ENG-1987 — Page 111

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INDUSTRY AND TRADE

recommendations made by the Companies Law Revision Committee (June 1971 and April 1973), several parts of the Companies Ordinance - notably those dealing with prospectuses, accounts and audit- were amended and now incorporate most of the relevant provisions of the Companies Acts of 1948 and 1967. Most of the remainder of the recommendations in the committee's second report are given effect in the lengthy Companies (Amendment) Ordinance 1984, which was enacted in January and came into force on August 31, 1984. The ordinance is subject to continual revision and improvement on the advice of the Standing Committee on Company Law Reform which was set up in 1984. The primary task of the committee is to ensure that Hong Kong's company law meets the most up-to-date needs of government and business. Further amendments to the ordinance were made by the Companies (Amendment) Ordinance 1987 and the Companies (Amendment) (No. 2) Ordinance 1987 which were enacted on February 20, 1987 and July 3, 1987.

On incorporation, a company pays a registration fee of $600 plus $6 for every $1,000 of nominal capital. In 1987, 26 380 new companies were incorporated – 9 637 more than in 1986. The nominal capital of new companies registered totalled $4,133 million. Of the new companies, 99 had a nominal share capital of $5 million or more. During the year, 7 108 companies increased their nominal capital by amounts totalling $48,995 million on which fees were paid at the same rate of $6 per $1,000. At the end of 1987, there were 185 588 local companies on the register, compared with 161 986 in 1986.

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.

A registration fee of $500 and some small filing fees are payable in such cases. During the year, 240 of these companies were registered and 189 ceased to operate. At the end of the year, 2 289 companies were registered from 64 countries, including 575 from the United States, 341 from the United Kingdom and 274 from Japan.

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

Money Lenders

Under the Money Lenders Ordinance, which came into force in December 1980, anyone wishing to carry on business as a money lender must apply to a Licensing Court, consisting of a magistrate and two lay assessors, for a licence. In the first instance, the application is submitted to the Registrar General as Registrar of Money Lenders and a copy is sent to the Commissioner of Police, who may object to the application.

The application is advertised, and any member of the public who has an interest in the matter also has the right to object. During the year, 430 applications were received and 425 licences were granted. At year-end, there were 440 licensed money lenders.

The ordinance provides severe penalties for a number of statutory offences, such as carrying on an unlicensed money lending business. It also provides that any loan made by an unlicensed money lender shall not be recoverable by court action. Any person, whether a licensed money lender or not, who lends or offers to lend money at an interest rate exceeding 60 per cent per annum commits an offence and agreement for the repayment of any such loan or any security given in respect of such loan shall be unenforceable.

Bankruptcies and Liquidations

The Official Receiver's Office of the Registrar General's Department administers estates in bankruptcy and estates of companies in compulsory winding-up.