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WEDNESDAY, FEBRUARY
THE REPORT POINTED OUT THE WITHDRAWN COMPANIES WERE EITHER DORMANT OR UNABLE TO COMPLY WITH THE NEW LEGISLATION AND HAD THUS LET THEIR AUTHORISATION LAPSE.
IT ADDED THAT THEIR BUSINESS WOULD BE RUN OFF AND THE COMPANIES WOUND DOWN IN AN ORDERLY MANNER.
THERE WERE 91 PENDING APPLICATIONS FOR AUTHORISATION UNDER THE TRANSITIONAL PROVISIONS OF THE ORDINANCE AT THE END OF 1983, AND THE OVERALL EFFECT OF THESE PROVISIONS WAS NOT EXPECTED TO BE SEEN UNTIL JUNE 30, 1984, THE REPORT NOTED.
OF THE 283 AUTHORISED INSURANCE COMPANIES, 136 WERE INCORPORATED IN HONG KONG.
THE REMAINING 147 COMPANIES CAME FROM 25 COUNTRIES, THE MAJORITY OF THEM FROM THE UNITED KINGDOM (50) AND THE UNITED STATES (31) FOLLOWED BY EIGHT COMPANIES FROM JAPAN, SEVEN EACH FROM SINGAPORE AND BERMUDA, SIX FROM SWITZERLAND, AND FIVE EACH FROM CANADA AND FRANCE.
MORE CHANGES TO PAWNBROKERS BILL EXPECTED
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THE PAWNBROKERS BILL 1983 IS LIKELY TO BE FURTHER AMENDED WHEN IT COMES BEFORE THE LEGISLATIVE COUNCIL NEXT WEDNESDAY (FEBRUARY 15).
A GOVERNMENT SPOKESMAN SAID TODAY THAT FOLLOWING CONSULTATION WITH UMELCO AND THE PAWNBROKERS ASSOCIATION, CERTAIN AMENDMENTS WERE PROPOSED WITH THE INTENTION TO MAKE IT EASIER FOR PAWNBROKERS AND THE IR CUSTOMERS TO GO ABOUT THEIR BUSINESS.
AMONG THE PROPOSALS IS ONE MADE BY UMELCO MEMBERS LIMITING PAWNBROKERS' LIABILITY FOR THE LOSS OF, OR DAMAGE TO, PAWNED GOODS.
IT IS SUGGESTED THAT THEIR LIABILITY SHOULD BE CONFINED TO CASES IN WHICH THE LOSS OR DAMAGE WAS CAUSED BY DEFAULT, NEGLECT OR MISFEASANCE ON THE IR PART.
THE IR LIABILITY WILL NOT EXCEED THE LOAN LIMIT FOR PAWNBROKING TRANSACTIONS, WHICH THE BILL SEEKS TO RAISE TO $25 000 FROM THE EXISTING LEVEL OF $5 000 SET IN 1970.
ANOTHER MAJOR CHANGE TO THE BILL IS THE INCLUSION OF A NEW PROVISION TO ENSURE THAT THE LOAN LIMIT AS SPECIFIED MAY NOT BE CIRCUMVENTED BY THE ISSUE OF SEVERAL LOANS AGAINST THE SECURITY OF THE SAME GOODS HELD IN PAWN AT ANY ONE TIME.
MEANWHILE, THE GRANT OR TRANSFER OF A PAWNBROKER'S LICENCE TO A BODY CORPORATE OR PARTNERSHIP, WHICH HAS BEEN A LONG STANDING PRACTICE, IS PROVIDED FOR BY A NEW CLAUSE IN THE BILL.