57
dealt with it in its own section of this Report.
11.9
With regard to Administration Orders, Members were again
concerned to note that, as with the provisions a Wrongful Trading, the
provisions on this subject in Sections 27
Adde
-
44 of the Insolvency Act 1985
(now Sections 8 27 of the 1986 Act) were regarded with scepticism by
the experts. For example, Mr. Farmery in the article already quoted,
said with regard to the provisions on Administration Orders:
"In principle, the introduction of such a concept is to be welcomed,
although there are very real worries as to whether these provisions will
work. A number of general and technical objections have been raised in
this respect. Suffice it to mention a few of these
?#
11.10 We agreed that before proceeding further with consideration
of this subject it would be desirable to have the views of the
various professional and business organisations whom we normally consult.
The Secretary duly wrote to these organisations and we shall resume
our deliberations when we have received the replies. It is to be
hoped that, by then, there will also be some information available as
to how the British provisions have operated in practice.
11.11
We also agreed that, in the meantime, we should learn more
about the Chapter 11 procedure in the United States which some
professionals have seen as a preferable alternative to Administration
Orders.
11.12
It was therefore arranged for a representative of one of
the leading firms of Wall Street attorneys which has an office in Hong Kong,
to attend one of our meetings. He gave us a very informative address,
was good enough to answer all questions and left us with a very useful
written memorandum on the American provisions.
/58.
.....