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There was no significant changes on businesses affected by compulsory company liquidations and bankruptcies. These included garment and knitting manufacturing, importers and exporters, restaurants and canteens, electrical and electronic manufacturing, construction and engineering, land / property development and investment, as well as plastic products manufacturing.
Petitions were filed by the Director of Legal Aid (35 per cent), trade creditors (32 per cent), banks and financial institutions (22 per cent), landlords (four per cent), shareholders (two per cent), personal (two per cent) and others (three per cent).
On insolvency prosecutions, there were 137 summonses as against 96 in 1995/96 issued against bankrupts and directors of compulsory wound-up companies for failure to submit statements of affairs to the Official Receiver, failure to keep proper books and records and misconduct.
A total of 64 bankrupts or directors as against 80 in 1995/96 were convicted of insolvency offences. The total amount of fines imposed by the court was $212,595 as against $463,345 in 1995/96. Twenty-seven orders for disqualification of company directors were made by the court in 1996/97. The directors concerned were prohibited from acting as directors for periods varying from one to five years.
Twenty-four warrants of arrest were issued against uncooperative bankrupts or directors in 1996/97 and six warrants were implemented.
Total dividends declared by the Official Receiver during 1996/97 (excluding BCCHK) amounted to $104.52 million in 236 insolvencies, as against $72.66 million in 241 insolvencies in 1995/96.
One hundred per cent preferential payments or ordinary dividends were declared in 93 insolvencies as against 97 cases in 1995/96, which included substantial dividends in three compulsory liquidations and one bankruptcy case declared to the creditors.
End