Shareholders to be Held Responsible for Debts closer governmental check into banking affairs, when banking institu. tions are forced into fquidation, has been ordered by the authorities. the "future, when banks close their doors, or apply to go into liquidation, fan examination will be made into the state of their capitalization, in order to ascertain whether of not the capital has been fully paid up.
In the case of the Kashing Commercial Bank, which went into liquidation recently, investigations by the Chekiang authorities by order of the Ministry of Finance, revealed" that the bank's capital was not fully paid up. The authorities have now ordered the bank's shareholders to, pay up their shares in full before liquidation proceedings are continued.
Under the new regulations, banks which have been found to have sus twined financial losses due to specu: tion, oF those whose capital has not been fully paid up, will not be allowed liquidation until proper adjust ments have been made. In addition not only the management of the banks, but also the shareholders, will be held responsible for the payment lof the institutions' debts
Text read from the printed page and cleaned; old type leaves the occasional error.