FINANCIAL AND MONETARY AFFAIRS
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countries, including 756 from the British Virgin Islands, 747 from the United States of America, 383 from the United Kingdom, 349 from Bermuda, 336 from Japan and 53 from China.
The registry has taken vigorous action to remove from its records those companies that have become defunct. Such companies include those caught under the provisions of Section 290A of the Companies Ordinance, namely, companies that have failed to file annual returns for two consecutive years. Special teams of staff have been formed to pursue this objective. Once the registry's database has been purged of defunct company details, it will become more meaningful for the department to pursue its longer-term plans of providing remote search facilities for its customers, and other technical improvements regarding the retention and retrieval of company information.
Money Lenders
Under the Money Lenders Ordinance, anyone wishing to carry on business as a money lender must apply to a licensing court for a licence. The ordinance does not apply to banks and deposit-taking companies authorised under the Banking Ordinance.
Any application for a licence is, in the first instance, submitted to the Registrar of Companies as Registrar of Money Lenders. A copy is also sent 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. During the year, 763 - applications were received and 158 licences were granted. At the end of 1994, there were
736 licensed money lenders.
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. With certain exceptions (primarily authorised institutions under the Banking Ordinance), any person, whether a licensed money lender or not, who lends or offers to lend money at an interest rate exceeding 60 per cent per annum commits an offence. Any agreement for the repayment of any such loan, or security given in respect of such a loan, is unenforceable.
Bankruptcies and Compulsory Winding-up
The Official Receiver's office administers the estates of individual bankrupts and com- panies ordered to be compulsorily wound up by the High Court.
Once a receiving order is made against the property of an individual debtor or a winding- up order against a company by the High Court, the Official Receiver becomes the interim receiver or provisional liquidator of the debtor or company, respectively.
Where the assets of an estate are unlikely to exceed $200,000 in value, the Official Receiver applies to the High Court for a summary procedure order and is appointed trustee or liquidator. In other cases, meetings of creditors in bankruptcy, or of creditors and contributories in compulsory liquidations, are held to decide whether the Official Receiver or some other fit person from the private sector should be appointed trustee or liquidator. If a debtor submits a proposal for a composition in satisfaction of his debts or a scheme of arrangement of his affairs, he will not be adjudged bankrupt if the proposal is accepted by a majority of his creditors and the High Court. As in past years, the Official Receiver was appointed trustee or liquidator in most cases.