Hong Kong Ordinances

DEPOSIT PROTECTION SCHEME ORDINANCE - SECT 32

Board’s duties and powers on occurrence of specified event

Division 3—Payment of compensation and related matters

(1) If a specified event has occurred in relation to a Scheme member—

   (a)  the Board shall as soon as practicable after the occurrence inform the
        depositors of the Scheme member by notice published in any daily
        newspaper in circulation in Hong Kong, or by other means the Board
        considers appropriate, of the occurrence; and

   (b)  the Board—

        (i)    may, for the purpose of performing its functions, require a
               depositor, or each depositor of a class of depositors, of the
               Scheme member to supply the Board with information and
               documents in support of the entitlement of the depositor or
               other persons to compensation under Division 2; and

        (ii)   shall thereupon inform the depositors concerned by notice
               published in any daily newspaper in circulation in Hong Kong,
               or by other means the Board considers appropriate, of the
               requirement.

(2) If a specified event has occurred in relation to a Scheme member—

   (a)  the Board, or a person appointed as an agent of the Board or
        authorized by the Board under this Ordinance, may, for the purpose of
        the performance by the Board of its functions under this Ordinance,
        have access to the premises and records of the Scheme member; and

   (b)  every director, chief executive, manager, employee or agent of the
        Scheme member, the liquidator or provisional liquidator of the Scheme
        member, or any person in possession of the records of the Scheme
        member, shall, subject to subsection (3)—

        (i)    afford the Board, or a person appointed as an agent of the
               Board or authorized by the Board under this Ordinance, access
               to those records; and

        (ii)   provide such assistance to the Board, or such a person so
               appointed or authorized, as the Board or person may require for
               the exercise of the power under paragraph (a).

(3) The Board shall not require the disclosure by a solicitor or counsel of
any privileged communication, whether oral or written, made to or by him in
that capacity.

(4) Any person who, without reasonable excuse, contravenes subsection (2)(b)
commits an offence and is liable on conviction to a fine at level 5 and to
imprisonment for 6 months.

(5) If a specified event has occurred in relation to a Scheme member, the
Board shall decide in accordance with this Ordinance—

   (a)  whether a depositor of the Scheme member or any other person is
        entitled, in respect of the depositor’s protected deposit with the
        Scheme member, to compensation under Division 2; and

   (b)  if he is, the amount of compensation to which he is entitled under
        Division 2.

(6) In making a decision under subsection (5), the Board may rely on the
records obtained from the Scheme member except to the extent of any manifest
error that appears on the face of those records.

(7) The Board shall as soon as practicable after a decision has been made
under subsection (5)—

   (a)  notify the depositor of its decision in writing; and

   (b)  if applicable, pay the compensation, subject to section 35, to the
        depositor from the Fund.

(8) In this section— “agent” (代理人), in relation to a Scheme
member, includes—

   (a)  the bankers and solicitors of the Scheme member; and

   (b)  any persons, whether officers of the Scheme member or not, who are
        engaged as the auditors of the Scheme member; “manager” (經理)
        has the meaning assigned to it by section 2(1) of the
        Banking Ordinance ( Cap 155); “records” (紀錄), in relation to a
        Scheme member, includes books, accounts, records of transactions and
        information systems of the Scheme member.

(9) In this section, any reference to a director, chief executive, manager,
employee or agent of a Scheme member includes a person who has been but no
longer is a director, chief executive, manager, employee or agent of the
Scheme member. “agent” (代理人) “manager” (經理) “records”
(紀錄)