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WEDNESDAY, JULY 6, 1988
SUBSEQUENTLY, MANY PROFESSIONAL FIRMS EXPANDED BEYOND THE 20 PARTNER LIMIT. BY FAILING TO REGISTER THEY HAD BECOME "UNLAWFUL SOCIETIES" RENDERING THEIR PARTNERS, EMPLOYEES, LANDLORDS AND OTHERS HAVING DEALINGS WITH THEM LIABLE TO CRIMINAL PROSECUTION.
EQUALLY, AS THE COURTS WOULD NOT ENFORCE ILLEGAL SUCH PERSONS MIGHT BE UNABLE TO SUE FOR THEIR FEES, WAGES, OTHER DEBTS, MR MATHEWS SAID.
"
CONTRACTS, RINT, AND
'CLEARLY THE SOCIETIES ORDINANCE WAS NEVER INTENDED TO APPLY TO LEGITIMATE BUSINESS ENTERPRISES AND IT IS UNJUST THAT THROUGHI ITS OPERATION PERSONS ENGAGED IN BUSINESS ASSOCIATIONS MAY HAVE BEEN RENDERED LIABLE TO CRIMINAL PROSECUTION AND UNABLE TO USE THE LAW то ENFORCE THEIR CIVIL CLAIMS," HE SAID.
CLAUSE 2 OF THE BILL AMENDED THE SCHEDULE 30 THAT ANY PARTNERSHIP, IRRESPECTIVE OF THE NUMBER OF MEMBERS, WOULD BE EXCLUDED FROM THE REQUIREMENT TO REGISTER AS A SOCIETY PROVIDED THAT IT WAS SOLELY ENGAGED IN A LAWFUL BUSINESS AND WAS REGISTERED UNDER ANY OTHER ORDINANCE (SUCH AS THE BUSINESS REGISTRATION ORDINANCE).
BY CLAUSE 1(2) THE AMENDMENT WOULD BE RETROSPECTIVE то THE DATE WHEN THE NEW SECTION 345(2) OF THE COMPANIES ORDINANCE ĈAME INTO EFFECT IN 1978.
BY CLAUSE 1(3) CURRENT LEGAL PROCEEDINGS WOULD BE EXCLUDED FROM THE RETROSPECTIVE OPERATION OF THE AMENDMENT.
MR MATHEWS SAID: "IT IS CONSIDERED THAT CLAUSE 2 MUST BE GIVEN RETROSPECTIVE EFFECT IN ORDER TO ENSURE THAT THOSE WHO HAVE ALREADY ENTERED INTO OTHERWISE LEGITIMATE TRANSACTIONS WITH LARGE LEGAL, ACCOUNTING AND STOCKBROKING FIRMS ARE NOT PRECLUDED FROM ENFORCING THEIR RIGHTS OR ARE PERMITTED TO EVADE THEIR OBLIGATIONS ARISING FROM SUCH TRANSACTIONS.
"THERE IS ALSO A SIGNIFICANT RISK THAT WHERE THE LARGE FIRMS HAVE ACTED AS AGENTS IN LEGAL PROCEEDINGS OR IN COMMERCIAL, FINANCIAL OR SHARE TRANSACTIONS THE PARTIES FOR WHOM THEY ACTED AND PERSONS WITH WHOM THEY DEALT MAY BE UNABLE TO ENFORCE THEIR INTERESTS UNLESS THE CLAUSE OPERATES RETROSPECTIVELY. **
HE ADDED THAT HE COMMENDED THE BILL TO THE COUNCIL AS SENSIBLE, TIDYING-UP MEASURE DESIGNED TO REMEDY AN OVERSIGHT.
DEBATE ON THE BILL WAS ADJOURNED.
A
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