CO129-415 - Governor Sir May - 1914 [12] — Page 70

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Sub-section (9) was thought advisable in view of the

necessity for immediate action in many cases.

Sub-section (10) lays down that the winding up is to

be carried out as for the benefit of the persons entitled

to the profits of the business which is being wound up, or

to the property dealt with by the liquidators. It also pro-

vides that the ultimate disposal of all proceeds realised

by the winding up shall await the directions of His Excellency

the Governor or the provisions of any law which may be enacted

hereafter in that behalf.

Sub-section (11) lays down the priority in which the

assets are to be distributed in case of insolvency. It was

based generally on the scheme of the Bankruptcy Ordinance, 1891,

but the salary and wages of clerks and servants were given

priority over debts due to the Crown on account of anticipated

distress among the former employees of the alien enemy firms.

The rate of the liquidators' remuneration was fixed after con-

sultation with the Hongkong and Shanghai Banking Corporation.

Sub-section (12) provides that liquidators shall confårm

with any directions which may be given by His Excellency the

Governor.

Section 6 prohibits the carrying on without permission

and

of any business formerly carried on by an alien enemy,

provides a presumptive method of proof in case of contravention

of this prohibition. This section was intended to prevent

anticipated attempts, which have been made in one or two cases,

to carry on an alien enemy's business under the name of a

British subject formerly connected with the alien enemy firm,

Section 7 gives powers of inspection and search, Thia

section was taken from the Trading with the Enemy Ordinance,

1914.

97

Section 8 lays down the penalty for offences against the

Ordinance.

Section 9 provides that no prosecution shall be instituted

under the Ordinance without the consent of the Attorney General.

Section 10 provides that nothing in the Ordinance shall

be deemed to affect the rights or remedies of any person against

an alien enemy, except in so far as the alien enemy's liabili

ties may be discharged by a liquidator.

Section 11 saves any other powers with respect to alien

enemies and all other powers of His Majesty.

In my opinion this is an Ordinance to which His Excellency

the Governor may properly assent in the name of His Majesty and

on His behalf,

Attorney General.

30.11.14.