XN000022-1989-01-17 — Page 3

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TUESDAY, JANUARY 17, 1989

ON THE SUBJECT OF COMPANY NAMES, MR GLEESON DREW ATTENTION ΤΟ THE CONTINUED SUBSTANTIAL INCREASES IN APPLICATIONS FOR NAMES, AND THESE NOW AVERAGED MORE THAN 20,000 PER MONTH.

THE PROBLEM STEMMED FROM THE PRESENT LAW WHEREBY A COMPANY NAME COULD BE RESERVED BEFORE THE COMPANY WAS INCORPORATED.

IDEALLY, THIS WAS A GOOD SYSTEM BUT IN PRACTICE THE TIME TAKEN TO RESERVE OR REJECT A NAME HAD BUILT UP TO A PERIOD OF ABOUT SEVEN TO EIGHT WEEKS, MR GLEESON SAID,

AND NAMES

THE

NEED THE

THIS WAS DUE TO THE HUGE VOLUME OF APPLICATIONS FOR STAFF TO CHECK EACH AND EVERY NEW NAME AGAINST THE EXISTING 213,000 REGISTERED COMPANIES AND MAKE A SUBJECTIVE IN EACH AND EVERY CASE TO SEE IF THE NEW NAME WAS IDENTICAL EXISTING COMPANY NAME OR "SO NEARLY CALCULATED TO DECEIVE"

BAH

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RESEMBLED

OF JUDGEMENT

WITH TO

THAT NAME AS

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THE REST OF THE PROCEDURE FOR INCORPORATION OF A NEW COMPANY TOOK ABOUT ANOTHER SEVEN WEEKS, SO THE WHOLE PROCEDURE, ASSUMING EVERYTHING WAS IN ORDER, NOW TOOK ABOUT 14 WEEKS OR MORE, MR GLEESON SAID.

DESPITE STAFF INCREASES, OVERTIME AND COMPUTERISATION, WERE NOW MORE THAN 20,000 OUTSTANDING APPLICATIONS.

THERE

SINCE ALL OF THIS WAS HIGHLY UNSATISFACTORY, MR GLEESON SAID HE HAD PROPOSED TO THE STANDING COMMITTEE ON COMPANY LAW REFORM THAT THE LAW BE CHANGED TO THE UNITED KINGDOM SYSTEM UNDER WHICH A NEW NAME WAS REJECTED BY THE REGISTRAR ONLY IF IT WAS IDENTICAL WITH AN EXISTING COMPANY NAME.

THE STANDING COMMITTEE HAD AGREED, AND ITS SUBSEQUENT RECOMMENDATION TO THAT EFFECT WAS ACCEPTED AND PROPOSALS FOR THE NECESSARY AMENDING LEGISLATION WERE NOW WELL IN HAND, MR GLEESON SAID.

IN ADDITION TO THE NEW LEGISLATION, HOWEVER, IT WOJED BE NECESSARY TO UPGRADE THE COMPUTER FACILITIES OF THE COMPANIES REGISTRY SO THAT THE PUBLIC COULD MAKE THEIR OWN SEARCHES OF THE COMPUTERISED INDEX OF COMPANY NAMRS.

MR GLEESON SAID HE HAD MADE A REQUEST FOR THIS UPGRADING, WHICH WAS NOW BEING CONSIDERED.

THE TOTAL NUMBER OF PROSECUTIONS TAKEN RY THE REGISTRAR OF COMPANIES AGAINST COMPANIES AND THEIR DIRECTORS FOR BREACHES OF THE COMPANIES ORDINANCE, MAINLY FOR FAILURE TO FILE ANNUAL RETURNS WITH ACCOUNTS, IN 1988 WAS 369. ANOTHER 85 SUMMONSES WEHE OUTSTANDING FROM 1987.

OF THIS TOTAL OF 454 SUMMONSEN, 238 RESULTED IN CONVICTIONS (COMPARED WITH 261 IN 1987) AND 182 REMAIN TO BE HEARD BY THE COURT.

THE TOTAL AMOUNT OF FINES IMPOSED FOR CONVICTIONS IN 1988 WAS $446,715, COMPARED WITH $343,413 IN 1987.

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