INDUSTRY AND TRADE
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were registered and 58 ceased to operate. At the end of 1981, 1 547 companies were registered from 55 countries, including 361 from the United States, 206 from Britain and 170 from Japan.
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All insurance companies wishing to transact life, fire or marine insurance business in Hong Kong must comply with the provisions of either the Life Insurance Companies Ordinance or the Fire and Marine Insurance Companies Deposit Ordinance. In addition to the filing of annual accounts, these ordinances require deposits to be made with the 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 is
– maintaining similar deposits elsewhere in the Commonwealth. Under the Life Insurance Companies (Amendment) Ordinance, 1981, and the Fire and Marine Insurance Companies Deposit (Amendment) Ordinance, 1981, which came into effect on January 9, 1981, companies transacting life, fire or marine insurance business and to which no exemption has been given are required to have a minimum paid-up capital of $5 million and a solvency margin of $2 million (or $4 million when the company carries on both life and fire or marine insurance business). The approval of the Registrar General must be obtained for transac- ting motor vehicle third party risks insurance business. There are 286 insurance companies, including 126 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 Companies (Capital Requirements) Ordinance 1978. This ordinance, subject to certain exceptions, 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.
During the year, progress was made on the drafting of a new, comprehensive Insurance Companies Bill to cover all classes of insurance business. It is expected the bill will be submitted to the Legislative Council in the first half of 1982.
The Companies Registry also deals with the incorporation of trustees under the Registered Trustees Incorporation Ordinance, and with the registration of limited partner- ships.
Money Lenders
The old system of registration of money lenders which had been in force since 1912 was superseded on December 12, 1980 by a licensing system introduced by the new Money Lenders Ordinance which came into effect on that date. Anyone wishing to carry on business as a money lender now has to apply to a Licensing Court consisting of a magistrate and two lay assessors. In the first instance, the application is submitted to the Registrar General as Registrar of Money Lenders and a copy is sent at the same time to the Commissioner of Police, who may object to the application. The application is advertised and any member of the public who has an interest in the matter also has the right to object to the application.
The ordinance provides severe penalties for a number of statutory offences such as carrying on an unlicensed money lending business. It also provides that any loan made by an unlicensed money lender shall not be recoverable by court action. There is a completely new provision that any person, whether a money lender or not, who lends or offers to lend money at an interest rate exceeding 60 per cent per annum, commits an offence and that no