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COMPANIES (AMENDMENT) (NO. 2) BILL 1987
that Ordinance as if made under this section as amend by that Ordinance.".
Explanatory Memorandum
The purpose of this Bill is to amend the Companies Ordinance in relation to accounts of liquidators, the funds of companies in liquidation invested by the Official Receiver and the fees payable in winding up proceedings.
2. Clause 2 amends section 203 to remove the requirement for the Official Receiver to prepare periodic accounts of his receipts and payments as a liquidator and to remove the requirement for the Official Receiver to audit the accounts of liquidators submitted under that section. The Official Receiver is given instead a discretion whether or not to audit such accounts.
3. Clause 3 amends section 294 to make it clear that the Director of Accounting Services may direct the withdrawal of money placed on deposit in the name of the Official Receiver under that section when such money is required to answer demands in respect of companies estates.
4. Clause 4 replaces section 295 to provide that it is only when the cash balance standing to the credit of a company being wound up exceeds the amount required to answer demands in respect of the company's estate by $100,000 or more that such excess may be invested by the Official Receiver; that an amount equal to 1% per annum of any amount so invested is to be paid to the Official Receiver out of the interest received on such investments; and, that the balance of any interest received on such investments is to be paid to the credit of the company.
5. Clause 5 amends section 296 to authorize fees to be prescribed, by order, in winding up proceedings; to provide that the amount of fees pre- scribed is not limited by the costs incurred by the Official Receiver and that no prescribed fee is invalid by reason only of its amount; to provide that orders made under section 296 shall have effect as if made by Ordinance; and, to provide that rules or orders made under section 296 prior to amendment by this Bill shall have effect as if made under section 296 as so amended.
6. The Bill has no Public Service staffing or public expenditure implications.
AN