FRIDAY, JUNE 12, 1987
7
NEW AUDIT FEE STRUCTURE FOR INSOLVENCIES PROPOSED
BY
OF AUDIT TWO BILLS PROPOSING AMENDMENTS TO THE CHARGING THE
AND
HIM OFFICIAL RECEIVER
SEEKING TO PROVIDE AUDITING THE DISCRETIONARY POWERS IN
OF ACCOUNTS
LIQUIDATORS TRUSTEES WERE PUBLISHED TODAY (FRIDAY).
THE TWO BILLS GAZETTED WERE THE COMPANIES BILL 1987 AND THE BANKRUPTCY (AMENDMENT) BILL 1987.
IS
FEES
WITH
AND
(AMENDMENT)(NO.
2)
"THE MAIN PURPOSE OF THESE BILLS
TO REPLACE THE PRESENT SCALE OF AUDIT FEES CHARGED BY THE OFFICIAL RECEIVER'S OFFICE OF THE REGISTRAR GENERAL'S DEPARTMENT BY A SCALE OF AD VALOREM CHARGES AND TO GIVE THE OFFICIAL RECEIVER A DISCRETION WHETHER TO AUDIT ACCOUNTS
MR ROBIN OF TRUSTEES AND LIQUIDATORS"
HEARDER, ASSISTANT REGISTRAR GENERAL IN CHARGE OF THE OFFICIAL RECEIVER'S OFFICE, SAID.
+
IN BANKRUPTCY WERE REQUIRED WAS CHARGED.
UNDER THE PRESENT LAW, ALL ACCOUNTS OF TRUSTEES AND LIQUIDATORS OF COMPANIES IN COMPULSORY LIQUIDATION TO BE AUDITED BY THE OFFICIAL RECEIVER AND AN AUDIT FEE THIS HAD BECOME VERY TIME-CONSUMING AND WAS IN MANY CASES UNNECESSARY.
FEE
A REVIEW OF THE AUDIT FEE STRUCTURE HAD SHOWN WAS DISPROPORTIONATE INSOLVENCIES AND THAT HEARDER SAID.
BETWEEN
A MORE
ASSET LOW EQUITABLE SPREAD
THAT THE AUDIT
HIGH AND
ASSET WAS DESIRABLE, MR
COMS EQUENTLY, IT WAS PROPOSED TO
ABOLISH
OF ACCOUNTS SUBMISSION
BY
THE AUDIT FER, AS CHARGES PAYABLE ON BANKRUPTCY TRUSTEES AND COMPANY
SUCH, AND TO INTRODUCE A NEW SCALE OF AD VALOREM THE
LIQUIDATORS, HE ADDED.
SMALLER
THE
AND
MR HEARDER SAID THAT COMPARED WITH THE EXISTING AUDIT FEE,
VALOREM
MARGINALLY PROPOSED AD
HIGHER IN SIGNIFICANTLY LOWER
INSOLVENCIES, WHICH WAS CONSIDERED FAIRER TO CREDITORS.
FEES WERE IN LARGER
THAT THE
"IT IS NOT EXPECTED, HOWEVER,
PROPOSED AD VALOREM REVENUE OF THE FEES WOULD RESULT IN ANY SIGNIFICANT CHANGE IN TOTAL OFFICIAL RECEIVER'S OFFICE WHICH WOULD STILL BE OPERATED MAINLY DEFICIT BASIS DUE TO THE LARGE NUMBER OF SMALL UNREMUNERATIVE HE SAID.
A
FURTHER
PROPOSAL SOUGHT
ON A CASES,
*
OF THE TO AMEND
295 SECTION
INVESTMENTS OF MORE COMPANIES ORDINANCE UNDER WHICH THE INTEREST ON
BENEFIT OF THAN $100,000 IS APPORTIONED BETWEEN THE COMPANY, FOR THE ITS CREDITORS AT SUCH RATE AS MAY BE FIXED BY THE FINANCIAL SECRETARY, AND THE GENERAL REVENUE.
WITH CHANGES IN THE GENERAL REVENUE
"THE PRESENT PRACTICE IS TO ADJUST THIS RATE INTEREST RATES FROM TIME TO TIME SO AS TO LEAVE WITH A RATE OF ABOUT 1.5 PER CENT PER ANNUM.
/"THIS AMENDMENT