9
ON
WEDNESDAY, JANUARY 11, 1984
• I THINK IF ALL THE AMENDMENTS ARE ACCEPTED, THE NEW ORDINANCE WOULD BE A PIECE OF FAIR LEGISLATION WHICH WILL RECEIVE THE SUPPORT OF THE COMMUNITY, + HE SAID.
MR WONG BELIEVED THAT THE BILL, IN ITS AMENDED FORM AFTER GOING THROUGH THE COMMITTEE STAGE, WOULD PROVIDE ESSENTIAL AND ADEQUATE PROTECTION FOR BOTH CREDITORS AND DEBTORS WITH DUE CONSIDERATION TO THE IR RESPECTIVE INTERESTS.
*THE PROPOSED BILL MAKES FUNDAMENTAL MODIFICATIONS TO THE PRESENT PROCEDURE WHEREBY DEBTORS ARE PROTECTED AGAINST ARREST WITHOUT COURT HEARING AND EXAMINATION AND CREDITORS ARE AFFORDED IMPROVED MEANS OF COMPELLING DEBTORS TO FULFIL THEIR CONTRACTUAL OBLIGATIONS, HE SAID.
HOWEVER HE URGED THE COURT TO EXERCISE CAUTION IN CASES WHERE AN ELEMENT OF FRAUD WAS SUSPECTED SO THAT DISHONEST DEBTORS COULD BE DETECTED AND PENAL ISED.
HE SAID THAT IN THE COMMERCIAL AND INDUSTRIAL SECTORS, CREDITORS DID ACCEPT INABILITY TO PAY AS PART OF THE RISK AN ENTREPRENEUR OR BUSINESS HAD TO TAKE.
+HOWEVER, SHOULD THESE CREDITORS SUSPECT THAT THE DEBTOR IS UNABLE TO PAY BECAUSE HE HAS DISPOSED OF HIS ASSETS WITH THE INTENTION TO DEFRAUD (A SITUATION WHICH IS NOT ALL THAT INFREQUENT IN THE PRESENT CIRCUMSTANCES OF HONG KONG), THERE BEING NO IMMEDIATE SANCTION TO COMPEL THE DISHONEST DEBTOR TO REPAY AND NOT CERTAIN OF THE EFFECTIVENESS OF THE NEW BILL, THEY WOULD BE TAKING THE ATTITUDE OF PRUDENCE BY BEING LESS WILLING TO EXTEND CREDIT, WARNED.
HE
+SHOULD THESE TRADERS ADOPT AN OVER-CAUTIOUS AND OVER-CONSERVATIVE POLICY IN CREDIT EXTENSION, THE GROWTH OF OUR TRADE AND INDUSTRY, AND CONSEQUENTIALLY, OUR OVERALL ECONOMIC DEVELOPMENT, WOULD BE ADVERSELY AFFECTED, HE SAID.
MR CHEONG SAID THAT HE DID NOT SUBSCRIBE TO THE VIEW THAT NOTHING NEEDED TO BE DONE TO UPSET A PIECE OF LEGISLATION THAT HAD BEEN DESIGNED WITH LOCAL CONDITIONS IN MIND, TESTED AND PROVEN ACCEPTABLE.
HE ADDED THAT IN ANY CASE, THE RIGHTS OF CREDITORS TO SUE AND TO PURSUE A DEBT WOULD NOT BE DIMINISHED WITH THE ENACTMENT OF THE BILL.
+FURTHERMORE, IT SHOULD BE POINTED OUT THAT WITH THE DETAILED AMENDMENTS TO BE INTRODUCED LATER THIS AFTERNOON, IN SOME RESPECTS THE IR RIGHTS HAVE EVEN BEEN ENHANCED AND STRENGTHENED, HE SAID.
+WE MUST ACCEPT THAT THE INTRODUCTION OF THIS BILL IN FACT HAS CORRECTED AN ANOMALY OF OUR OTHERWISE NEAR TO PERFECT LEGAL AND JUDICIAL SYSTEM, HE SAID.
/MR CHAN
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