ENG-1979 — Page 63

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INDUSTRY AND TRADE

run from the date of commencement of the term of the patent in the United Kingdom, and continue as long as the patent remains in force there. A total of 893 patents were registered during the year, compared with 758 in 1978.

The Registration of United Kingdom Patents (Amendment) Ordinance 1979 was enacted on April 27, 1979. It provides for the registration of European patents (UK) and takes account of the changes to patent law introduced in the United Kingdom by the Patents Act 1977, so far as is necessary for the registration of patents in Hong Kong.

The Patents Working Party, set up by the government in March, 1978, held its second meeting in September, 1979. At the meeting, it was decided that the existing system of registration of United Kingdom patents and European patents (UK) should be retained and that a legal sub-committee should be set up to look at the Registration of Patents Ordinance with a view to updating it.

Companies

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The Companies Registry of the Registrar General's Department keeps records of all com- panies incorporated in Hong Kong and all foreign corporations that have established a place of business in Hong Kong.

Local companies are incorporated under the Companies Ordinance which is, to a large extent, still based on the Companies Act 1929 formerly in force in Britain but now replaced by the Companies Acts of 1948 and 1967. However, as a result of implementing a number of recommendations made by the Companies Law Revision Committee (June, 1971, and April, 1973), several parts of the ordinance notably those dealing with prospectuses, accounts and audit - have been amended. These parts now incorporate most of the relevant provisions of the Companies Acts of 1948 and 1967. It is expected that a lengthy bill in- corporating most of the recommendations in the committee's Second Report, which have not already been implemented by legislation, will be presented to the Governor in Council in early 1980.

On incorporation, a company pays a registration fee of $300, plus $4 for every $1,000 of nominal capital. In 1979, 10,284 new companies were incorporated - 1,438 more than in 1978. The nominal capital of new companies registered totalled $3,116 million. Of the new companies, 131 had a nominal share capital of $5 million or more. During the year, 2,990 companies increased their nominal capital by amounts totalling $8,194 million, on which fees were paid at the same rate of $4 per $1,000. At the end of 1979, there were 67,429 local companies on the register, compared 'with 57,945 in 1978.

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The Companies (Amendment) Ordinance 1979, which is expected to come into effect in early 1980, will implement, with modifications, the recommendations made in Chapter 3 of the Second Report (1973) of the Companies Law Revision Committee in respect of the replacement of lost share certificates.

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, 172 such companies were registered and 34 ceased to operate. At the end of 1979, 1,269 companies were registered from 53 countries, including 318 from the United States, 173 from Britain and 141 from Japan.

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 Companies 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