39
WEDNESDAY, JULY 1, 1992
REQUIRES ITS
"THE EXISTING SECTION 109 OF THE COMPANIES ORDINANCE EVERY COMPANY TO DELIVER TO THE REGISTRAR OF COMPANIES A COPY OF ANNUAL RETURN WITHIN 42 DAYS UF IT'S ANNUAL GENERAL MEETING, SPOKESMAN SAID.
"MANY PRIVATE COMPANIES REGULARLY DELAY THE ANNUAL RETURN AND SOME FAIL TO FILE THEM FOR YEARS ON END,
10
THE
FILING OF THE
HE SAID.
H
COMPANIES, FILING RETURNS, HE
"THE PROBLEM IS PARTICULARLY SERIOUS WITH MORI BUND THE DIRECTORS OF WHICH ARE UNCONCERNED BY THE BUILD-UP OF LATE FEES AS THEY DO NOT ANTICIPATE EVER MAKING ANY FURTHER ADDED.
IF IS NOT UNLESS
THE
UNDER THE EXISTING SECTION 291 OF THE ORDINANCE, REGISTRAR HAS REASONABLE CAUSE TO BELIEVE THAT A COMPANY CARRYING ON BUSINESS, HE MAY INITIATE A PROCEDURE UNDER WHICH, GOOD CAUSE IS SHOWN, HE MAY STRIKE THE COMPANY OFF THE REGISTER AND IT IS AUTOMATICALLY DISSOLVED.
THE SINCE
"THE DIFFICULTY WITH INVOKING SECTION 291 IS THAT IT REQUIRES REGISTRAR TO EXERCISE HIS DISCRETION IN EACH AND EVERY CASE
THERE
AND ARE THOUSANDS OF CASES OF DEFAULT, IT IMPRACTICABLE TO DEAL WITH THEM ON THAT BASIS,
WOULD BE THE SPOKESMAN SAID.
+
"BY THE VERY NATURE OF THE CASES, IT IS ALSO VERY DIFFICULT FOR THE REGISTRAR TO RECEIVE ANY UP-TO-DATE INFORMATION FROM THE COMPANIES TO ENABLE HIM TO EXERCISE HIS DISCRETION PROPERLY.
BY
"WE THEREFORE PROPOSE TO INTRODUCE A NEW PROCEDURE, RECOMMENDED THE STANDING COMMITTEE ON COMPANY LAW REFORM, WHICH WOULD THE REGISTRAR
ENABLE TO START THE STRIKING-OFF PROCEDURE SOON AS THE DELAY IN FILING GOES BEYOND A CERTAIN TIME SPOKESMAN SAID.
AUTOMATICALLY
AS
LIMIT,'
THE
REGISTER AND WILL BE DISSOLVED UNLESS, WITHIN A ALL THE OVERDUE ANNUAL RETURNS ARE RECEIVED BY THE AND THE REGISTRATION FEES AND RELEVANT PENALTY ARE PAID TO HIM.
UNDER THE PROPOSED NEW SECTION 290A, AS SOON AS A COMPANY FAILED ΤΟ FILE ITS ANNUAL RETURNS FOR TWO CONSECUTIVE REGISTRAR MAY INITIATE A PROCEDURE WHEREBY THE COMPANY WILL BE OFF THE PERIOD,
HAS
YEARS, THE
STRUCK SPECIFIED REGISTRAR
"AS THE REGISTRAR IS NOT REQUIRED TO EXERCISE HIS UNDER THE NEW SYSTEM, THE NUMEROUS DEFAULT CASES CAN BE MUCH MORE EFFICIENTLY, THE SPOKESMAN SAID.
DEALT
DISCRETION WITH
PROVISION IS, HOWEVER, MADE FOR A COMPANY TO BE REINSTATED THE REGISTER IF UPON APPLICATION BY THE COMPANY OR
+
ANY CREDITOR THEREOF, THE REGISTRAR IS SATISFIED THAT THERE IS CAUSE FOR THE COMPANY TO BE RESTORED TO THE REGISTER AND THE FEE IS PAID, HE SAID.
41
ON
MEMBER OR REASONABLE RELEVANT
A
THE PROPOSED NEW SECTION 290(4) PROVIDES THAT ANY LIABILITY DIRECTOR, MANAGING OFFICER AND MEMBER OF A COMPANY WHICH STRUCK
HAD OFF THE REGISTER WILL CONTINUE AND MAY BE ENFORCED AS COMPANY HAD NOT BEEN DISSOLVED.
OF BEEN IF THE
/THE PROPOSED
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