3.
4.
5.
6.
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.
78
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. There are, I realise, difficulties with regard to this because although a Hong Kong creditor might be bound in Hong Kong by any condition imposed by the Court there as the price of his preferential treatment it might be difficult in practice or even in law to enforce this condition in a foreign liquidation of the same company. This difficulty and its possible repercussions abroad enhances the objection to local preferential legislations.
To the above, which are dealt with in my Minutes,
may perhaps be added a warning as to difficulties which seem likely to arise in construing "debts contracted by the Company within the Colony".
(Sgd.) E. A. Phillips.
No comments yet.
Private notes are available after approval.