Full resolution (JPEG) - On this page / på denna sida - XI. Banking, Credit, and Insurance - 2. Banking. By I. Hultman
<< prev. page << föreg. sida << >> nästa sida >> next page >>
Below is the raw OCR text
from the above scanned image.
Do you see an error? Proofread the page now!
Här nedan syns maskintolkade texten från faksimilbilden ovan.
Ser du något fel? Korrekturläs sidan nu!
This page has never been proofread. / Denna sida har aldrig korrekturlästs.
674
xi. banking, credit, and insurance.
is not less than a million kronor shall contain the words "enskild bank"; if the
capital is below that amount, it shall contain the word "folkbank" (people’s bank).
The shareholders in limited liability banking companies must be of Swedish
nationality, and number at least twenty. An unlimited liability banking
company must consist of at least thirty principal stockholders, who must be of
Swedish nationality, and the principal stockholders are liable jointly and severally
for all the commitments of the company. (The procedure by which the creditors
of the company can enforce this liability is laid down in the Unlimited Liability
Banks Bankruptcy Act of the Sept. 18 1903.) Every principal stockholder
shall file with the banking company a signed and attested document stating
the amount of stock he holds. A stockholder is not entitled to withdraw from
the company during the term of the charter, unless he obtain the company’s
express consent. The principal stockholders may, if they so desire, associate with
themselves a number of limited liability stockholders (kommanditlottägare) —
whose holdings may amount to half the original subscribed capital; such
stockholders are not liable for more than they have invested or engaged to invest in
the company. The shares in joint-stock banking companies and the stock in
unlimited banking companies shall be personal and inscribed. (The shares of
certain earlier joint-stock banking companies are still drawn out to bearer.) The
board of directors is under the obligation to keep a share or stock transfer
register (aktiebok or lottbok), in which all transfers of shares and stock shall be
immediately recorded. This transfer register shall be open to the inspection of
the public during banking hours. — Out of the annual profit at least 15 % shall
be appropriated to the reserve fund, as long as the latter does nöt amount to
50 % of the original subscribed capital. — As regards the business of banking the
following enactments are in force: A banking company is only entitled, on its
own account, to trade in gold, domestic and foreign coins, bills, cheques, drafts,
and bonds. (With regard to the right of certain banks to deal in stocks and
shares, see below.) A banking company is not permitted to acquire any real
property except for its own premises. However, a banking company is permitted
to take over personal or real property to cover an outstanding claim, if
otherwise loss would manifestly be incurred. A banking company is not permitted
to acquire or receive as a security its own shares, and an unlimited liability
banking company is not permitted to acquire or receive by way of security its
own stock or the principal stock of another similar banking company. A banking
company whose reserve fund exceeds 50 % of the original capital is entitled to
invest any surplus beyond that figure in the shares of an underwriting bank.
Moreover, if the original capital and the reserve fund of the banking company
amount together to at least six million kronor, the banking company is entitled
to hold other shares up to half the amount of the above-mentioned surplus for
which the right to hold shares in. an underwriting bank has not been utilized.
— The amount received by the banking company in the form of deposits shall
not exceed five times the amount of the company’s own funds, besides which
the banking company shall in its till or in readily negotiable assets show a cash
reserve to the extent of at least 25 % of the bank’s liabilities at call. In
deposits repayable after expiry of notice the certificate issued by the bank shall
be drawn out to a definite person named and shall contain the stipulation that
any transfer must be by endorsement to a definite person named. On a
customer’s savings-bank account interest is only payable on deposits not exceeding
3 000 kronor. A banking company shall not engage to repay deposits on a
savings-bank account without at least a week’s notice; moreover every deposit
and every withdrawal shall be entered in a pass-book to be supplied by the
bank to the holder of the account.
Bank Inspection. The inspection of banks devolves upon a special office
<< prev. page << föreg. sida << >> nästa sida >> next page >>
