FRIDAY, JUNE 16, 1978
A GOVERNMENT SPOKESMAN SAID THE BILL PROVIDES FOR A NEW SECTION TO BE INTRODUCED INTO THE PRINCIPAL CRDINANCE TO ALLOW ANY MEMBER OF A COMPANY WHO CONSIDERS THAT THE COMPANY'S AFFAIRS ARE BEING CONDUCTED IN A MANNER UNFAIRLY PREJUDICIAL TO SOME PART OF THE SHARE- HOLDERS INCLUDING HIMSELF TO PETITION THE COURT FOR RELIEF.
THIS NEW SECTION IS ALSO INTENDED TO INCREASE THE POWERS OF THE COURT TO PROTECT OPPRESSED SHAREHOLDERS BY INCLUDING PROVISION FOR THE COURT TO MAKE ORDERS OF RESTRAINT AGAINST ISOLATED ACTS COMMITTED BY A COMPANY OR THE CONTINUANCE OF THE CONDUCT COMPLAINED OF BY THE SHAREHOLDER. IT ALSO EMPOWERS THE FINANCIAL SECRETARY TO PETITION THE COURT IF THE REPORT OF AN INSPECTOR APPOINTED BY HIM TO INVESTIGATE THE AFFAIRS OF A COMPANY REVEALS THAT THE COMPANY'S BUSINESS IS BEING CONDUCTED IN A MANNER UNFAIRLY PREJUDICIAL TO THE INTERESTS OF ANY OF ITS MEMBERS.
THE SPOKESMAN SAID THE PRINCIPAL ORDINANCE PROVIDES THAT THE GOVERNOR MAY ISSUE A LICENCE TO DISPENSE WITH THE WORD +LIMITED+ IN ITS NAME TO ANY ASSOCIATION ABOUT TO BE FORMED AS A LIMITED COMPANY FOR PROMOTING COMMERCE, ART, SCIENCE, RELIGION, CHARITY, OR ANY OTHER USEFUL AIM AND WHICH APPLIES ITS PROFITS OR OTHER INCÔME SOLELY TO PROMOTING ITS OBJECTIVES.
HE SAID THAT, AS A LICENCE COULD ONLY BE GRANTED AT PRESENT TO A COMPANY ABOUT TO BE FORMED, THIS MEANT THAT AN ORGANISATION WISHING TO DISPENSE WITH THE WORD +LIMITED+ HAD FIRST TO OPERATE FOR A PERIOD AS AN UNINCORPORATED ASSOCIATION.
THIS IS UNSATISFACTORY AS IT IS THEREBY DEPRIVED OF THE BENEFITS OF REGISTRATION AS A COMPANY WITH LIMITED LIABILITY, SO THE EFFECT OF THE NEW BILL WILL BE TO PROVIDE FOR THE ISSUE OF LICENCES TO EXISTING LIMITED COMPANIES, THE SPOKESMAN SAID.
HE SAID THAT, UNDER THE EXISTING ORDINANCE, PARTNERSHIPS OF MORE THAN 20. MEMBERS, OTHER THAN FOR THE BUSINESS OF BANKING, WERE PROHIBITED. THE NEW BILL LIFTS THIS LIMITATION ON NUMBERS FOR PARTNERSHIPS OF SOLICITORS, PROFESSIONAL ACCOUNTANTS, MEMBERS OF A RECOGNISED STOCK EXCHANGE OR BODIES ESTABLISHED FOR SUCH OTHER PURPOSES AS THE GOVERNOR-IN-COUNCIL MAY PRESCRIBE.
THE SPOKESMAN SAID IT WAS INTENDED THAT THE BULK OF THE RECOMMENDATIONS CONTAINED IN THE COMPANIES LAW REVISION REPORT SHOULD BE INTRODUCED BY AN OMNIBUS+ BILL WHICH IS NOW BEING PREPARED.
+ THE REASON AMENDMENTS RELATING TO MINORITY SHAREHOLDERS HAVE BEEN BROUGHT FORWARD IN ADVANCE OF THE COMPREHENSIVE BILL IS THAT THE REPORT RECOMMENDS THAT THESE SHOULD BE GIVEN PRIORITY,+ HE SAID.
HE SAID ALSO THE PUBLIC HAD CALLED FOR EARLY ENACTMENT OF THE RECOMMENDATIONS RELATING TO PROTECTION OF MINORITY SHAREHOLDERS, THE POWER TO DISPENSE WITH +LIMITED+ IN THE NAME OF A COMPANY AND FOR LIFTING THE PROHIBITION ON PARTNERSHIPS OF MORE THAN 20 MEMBERS.
+ IT IS IN RESPONSE TO PUBLIC INTEREST IN IMPLEMENTING THESE THREE AREAS THAT THEY HAVE BEEN INCORPORATED INTO THIS BILL+, HE SAID.
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