21
3.5
practice could be dealt with by amending it
to make it clear that it does not apply to
charges on credit balances held by any person
carrying on banking business or the business
of taking deposits. A recommended form for
such an amendment is included in the Report.
Having carefully considered the terms of the Sub-Committee
Report, we recommend that amendment be made to Section 80(2)(c) & (e)
of the Companies Ordinance in accordance with the recommendations in
the Report.
3.6
The Sub-Committee also recommended that Section 80 be amended
to make it apply to charges created by companies in favour of the Crown.
We are still considering this recommendation.
4.
Section 114C of the Companies Ordinance (Proxies) and
Section 157A of the Companies Ordinance (Appointment
of directors to be voted on individually)
4.1
Both of these sections were introduced by the Companies
(Amendment) Ordinance 1984 and they provide an interesting illustration
of how new legislation can sometimes produce unforeseen problems, no
matter how much public consultation takes place before its introduction.
4.2
Both sections were introduced in implementation of recommendations
in the Second Report of the Companies Law Revision Committee (April 1973).
4.3
Section 1140 was in implementation of a recommendation in
paragraph 5.39 of the Second Report. Prior to the enactment of Section 1140,
there was no provision in the Companies Ordinance regarding proxies except
/22.