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WEDNESDAY, JULY 15, 1992
COMPANIES (AMENDMENT) BILL 92 INTRODUCED
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A BILL INTRODUCED INTO THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) WILL ENABLE THE REGISTRAR OF COMPANIES TO TAKE EFFECTIVE ENFORCEMENT ACTION AGAINST COMPANIES THAT PERSISTENTLY FAIL IN THEIR STATUTORY DUTY TO SUBMIT ANNUAL RETURNS,
THE COMPANIES (AMENDMENT) BILL 1992 ALSO SEEKS ΤΟ ENABLE COMPANIES THAT ARE NOT TRADING AND ARE INACTIVE TO TAKE ADVANTAGE OF A NEW "DORMANT" STATUS, WHEREBY THEY WILL BE EXEMPTED FROM COMPLIANCE WITH A NUMBER OF PROVISIONS OF THE COMPANIES ORDINANCE FOR THE PERIOD DURING WHICH THEY REMAIN DORMANT,
MOVING THE SECOND READING OF THE BILL, THE SECRETARY FOR MONETARY AFFAIRS, MR DAVID NENDICK, EXPLAINED THAT A RECENT SURVEY CONDUCTED BY THE REGISTRAR INDICATED THAT AS MANY AS 25 PER CENT OF REGISTERED COMPANIES DID NOT SUBMIT REGULAR ANNUAL RETURNS.
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HE SAID ALTHOUGH THERE WERE ALREADY PROCEDURES WHICH MAY INITIATED BY THE REGISTRAR UNDER THE ORDINANCE FOR STRIKING COMPANIES OFF THE REGISTER, THESE PROCEDURES REQUIRED THE REGISTRAR TO EXERCISE HIS DISCRETION IN EACH INDIVIDUAL CASE.
THE BILL PROPOSED THAT THE REGISTRAR BE PROVIDED WITH A MORE EFFECTIVE MEANS OF DEALING WITH CASES OF DEFAULT BY INTRODUCING A SIMPLIFIED PROCEDURE FOR STRIKING COMPANIES OFF THE REGISTER WHERE THEY FAIL TO SUBMIT ANNUAL RETURNS FOR TWO CONSECUTIVE YEARS.
"STRIKING-OFF ACTION WILL NOT BE INITIATED UNTIL FAIR WARNING HAS BEEN GIVEN TO A COMPANY AND ITS DIRECTORS AND THE COMPANY HAS BEEN GIVEN THE OPPORTUNITY TO REMEDY THE SITUATION.
"IF A COMPANY CHOOSES TO IGNORE THESE WARNINGS, IT MAY BE STRUCK OFF AND DISSOLVED. ALL PROPERTY AND RIGHTS VESTED IN IT OR HELD ON TRUST FOR IT IMMEDIATELY BEFORE ITS DISSOLUTION WILL THEN BE DEEMED то BE BONA VACANTIA AND TO BELONG TO THE CROWN, MR NENDICK SAID.
THE BILL ALSO PROVIDES FOR CREDITORS TO MAKE CLAIMS AGAINST BONA VACANTIA.
ALSO, IF UPON APPLICATION BY THE COMPANY OR ANY MEMBER OR CREDITOR OF IT, THE REGISTRAR IS SATISFIED THAT THERE ARE REASONABLE GROUNDS FOR A COMPANY TO BE RESTORED ONTO THE REGISTER, AND AN APPROPRIATE FEE IS PAID, THEN REINSTATEMENT MAY BE EFFECTED QUICKLY AND SIMPLY.
ON THE INTRODUCTION OF A NEW "DORMANT" STATUS FOR PRIVATE COMPANIES, MR NENDICK SAID AT PRESENT COMPANIES THAT WERE NOT UNDERTAKING ANY BUSINESS WERE NEVERTHELESS REQUIRED TO COMPLY WITH ALL THE REQUIREMENTS OF THE ORDINANCE.
"THIS INVOLVES THE COMMITMENT OF CONSIDERABLE TIME AND RESOURCES, BOTH BY THE COMPANIES CONCERNED AND BY THE REGISTRAR, ΤΟ WORK WHICH MAY SERVE LITTLE USEFUL PURPOSE, HE SAID.
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