Registrar-Generals-Department-Annual-report-1972-1973 — Page 35

incorporated during the year, bringing the number of stock exchanges at the end of the year to seven of which four were in operation.

79. Part III of Table XII gives an analysis of all public companies according to whether they are limited by shares or limited by guarantee or unlimited. There was an exceptional increase in the number of private companies which were converted to public companies. During the year 189 companies effected this conversion compared with 14 in 1971-72. The increase may be related to the very high level of activity on the stock markets of Hong Kong during the year. Part III also shows that at the end of the year there were 453 public companies limited by shares on the register compared with 255 at the beginning of the year. Four companies limited by guarantee were registered during the year with the Governor's licence to dispense with the word 'Limited', granted by the Registrar General under delegated powers.

80. In 2,074 cases out of 5,389, that is to say in 38.5% of all new incorporations, the papers were submitted by firms of accountants apparently without a solicitor being employed, the necessary statutory declaration of compliance with the requirements of the Ordinance being made by a person named in the articles as a director or secretary. In addition, 219 companies were incorporated by two private limited companies whose principal object is the forming of companies for sale and 640 companies by certified public secretaries or company secre- taries or directors. Since records of the qualifications of persons sub- mitting papers in connection with new incorporations were first kept in 1963-64 the numbers of incorporations in which a solicitor was not employed have risen from 435, or 35% of all incorporations, in 1963-64 to 2,933, or 54.4% of all incorporations, in 1972-73, a slight drop com- pared with the previous year's figure of 57.6%.

81. For purposes of comparision Part I of Table XIII gives an analysis of the companies registered in the last five years according to classes, and Part II gives an analysis of companies with a share capital registered in the last five years according to the amount of their nominal capital. The numbers in all categories are new records. Many companies are incorporated with low capitals pending further developments; for instance, some solicitors and accountants like to keep a few incorporated companies in stock', the capitals of these being increased as soon as clients take over the companies and commence business. The aggregate total of all capitals was $9,493m., over $7,647m. more than the previous year's total, mainly accounted for by

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