Hong Kong Ordinances

BANKING ORDINANCE - SECT 70D

Punishment for attempted evasion of restrictions

(Past version on 24/05/2002).
(Past version on 30/06/1997).

(1) Any person who-

   (a)  exercises or purports to exercise any right to dispose of any shares,
        or of any right to be issued with any such shares, knowing that to do
        so contravenes any restrictions under section 70B(3) to which the
        shares are subject; (Replaced 32 of 2001 s. 15)

   (b)  votes in respect of any such shares as holder or proxy knowing that to
        do so contravenes any such restrictions; (Replaced 32 of 2001 s. 15)

   (c)  appoints a proxy in respect of any such shares knowing that to vote in
        respect of any such shares would contravene any such restrictions;
        (Replaced 32 of 2001 s. 15)

   (d)  being the holder of any such shares, fails to notify of their being
        subject to those restrictions any person whom he does not know to be
        aware of that fact but does know to be entitled (apart from the
        restrictions) to vote in respect of those shares whether as holder or
        as
proxy; or   (Replaced 32 of 2001 s. 15)


   (e)  being the holder of any such shares, or being entitled to any right to
        be issued with other shares in right of them, or to receive any
        payment on them (otherwise than in a liquidation), enters into any
        agreement which is void under section 70B(4) or (5), (Added 32 of 2001
        s. 15) commits an offence and is liable-

        (i)    on conviction upon indictment to a fine at tier 7 and to
               imprisonment for 2 years; or

        (ii)   on summary conviction to a fine at tier 5 and to imprisonment
               for 6 months.

(2) Where shares in an authorized institution or another company are issued in
contravention of restrictions under section 70B(3), or payments are made by an
authorized institution or another company in contravention of such
restrictions, any director, chief executive or manager of the
authorized institution or other company, as the case may be, who knowingly and
wilfully permits such an issue of shares or the making of such a payment, as
the case may be, commits an offence and is liable- (Amended 32 of 2001 s. 24;
19 of 2005 s. 13)

   (a)  on conviction upon indictment to a fine at tier 7 and to imprisonment
        for 2 years; or

   (b)  on summary conviction to a fine at tier 5 and to imprisonment for 6
        months. (Added 95 of 1991 s. 18. Amended 4 of 1997 s. 27)