FINANCIAL AND MONETARY AFFAIRS
94
Since 1993, the Companies Registry has operated as a trading fund department. As a trading fund, the registry can keep most of its income and apply it flexibly, having regard to its needs, business turnover and its customers' demands and expectations. Although the economic downturn in the second half of 1997/98 inevitably had an impact on the registry's revenue, it was mitigated by stringent efforts to control expenditure and improve productivity. The profit retained for the financial year ending on March 31, 1998, amounted to $39 million. By deferring its fee increase for 1998-99, the registry wished to ease the burden on the business community but, despite this, development work on improvement projects will continue to be considered.
During the year, the registry continued to improve the quality of services delivered. A total of 26 new specified forms, which are more standardised, and user-friendly, were introduced for use with effect from May 1, 1998. To maintain the integrity of the register of companies in order to assist its customers and the business community who need to obtain accurate and up-to-date information on companies, the registry has also intensified prosecution action against those companies and their directors. who failed to file annual returns on time.
One of the registry's principal aims is to allow customers and staff quick access to the company information filed with the department. In this respect, a major database conversion exercise has been completed. In parallel with this, tenders have been invited for the implementation of an enhanced online search service covering the expanded database which should be available for public use around mid-1999. Furthermore, a dedicated team was established in October 1998 to draft a Strategic Change Plan for the Registry with particular reference to process re-engineering and the introduction of modern technology for filing, processing and searching company records. The ultimate objective is to provide fast, inexpensive, user-friendly and high quality services.
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. The Consultancy Report for the overall review of the Companies Ordinance was launched for public consultation in May 1997 and 28 written submissions were received. The committee is considering the report's recommendations and the public comments.
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. At the end of 1998, a total of 94 337 companies had been de-registered under section 290A. The registry has also proposed amendments to the Companies Ordinance to introduce a statutory procedure to deregister solvent defunct private companies.
In 1998, 29 947 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 a capital duty of $1 for every $1,000 of nominal capital, subject to a cap of $30,000 per case. During the year the nominal capital of new companies registered totalled $11.95 billion and 3 622 companies had increased their nominal capital by amounts totalling $116.8 billion. At the end of the year, 474 594 local companies were on the register, compared with 474 517 in 1997.