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WEDNESDAY, JANUARY 25, 1984
* LOANS (NOT EXCEEDING 80 PER CENT OF THE VALUE) FOR THE
PURCHASE OF A RESIDENCE; AND
*
LOANS ETC. (UP TO AMOUNTS NOT EXCEEDING $500 000) BY COMPANIES WHOSE ORDINARY BUSINESS INCLUDES THE LENDING OF MONEY OR THE GIVING OF GUARANTEES.
THE LATTER THREE EXCEPTIONS ARE SUBJECT TO A OF FIVE PER CENT OF NET ASSETS, AND ARE DEALT WITH 157H(7).
GLOBAL+ LIMIT UNDER SUBSECTION
MR CHEONG DESCRIBED THE INTRODUCTION OF THE COMPANIES AMENDMENT BILL AS +TIMELY+.
+FOR, IN CONSOLIDATING OUR SUCCESS AND IN PREPARING FOR OUR NEXT PHASE OF GROWTH, IT IS NECESSARY TO CONTINUOUSLY UPDATE OUR LEGAL SYSTEM, THEREBY DEFINING MORE CLEARLY AND IN MORE DETAIL THE PARAMETERS WITHIN WHICH OUR COMPANIES CAN OR SHOULD OPERATE, HE SAID.
HE WOULD BE MOVING AMENDMENTS TO CLAUSE 155, 158, 161 AND 209.
CLAUSE 155 REPLACES SECTION 224 OF THE PRINCIPAL ORDINANCE WHICH EMPOWERS THE COURT TO ARREST AN ABSCONDING CONTRIBUTORY OR OFFICER.
MR CHEONG WOULD MOVE AMENDMENT TO SPECIFY THAT THE POWERS OF ARREST SHALL COVER BOTH THE PRESENT AND PAST OFFICERS OF A COMPANY SO THAT THE LATTER CANNOT EVADE RESPONSIBILITY AND THE NEW SECTION 224 SIMPLY THROUGH RESIGNATION.
CLAUSE 158 REPLACES SECTION 227 WITH NEW SECTION 226A WHICH PROVIDES FOR A SUMMARY METHOD OF DISSOLUTION, AND A NEW SECTION 227 WHICH RECASTS THE EXISTING SECTION 227 BY PROVIDING THAT A DISSOLUTION ORDER MAY BE MADE ONLY WHEN THE LIQUIDATOR MAKES APPLICATION TO THE COURT IN THAT BEHALF.
MR CHEONG WOULD PROPOSE AMENDMENT TO SPECIFY THAT THE LIQUIDATOR MUST DELIVER A COPY OF THE COURT ORDER TO THE REGISTRAR WITHIN 14 DAYS FOR THE PURPOSE OF REGISTRATION.
CLAUSE 161 ADDS NEW SECTION 228A TO INTRODUCE A SPECIAL PROCEDURE TO SPEED UP THE APPOINTMENT OF A LIQUIDATOR IN AN URGENT CASE WHERE A COMPANY CANNOT BY REASON OF ITS LIABILITIES CONTINUE IN BUSINESS.
MR CHEONG OBSERVED THAT THE CLAUSE, AS DRAFTED NEEDED TO BE CLAR IF IED IN TWO AREAS.
+FIRST, NEW SUBSECTION 228A(3)(A) MAKES REFERENCE TO THE WINDING UP OF A COMPANY BEING DEEMED TO COMMENCE AT THE TIME OF THE DELIVERY TO THE REGISTRAR OF THE STATUTORY DECLARATION THAT THE COMPANY CANNOT CONTINUE ITS BUSINESS.
/+WE CONSIDER
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