ENG-2000 — Page 135

FINANCIAL AND MONETARY AFFAIRS

million for the financial year ending on March 31, 2000. With prudent financial management principles and the healthy financial reserves built up over the past years, the Registry will have sufficient funding to meet recurrent expenditure and support future investment and development projects.

During the year, the Registry continued to improve the quality of services delivered. A comprehensive computerised database was made available to members of the public through in-house search services in March. The new service removed the need for customers to look for the required data through microfiches. A further major enhancement of the Registry's service to customers was the introduction of the Companies Registry On-line Public Search System (CROPS) in September whereby customers can have direct on-line access to key updated company information in their own offices.

The Registry established a Strategic Change Plan (SCP) study team in October 1998 to undertake a comprehensive review of the department's operation and procedures; and examine and assess the feasibility and impact of document imaging and the three key drivers

electronic filing, electronic processing and electronic searching — on the existing system. The SCP Study Final Report was issued in June. The Registry will implement the key change initiatives and information technology projects recommended in the SCP Final Report in order to establish a fully computerised operation by late 2004. Full computerisation will considerably enhance the efficiency and cost-effectiveness of the Registry's operations and the quality of facilities and services offered to the department's customers.

In 2000, 43 359 new companies were incorporated. On incorporation under the Companies Ordinance, a local company pays a registration fee of $1,425 and a lodgement fee of $295 plus a capital duty of $1 for every $1,000 of nominal capital, subject to a cap of $30,000 per case. During the year, the nominal capital of new companies registered totalled $61.96 billion and 6 263 companies had increased their nominal capital by amounts totalling $192.43 billion. At the end of the year, 511 503 local companies were on the register, compared with 490 888 in 1999.

Companies incorporated overseas must register certain documents with the Registry within one month of establishing a place of business in Hong Kong. A registration fee of $1,425, a lodgement fee of $295 and some incidental filing fees are payable in such cases. During 2000, 814 of these were registered. At the end of the year, 6 093 companies were registered from 78 countries.

Company Law Reform

The Standing Committee on Company Law Reform (SCCLR), established in 1984, meets regularly to consider amendments to the Companies Ordinance, consistent with the needs of the public and the commercial sectors. The Companies (Amendment) Ordinance 2000, took effect in July, streamlined certain filing requirements, reduced the documents required to be filed, and enabled members of companies to pass unanimous written resolutions without holding meetings. Based on the consultancy report on the overall review of the Companies Ordinance published in May 1997, the SCCLR issued a report in February advising the Government on the necessary legislative amendments and those areas that needed further study and consultation. The first phase of amendments resulting from the overall review of the Companies Ordinance and amendments to allow listed companies to prepare summary financial statements for their shareholders, will be taken forward in 2001.

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