WEDNESDAY, OCTOBER 17, 1979
7
+ IF THE COMPANY THEN ISSUES A NEW ONE, IT IS INDEMNIFIED AGAINST ALL LOSS SUBSEQUENTLY INCURRED BY ANY PERSON OF ITS HAVING DONE SO, MR. JEAFFRESON SAID.
BUT HE ADDED THAT THIS PROVISION ONLY APPLIED TO COMPANIES INCORPORATED BEFORE DECEMBER 25, 1941.
HE SAID THAT IN THE KNOWLEDGE THAT THEY WERE NOT COVERED BY A STATUTORY INDEMNIFICATION, COMPANIES INCORPORATED AFTER DECEMBER 1941 WERE LEFT TO DECIDE WHETHER OR NOT THEY WISHED TO ISSUE REPLACEMENT CERTIFICATES.
IN MOST CASES, HE SAID, THEY WERE RELUCTANT TO DO SO UNLESS THE APPLICATIONS WERE COVERED BY AN INDEMNITY FROM A BANK OR SOME OTHER FORM OF GUARANTEE.
MR. JEAFFRESON SAID THE SECOND REPORT BY THE COMPANIES LAW REVISION COMMITTEE RECOMMENDED THAT THE PROTECTION PROVIDED IN THE COMPANIES (RECONSTRUCTION OF RECORDS) ORDINANCE BE EXTENDED TO ALL COMPANIES.
+AFTER CONSULTING THE FEDERATION OF SHARE REGISTRARS AND THE EXCHANGE BANKS ASSOCIATION, WE CONCLUDED THAT ONLY LISTED PUBLIC COMPANIES SHOULD BE COVERED, HE SAID.
+THE ARGUMENT WAS THAT THE NUMBER OF CASES INVOLVING LOST SHARE CERTIFICATES IN RESPECT OF PRIVATE OR NON-LISTED PUBLIC COMPANIES WAS SMALL AND IDENTIFYING THE RIGHTFUL OWNERS OF THE IR SHARES WAS RARELY A PROBLEM, HE ADDED.
A TWO-TIER SYSTEM WILL BE INTRODUCED IN THE AMENDMENT BILL. ONE PROCEDURE BROADLY SIMILAR TO A PROVISION IN THE COMPANIES (RECONSTRUCTION OF RECORDS) ORDINANCE IS PROPOSED FOR SHAREHOLDINGS EXCEEDING $20 000 OR WHEN APPLICATIONS ARE MADE WITHOUT THE REGISTERED SHAREHOLDERS' CONSENT, HE EXPLAINED.
+ANOTHER SIMPLER PROCEDURE IS PROPOSED FOR SHAREHOLDINGS WORTH NOT MORE THAN $20 000 WHEN THE APPLICATIONS ARE MADE BY THE REGISTERED OWNERS OR WITH THEIR CONSENT.+
HE SAID THE AMENDMENT BILL WILL PROVIDE THE REGISTRAR GENERAL AS OFFICIAL RECEIVER, WITH THE RIGHT TO ATTEND THE HEARINGS OF PETITIONS FOR THE WINDING UP OF COMPANIES.
+UNTIL RECENTLY THE OFFICIAL RECEIVER DID APPEAR IN SUCH HEARINGS AND CLAIMED HIS COSTS IN APPROPRIATE CASES. BUT IN A RECENT CASE HIS CLAIM FOR COSTS WAS SUCCESSFULLY CHALLENGED ON THE GROUNDS THAT HE DID NOT HAVE A STATUTORY RIGHT OF APPEARANCE,+ MR. JEAFFRESON SAID.
HE POINTED OUT THAT THIS FINDING HAS BROUGHT THE LACK OF HIS STATUTORY RIGHT OUT INTO THE OPEN AND THE OFFICIAL RECEIVER WAS NOW CONCERNED THAT HE COULD BE EXCLUDED FROM HEARINGS IN THE FUTURE.
+THE AMENDMENT TO WHICH I HAVE REFERRED WILL GIVE HIM THE STATUTORY RIGHT, HE SAID,
THE DEBATE ON THE MOTION WAS ADJOURNED.