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WEDNESDAY. NOVEMBER 22, 1989
COMPANIES WINDING UP AMENDMENT RULES APPROVED
THE
LEGISLATIVE COUNCIL TODAY (WEDNESDAY} APPROVED THE COMPANIES WINDING-UP) (AMENDMENT RULES 1999, WHICH WERE MADE BY THE CHIEF JUSTICE ON OCTOBER 28.
MOVING A MOTION UNDER THE COMPANIES ORDINANCE. THE FINANCIAL SECRETARY, THE HON SIR PIERS JACOBS, SAID THE RULES INTRODUCED TWO AMENDMENTS TO EXISTING PROCEDURES.
FIRST, RULE 28(1) WAS AMENDED TO ENABLE A PETITIONER TO APPLY FOR THE APPOINTMENT OF A PROVISIONAL LIQUIDATOR AFTER PRESENTATION OF THE WINDING-UP PETITION TO THE COURT.
SIR PIERS SAID THE PRESENT RULE PROVIDED FOR AN APPLICATION A CREDITOR, CONTRIBUTORY, OR BY THE COMPANY ITSELF.
:
BY
"THE PURPOSE OF THE AMENDMENT IS ΤΟ GIVE THE RELEVANT REGULATORY AUTHORITIES AN EXPRESS RIGHT TO PETITION FOR THE APPOINTMENT OF A PROVISIONAL LIQUIDATOR IN APPROPRIATE CIRCUMSTANCES, HE EXPLAINED.
AT PRESENT. THE FINANCIAL SECRETARY, THE INSURANCE AUTHORITY, THE SECURITIES AND FUTURES COMMISSION AND THE COMMISSIONER OF BANKING ALL HAD POWERS TO PRESENT WINDING-UP PETITIONS UNDER THEIR RESPECTIVE ORDINANCES.
ANY SUCH PETITIONS WERE FREQUENTLY FOLLOWED BY APPLICATIONS FOR THE APPOINTMENT OF A PROVISIONAL LIQUIDATOR IN ORDER TO SAFEGUARD THE ASSETS OF THE COMPANY AND TO PRESERVE THE BOOKS AND FINANCIAL RECORDS, AND IT WAS APPROPRIATE THAT THE RELEVANT AUTHORITY IN H13 CAPACITY AS PETITIONER SHOULD BE ABLE TO MAKE THE APPLICATION, HE ADDED.
THE SECOND AMENDMENT SPECIFIED THAT RULE 93(1) WAS AMENDED TO MAKE IT CONSISTENT WITH SECTION 217 OF THE COMPANIES ORDINANCE, WHICH PROVIDED THAT CREDITORS WHO DID NOT PROVE THEIR DEBT OR CLAIM ON OR BEFORE THE DATE FIXED BY RULE 93(1) WERE EXCLUDED FROM THE BENEFIT OF THE DISTRIBUTION MADE NEXT AFTER THAT DATE AND FROM THE BENEFIT OF ANY PREVIOUS DISTRIBUTION.
THE FINANCIAL SECRETARY POINTED OUT THAT UNDER THE EXISTING RULE, CREDITORS WHO FAILED ΤΟ PROVE WITHIN THE TIME-LIMIT WERE EXCLUDED FROM THE NEXT DISTRIBUTION,
NOT FROM PREVIOUS DISTRIBUTIONS.
BUT
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