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WEDNESDAY, JULY 16, 1986
IT IS OBVIOUSLY INEQUITABLE THAT A DEBTOR WHOSE ASSETS STOOD AT $1.49 MILLION SHOULD BE ALLOWED TO OPPOSE A BANKRUPTCY PETITION ON THE GROUND THAT HIS ASSETS WERE INADEQUATE, AS REQUIRED BY LAW, TO MEET THE MINIMUM 15 PER CENT DIVIDEND OF HIS TOTAL DEBT OF $10 MILLION, HE SAID.
IT WAS ALL THE MORE UNJUST THAT HIS CREDITORS SHOULD BE GIVEN THE ONEROUS TASK BY LAW OF TRYING TO PROVE THE DEBTOR'S TRUE FINANCIAL SITUATION, MR WONG ADDED.
HE STRESSED THAT IT WAS NECESSARY TO CONSIDER NOT SIMPLY THE AMOUNT OF THE DEBTOR'S ASSETS, BUT ALSO THE BROADER QUESTION OF OTHER CIRCUMSTANCES OF THE CASE SUCH AS COMMERCIAL MORALITY, ILLEGAL DEALINGS OR FAULTS OR EVEN CRIMINAL OPERATIONS.
MR WONG BELIEVED THAT MANY A CREDITOR WOULD BE PREPARED TO PUT UP WITH A SMALLER DIVIDEND IF THE DEBTORS' MALPRACTICES WERE PUBLICISED IN COURT, ADDING THAT THIS WOULD HELP TO STOP THE UNSCRUPULOUS FROM INDULGING IN SUCH PRACTICES.
+IN THE LONG RUN, IT HELPS TO BUILD A MORE HEALTHY TRADING SECTOR IN HONG KONG AND ENHANCES ITS REPUTATION AS A WORLD COMMERCIAL CENTRE, HE SAID.
ON THE DISCRETIONARY POWER OF THE COURT TO RESCIND A RECEIVING ORDER ON APPLICATION OF THE OFFICIAL RECEIVER
MR WONG SAID IT WAS THE VIEW OF THE LEGCO AD HOC GROUP STUDYING THE BILL THAT THE DRAFTED CLAUSE SHOULD EXPRESSLY STATE THAT THE COURT MUST ALSO BE SATISFIED THAT IT WAS DESIRABLE IN ALL THE CIRCUMSTANCES OF THE CASE FOR THE RECEIVING ORDER TO BE RESCINDED.
MR WONG LATER MOVED AN AMENDMENT TO THIS EFFECT AT THE COMMITTEE STAGE OF THE BILL SO AS TO ENSURE THAT REGARD WOULD BE PAID NOT SIMPLY TO THE AMOUNT OF THE DEBTOR'S ASSETS BUT TO THE BROADER QUESTION OF ALL OTHER CIRCUMSTANCES.
WINDING UP THE DEBATE, THE FINANCIAL SECRETARY, THE HON PIERS JACOBS, SAID MR WONG'S AMENDMENT SERVED TO PUT THE MATTER BEYOND DOUBT.
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THUS THE COURT. IN DECIDING TO RESCIND A RECEIVING ORDER OR TO ANNUL AN ADJUDICATION OF BANKRUPTCY UNDER THE PROPOSED NEW SECTION 33(1A), SHOULD CONSIDER ALL THE CIRCUMSTANCES SURROUNDING THE CASE.
+THIS IS CONSISTENT WITH THE NEED TO MEET THE BROADER OBJECTIVES OF BANKRUPTCY LAW, WHICH I MENTIONED WHEN MOVING THE SECOND READING OF THE BILL EARLIER THIS MONTH, HE ADDED.
MR JACOBS THANKED MR WONG FOR HIS COGENT REMARKS IN SUPPORT OF THE MEASURE AND MEMBERS OF THE LEGCO AD HOC GROUP WHO STUDIED THE BILL.
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