Hong Kong Ordinances

BANKING ORDINANCE - SECT 70A

Objection to existing controllers

(1) This section shall apply to a person being-

   (a)  a majority shareholder controller; or

   (b)  an indirect controller, of an
        authorized institution incorporated in Hong Kong as it applies to a
        person being a minority shareholder controller of an authorized 
        institution incorporated in Hong Kong.

(2) In this section, unless the context otherwise requires, "notice of
objection" (反對通知書) means a notice in writing objecting to the person
specified in that notice being a minority shareholder controller of the
authorized institution specified in that notice.

(3) Subject to subsection (4), the Monetary Authority may serve a
notice of objection on a person-

   (a)  who is a minority shareholder controller of an authorized 
        institution incorporated in Hong Kong where-

        (i)    his being such a controller is not in contravention of section 
               70 (3); or

        (ii)   his being such a controller is in contravention of that section
               but the Monetary Authority is prohibited by virtue of section 
               70 (9)(b) from serving a notice of objection under
               section 70(6) on him; and

   (b)  where it appears to the Monetary Authority that-

        (i)    that person is not or is no longer a fit and proper person to
               be such a controller;

        (ii)   the interests of depositors or potential depositors of that
               institution may be in some other manner threatened by that
               person being such a controller; or

        (iii)  that person has contravened any condition specified in a
               conditional notice of consent served under section 70(6) on
               him.

(4) The Monetary Authority shall, before serving a notice of  objection on a
person, serve on that person a preliminary notice in writing-

   (a)  stating that the Monetary Authority is considering the service on him
        of a notice of objection;

   (b)  specifying which of the matters referred to in subsection

(3)(b) in respect of which the Monetary Authority is considering the service
on him of the notice of objection; and

   (c)  stating that he may, within 1 month from the date of service of the
        preliminary notice, make written representations to the Monetary 
        Authority.

(5) Where representations are made in accordance with subsection

(4)(c), the Monetary Authority shall take them into account in deciding
whether to serve the notice of objection concerned.

(6) A notice of objection-

   (a)  shall, subject to paragraph (b), specify which of the matters referred
        to in subsection (3)(b) on which the notice is served;

   (b)  shall not specify any such matters which were not specified in the
        preliminary notice served under subsection (4) on him; and

   (c)  shall give particulars of the right conferred by subsection

(8).

(7) The Monetary Authority shall not be obliged to disclose to a person any
particulars of the matters referred to in subsection (3)(b) on which he is
considering the service on him or has served on him, as the case may be, a
notice of objection.

(8) (Repealed 4 of 1997 s. 27) (Added 95 of 1991 s. 18. Amended 82 of 1992 s.
25)

"notice of objection" (反對通知書)