ENG-1995 — Page 116

FINANCIAL AND MONETARY AFFAIRS

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Document Index, introduced in late 1994 to capture details of documents submitted since December 1994, was expanded in October 1995 to include all documents submitted, irrespective of their dates of submission.

As a first step towards providing direct on-line access to the records it maintains, in September 1995 the registry invited tenders to convert the company names and document indices into a CD-ROM or other electronic form. By using information provided in this way, which would be updated regularly, customers could order company records remotely by facsimile transmission. Meanwhile, following the advice of an information technology consultant, the registry is examining how it stores and retrieves company information with particular reference to what additional data should be included in its computerised records, before opening up the database to public search by remote on-line methods.

Concurrent with the registry's effort to improve the capture, retention and dissemination of company information, the department continued its accommodation improvement programme to provide a better environment for its customers and staff.

The Standing Committee on Company Law Reform, established in 1984, continued to meet regularly to consider amendments to the Companies Ordinance, consistent with the needs of the public and commercial sectors. An overall review of the ordinance, by a specially appointed consultant, began in January and will take two years to complete.

The Companies (Amendment) Ordinance 1995 and Companies (Amendment) (No. 2) Ordinance were enacted during the year. The principal purposes of the former were to facilitate the use of pre-printed certificates of incorporation, to provide the framework for presenters to submit documents to the Registry in either Chinese or English and to allow small depositors of banks to receive preferential payment in the event of the bank being wound up. The latter is primarily concerned with enabling certified accountancy practices to incorporate if they so wish.

Under section 290A of the Companies Ordinance, the Registrar of Companies is empowered to de-register a company if it has, for two consecutive years or more, failed to submit its annual return. In order to remove defunct companies from the register and encourage companies to comply with the requirement to submit annual returns, the registry has, since March 1994, been examining companies on the register with a view to striking-off companies which have failed to comply with the provisions of section 290A. At the end of 1995, a total of 214 200 companies had been so examined, 45 799 had been identified for action under section 290A and 8 743 had been de-registered.

In 1995, 33 008 companies were incorporated. On incorporation under the Companies Ordinance, a local company pays a registration fee of $1,450 plus $6 for every $1,000 of nominal capital. During the year the nominal capital of new companies registered totalled $5,919 million and 8 103 companies had increased their nominal capital by amounts totalling $35,590 million. At the end of the year, 471 883 local companies were on the register, compared with 452 789 in 1994.

Companies incorporated overseas must register certain documents with the registry, within one month of establishing a place of business in the territory. A registration fee of $715 and some incidental filing fees are payable in such cases. During 1995, 582 of these were registered. At the end of the year, 4 317 companies were registered from 76 countries, including 922 from the British Virgin Islands, 797 from the United