INDUSTRY AND TRADE
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Registrar of Companies, unless the company is exempt. This exemption depends on the obtaining of a certificate from the insurance division of the Department of Trade in London, stating that the company is authorised under the Insurance Companies Act 1974 to carry on insurance business in Britain or - in the case of fire and marine insurance - maintaining similar deposits elsewhere in the Commonwealth. The approval of the Registrar General must be obtained for transacting motor vehicle third party risks insurance business. There are 338 insurance companies, including 166 local companies, transacting life, fire, marine or motor vehicle insurance business in Hong Kong.
All insurance companies also have to comply with the provisions of the Insurance Com- panies (Capital Requirements) Ordinance 1978. This ordinance restricts the commencement of life, fire, marine or motor vehicle insurance business to companies formed or registered under the Companies Ordinance which have an issued capital of not less than $5 million fully paid up in cash. Companies which, prior to February 1, 1978, had met the then existing statutory requirements for the carrying on of those classes of insurance business, but had not yet commenced to carry on such business, and companies and members of Lloyds fully authorised to carry on similar lines of insurance business in Britain are, however, exempt from the restrictions of this ordinance.
The Companies Registry also deals with the incorporation of trustees under the Registered Trustees Incorporation Ordinance, and with the registration of limited partnerships and money-lenders.
Bankruptcies and Liquidations
In Hong Kong, the number of business failures leading to formal insolvency proceedings in court is always comparatively small in relation to the total number of businesses closing down. During the year, there were 56 petitions in bankruptcy and 111 petitions for the com- pulsory winding-up of companies. The court made 36 receiving orders, two administration orders, and 70 winding-up orders. As in past years, the Official Receiver was appointed trustee or liquidator in almost every case. Assets realised by the Official Receiver during 1979 amounted to some $31 million. In addition to these compulsory windings-up, 569 companies went into voluntary liquidation - 534 by members' voluntary winding-up and 35 by creditors' voluntary winding-up.
The Bankruptcy (Amendment) Ordinance 1979 was enacted on April 27 in order to give effect to the introduction of criminal bankruptcy into the penal system by the Criminal Procedure (Amendment) (No. 2) Ordinance 1979. The Bankruptcy (Amendment) Rules 1979 and the Bankruptcy (Forms) (Amendment) Rules 1979 were made on May 18 and June 5, respectively, consequent to the introduction of the new provisions.