WEDNESDAY, OCTOBER 30, 1997
AS TO INSOLVENT COMPANIES, THE SECRETARY SAID UNDER SECTION 285 THE COMPANIES ORDINANCE, LIQUIDATORS OF INSOLVENT COMPANIES WERE REQUIRED TO PAY INTO THE COMPANIES LIQUIDATION ACCOUNT MAINTAINED BY THE OFFICIAL RECEIVER MONIES WHICH HAD REMAINED UNCLAIMED OR UNDISTRIBUTED FOR SIX MONTHS AFTER THE DATE OF THEIR RECEIPT.
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UNDER SECTION 294 OF THE COMPANIES ORDINANCE THE OFFICIAL RECEIVER WAS REQUIRED, IN RESPECT OF INSOLVENT COMPANIES, TO PLACE BANK DEPOSIT ALL MONIES IN HIS HANDS AS LIQUIDATOR WHICH WERE IN EXCESS OF THE AMOUNT WHICH, IN HIS OPINION, WAS REQUIRED FOR THE TIME BEING TO ANSWER DEMANDS IN RESPECT OF THE COMPANY'S ESTATE, HE ADDED.
INTEREST ACCRUING ON THOSE DEPOSITS WAS THEN REQUIRED ΤΟ BE PAID INTO THE GENERAL REVENUE AT THE END OF EACH FINANCIAL YEAR.
MR NENDICK EXPLAINED THAT DIFFERENT ARRANGEMENTS APPLIED WHEN THE CASH BALANCE STANDING TO THE CREDIT OF THE ACCOUNT OF ANY COMPANY EXCEEDED BY $100,000 OR MORE THE AMOUNT WHICH, IN THE OPINION OF THE COMMITTEE OF INSPECTION, OR, WHERE THERE WAS NO COMMITTEE INSPECTION, IN THE OPINION OF THE LIQUIDATOR, WAS REQUIRED FOR TIME BEING TO ANSWER DEMANDS IN RESPECT OF THE COMPANY'S ESTATE.
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IN SUCH CASES, THE OFFICIAL RECEIVER WAS REQUIRED ON THE REQUEST OF THE COMMITTEE OF INSPECTION, OR WHERE THERE WAS NO COMMITTEE OF INSPECTION ON THE REQUEST OF THE LIQUIDATOR, TO INVEST THE AMOUNT OF SUCH EXCESS ON BANK DEPOSIT.
OUT OF THE INTEREST PAID ON SUCH DEPOSITS, AN AMOUNT EQUALLED TO 1.5 PER CENT PER ANNUM (OR SUCH OTHER RATE AS MIGHT BE FIXED BY THE FINANCIAL SECRETARY) OF THE MONEY INVESTED WAS REQUIRED TO BE PAID TO THE OFFICIAL RECEIVER.
AGAIN, MR NENDICK NOTED, SUCH INTEREST WAS THEN PAID INTO THE GENERAL REVENUE AT THE END OF EACH FINANCIAL YEAR WHILE THE BALANCE OF THE INTEREST WAS PAID TO THE CREDIT OF THE COMPANY.
ON WHAT EXTENT THESE CHARGES HAD RESULTED IN RECOVERING THE COST OF PROVIDING THE PARTICULAR SERVICES, MR NENDICK STATED THAT THE COST OF OPERATING THE OFFICIAL RECEIVER'S OFFICE DURING THE LAST FINANCIAL YEAR, 1990-91, WAS $103 MILLION AND THE INTEREST PAID TO THE GENERAL REVENUE ON BANK DEPOSITS TOTALLED $25.5 MILLION.
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"THUS THIS INTEREST CONTRIBUTED ABOUT 25 PER CENT TO THE OVERALL OPERATING COSTS OF THE OFFICIAL RECEIVER'S OFFICE DURING YEAR, HE SAID.
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