ENG-2001 — Page 132

FINANCIAL AND MONETARY AFFAIRS

88

In 2001, 38 258 new companies were incorporated. During the year, the nominal capital of new companies registered totalled $241.72 billion and 5 510 companies had increased their nominal capital by amounts totalling $431.4 billion. At the end of the year, 510 380 local companies were on the register, compared with 511 503 in 2000.

Companies incorporated overseas must register certain documents with the - Registry within one month of establishing a place of business in Hong Kong. During 2001, 812 of these were registered. At the end of the year, 6457 companies were registered from 79 countries.

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.

Licence applications are, initially, submitted to the Registrar of Companies as Registrar of Money Lenders. A copy is also 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 has the right to object. During the year, 864 applications were received. Based on the applications received during the year and outstanding applications brought forward from the previous year, a total of 827 licences were granted this year. At the end of 2001, there were 864 licensed money lenders, including those whose applications for renewing their licences had yet to be approved.

The ordinance provides severe penalties for 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. Any agreement for the repayment of any such loan, or security given in respect of such loan is unenforceable.

Bankruptcies, Individual Voluntary Arrangement and Compulsory Winding-up

The Official Receiver's Office administers the estates of individuals adjudged to be bankrupt by the court and also companies ordered to be wound up by the court.

The Official Receiver becomes the receiver of an individual debtor or provisional liquidator of a company when a bankruptcy order against the property of the debtor or a winding-up order against the company is made. Where the assets of an estate do not exceed $200,000, the Official Receiver is usually appointed the trustee or the liquidator by way of a summary procedure order. In other cases, a meeting of creditors in bankruptcy, or meetings of creditors and contributories in compulsory liquidations will be convened to decide whether the Official Receiver or some other fit persons from the private sector should be appointed the trustee or liquidator.

When he acts as trustee or liquidator, the Official Receiver investigates the affairs of the bankrupt or the wound-up company, realises assets and distributes dividends to creditors. The Official Receiver also prosecutes certain offences set out in the