Number of court insolvency cases stabilised last year
The total number of new court insolvencies last year slightly decreased in comparison with the previous year (1993).
Reviewing the work of his department in the past year, the Official Receiver, Mr Robin Hearder, said there were 426 new compulsory company liquidations and 306 new personal bankruptcies compared with corresponding figures of 408 and 329 in 1993, a decrease of 0.68 per cent.
The businesses mainly affected by compulsory company liquidations and bankruptcies included garment and knitting manufacturing, restaurants and canteens, company directors giving personal guarantees, electrical and electronic manufacturing, importers and exporters, construction and engineering and transportation and godown.
Petitions were filed by the Director of Legal Aid (42 per cent), trade creditors (25 per cent), banks and financial institutions (16 per cent), shareholders (3 per cent), landlord (3 per cent), personal (1 per cent) and others (10 per cent).
More complicated or significant insolvencies during the year were American Launderland Management Limited, American Launderland Holdings Limited, Hong Kong Video Publishing Company Limited, T.S. Wong (Investment & Finance) Company Limited, Lawe William (China Trade) Limited, Melba Trading Company Limited, ABC Computer Company Limited, Mutual Well Limited and China Tianjin International Economic and Technical Co-operative Corporation.
Seventy-seven summonses as against 100 in 1993 were issued against bankrupts and directors of compulsory wound-up companies for failure to submit statement of affairs to the Official Receiver, failure to keep proper books and records and misconduct.
Seventy-two bankrupts or directors as against 66 in 1993 were convicted. The total amount of fines imposed by the court was $548,380 as against $326,458 in 1993, representing an increase of 67.98 per cent.
A bankrupt who was convicted of taking part in the management of a company without the leave of the court was sentenced to two months' imprisonment suspended for three years.
Total dividends declared by the Official Receiver during 1994 (excluding BCCHK) amounted to $62.58 million in 232 insolvencies, as against $179.38 million in 251 insolvencies in 1993.