ENG-1992 — Page 123

INDUSTRY AND TRADE

94

Plans are under way to give the independent Companies Registry trading fund status which would give it a considerable degree of financial and managerial autonomy in carrying out its functions.

Money Lenders

Under the Money Lenders Ordinance, which came into force in December 1980 and was amended in July 1988, anyone wishing to carry on business as a money lender must apply to a Licensing Court for a licence. The ordinance does not affect bankers and deposit- taking companies authorised under the Banking Ordinance.

Any application for a licence is, in the first instance, 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, 560 applications were received and 504 licences were granted. At the end of 1992, there were 537 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. With certain exceptions (primarily authorised institutions under the Banking Ordinance), 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. Agreement for the repayment of any such loan or any security given in respect of such loan shall be unenforceable.

Bankruptcies and Compulsory Winding-up

The Official Receiver's Office administers estates of personal bankrupts and companies ordered to be compulsorily wound up by the court.

Once a Receiving Order is made against the property of a personal bankrupt, or a Winding-Up Order by the court is made against a company, the Official Receiver becomes the receiver or provisional liquidator respectively.

In estates where the assets realised are less than $200,000, the Official Receiver applies to the court for a summary procedure order and is appointed as trustee or liquidator. In other cases a meeting of creditors in bankruptcy, or of creditors and contributories in compulsory liquidations, is held to decide whether the Official Receiver or another person from the private sector should be appointed as trustee or liquidator. If a debtor makes a proposal for a composition in satisfaction of his debts or a proposal for a scheme of arrangement of his affairs, he will not be adjudged bankrupt if the proposal is accepted by his creditors and the court. As in past years, the Official Receiver was appointed trustee or liquidator in most cases.

During the year the court made 295 Receiving Orders and 342 Winding-up Orders, which is an increase of 1.43 per cent over the previous year. The assets realised by the Official Receiver during 1992 amounted to $131.4 million, and $221.3 million in dividends were paid to creditors in 205 insolvency cases.

Hitherto part of the Registrar General's Department, the Official Receiver's Office was established as a separate legal entity starting from June 1, 1992. At the same time a new grade of Insolvency Officer was introduced and the work of the office was reorganised from