SECTION 54.

I move amendment No. 65:

In page 55, subsection (3) (b), line 8, to delete "this section was complied with" and substitute "section 15, 27 or 52 (3) of this Act was complied with".

This is a technical amendment which corrects the incorrect reference to compliance with "this section". The reason for the amendment is that subsection (1) of this section provides, in certain circumstances, for the High Court making an order declaring on officer or member firm of the stock exchange to be personally liable for its debts. The circumstances are where the exchange or member firm is insolvent and is being wound up, and it has breached its obligation to keep proper books and records or to comply with client money obligations and that the breach has contributed to its insolvency. Subsection (3) provides that the court shall not make such an order if it considers that the person in question took all reasonable steps himself to ensure, or believed someone else was responsible for ensuring, compliance with the firm's books and record obligations and its client money requirements. Compliance with this section, therefore, does not arise. The correct reference is to compliance with the provisions relating to books and records in sections 15 and 27 and to client money provisions in section 52 (3). The amendment substitutes the correct references in relation to the approved stock exchanges — sections 15 and 27 — and member firms and the obligations, as outlined already, in relation to client money requirements in section 52.

It applies to the client money as well as to other matters?

Amendment agreed to.

I move amendment No. 66:

In page 55, subsection (5), lines 16 and 17, to delete ", 197 or 242 of the Companies Act, 1990" and substitute "of the Companies Act, 1990 or section 35 or 70 (7) of this Act".

This amendment changes the references to particular offence provisions in the Companies (Amendment) Act, 1990, to references to corresponding offence provisions in the Bill itself. Section 54 deals with the situation where a member firm or stock exchange is insolvent, is being would up, has contravened sections 15, 27 or 52 (3) of the Bill and where the contravention has contributed to its insolvency. In such a situation, the High Court can hold one of the officers personally liable for the debts of the member firm or stock exchange. Subsection 54 (5) provides that the term "officer" should include a person who has been convicted of an offence under sections 194, 197 or 242 of the Companies Act, either of offences of misleading an auditor or failing to provide information to an auditor or producing false statements or documents. Since section 35 of the Stock Exchange Bill corresponds to section 197 of the Companies (Amendment) Act, 1990, and section 70 (7) corresponds to section 242 of the Companies (Amendment) Act, 1990, these references to Stock Exchange Bill offences are being substituted for those Companies Act references. As I explained previously to Deputy McCreevy and Deputy McDowell in relation to the number of amendments, certain sections of this legislation have been taken from companies legislation and that is why there are incorrect or inappropriate references in places.

Amendment agreed to.
Section 54, as amended, agreed to.
Section 55 agreed to.