XN000022-1985-05-15 — Page 30

WEDNES. Y,

15, 1987

28

BILL SEEKS TO RAISE $7.7 MILLION A YEAR

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THE COMPANIES (AMENDMENT) BILL 1985, SEEKING TO RAISE ADDITIONAL REVENUE OF ABOUT $7.7 MILLION PER ANNUM AND TO SIMPLIFY AND IMPROVE WINDING-UP PROCEDURES, WAS READ A SECOND TIME TODAY.

MOVING THE SECOND READING OF THE BILL AT THE LEGISLATIVE COUNCIL MEETING, THE SECRETARY FOR ECONOMIC SERVICES, THE HON G.A. HIGGINSON, SAID THE SIMPLIFICATION WOULD ENABLE THE OFFICIAL RECEIVER TO CONCENTRATE ON CASES IN WHICH THERE WAS +SOME REAL POSSIBILITY OF RECOVERING A DIVIDEND FOR THE CREDITORS+.

HE RECALLED THAT THE FINANCIAL SECRETARY HAD ALREADY ANNOUNCED THE GOVERNMENT'S INTENTION TO RAISE THE FEES AND CHARGES PAYABLE TO THE REGISTRAR GENERAL'S DEPARTMENT.

+A FULL REVIEW OF THESE FEES AND CHARGES HAS NOW BEEN COMPLETED, + HE SAID.

EXPLAINING ANOTHER AIM OF THE AMENDMENTS, MR HIGGINSON SAID A LARGE BURDEN OF THE WORK UNDER THE COMPANIES ORDINANCE FELL ON THE OFFICIAL RECEIVER, WHOSE OFFICE HAD EXPERIENCED A SIGNIFICANT INCREASE IN WORKLOAD DURING THE LAST FIVE YEARS.

+AN INCREASING NUMBER OF INSOLVENCIES DOES NOT NECESSARILY MEAN AN INCREASE IN BAD BUSINESS, BUT IS AN INDICATOR OF MORE BUSINESS.

+MEASURES TO INCREASE THE PRODUCTIVITY OF THE OFFICIAL RECEIVER'S OFFICE ARE THEREFORE TIMELY, HE SAID.

IN FORMULATING THE PRESENT PROPOSALS, MR HIGGINSON POINTED OUT. THE OBJECTIVE HAS BEEN TO SEEK TO REDUCE THE WORKLOAD OF THE OFFICIAL RECEIVER'S OFFICE, THEREBY INCREASING ITS PRODUCTIVITY, AND AT THE SAME TIME TO INCREASE REVENUE.

ONE OF THE MAJOR AMENDMENTS WAS TO ALLOW THE REMUNERATION OF AN OUTSIDE LIQUIDATOR TO BE DECIDED EITHER BY AGREEMENT BETWEEN THE LIQUIDATOR AND THE COMMITTEE OF INSPECTION OR BY THE COURT, AND TO ALLOW THE OFFICIAL RECEIVER TO APPLY TO THE COURT FOR A REVIEW OF THE REMUNERATION OF THE LIQUIDATOR, HE SAID. HE POINTED OUT THAT THIS AMENDMENT TO SECTION 196 OF THE ORDINANCE WAS TO ENCOURAGE THE USE OF OUTSIDE LIQUIDATORS.

THE SECOND PROPOSAL IS TO RAISE FROM $10 000 TO $200 000 THE LIMIT ON THE VALUE OF THE PROPERTY OF A COMPANY IN RESPECT OF WHICH THE OFFICIAL RECEIVER MAY WIND UP THE COMPANY BY WAY OF SUMMARY PROCEDURE UNDER SECTION 227F,

/+THE EFFECT

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