202
LAW, ORDER AND RECORDS
to register certain documents with the Companies Registry within one month after the establishment of a place of business in Hong Kong.
1960 saw the registration of more new companies than ever before. Registrations at 642 exceed the peak recorded in 1959 by 196, and at the year's end there were 4,181 local companies on the register, compared with 3,625 the year before. The sharp rise in registrations at the end of 1959, apparently inspired by optimism about business prospects, continued steadily into 1960 and to the end of the year. There are no discernible signs yet of any reversal of this upward curve in company formations, and it is likely that the coming year may even see a steepening of the curve as the tempo of corporate activities quickens in time with the increase in business confidence.
During the year 36 foreign companies established places of business in the Colony and registered the documents required under the Ordinance, bringing the total of these companies to 424 at the close of the year. The figures for the preceding year were 42 and 404 respectively.
Insurance companies, local and foreign, who wish to transact life, fire or marine insurance business in Hong Kong must make security deposits with the Registrar of Companies. This require- ment also applies to motor vehicle third party insurance business, but the authority with whom the deposits are maintained is the Accountant General. The desirability is now being considered of replacing the present insurance legislation by a modern law that imposes tests of solvency.
At the end of 1960, there were 21 companies transacting life insurance business, 24 companies in fire insurance and 21 in marine insurance; 110 companies engaged in both fire and marine insurance business, and 4 companies engaged in all three classes.
The other functions of the Companies Registry include the registration of limited partnerships, Chinese partnerships and money lenders. At the year's end there were 6 limited partnerships, 23 Chinese partnerships and 13 money lenders on their respective registers.