XN000022-1985-02-05 — Page 4

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TUESDAY, FEBRUARY 5, 1985

HE SAID THAT ALTHOUGH MANY INCREASES IN MAXIMUM FINES HAD ALREADY BEEN INTRODUCED BY THE COMPANIES (AMENDMENT) ORDINANCE 1984, THE PRESENT LEVEL OF ALL PENALTIES UNDER THE ORDINANCE WAS AGAIN UNDER REVIEW AND IT WAS EXPECTED THAT THE MATTER WOULD BE PLACED BEFORE THE STANDING COMMITTEE ON COMPANY LAW REFORM LATER IN THE YEAR.

MR GLEESON EXPRESSED DISAPPOINTMENT THAT THE MEDIA, PARTICULARLY FINANCIAL COMMENTATORS, HAD NOT SHOWN MORE INTEREST IN THE PROSECUTIONS THAT HAD BEEN TAKEN.

THIS, HE SAID, WAS A PITY BECAUSE FAILURE OF A PUBLIC LISTED COMPANY TO LAY ITS ACCOUNTS BEFORE THE COMPANY IN GENERAL MEETING AND FILE ITS ANNUAL RETURNS WAS FREQUENTLY +A RED LIGHT THAT WAS OF DIRECT INTEREST TO AND SHOULD NOT BE OVERLOOKED BY COMMENTATORS, FINANCIAL INSTITUTIONS AND INVESTORS ALIKE.+

MR GLEESON SAID THAT THE COMPANIES THEMSELVES, HOWEVER, TOOK THE MATTER MORE SERIOUSLY, AS WAS SHOWN BY THEIR INCREASING TENDENCY TO DEFEND SUCH PROSECUTIONS IN THE COURTS.

+IN MY VIEW, PUBLICITY IS A GREATER DETERRENT THAN MOST OF THE FINES THAT ARE NOW AVAILABLE UNDER THE COMPANIES ORDINANCE,+ HE SAID.

REPORTING INCREASED ACTIVITY IN SOME AREAS AND DECREASED ACTIVITY IN OTHERS, MR GLEESON SAID THAT THE TOTAL NUMBER OF COMPANIES REGISTERED UNDER THE COMPANIES ORDINANCE INCREASED BY 10 PER CENT FROM 118 680 TO 130 712. THE NUMBER OF NEW COMPANIES REGISTERED DURING THE YEAR INCREASED BY 16 PER CENT, FROM 11 558 TO 13 434.

AS FOR FOREIGN COMPANIES, THE TOTAL NUMBER OPERATING IN HONG KONG AT THE END OF THE YEAR WAS 2 005, SEVEN PER CENT MORE THAN THE PREVIOUS YEAR'S FIGURE OF 1 872.

HOWEVER, DURING THE YEAR, 215 NEW FOREIGN COMPANIES WERE REGISTERED, BUT THIS FIGURE WAS 16 PER CENT LESS THAN THE NUMBER FOR 1983.

EXISTING COMPANIES INCREASED THEIR NOMINAL CAPITAL BY $13 141 MILLION, A TWO PER CENT INCREASE OVER THE 1983 FIGURE OF $12 928 MILLION, WHILE THE NOMINAL CAPITAL OF NEW COMPANIES INCORPORATED DURING THE YEAR DECREASED BY SIX PER CENT, FROM $3 469 MILLION TO $3 277 MILLION.

MR GLEESON REPORTED THAT THE TOTAL AMOUNT SECURED BY CHARGES REGISTERED ON THE ASSETS OF COMPANIES DECREASED BY 41 PER CENT FROM $51 921 MILLION TO $30 495 MILLION, WHILE THE AMOUNT REPAID ON CHARGES, AS EVIDENCED BY CERTIFICATES OF SATISFACTION, INCREASED BY 55 PER CENT FROM $9 356 MILLION TO $14 513 MILLION.

DURING THE YEAR, HE SAID, A TOTAL OF 90 PROSPECTUSES OF NEW PUBLIC COMPANIES, INCLUDING 50 IN RESPECT OF MUTUAL FUNDS, WERE APPROVED AS AGAINST 35 PROSPECTUSES, INCLUDING 11 IN RESPECT OF MUTUAL FUNDS, DURING THE PREVIOUS YEAR.

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