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Official Receiver in winding up cases
Following is a question by the Hon Chim Pui-chung and a written reply by the Secretary for Financial Services, Mr Rafael Hui, in the Legislative Council today (Wednesday):
Question:
Reply:
Will the Government inform this Council:
(a)
(b)
Mr President,
(a)
of the criteria adopted in determining whether the Official Receiver or some other fit person should act as the liquidator in winding-up cases; and
whether the party filing a winding-up petition has the right to name the liquidator; if so, how the interests of the company being wound up are protected?
In dealing with compulsory company winding-up cases, the decision of the Official Receiver (OR) on whether he himself or another fit person should act as the liquidator of the estate is determined mainly by the amount of assets in the company's estate. If those assets are not likely to exceed $200,000, the OR will seek the court's approval to process the case under a summary procedure order whereby the OR will be appointed as the liquidator.
If the assets of the company's estate are likely to exceed $200,000, the OR shall process the case in accordance with section 194 of the Companies Ordinance ("the Ordinance") and call meetings of creditors and contributories of the company for the purpose of determining whether or not an application is to be made to the court for appointing some other fit person who has insolvency experience to be the liquidator. If there is a difference between the determinations of the meetings of creditors and contributories in respect of the appointment of a liquidator, the court will decide the matter and make such order as it thinks fit under section 194(c) of the Ordinance.