[Bills Committee]

Societies (Amendment) Bill 1997
A Bill
To


Amend the Societies Ordinance. 
Enacted by the Provisional Legislative Council. 
1.   Short title and commencement 
(1) This Ordinance may be cited as the Societies (Amendment) Ordinance 1997. 
(2) This Ordinance comes into operation on 1 July 1997. 
  
2.   Long title amended 
The long title to the Societies Ordinance (Cap. 151) is amended by repealing "notification of the establishment" and substituting "registration". 
  
3.   Interpretation 
(1) Section 2(1) is amended by adding - 
""connection" (聯繫) in relation to a society or a branch, that is a political body, includes the following circumstances - 
  (a) if the society or the branch solicits or accepts financial contributions, financial sponsorships or support of any kind or loans, directly or indirectly, from a foreign political organization or a political organization of Taiwan; 
  (b) if the society or the branch is affiliated directly or indirectly with a foreign political organization or a political organization of Taiwan; 
  (c) if the society's or the branch's policies or any of them are determined directly or indirectly by a foreign political organization or a political organization of Taiwan; or 
  (d) if a foreign political organization or a political organization of Taiwan directs, dictates, controls or participates, directly or indirectly, in the management or the decision making process of the society or the branch; 
"election" (選舉) means an ordinary election or a by-election of persons to act as members of the Legislative Council, the Provisional Legislative Council, the Urban Council, the Regional Council or a District Board; 
"exempted society" (獲豁免社團) means a society exempted by the Societies Officer from registration under this Ordinance; 
"foreign political organization" (外國政治性組織) includes - 
  (a) a foreign government or a political subdivision of a foreign government; or 
  (b) an agent of a foreign government or an agent of a political subdivision of the foreign government; or 
  (c) a political party in a foreign country or its agent; 
"political body" (政治性團體) means - 
  (a) a political party or an organization that purports to be a political party; or 
  (b) an organization whose principal function or main object is to promote or prepare a candidate for an election; 
"political organization of Taiwan" (台灣政治性組織) includes - 
  (a) the administration of Taiwan or a political subdivision of the administration; 
  (b) an agent of the administration of Taiwan or an agent of a political subdivision of the administration; or 
  (c) a political party in Taiwan or its agent; 
"specified form" (指明的表格) means a form specified by the 
Societies Officer;". 
(2) Section 2(1) is amended - 
  (a) in the definition of "branch of a society" by repealing�"branch of a society" includes" and substituting ""branch", in relation to a society, includes"; 
  (b) in the definition of "local society" by adding "2(2B) or" before "4". 
(3) Section 2 is amended by adding - 
"(2B) This Ordinance applies to a society to which it otherwise would not apply under the Schedule by its being registered under the Business Registration Ordinance (Cap. 310) if the Societies Officer gives written notice to the society that he is of the opinion that the society is not used solely for religious, charitable, social or recreational purposes. The society is taken to be established in Hong Kong on the date on which the notice is given.". 
(4) Section 2(4) is repealed and the following substituted - 
"(4) In this Ordinance the expressions "public safety", "public order (ordre public)" and "the protection of freedoms and rights of others" are interpreted in the same way as under the International Covenant on Civil and Political Rights as applied to Hong Kong. "National security" means the safeguarding of the territorial integrity and the independence of the People's Republic of China.". 
  
4.   Notification by societies 
Section 5 is repealed and the following substituted - 
"5. Application for registration or exemption from registration 
(1) A local society shall apply in the specified form to the Societies Officer for registration or exemption from registration within 1 month of its establishment or deemed establishment under section 2(2B) or 4. The application must be signed by 3 office-bearers and include details of - 
  (a) the name of the society; 
  (b) the objects of the society; 
  (c) the particulars of the office-bearers of the society; and 
  (d) the address of the principal place of business of the society and of every place or premises owned or occupied by the society. 
(2) A local society shall apply in the specified form to the Societies Officer for registration or exemption from registration of a branch of the society within 1 month of the branch's establishment or deemed establishment under section 2(2B) or 4. The application must be signed by 3 office-bearers of the society and include details of - 
  (a) the name of the society; 
  (b) the name, if any, of the branch and its objects, if they are different from the objects of the society; 
  (c) the particulars of the office-bearers of the branch; and 
  (d) the address of the principal place of business of the branch. 

5A. Registration and exemption from registration 
(1) Subject to subsection (3), the Societies Officer may register a society or a branch. 
(2) Subject to subsection (3), the Societies Officer may exempt a society or a branch from registration if he is satisfied that the society or the branch is established solely for religious, charitable, social or recreational purposes or as a rural committee or a federation or other association of rural committees. If the Societies Officer exempts a society or a branch from registration, he may issue a certificate of exemption from registration in the specified form. 
(3) The Societies Officer may, after consultation with the Secretary for Security, refuse to register or to exempt from registration a society or a branch - 
  (a) if he reasonably believes that the refusal is necessary in the interests of national security or public safety, public order (ordre public) or the protection of the rights and freedoms of others; or 
  (b) if the society or branch is a political body and has a connection with a foreign political organization or a political organization of Taiwan. 
(4) The Societies Officer shall not refuse an application for registration or exemption from registration without first giving the society an opportunity to be heard or to make written representations as the society thinks fit as to why the application should not be refused unless the Societies Officer reasonably believes that in the circumstances of the case it would not be practicable to give the society the opportunity to be heard or to make representations. 
(5) The Societies Officer shall give to a society written reasons for his refusal to register or to exempt from registration the society or branch within 14 days of the decision. 
(6) A society or a branch may operate and continue to operate until the society is notified that the Societies Officer has refused its application for registration or exemption from registration. 

5B. Appeal against refusal to register or to exempt, etc. 
The society, the branch, an office-bearer or a member of the society or the branch who is aggrieved by the decision of the Societies Officer to refuse registration or exemption from registration may appeal to the Chief Executive in Council within 30 days of the date when notice of the decision was given to the society. The Chief Executive in Council may confirm, vary or reverse the decision. The operation of the decision appealed against is suspended until the Chief Executive in Council has heard and determined the appeal. 

5C. Offences in relation to registration, etc. 
(1) If a society fails to comply with section 5(1) or (2), every office-bearer or person professing or claiming to be an office-bearer commits an offence and is liable on summary conviction - 
  (a) for a first conviction for the offence in relation to a particular society, a fine at level 3; and 
  (b) for a second or subsequent conviction for the offence in relation to the same society, a fine at level 4 and to imprisonment for 3 months and in addition a fine of $300 for each day during which the offence continues, commencing on the date of the first conviction. 
(2) It is a defence to a charge under subsection (1) if the defendant establishes to the satisfaction of the court that he has exercised due diligence to ensure the society complied with section 5 and that the failure occurred for reasons beyond his control. 

5D. Cancellation of registration or exemption from registration 
(1) The Societies Officer may, after consultation with the Secretary for Security, cancel the registration or exemption from registration of a society or a branch - 
  (a) if he reasonably believes that the cancellation is necessary in the interests of national security or public safety, public order (ordre public) or the protection of the rights and freedoms of others; or 
  (b) if the society or branch is a political body and has a connection with a foreign political organization or a political organization of Taiwan. 
(2) The Societies Officer shall not cancel the registration or exemption from registration without first giving the society an opportunity to be heard or to make written representations as the society thinks fit as to why the registration or exemption from registration should not be cancelled unless the Societies Officer reasonably believes that in the circumstances of the case it would not be practicable to give the society the opportunity to be heard or to make representations. 
(3) The Societies Officer shall give to a society written reasons for his decision to cancel the registration or exemption from registration of the society or branch within 14 days of the decision. 

5E. Appeal against cancellation 
The society, the branch, an office-bearer or a member of the society or the branch who is aggrieved by the decision of the Societies Officer to cancel the registration or exemption from registration may appeal to the Chief Executive in Council within 30 days of the date when notice of the decision was given to the society. The Chief Executive in Council may confirm, vary or reverse the decision. The operation of the decision appealed against is suspended until the Chief Executive in Council has heard and determined the appeal. 

5F. Offences of continued operation 
(1) A society or a branch that is refused registration or exemption or has had its registration or exemption cancelled and the refusal or cancellation - 
  (a) has not been appealed against within the time limited for appeal under section 5B or 5E; or 
  (b) has been confirmed on appeal, shall cease its operation as a society or a branch. 
(2) If a society or a branch fails to comply with subsection (1), every office-bearer or person professing or claiming to be an office-bearer of the society or the branch commits an offence and is liable on summary conviction - 
  (a) for a first conviction for the offence in relation to a particular society or branch, a fine at level 3; and 
  (b) for a second or subsequent conviction for the offence in relation to the same society or branch, a fine at level 4 and to imprisonment for 3 months and in addition a fine of $300 for each day during which the offence continues, commencing on the date of the first conviction. 
(3) It is a defence to a charge under subsection (2) if the defendant establishes to the satisfaction of the court that he has exercised due diligence to ensure the society or the branch complied with subsection (1) and that the failure occurred for reasons beyond his control.". 
  
5.   Prohibition of operation of societies 
(1) Section 8(1) is repealed and the following substituted - 
"(1) The Societies Officer may recommend to the Secretary for Security to make an order prohibiting the operation or continued operation of the society or the branch - 
  (a) if he reasonably believes that the prohibition of the operation or continued operation of a society or a branch is necessary in the interests of national security or public safety, public order (ordre public) or the protection of the rights and freedoms of others; or 
  (b) if the society or the branch is a political body and has a connection with a foreign political organization or a political organization of Taiwan.". 
(2) Section 8(2) is amended - 
  (a) by repealing "notification" and substituting "recommendation"; 
  (b) by adding "or the branch" after "the society". 
(3) Section 8(3) is amended by adding "or the branch" after "the society" where it appears twice. 
(4) Section 8(4) is amended by adding "or the branch" after "the society". 
(5) Section 8(5) is amended by adding "or the branch" after "the society" wherever it appears. 
(6) Section 8(7) is amended - 
  (a) by adding "or a branch" after "a society"; 
  (b) by repealing "thereof" and substituting "of the society or the branch". 
  
6.   Restrictions on names of societies 
Section 9(1) is amended by adding "for itself or its branch" after "a name". 
  
7.   Changes of particulars of a society 
Section 10(1) is amended - 
(a) by repealing "which has notified the Societies Officer of its establishment" and substituting "or its branch which has been registered or exempted from registration"; 
(b) by repealing "it shall, "and substituting "or closes a branch which is registered or exempted from registration, the society shall". 
  
8.   List of societies 
Section 11(1) is amended - 
(a) by repealing "which has notified him of their establishment" and substituting "and branches which have been registered or exempted from registration"; 
(b) in paragraph (a), by adding "and the branches" after "societies"; 
(c) in paragraph (b), by adding "and the branches" after "societies" where it first appears. 
  
9.   Dissolution of a society 
(1) Section 14(1) is amended by repealing "society which has notified the Societies Officer of its establishment" and substituting "registered society or an exempted society". 
(2) Section 14(2) is amended by repealing "remove the society" and substituting "de-register the society and its branches and remove the society and the branches". 
  
10.   Removing a society from the list 
Section 14A is amended - 
(a) by repealing subsection (1); 
(b) in subsection (2), by repealing "society which has notified the Societies Officer of its establishment" and substituting "registered society or an exempted society"; 
(c) in subsection 3 - 
  (i) by adding "or a branch" after "a society"; 
  (ii) by adding "or the branch" after "the society" where it appears twice. 
  
11.   Information to be furnished by societies 
Section 15 is amended by adding - 
"(1A) The information required under subsection (1) may include the income, the source of the income and the expenditure of the society or its branch.". 
  
12.   Unlawful societies 
Section 18(1) is amended - 
(a) in paragraph (a), by repealing "has notified the Societies Officer of its establishment" and substituting "is a registered society or an exempted society"; 
(b) in paragraph (b), by adding ", or in respect of whose branch," after "which". 
  
13.   Restriction on office-bearers of a prohibited society becoming office- 
bearers of other societies 
Section 25(1) is amended - 
(a) by adding "or a branch" after "society" where it first appears; 
(b) by adding "or the branch" after "the society". 
  
14.   Presumption 
Section 27(b) is amended by adding "or a branch" after "society". 
  
15.   Power of entry in special cases 
Section 32 is amended - 
(a) by adding "or a branch" after "society" where it appears the first time; 
(b) by repealing "security of Hong Kong" and substituting " national security"; 
(c) by adding "(ordre public) or the protection of the rights and freedoms of others" after "public order"; 
(d) by adding "or the branch" after "the society" where it appears twice; 
(e) by repealing "such society" and substituting "the society or the branch". 
  
16.   Section added 
The following is added - 
"43. Further transitional arrangements 
A society which has notified the Societies Officer under section 5 of the Societies Ordinance before 1 July 1997 is taken to have complied with the registration requirements on 1 July 1997 as required under the Societies (Amendment) Ordinance 1997 and is taken to be a registered society and is subject to the provisions of this Ordinance.". 
  
17.   Confirmation of the Societies (Amendment) Ordinance 1992 
Subject to the amendments made in this Ordinance, the Societies (Amendment) Ordinance 1992 (No. 75 of 1992) and any amendments to the Societies Ordinance made since the Societies (Amendment) Ordinance 1992 are confirmed. 
Consequential amendments
Companies Ordinance (Cap. 32)
  
18.   Power of Chief Executive in Council to order Registrar to refuse registration if satisfied that a company is being formed to evade the Societies Ordinance 
Section 360B of the Companies Ordinance (Cap. 32) is amended by repealing "circumventing the prohibition of the operation or continued operation of a society by the Secretary for Security under section 8 of the Societies Ordinance (Cap. 151) or for the purpose" and substituting - 
"circumventing - 
(a) the refusal of the Societies Officer to register or to exempt from registration a society under the Societies Ordinance (Cap. 151); 
(b) the cancellation by the Societies Officer of the registration or exemption from registration of a society registered or exempted under the Societies Ordinance; or 
(c) the prohibition of the operation or continued operation of a society by the Secretary for Security under section 8 of the Societies Ordinance, or for the purpose". 
  
19.   Power of the Chief Executive in Council to order company engaging in undesirable activities to be struck off 
Section 360C(1) is amended by adding "its registration or exemption from registration cancelled under section 5D or" after "liable to have". 
20.   Companies to which Part XI applies 
Section 360N is amended - 
(a) by repealing "liable to have its operation or continued operation prohibited by the Secretary for Security under section 8 of that Ordinance, the" and substituting "liable to have - 
(a) its registration or exemption from registration cancelled under section 5D of the Societies Ordinance; or 
(b) its operation or continued operation prohibited by the Secretary for Security under section 8 of the Societies Ordinance, 
the"; 
(b) by repealing "shall be" and substituting "in the case of (b), the company is". 

Education Ordinance (Cap. 279)
  
21.   Grounds for cancellation of registration of manager 
Section 31(1)(a) of the Education Ordinance (Cap. 279) is amended by repealing "which has had" and substituting "or a branch which has had its registration or exemption from registration cancelled under section 5D, or". 

Explanatory Memorandum

This Bill amends the Societies Ordinance in several ways. The date of commencement is 1 July 1997. (Clause 1(2)) 
2. The long title is amended to reflect the reversion to a registration system for societies. (clause 2) Clause 3 adds new definitions for "connection" in relation to a society or a branch which is a political body and a foreign political organization or a political organization of Taiwan, "election", "exempted society", "foreign political organization", "national security", "political body", "political organization of Taiwan" and "specified form". This clause also amends the definition of "local society" and inserts subsection (2B) dealing with deemed establishment of a society that falls under the Ordinance by ceasing to be a religious, charitable, social or recreational organization. 
3. Clause 4 repeals the notification system and replaces it with a registration system. The Societies Officer shall register societies or branches or exempt them unless he, after consultation with the Secretary for Security, finds - 
(a) that the registration or exemption from registration of the society or the branch is prejudicial to national security or public safety, public order (ordre public) or the protection of the rights and freedoms of others as restricted under Article 22(2) of the International Covenant on Civil and Political Rights, or  
(b) that the society or the branch is a political body and has a connection with a foreign political organization or a political organization of Taiwan. 
The Societies Officer may after consultation with the Secretary for Security cancel a registration or exemption from registration on similar grounds. 
4. Clause 4 also adds power to deal with societies which are political bodies and are connected with foreign political organizations or political organizations of Taiwan. 
5. Clauses 5 and 15 expand sections 8(1) and 32 to include restrictions set out in Article 22(2) of the International Covenant on Civil and Political Rights. 
6. Clauses 6, 7, 8, 9, 10, 12, 13 and 14 make consequential amendments on the change to a registration system. 
7. Clause 11 amends section 15 to permit the Societies Officer to call for details of the income, sources of income and expenditure of a society. 
8. Clause 16 provides a transitional provision for societies that presently comply with the law, deeming them to continue to comply without further action being required. 
9. Clause 17 confirms the Societies (Amendment) Ordinance 1992 subject to the changes made in this Bill. 
10. Clauses 18, 19, 20 and 21 make consequential amendments to the Companies Ordinance (Cap. 32) and the Education Ordinance (Cap. 279) resulting from the changes in this Bill to the Societies Ordinance. 
11. A fine at level 3 is a maximum fine of $10,000 and a fine at level 4 is a maximum fine of $25,000. (Clause 4, proposed new sections 5C and 5F) 


(Members of the public are welcome to express their views on the Bills, by writing to the Provisional Legislative Council Secretariat at 3/F, Huaxia Art Centre, No. 1 Guangqiao Street, Overseas Chinese Town, Shenzhen)