Sub-enclosure 1.
Minute.
19
Hon. Colonial Secretary.
1. Section 5 of Ordinance No.29 of 1933 substituted for paragraphs (a), (b) and (c) of section 251 (1) of the
principal Ordinance (No.39 of 1932) three new paragraphs
so as to make the priorities of debts in the case of
companies in liquidation coincide with those provided by
section 38(1) of Ordinance No.10 of 1931, for ordinary
bankruptcies.
2. By paragraph 38(1)(a) of the Bankruptcy Ordinance
"all debts due from the bankrupt to the Crown at the date
of the receiving order, and having become due and payable
within twelve months next before that time" receive a
priority.
3. The corresponding provision in the English
Bankruptcy Act, 1914, gave priority to "all parochial or
other local rates."
4. In this Colony rates are levied by the Government
as representing the Crown and provision for parochial
and other local rates was considered unnecessary.
5. In his despatch of the 1st June, 1933, 30 in 0.8.0.
3/4299/32, the Secretary of State pointed out the importance of making the priorities of debts in the case
of companies in liquidation coincide exactly with those
appertaining to ordinary bankruptcies, without however
requiring that the Hong Kong law should confer the same
priorities as the English Acts.
6. It was for this reason that section 251 (1) of
Ordinance No.39 of 1932 was amended by section 5 of
Ordinance No.29 of 1933.
7. If we are to re-alter the priority in the case of
the Companies Ordinance, it seems we will have also to
/similarly