CO129-554-4 Companies Amendment Ordinance 1935 7-1-1935 - 17-12-1935 — Page 22

2.

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7. In English law the priorities of debts in the

case of companies in liquidation coincide exactly with

those appertaining to ordinary bankruptcies (cf. 4 and 5

GeoV C.59. Section 33, and 19 and 20 Geo.V C.23 Section

264). I regard it as important that the same principle

should be observed in the law of Hongkong and I shall

be glad if Section 251 of the Companies Ordinance and

Section 38 of the Bankruptcy Ordinance, No.10 of 1931,

can be examined from this point of view. I have no wish

to express an opinion as to the actual priorities to be

conferred, which can only be decided in accordance with

local conditions, and I do not regard it as essential

that the Hong Kong law should confer the same priorities

as the English Acts. It would however be desirable in

any amendment which it may be decided to make, to ensure

that, as a minimum, assessed taxes of all kinds due to

the Crown should have priority under the provisions of

paragraph (a) of sub-section (1) of the relevant sections

of the two Ordinances.

I have the honour to be,

Sir,

Your most obedient,

humble servant,

(sa) P. Cunliffe-Lister.