CO129-442 - Governor Sir May - 1917 [4-6] — Page 105

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firm in liquidation is vested in an enemy as an administrator

de bonis non. Paragraph (3) was drafted with reference to a

certain leasehold property belonging to another firm in liquida-

tion which is vested in two persons, one of whom is believed to

be technically a British subject though he resides in Germany.

Paragraph (f) was drafted with reference to such cases as the

Basel and Rheinische Missions. Faragraph (g) was drafted with

reference to such possible cases as that of the Siemens China

Electrical Engineering Co. (Hongkong) Ltd. That particular

company is, however, about to be wound up voluntarily.

Sub-section (3) of section 5 was drafted with reference to

various cases where furniture or other property of little value which was in the custody of firms in liquidation has been sold.

Particulars are kept and the proceeds are paid to the Custodian.

In some cases the ownership is not known.

Section 6 is intended to remove possible doubts as to the

power of liquidators to pass the legal estate.

Section expressly provides that a liquidator's power s

pass to his successors in office.

Section 8 provides that liquidators shall be at liberty to

distribute the assets in the first instance on the footing that

no interest accrues on any debt after the commencement of the

winding up.

This provision has been borrowed from the law

relating to bankruptcy.

saved.

The rights of secured creditors are

Section 9 provides that unsecured debts payable to creditors

who are not enemies or enemy subjects shall take priority over

unseoured debts payable to creditors who are enemies or enemy

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