9
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Under the existing Bill, there are no specific provisions for sanctions if a discharged bankrupt subsequently fails to co-operate with the trustee after his discharge from bankruptcy. At the request of the Bills Committee, I will move an amendment to provide for sanctions to be imposed for such non-co-operation.
Under the Bill, a new statutory duty is imposed on the trustee to adjudicate proofs of debts within four years or to seek an extension of time from the court, in cases where there is a reasonable prospect of a dividend being paid. We have subsequently agreed with the Bills Committee that the specific period will be prescribed in the rules.
With these remarks, I commend the Bill to Honourable Members.
End
Bankruptcy (Amendment) Bill 1996 (committee stage)
Following is a speech by the Secretary for Financial Services, Mr Rafael Hui, in moving the Committee Stage Amendment to the Bankruptcy (Amendment) Bill 1996 in the Legislative Council today (Wednesday):
Chairman,
I move that the clauses specified be amended as set out in the paper circulated to Members.
Under clause 20 of the Bill, a first-time bankrupt is discharged from bankruptcy at the expiration of 3 years from the commencement of the bankruptcy, subject to there being no valid objection from the trustee or a creditor. As I mentioned earlier, the Bills Committee felt that a period of 4 years would be more appropriate in the context of Hong Kong. Appropriate amendments are therefore made to sections 30A(2) and 30C(2), the latter of which is a transitional provision covering existing bankrupts. The amendment to section 30A(3) is consequential to this change and reflects the position taken by the Bills Committee that even where objections to automatic discharge are raised by the trustee or a creditor and the period of bankruptcy is subsequently extended, the total maximum period of a bankruptcy should remain at 8 years.
The amendment to section 30A(8) make it clear that if a discharged bankrupt subsequently fails to co-operate with the trustee after his discharge from bankruptcy, such non-co-operation will constitute contempt of court for which sanction is already available.