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The motion before Members seeks to increase the statutory maximum fines stipulated in the Companies Ordinance (Cap 32) and its subsidiary legislation and to convert them as appropriate into a standard scale.
Section 100A(1) of the Interpretation and General Clauses Ordinance (Cap 1) provides that the Legislative Council may, by resolution, amend any Ordinance so as to increase the amount of any fine specified in that Ordinance.
The Criminal Procedure (Amendment) (No 2) Ordinance 1994 enacted in July 1994 introduced a scale of fines for statutory penalties not exceeding $100,000. This enables the maximum fine level to be increased from time to time by a single order of the Governor in Council to take account of inflation and hence preserve the deterrent effect of the penalties. The standard scale of fines consists of six levels, ranging from $2,000 at Level 1 to $100,000 at Level 6.
The standard scale, however, does not take account of inflation in respect of fines specified in money terms before their conversion to the scale. A review of the existing fines has therefore been necessary. I have reviewed those under the Companies Ordinance and now propose to revise 259 statutory maximum fines under the Companies Ordinance (Cap 32) and two statutory maximum fines under the Companies (Winding-up) Rules (Cap 32 sub leg).
All maximum fines at or below $100,000 after adjustment will be converted to the appropriate level of fines on the standard scale. However, a daily fine or a daily penalty below $100,000 after adjustment and fines greater than $100,000 will continue to be expressed in money terms.
Mr President, I beg to move.
End
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