FINANCIAL AND MONETARY AFFAIRS
One of the registry's long-term objectives is to provide direct on-line access to the records it maintains. A project to expand the database to include key data on more than 479 000 registered companies, which began in the middle of 1996 with a view to making relevant information available for on-line search by customers through terminals in their offices, is well under way. It is scheduled for completion in 1998. A smaller scale on-line service providing the company name and document indices was launched by the registry's agent through the Internet in July 1997. The registry is also considering changing the medium of document storage to optical disk from microfiche, which is a labour-intensive mode of technology.
The Standing Committee on Company Law Reform, established in 1984, continued to meet regularly to consider amendments to the Companies Ordinance, consistent with the needs of the public and the commercial sectors. An overall review of the Companies Ordinance, commenced by a specially appointed consultant in January 1995, was completed. The Consultant's Report was launched for public consultation in May 1997.
In the course of the year, major amendments were made to the Companies Ordinance regarding the filing of information with the registry. The Companies (Amendment) Ordinance 1997, which was implemented on February 10, 1997, de- regulated the statutory forms under the Companies Ordinance and, at the same time, the most commonly used forms were replaced with new bilingual and more user- friendly specified forms. The ordinance also abolished the ultra vires rule, thereby relieving companies of the need to state lengthy objects clauses in their memorandum and articles. On the same date, the new Chinese-language provisions in the Companies (Amendment) Ordinance 1995 were also implemented, and information may now be filed with the registry in Chinese or English or both. In parallel with the filing of information in Chinese, the registry's computer system for search services was also enhanced during the year in order to provide search functions in Chinese. Under section 290A of the Companies Ordinance, the Registrar of Companies is empowered to de-register a company if it has, for two consecutive years or more, failed to submit its annual return. In order to remove defunct companies from the register and encourage companies to comply with the requirement to submit annual returns, the registry has, since March 1994, systematically examined companies on the register with a view to striking off those which have failed to comply with the provisions of section 290A. At the end of 1997, a total of 484 163 companies had been so examined, 101 248 had been identified for action under section 290A and 82 366 had been de-registered.
In 1997, 49 275 new companies were incorporated. On incorporation under the Companies Ordinance, a local company pays a registration fee of $1,425 and a lodgement fee of $295 plus $3 for every $1,000 of nominal capital. During the year the nominal capital of new companies registered totalled $6.91 billion and 6 953 companies had increased their nominal capital by amounts totalling $72.51 billion. At the end of the year, 474 517 local companies were on the register, compared with 483 181 in 1996.
Companies incorporated overseas must register certain documents with the registry within one month of establishing a place of business in Hong Kong. A registration fee of $1,425, a lodgement fee of $295 and some incidental filing fees are payable in such cases. During 1997, 713 of these were registered. At the end of the year, 5 067
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