ENG-1976 — Page 59

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INDUSTRY AND TRADE

Companies incorporated overseas are required to register certain documents with the Companies Registry within one month of establishing a place of business in Hong Kong. Only small filing fees are payable in such cases. During the year, 84 such companies were registered and 36 ceased to operate. At the end of 1976 there were 940 companies registered from 48 countries, including 239 from the United States, 124 from Britain and 100 from Japan. Usually for tax reasons, many non-local companies incorporate a subsidiary in Hong Kong in preference to operat- ing a branch office.

All insurance companies wishing to transact life, fire or marine insurance business in Hong Kong must comply with the provisions of either the Life Insurance Com- panies Ordinance or the Fire and Marine Insurance Companies Deposit Ordinance. In addition to the filing of annual accounts, these ordinances require deposits to be made with the Registrar of Companies, unless the company qualifies for exemption. This is dependent on obtaining a certificate from the insurance division of the Depart- ment of Trade in London, stating that the company is authorised under the Insurance Companies Act 1974 to carry on insurance business in Britain or-in the case of fire and marine insurance-maintaining similar deposits elsewhere in the Common- wealth. There are altogether 277 insurance companies, including 116 local companies, transacting such business in Hong Kong. The approval of the Registrar General must be obtained for transacting motor vehicle third party insurance business.

The Companies Registry also deals with the incorporation of trustees under the Registered Trustee Incorporation Ordinance, and with the registration of limited partnerships and money-lenders.

Bankruptcies and Liquidations

In Hong Kong the number of business failures leading to formal insolvency proceedings in court is always comparatively small in relation to the total number of businesses closing down. During the year there were 39 petitions in bankruptcy and 73 petitions for the compulsory winding-up of companies. The court made 29 receiving orders, two administration orders and 64 winding-up orders. As in past years, the Official Receiver was appointed trustee or liquidator in almost every case. Assets realised by the Official Receiver during 1976 amounted to about $18 million. In addition to these compulsory windings-up, 183 companies went into voluntary liquidation-176 by members' voluntary winding-up and seven by credi tors' voluntary winding-up.

During the year a total of three ordinances dealing with bankruptcies and liquidations were enacted.

The Bankruptcy (Amendment) Ordinance 1976 introduced a number of measures designed to streamline administration of the ordinance, particularly in relation to small bankruptcies. These measures included power for the court, on the application of the Official Receiver, to dispense with public examination of the debtor, and provision for a summary procedure when the property of the debtor does not exceed $10,000.