XN000022-1985-05-10 — Page 6

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FRIM... MAY 15, 1985

A FURTHER PROPOSAL SEEKS TO AMEND SECTION 295 TO CREATE A MINIMUM LIMIT OF $100 000 ON THE AMOUNT OF CREDITORS' FUNDS WHICH MAY BE INVESTED, AT THE REQUEST OF THE COMMITTEE OF INSPECTION,

IT ALSO BY THE OFFICIAL RECEIVER FOR THE BENEFIT OF CREDITORS. LIMITS THE INTEREST PAYABLE ON SUCH FUNDS TO A MAXIMUM OF 3.5 PER CENT A YEAR, OR SUCH OTHER RATE AS MAY BE FIXED BY THE FINANCIAL SECRETARY.

THE INTEREST IN EXCESS OF 3.5 PER CENT ON SUMS OVER $100 000 AND THE INTEREST ON SUMS OF LESS THAN $100 000 INVESTED BY THE OFFICIAL RECEIVER WILL THEN BE TRANSFERRED TO GENERAL REVENUE.

AN INCREASE OF THE FEES FOR REGISTRATION OF A PROSPECTUS FROM THE PRESENT $2 000 AS SET OUT IN THE EIGHT SCHEDULE, TO $3 000 IS ALSO PROPOSED.

AMENDMENTS TO THE BANKRUPTCY ORDINANCE ARE PROPOSED IN THE BANKRUPTCY (AMENDMENT) BILL 1985, TO PROVIDE THAT THE FEE OF A TRUSTEE IN BANKRUPTCY MAY BE FIXED BY THE CREDITORS OR THE COMMITTEE OF INSPECTION, AND THAT SUCH FEE MAY BE REVIEWED BY THE COURT, ON APPLICATION BY THE OFFICIAL RECEIVER.

IT IS ALSO PROPOSED THAT THE LIMIT FOR SUMMARY PROCEDURE UNDER SECTION 112A BE INCREASED FROM THE PRESENT FIGURES OF $10 000 TO $200 000, AND TO SIMPLIFY THE PROCEDURES SO THAT THE OFFICIAL RECEIVER MAY DISPENSE WITH THE STATUTORY FIRST MEETING OF CREDITORS AND APPLY TO THE COURT TO ADJUDGE THE DEBTOR BANKRUPT,

EVEN AFTER THE VARIOUS FEES AND CHARGES ARE INCREASED THE OFFICIAL RECEIVER'S OFFICE WOULD STILL BE OPERATING AT SIGNIFICANT DEFICIT, THE SPOKESMAN SAID.

THE TWO BILLS WILL BE INTRODUCED INTO THE LEGISLATIVE COUNCIL FOR FIRST READING ON MAY 15.

PUBLIC COMMENTS ON THE BILLS MAY BE SENT TO UMELCO AT SWIRE HOUSE, 12/F, CHATER ROAD, OR TO THE SECRETARY FOR ECONOMIC SERVICES, CENTRAL GOVERNMENT OFFICES, LOWERE ALBERT ROAD.

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