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THURSDAY, JUNE 13, 1985
IN THE CASE OF A COMPANY CARRYING ON BUSINESS ABROAD OR HAVING INTERESTS ABROAD, THE DATE UP TO WHICH THE ACCOUNTS ARE MADE MUST BE NOT MORE THAN 12 MONTHS BEFORE THE DATE OF THE GENERAL MEETING.
THE ACCOUNTS CAN BE LAID BEFORE ANY GENERAL MEETING OF THE COMPANY, NOT NECESSARILY THE COMPANY'S ANNUAL GENERAL MEETING WHICH USUALLY MUST BE HELD WITHIN 15 MONTHS OF THE PREVIOUS AGM.
+ THE CUMULATIVE EFFECT OF THESE AND OTHER PROVISIONS IN THE COMPANIES ORDINANCE IS THAT IN CERTAIN CIRCUMSTANCES
A COMPANY CAN DELAY SUBMISSION OF ITS ACCOUNTS TO A GENERAL MEETING OF THE COMPANY FOR WELL OVER A YEAR, + SAID MR JUSTICE CONS. +THERE WAS PRESS CRITICISM OF THIS SITUATION IN 1984.+
THE COMMITTEE HAVE CONCLUDED THAT THESE EXISTING TIME LIMITS FOR SUBMISSION OF ACCOUNTS ARE TOO GENEROUS AND HAVE RECOMMENDED THAT A FLAT TIME LIMIT OF SIX MONTHS BE IMPOSED.
THE COMMITTEE HAVE ALSO RECOMMENDED THAT THE ACCOUNTS SHOULD NORMALLY BE SUBMITTED TO THE COMPANY'S AGM, NOT JUST ANY GENERAL MEETING, BUT WITH POWER TO THE COURT TO APPROVE SUBMISSION TO ANY GENERAL MEETING IF THERE ARE SPECIAL CIRCUMSTANCES.
WITH REGARD TO THE SUBJECT OF CULPABLE INSIDER DEALERS, THE COMMITTEE CONSIDERED THE TERMS OF SECTION 157E OF THE COMPANIES ORDINANCE WHICH DEALS WITH THE POWER OF THE COURTS TO RESTRAIN FRAUDULENT PERSONS FROM MANAGING COMPANIES.
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IF A PERSON FALLS WITHIN ANY CATEGORY SPECIFIED IN THE SECTION FOR EXAMPLE, IF HE HAS BEEN CONVICTED OF ANY INDICTABLE OFFENCE IN CONNECTION WITH THE PROMOTION, FORMATION OR MANAGEMENT OF A COMPANY - THE HIGH COURT MAY MAKE AN ORDER THAT HE SHALL NOT. WITHOUT THE LEAVE OF THE COURT, BE
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A DIRECTOR, LIQUIDATOR, RECEIVER OR MANAGER OF THE PROPERTY OF ANY COMPANY OR IN ANY WAY BE CONCERNED OR TAKE PART IN THE MANAGEMENT OF A COMPANY FOR SUCH PERIOD, NOT EXCEEDING FIVE YEARS, AS THE COURT MAY SPECIFY.
THE PERSONS WHO ARE AUTHORISED BY THE SECTION TO APPLY TO THE HIGH COURT ASKING IT TO MAKE SUCH AN ORDER INCLUDE THE FINANCIAL SECRETARY, THE OFFICIAL RECEIVER AND, IF THE APPLICATION IS MADE IN THE COURSE OF THE WINDING UP OF A COMPANY, THE LIQUIDATOR OF THE COMPANY OR ANYONE WHO IS, OR HAS BEEN, A MEMBER OR CREDITOR OF THE COMPANY.
MR JUSTICE CONS SAID THE COMMITTEE HAVE RECOMMENDED THAT SECTION 157E SHOULD BE EXTENDED TO ENABLE THE COURT TO MAKE AN ORDER AGAINST ANY PERSON WHO IS NAMED AS
A CULPABLE INSIDER DEALER IN A REPORT ISSUED BY
AN INSIDER DEALING TRIBUNAL APPOINTED UNDER THE SECURITIES ORDINANCE.
/+THE COMMITTEE