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FRIDAY, MARCH 4, 1983
COMPANIES BILL GOES FORWARD
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PROPOSED MAJOR AMENDMENTS TO THE COMPANIES ORDINANCE WILL BE INTRODUCED INTO THE LEGISLATIVE COUNCIL NEXT WEDNESDAY (MARCH 9) AFTER A LONG PERIOD OF PUBLIC CONSULTATION.
AN AMENDMENT BILL SEEKING TO GIVE EFFECT TO THE BULK OF THE RECOMMENDATIONS IN THE SECOND REPORT OF THE COMPANIES LAW REVISION COMMITTEE WAS PUBLISHED IN THE GOVERNMENT GAZETTE IN JULY 1980 FOR GENERAL INFORMATION AND COMMENT.
REPRESENTATIONS WERE INVITED FROM THE PUBLIC AND A
CONSIDERABLE VOLUME OF WRITTEN COMMENTS WAS RECEIVED FROM ORGANISATIONS AND INDIVIDUALS IN THE PROFESSIONAL, BUSINESS AND ACADEMIC SECTORS. IN ADDITION, A CONFERENCE ON COMPANY LAW REFORM WAS ORGANISED BY THE HONG KONG LAW JOURNAL IN LATE 1980 TO DISCUSS THE BILL. THE REGISTRAR GENERAL ATTENDED THE CONFERENCE TO EXCHANGE VIEWS WITH THE SEVERAL HUNDRED PARTICIPANTS.
A WORKING GROUP OF LEGISLATIVE COUNCIL MEMBERS WAS ALSO FORMED TO CONSIDER THE DRAFT LEGISLATION. THE WORKING GROUP MET ON NUMEROUS OCCASIONS AND CONSIDERED IN DETAIL THE PROVISIONS OF THE BILL AND THE PUBLIC REPRESENTATIONS ON IT. THE GROUP ALSO DISCUSSED MANY ASPECTS OF THE BILL WITH THE ADMINISTRATION.
AS A RESULT, THE COMPANIES (AMENDMENT) BILL 1983, WHICH IS PUBLISHED IN THE GOVERNMENT GAZETTE TODAY (FRIDAY), INCORPORATES A LARGE NUMBER OF AMENDMENTS TO THE 1980 VERSION. SOME PROVISIONS HAVE BEEN DELETED IN THEIR ENTIRETY PENDING FURTHER DISCUSSIONS.
THE PURPOSE OF THE BILL IS TO UPDATE AND RATIONALISE COMPANY LAW IN HONG KONG TAKING INTO ACCOUNT BOTH DEVELOPMENTS IN BRITAIN AND ELSEWHERE AND LOCAL CIRCUMSTANCES AND NEEDS. THE BILL SEEKS TO BRING ABOUT BETTER PROTECTION OF SHAREHOLDERS AND OTHERS DEALING WITH COMPANIES, WITHOUT AT THE SAME TIME IMPOSING UNNECESSARY RESTRAINTS ON BONA FIDE COMMERCIAL BUSINESS.
THE BILL INTRODUCES AMENDMENTS TO VIRTUALLY ALL PARTS OF THE PRINCIPAL ORDINANCE, COVERING AREAS SUCH AS THE INCORPORATION OF COMPANIES, SHARE CAPITAL AND DEBENTURES, REGISTRATION OF CHARGES, MANAGEMENTS AND WINDING UP.
COMMENTING ON THE COMPANIES (AMENDMENT) BILL 1983, THE SECRETARY FOR ECONOMIC SERVICES, MR PIERS JACOBS, SAID THE COMPANIES LAW REVISION COMMITTEE HAD DONE AN EXCELLENT JOB IN FORMULATING THE RECOMMENDATIONS WHICH DEALT WITH A WIDE RANGE OF ISSUES IN COMPANY LAW. HE ADDED THAT THE PRESENT VERSION OF THE BILL WAS THE CULMINATION OF EFFORTS ON THE PART OF NOT ONLY THE ADMINISTRATION BUT ABOVE ALL THE UNOFFICIAL MEMBERS OF THE LEGISLATIVE COUNCIL AND PERSONS IN THE BUSINESS AND PROFESSIONAL COMMUNITY WHO HAVE ENGAGED IN DISCUSSIONS OR MADE REPRESENTATIONS ON THE BILL.
THE PROPOSED