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Following is the speech by the Acting Secretary for Financial Services, Mrs Rebecca Lai, in resuming the second reading debate of the Companies (Amendment) Bill 1999 in the Legislative Council today (Wednesday):

Madam President,

The Companies (Amendment) Bill 1999 seeks to update and simplify certain provisions of the Companies Ordinance, including introducing a merger relief arrangement, reducing the requirements for filing of particulars of directors, as well as introducing a new statutory procedure for the deregistration of solvent, defunct private companies through simple application. The Bill also proposes some technical amendments.

First of all, I would like to thank the Bills Committee chaired by the Hon Albert Ho Chun-yan for completing the scrutiny of the Bill efficiently and for its support for the proposals in the Bill. The Committee has also put forward some valuable proposals in the course of the scrutiny.

I would also like to extend my thanks to the Law Society of Hong Kong, the Hong Kong Institute of Company Secretaries and the Hong Kong Managers and Secretaries Limited for their comments on the Bill. Moreover, I should thank the Hong Kong Society of Accountants for the assistance it has rendered us in providing professional and technical details on the provisions on "merger relief" to the Bills Committee during the scrutiny of the Bill.

Having discussed with the Bills Committee and taking into account comments submitted by the relevant bodies, I shall move five amendments later on. Two of them are made in response to the proposals put forward by the Bills Committee. The other three are mainly technical or consequential amendments. All the amendments have been scrutinised by the Bills Committee which has given its support. I shall elaborate on the amendments at the ensuing Committee Stage.

During our discussion with the Bills Committee, Members have expressed concern about the proposed statutory procedures to provide a new service whereby solvent, defunct private companies could apply for deregistration. We understand that the main focus is that Members hope that the application for a "Notice of no objection" issued by the Commissioner of Inland Revenue would be processed as soon as possible, so that the purpose of this proposal would be fulfilled, that is, to provide for a simple and speedy means for private companies to apply for deregistration when necessary. I am sure that the Registrar of Companies and the Commissioner of Inland Revenue will work closely together to draw up a set of operational procedures for this new service and to ensure that the applications are processed in the most efficient manner.

The provisions in the Companies (Amendment) Bill 1999 have been made to keep pace with the development of the local business community, the aim of which is to create a better business environment. With this in mind, I hope Members will support the Bill and the amendments I am going to propose later.

Thank you, Madam President.

End/Wednesday, June 23, 1999

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