Schedule 1 Contraventions with Financial Penalties Stipulated

ARTICLE CREATING CONTRAVENTION GENERAL NATURE OF CONTRAVENTION MAXIMUM FINANCIAL PENALTY (US$)
20 Failing to register a return as to allotments $2,000
19 Allotment of Shares without QFC Authority's non-objection $20,000
22(2) Non-compliant registration of transfer of Shares $2,000
22(3) Transfer of Shares without QFC Authority's non-objection $20,000
24 Non-compliance with requirements in relation to certificates of Shares $2,000
25(4) Investment Club issues bearer Shares $5,000
26(3) Failing to give notice of altered share capital $2,000
28(3)(b) Failing to obtain signatures from 2 directors $2,000
28(5) Failing to give notice of a reduction in capital $2,000
30 Providing financial assistance $2,000
31 Unlawful dividend or other distribution $5,000
34 Failure to register change of name with CRO $2,000
36 Investment Club failing to change name on direction of CRO $2,000
37 Improper use of "Limited Liability Company (Investment Club)" $2,000
39(1)(a) Investment Club failing to have a registered office in the QFC $2,000
39(1)(b), Investment Club failing to carry out its principal activity at or from the registered office without permission from the QFC Authority to carry on such activity at or from another place within the QFC $2,000
40 Failure to notify change of registered office $2,000
41 Investment Club failing to keep internal registers $2,000
42 Failure of name to appear outside place of activities $2,000
43 Investment Club failing to have name etc. on certain Documents $1,000
44 Investment Club failing to lodge annual return $2,000
46 Investment Clubs failing to ensure that articles of associations are compliant $10,000
47 Investment Club failing to register alteration of Articles $2,000
49 Failure of an Investment Club to have at least one director $2,000
49 Investment Club failing to register a resignation, removal or appointment of director(s) $2,000
49 Investment Club failing to register a change in director's particulars $1,000
52 Directors failing to comply with duties $2,000
53 Director failure to disclose interest $2,000
54 Investment Club providing financial assistance to director without consent $2,000
57 Investment Club failing to have a Senior Executive Function $2,000
58 Investment Club failing to have a secretary $2,000
58 Investment Club failing to register the appointment or resignation of a secretary $2,000
58 Investment Club failing to register change of secretary's particulars $1,000
61 Failure to hold a Members' meeting in accordance with Article 61 $5,000
62 Investment Club default in complying with CRO's direction to hold Investment Club meeting $15,000
75 Investment Club failure to submit resolutions to CRO $2,000
76(1) Failure to appoint an finance officer or administration officer if required to do so $5,000
76(2) Non-compliant maintenance of accounting records $10,000
77(2)(a) and (b) Failure to keep and preserve accounting Records $10,000
76(2)(c) Failure to make accounting Records available for inspection $5,000
79(3) Failure of directors to approve and sign accounts $5,000
79(4) Failure to comply with requirements within 4 months $10,000
79(5) Failure to file accounts with CRO $2,000
80(3) Failure to provide accounts $10,000
81 Publication of accounts without auditors' report $5,000
82 Acting as auditor when not qualified $10,000
83(1) Failure to register the initial appointment of, or a change in respect of its auditor $2,000
83(6) Investment Club failing to notify the CRO of the removal of its auditor $10,000
85 Failure of auditor to comply with resignation requirements $5,000
85(4) Failure to file auditor's resignation with CRO $10,000
86 Failure of auditor to make a report as required $5,000
87(1) and (2) Auditor failing to fulfil duties $5,000
87(3), (4), (5) and 91 Investment Club and officers etc. not co-operating with auditor $5,000
89 Investment Club and officers etc. obstructing auditor $5,000
93(2) Receiving or making payments in cash to members or in relation to Assets $15,000
94(1) Failure to appoint Custodian when required to do so. $2,000
130 of the Companies Regulations Failure to comply with direction of CRO $15,000
132 of the Companies Regulations Provision of false or misleading information to the CRO $50,000
149(5) of the Companies Regulations Failure to sign declaration $5,000
151(3) of the Companies Regulations Offeror failing to give minority Member notice of rights $5,000

Derived (as from 20th December 2016).