XN000022-1974-08-30 — Page 3

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FRIDAY, AUGUST 30, 1974.

LEGAL AID SERVICES TO BE IMPROVED

LEGAL AID SERVICES IN HONG KONG WILL BE FURTHER IMPROVED WITH THE ADDITION OF A NEW REGULATION TO THE EXISTING LEGAL AID REGULATIONS.

KNOWN AS THE LEGAL AID CAMENDMENT) REGULATIONS 1974, THE NEW ADDITION IS PUBLISHED IN THE GAZETTE TODAY AND TAKES IMMEDIATË EFFECT.

IT ENABLES THE DIRECTOR OF LEGAL AID TO PAY, ON BEHALF OF AN AIDED PETITIONER, ANY DEPOSITS AND FURTHER DEPOSITS THAT MAY BE REQUIRED UNDER THE BANKRUPTCY RULES IN PROCEEDINGS IN BANKRUPTCY, OR UNDER THE COMPANY WIND ENG-UP RULES IN PROCEEDINGS FOR THE WINDING-UP OF COMPANIES.

AT PRESENT, THE DIRECTOR OF LEGAL AID IS NOT EMPOWERED TO MAKE FURTHER DEPOSITS WHICH MAY BE ORDERED AFTER THE RECEIBING ORDER OR THE WINDING-UP ORDER HAS BEEN MADE BY THE COURT, AND SUCH FURTHER DEPOSITS HAVE TO BE MADE BY THE PETITIONER.

A SPOKESMAN FOR THE LEGAL AID DEPARTMENT EXPLAINED THAT THE GENERAL PRINCIPLE WAS THAT A LEGALLY-AIDED PERSON SHOULD PAY NO MORE TOWARDS HIS LEGAL EXPENSES THAN THE AMOUNT CALCULATED IN ACCORDANCE WITH THE SCHEDULES TO THE LEGAL AID CASSESSMENT OF CONTRIBUTIONS) REGULATIONS.

+ IT IS CONSIDERED REASONABLE, THEREFORE, THAT THE DIRECTOR OF LEGAL AID SHOULD BE EMPOWERED TO PAY ALL DEPOSITS TO THE OFFICIAL RECEIVER. ANY SUMS SO PAID ARE RECOVERABLE FROM THE PROCEEDS OF THE ESTATE OF THE BANKRUPT OR OUT OF THE ASSETS OF THE COMPANY ORDERED TO BE WOUND UP,+ HE SAID.

UNDER THE BANKRUPTCY RULES OR COMPANY WINDING-UP RULES, THE PETITIONER IS REQUIRED TO PAY AN INITIAL DEPOSIT OF $300 AND SUCH FURTHER SUM, IF ANY, AS THE COURT MAY FROM TIME TO TIME DIRECT, TO COVER THE FEES AND EXPENSES TO BE INCURRED BY THE OFFICIAL RECEIVER.

THE SPOKESMAN POINTED OUT THAT MOST LEGAL AID PETITIONS IN BANKRUPTCY OR FOR WINDING-UP OF COMPANIES VERE IN RESPECT OF ARREARS OF WAGES OWING TO EMPLOYEES OF A DEBTOR FIRM OR A LIMITED COMPANY, AND THESE USUALLY INVOLVE LARGE NUMBERS OF WORKERS.

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FOR CONVENIENCE, ONLY A FEW EMPLOYEES OF A COMPANY OR FİRM ARE GRANTED LEGAL AID CERTIFICATES AND ARE JOINED AS PETITIONERS IN THE COURT PROCEEDINGS ALTHOUGH ALL THE EMPLOYEES WILL ULTIMATELY BENEFIT FROM THE PROCEEDINGS.

HE NOTED THAT IT MIGHT CAUSE HARDSHIP AND PROVE IMPRACTICAL TO REQUIRE LEGALLY AIDED PETITIONERS IN THESE CASES PERSONALLY TO PAY FURTHER DEPOSITS WHICH THE DIRECTOR OF LEGAL AID HAD NO POWER TO PAY AT PRESENT.

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