ENG-1980 — Page 62

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INDUSTRY AND TRADE

There are 348 insurance companies, including 168 local companies, transacting life, fire, marine or motor vehicle insurance business in Hong Kong.

All insurance companies also have to comply with the provisions of the Insurance Com- panies (Capital Requirements) Ordinance 1978. This ordinance restricts the commencement of life, fire, marine or motor vehicle insurance business to companies formed or registered under the Companies Ordinance which have an issued capital of not less than $5 million fully paid up in cash. Companies which, prior to February 1, 1978, had met the then existing statutory requirements for the carrying on of those classes of insurance business, but had not yet commenced to carry on such business, and companies and members of Lloyds fully authorised to carry on similar lines of insurance business in Britain are, however, exempt from the restrictions of this ordinance.

During the year, progress was made on the formulation of new insurance legislation. The Life Insurance Companies (Amendment) Bill and the Fire and Marine Insurance Companies Deposit (Amendment) Bill - imposing capital and solvency requirements on all life, fire and marine insurance companies - were presented to the Legislative Council in December, and it was expected that these would be enacted in early 1981. Work also progressed on the drafting of a new, comprehensive Insurance Companies Bill to cover all classes of insurance business.

The Companies Registry also deals with the incorporation of trustees under the Registered Trustees 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 73 petitions in bankruptcy and 132 petitions for the compulsory winding-up of companies. The court made 49 receiving orders, three adminis- tration orders, and 104 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 1980 amounted to $42 million. In addition to these compulsory windings-up, 439 companies went into voluntary liquidation - 422 by members' voluntary winding-up and 17 by creditors' voluntary winding-up.