XN000022-1996-07-19 — Page 8

· 6 -

SCCLR is tasked to advise the Financial Secretary on necessary amendments to the Companies Ordinance, the Securities Ordinance and the Protection of Investors Ordinance.

Since its establishment in 1984, the Standing Committee has produced 12 annual reports. Of the total 63 recommendations which the Committee has made, 43 have so far been implemented and a further 11 are included in proposals for legislative amendments either being considered by the Legislative Council or being prepared for the next legislative session.

Copies of the SCCLR's Report can be obtained from the Secretary of the Standing Committee on Company Law Reform (Tel 2867 2819, Fax 2869 6817 or 2596 0585), or in person to the Companies Registry, 12th floor, Queensway Government Offices, 66 Queensway, Hong Kong,

End

Moderate increase in number of court insolvency cases

The Official Receiver, Mr Robin Hearder, said today (Friday) that the first half year of 1996 showed a moderate increase in the number of new court insolvencies in comparison with the same period last year.

There were 271 new compulsory company liquidation orders and 271 personal bankruptcy orders in January-June compared with the corresponding figures of 222 and 208 for the same period in 1995.

It could be seen, therefore, the total of 542 new insolvencies had increased by 26.05 per cent which was still less than 1.5 per cent of new companies incorporated and businesses registered during the same period.

The businesses mainly affected by compulsory company liquidations and bankruptcies included garment and knitting manufacturing, importers and exporters, restaurants and canteens, consumer credit, company directors giving personal guarantees, construction and engineering, electrical and electronic manufacturing as well as transportation and godown.

Petitions were filed by the Director of Legal Aid (37%), trade creditors (31%), banks and financial institutions (21%), landlords (4%), shareholders (2%), persona! (1%) and others (4%).