CO129-508-5 Supreme Court of Hong Kong- slackness of registry accounting methods 28-10-1927 - 23-4-1928 — Page 64

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Mr. Melbourne regarded the Company as a

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corporate entity in which Mr. Hodge figured solely as the

person occupying the restrum during sales. He made

enquiry as to the Company's stability, as above mentioned,

and in view of Mr. Hill's long experience and of the particular knowledge which he might be expected to have as

First Bailiff it does not seen unreasonable for Mr. Melbourne

and for Mr. Nisbet on his return from leave, to have been

satisfied as to the probability of the Company's meeting

its obligations and the propriety of employing and Cany knowledge which they may have, possessed of

contiming to employ it despite chronic impecuniosity and unreliability. Such knowledge would probably have caused

a prudent business man to keep a particularly watchful

eye on financial transactions with the Company, and if

this had been done the present lamentable position would

not have arisen.

For the proper consideration of the question of

the failure of the officers of the Court to notice that the

Company was making default in payment it is necessary to

understand (a) the system under which the sales by auction

are carried out and the proceeds di sposed of (b) the

records which are kept in the Registry with regard to

such sales and their proceeds and the duties of the

officers concerned in respect of such records and in

relation to sales generally.

It is necessary only to consider in detail the

conduct of auctions under distraints, which constitute

the major part of the items in respect of which default

was made. (2) then seizure has been made under a

distraint warrant, sale is required to be conducted by

such person and at such time as the Registrar may direct.

(Ord. 1/1883 8.27),

An