CO129-567-10 Companies Amendment Ordinance- draft bill 15-9-1938 - 28-9-1938 — Page 64

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

be omitted.

Section 275A.

This section

includes several objectionable features, viz.:

The power to eliminate the principle

of equality of distribution.

The giving of discretion on this

subject to the Court.

The limitation of such discretion

by the test of expediency.

The giving of initiative to the

liquidator alone and thereby by inference

excluding the creditors from applying to

the Court on the subject.

The absence of any provision

defining the position of creditors who are

excluded from participation in the local

assets or the position of included creditors

with regard to participation in the outside

assets of the company.

Difficulties which may arise in

construing debts contracted by the company

within the Colony.

primarily

At however the section in presumably citinded (apply

bthe pontion of Chinese banks I would be bos

objectionable

of to effects. were limited to the liquidation of beads & berkung businesses (see note on Section 353(1) below),

f

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