FINANCIAL AND MONETARY AFFAIRS
turnover and changes in customer demands. From the commencement of its operation, on August 1, 1993, until the end of its first financial year, on March 31, 1994, the Companies Registry Trading Fund had managed to generate a surplus of $15.6 million $11.3 million in excess of the budgetted surplus. This was mainly due to lower than expected interest rates and delays in filling staff vacancies. The trading fund status has also helped the registry to respond more swiftly to customer needs and to improve its services.
During the year, having successfully obtained additional office accommodation, the registry was able to provide larger and extensively refurbished public areas for its customers. At the same time, the registry's control book and document index for incoming documents were computerised. The registry's customers are now able to use, free of charge, the improved computer terminal facilities for tracing company documents filed, as well as company names searches.
The Companies Ordinance is subject to continual revision and improvement on the advice of the Standing Committee on Company Law Reform, which was established in 1984. The primary task of the committee is to ensure that Hong Kong's company law meets the up-to- date needs of government and business. In his 1994-95 budget speech, the Financial Secretary announced that an overall review of the Companies Ordinance would be carried
out.
On April 29, 1994, the provisions in the Companies (Amendment) (No. 2) Ordinance 1993, governing the filing of annual returns, were implemented. Under these provisions, private companies with a share capital must file their annual returns within 42 days of the anniversaries of their dates of incorporation, instead of within 42 days of their annual general meetings. These arrangements enable most companies in Hong Kong to file their annual returns on dates more evenly distributed throughout the year, instead of every January or February. The same date also saw the implementation of the requirement for all listed companies in Hong Kong to report to the registry details of all the directorships held by their directors. A computerised directors' index of all listed companies became available for public search in November.
The Companies (Amendment) Ordinance 1994 was enacted in May. The principal purpose of this legislation is to introduce improved provisions to disqualify certain persons from becoming company directors and liquidators, or being in any way concerned with the promotion, formation or management of a company. Particulars of such disqualifications are recorded in a register maintained by the Registrar of Companies and made available for search by the public.
On incorporation under the Companies Ordinance, a local company pays a registration fee of $1,450, plus $6 for every $1,000 of nominal capital. In 1994, 42 723 new companies were incorporated. The nominal capital of new companies registered totalled $6,380 million. Of the new companies registered, 277 had a nominal share capital of $5 million or more. During the year, 9 905 companies increased their nominal capital by amounts totalling $45,636 million. At the end of the year, there were 452 789 local companies on the register, compared with 415 911 in 1993.
Companies incorporated overseas are required to register certain documents with the registry, within one month of establishing a place of business in the territory. A registration fee of $715 and some incidental filing fees are payable in such cases. During 1994, 573 of these were registered. At the end of the year, 3 956 companies were registered from 75
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