordance with whose directions or instructions those
directors act.
[cf. 1963 c. 16 s. 22 U.K.]





7A. Submission of information to Commission

(1) Subject to subsections (2) and (4), every-
(a) authorized institution;
(b) exempted body;
(c)multilateral agency or authorized representative of that agency;
or
(d) overseas bank or authorized representative of that bank,
shall submit to the Commission within 10 working days after the issue by any
person of any advertisement, invitation or document referred to in section 4(2)
(fa), (ft) or (fic) such information with respect to that advertisement, invitation
or document, and in such form, as the Commission may specify by notice in the
Gazette.
(2) The Commission may, by notice published in the Gazette, specify for
any purpose or by reference to any special circumstances a number of working
days in substitution for the number of working days referred to in subsec-
tion (1).
(3) Any person who contravenes subsection (1) commits an offence and
is liable 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.
(4) This section does not apply to the issue of any advertisement,
invitation or document to which section 4(3) or (5) applies.
(5) For the purposes of subsection (1) 'authorized representative', in
relation to the issue of any advertisement, invitation or document, means any
person resident in Hong Kong who is authorized by a multilateral agency or
overseas bank, as the case may be, to act for and on behalf of that agency or
bank with respect to that issue.
(Added44of 1989s. 4)

Action in Tort

8. Liability in tort for inducing persons
to invest money in certain cases

(1) Any person who, by any fraudulent, reckless, or negligent mis-
representation, induces another person-
(a) to enter into any agreement-
(i) for or with a view to acquiring, disposing of, subscribing for,
or underwriting securities; or





(ii) the purpose or effect, or pretended purpose or effect, of which is
to secure to any of the parties to the agreement a profit from the
yield or securities or by reference to fluctuations in the value of
securities or property other than securities; or

(b) to take part in any investment arrangements in respect of

property other than securities,

shall be liable to pay compensation to that other person for any pecuniary loss
that he has sustained by reason of his reliance on the misrepresentation.

(2) For the purposes of subsection (1) 'Traudulent, reckless, or negligent
misrepresentation' means

(a) any statement

(i) which to the knowledge of its maker was false, misleading, or
deceptive;

(ii) which is false, misleading, or deceptive and was made recklessly;
or

(iii) which is 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 (Amended L.N. 56 of 1974)

(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 facts known to him at the time when he made it;
or (Amended L.N. 38 of 1974; 56 of 1974)

(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 of the statement

intentionally, recklessly, or negligently omitted a material fact of
which he had knowledge or ought to have had knowledge, with the
result that the statement was thereby rendered untrue, misleading, or
deceptive, or, as the case may be, the forecast was thereby not
capable of being justified or was thereby rendered misleading or
deceptive.





(3) For the purposes of this section-

(a)where any statement, forecast, or promise to which this section
relates was made by a company or other body corporate, every
person who was a director of the company or body corporate at the
time when the statement, forecast, or promise was made shall, in the
absence of evidence to the contrary, be taken to have caused or
authorized it to be made; and

(b)a person is deemed to be a director of a company or other body
corporate if he occupies the position of director by whatever name
he may be called, or is a person in accordance with whose directions
or instructions the directors of the company or other body or any of
them act; but a person shall not, by reason only that the directors of
a company or other body corporate act on advice given by him in a
professional capacity, be taken to be a person in accordance with
whose directions or instructions those directors act.

(4) Nothing in this section limits or diminishes any liability which any person
may incur under the common law.

(5) This section does not confer a right of action in any case to which section
40 of the Companies Ordinance (Cap. 32) applies.

(6) An action may be brought under this section whether or not a person has
been charged with or convicted of an offence under this Ordinance.

Miscellaneous

9. Amendment of Schedule

(1) The Financial Secretary may, by notice in the Gazette, amend Part I of the
Schedule.

(2) The Commission may, after consultation with the Financial Secretary, by
notice in the Gazette, amend Parts II, III, IV and V of the Schedule.

(Added44of 1989s. 5)

SCHEDULE [ss. 2, 4(2) & 9]

PART I

MiNimum DENOMINATION

The sum specified for the purposes of section 4(2)(jb) and (fc) is $1 million or its
equivalent in any other currency.





PART II

INSTRUMENTS

1.A bill of exchange within the meaning of section 3 of the Bills of Exchange Ordinance
(Cap. 19).

2. A promissory note within the meaning of section 89 of the Bills of Exchange Ordinance

(Cap. 19).

3. Any other instrument which evidences an obligation to pay a stated amount to bearer
or to

order, on or before a fixed time, with or without interest, being an instrument by the
delivery
of which, with or without endorsement, the right to receive that stated amount, with or
without interest, is transferable.

PART III

MULTILATERAL AGENCIES

1. The African Development Bank.

2. The Asian Development Bank.

3. The European Investment Bank.

4. The Inter-American Development Bank.
5. The International Bank for Reconstruction and Development (commonly known as the

World Bank).

PART IV

EXEMPTED BODIES

1 .Hong Kong Export Credit Insurance Corporation.

2. The Hong Kong Industrial Estates Corporation.

3. Hong Kong Productivity Council.
4. Hong Kong Tourist Association.
5. Hong Kong Trade Development Council.
6. The Vocational Training Council.

PART V

MINIMUM PAID-UP SHARE CAPITAL

The sum specified for the purposes of section 6B(b) and (e) is $75 million or its equivalent in

any other currency.

(Added44of 1989s. 5)

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