WEDNESDAY, JUNE 11, 1980
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NEW LAW TO PROTECT CREDITORS
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A BILL SEEKING TO IMPROVE THE EXISTING LAW WHICH PROTECTS CREDITORS OF A BUSINESS IN A SALE OR TRANSFER OF ANY PART OF THE BUSINESS WAS INTRODUCED INTO THE LEGISLATIVE COUNCIL TODAY.
MOVING THE SECOND READING OF THE TRANSFER OF BUSINESSES (PROTECTION OF CREDITORS) BILL 1980, THE LAW DRAFTSMAN, THE HON G.P. NAZARETH SAID IT WOULD RETAIN THE PROTECTION PROVIDED BY THE FRAUDULENT TRANSFER OF BUSINESSES ORDINANCE BUT WOULD QUALIFY IT SO FAR AS POSSIBLE TO MEET CRITICISM OF THE ORDINANCE.
HE EXPLAINED THAT THIS ORDINANCE, WHICH WOULD BE REPLACED BY THE BILL, WAS ENACTED IN 1923 TO COMBAT THE FRAUDULENT TRANSFER OF BUSINESSES WHICH LEFT CREDITORS WITHOUT ASSETS AGAINST WHICH TO PROCEED.
IT MAKES THE PERSON TO WHOM A BUSINESS IS TRANSFERRED LIABLE FOR ITS DEBTS UNTIL PUBLIC NOTICE OF THE TRANSFER IS GIVEN.
IN INTRODUCING THE LEGISLATION, THE THEN ATTORNEY GENERAL SAID IT WAS IN THE NATURE OF AN EXPERIMENT. +NOT SURPRISINGLY THEREFORE, THE ORDINANCE HAS BEEN SUBJECT TO INTERMITTENT CRITICISM, MR NAZARETH SAID.
HE ADDED THAT IN RECENT YEARS CRITICISM HAD TENDED TO COME FROM RECEIVERS DISPOSING OF BUSINESSES WHO ARGUED THAT SECURED CREDITORS COULD BE PREJUDICED BY THE PROVISIONS OF THE ORDINANCE.
PYRAMID SELLING CONTAINS ELEMENTS OF DISASTER
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A BILL SEEKING TO MAKE IT AN OFFENCE FOR ANY PERSON TO PROMOTE PYRAMID SELLING WAS INTRODUCED INTO THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
MOVING THE SECOND READING OF THE PYRAMID SELLING PROHIBITION BILL 1980, THE ACTING FINANCIAL SECRETARY, THE HON DAVID JEAFFRESON, SAID SUCH SCHEMES OFTEN SERVED NO ECONOMIC PURPOSE AND CONTAINED ELEMENTS OF DISASTER FOR THOSE WHO PARTICIPATE.
+A PERSON WHO PAYS TO JOIN A SCHEME MAY FIND THAT HE IS UNABLE TO RECOUP HIS MONEY BY SELLING THE GOODS. AS THE REWARDS FOR RECRUITING USUALLY FAR EXCEED THOSE THE PARTICIPANTS CAN EARN FROM SELLING, HE CONCENTRATES ON RECRUITING OTHER PARTICIPANTS,+ HẸ EXPLAINED.
THE SAME CONSIDERATION, MR JEAFFRESON SAID, COULD AFFECT THE ATTITUDES OF THOSE WHOM HE RECRUITED AND SO ON DOWN EACH STAGE OF THE PYRAMID.
/+THE GOODS