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first claim on local assets is one in which the local assets
consist mainly of goods bought on credit in this country and
shipped to the Colonies. But whatever may be the position
with regard to creditors and assets I still feel very
strongly that all creditors should be treated equally.
So far as liquidations in this country are concerned,
Dominion and foreign creditors are treated on absolute
equality with English creditors and, even in cases in which
local creditors are entitled to local assets in priority
to creditors outside the local jurisdiction, their dividends
are equated to those of the English creditors out of the
English assets. In fact all creditors, of whatever race or
nationality and whatever their local rights may be, are
entitled to prove and to be admitted to dividend in an
English liquidation though they must, of course, submit to
there being debited against their dividends any amount
received by them out of the assets situated outside the
jurisdiction of the Court in this country.
The proposed new Section 275A appears only to relate
to cases in which the Company is already in liquidation
as the application for an Order under the Section has
expressly to be made in the Winding-up of the Company by the
Liquidator from which it would appear that if the Company is
in liquidation say only in England the local Court would
have no power to interfere with the due administration of the
assets unless the Englian Liquidator applied to it for an
Order to that effect. I suppose however that what would
actually happen would be that an Order would first be
obtained in the Colony for the liquidation of the Company
whether a liquidation were proceeding elsewhere or not, and
that then the local Liquidator would apply to the Court to
confine his activities to local assets and local creditors.
Creditors appear to have no right to apply under this section.
I am disposed to think that in cases of a partial and
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