ENG-1996 — Page 125

FINANCIAL AND MONETARY AFFAIRS

the department. It is expected that this project will be completed towards the end of 1997. Once this expanded database is available, the registry can proceed to allow direct on-line access to its customers. Meanwhile, the department continues its search for a cost-effective alternative method of capturing, retaining and retrieving company information which can effectively replace the current use of microfilm. Although the latter is functionally effective and reliable, it is a labour-intensive mode of technology which can be neither updated nor accessed electronically.

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 the commercial sectors. An overall review of the Companies Ordinance by a specially appointed consultant continued during the year. The Companies (Amendment) Bill 1996 was introduced into the Legislative Council in April 1996. The principal purposes of the Bill were to abolish the doctrine of ultra vires in its application to companies and to empower the Registrar of Companies to specify forms necessary for the purposes of the Companies Ordinance. The opportunity was also taken to amend certain prescribed wording in the ordinance so as to provide for the appropriate Chinese equivalents. Upon enactment of the Bill into law as proposed, the old forms prescribed under the Companies Ordinance will be 'deregulated'. The Registrar will specify more user-friendly and bilingual forms to replace the old ones.

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, systematically examined companies on the register with a view to striking off those which have failed to comply with the provisions of section 290A. At the end of 1996, a total of 445 600 companies had been so examined, 81 117 had been identified for action under section 290A and 36 097 had been de-registered.

In 1996, 49 734 new companies were incorporated. On incorporation under the Companies Ordinance, a local company pays a registration fee of $1,310 and a lodgement fee to $270 plus $3 for every $1,000 of nominal capital. During the year the nominal capital of new companies registered totalled $6.24 billion and 7 415 companies had increased their nominal capital by amounts totalling $45.52 billion. At the end of the year, 483 181 local companies were on the register, compared with 471 883 in 1995.

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 $780 and some incidental filing fees are payable in such cases. During 1996, 665 of these were registered. At the end of the year, 4 604 companies were registered from 77 countries, including 1 121 from the British Virgin Islands, 800 from the USA, 423 from Bermuda, 402 from the UK, and 381 from Japan.

Money Lenders

Under the Money Lenders Ordinance, anyone wishing to carry on business as a money lender must apply to a licensing court for a licence. The ordinance does not apply to institutions authorised under the Banking Ordinance.

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