***************************************************

Following is the speech by the Acting Secretary for Financial Services, Mrs Rebecca Lai, in moving the amendment to the Schedule to the Companies (Amendment) Bill 1999 in the Legislative Council today (Wednesday):

Madam President,

I propose to amend the Schedule as set out in the paper circulated to Members.

A new item 1A to the Schedule is proposed to be added to amend Schedule 1 to the Companies (Fees and Percentages) Order, to specify the fee payable in respect of an application made to the Court under the proposed section 291AB of the Companies Ordinance. This is a consequential amendment.

The proposed new items 4 and 5 of the Schedule are also consequential amendments. It seeks to amend the Inland Revenue Ordinance to provide for the introduction a new service to be provided by the Inland Revenue Department. An application made under Clause 22 of the Bill, i.e. the new section 291AA of the Companies Ordinance, for the deregistration of a private company must, as stipulated in sub-clause (3)(b), be accompanied by a written notice from the Commissioner of Inland Revenue stating that the Commissioner has no objection to the company being deregistered. The proposed new section 88B of the Inland Revenue Ordinance empowers the Commissioner to issue such a written notice upon request. I also propose to add a Schedule 11 to the Inland Revenue Ordinance to set out the fee for the above service, i.e. at $350 per application on a cost recovery basis. The proposed provisions and the fee for the new service have been scrutinised and endorsed by the Bills Committee.

Thank you, Madam President.

End/Wednesday, June 23, 1999

NNNN