XN000022-1987-06-24 — Page 10

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WEDNESDAY, JUNE 24, 1987

THE PRESENT PRACTICE WAS TO ADJUST THE RATE FIXED BY THE FINANCIAL SECRETARY FROM TIME TO TIME FOR THE BENEFIT OF

THE CREDITORS OF THE COMPANY IN LIQUIDATION CONSISTENT WITH CHANGES IN INTEREST RATES ACCORDING TO A COMPLICATED FORMULA SO THAT GENERAL REVENUE WOULD BE LEFT WITH AN AMOUNT EQUIVALENT TO A RATE OF ABOUT 1 .5 PER CENT PER ANNUM.

"THE PROPOSED AMENDMENT WILL AVOID THE NEED FOR SUCH ADJUSTMENTS IN FUTURE AS IT PROVIDES THAT 1.5 PER CENT PER ANNUM ON SUCH INVESTMENTS, OR SUCH OTHER RATE AS MAY BE FIXED BY THE FINANCIAL SECRETARY, WILL BE PAID TO GENERAL REVENUE AND THAT THE BALANCE WILL BE PAYABLE TO THE COMPANY FOR THE BENEFIT OF THE CREDITORS," HE SAID.

CLAUSE 5 OF THE BILL AMENDED SECTION 296 TO MAKE IT CLEAR THAT FEES COULD BE VALIDLY CHARGED IN RELATION TO THE SERVICES PROVIDED BY THE OFFICIAL RECEIVER'S OFFICE, AND THAT THEY NEEDED NOT BE SPECIFIC TO THE ADMINISTRATIVE OR OTHER COSTS INCURRED IN MANY PARTICULAR COMPANY LIQUIDATION.

FINALLY, MR NENDICK POINTED OUT THAT SIMILAR PROBLEMS AROSE UNDER THE BANKRUPTCY ORDINANCE, WOULD BE SOLVED WHEN HE MOVED THE SECOND READING OF THE BANKRUPTCY (AMENDMENT) BILL 1987.

DEBATE ON THE BILL WAS ADJOURNED.

BILL TO AMEND BANKRUPTCY PROCEDURE INTRODUCED

* * * * *

BANKRUPTCY THE

AMEND THE

AUDIT OF

(AMENDMENT) BILL 1987 SEEKS TO ORDINANCE ΤΟ MAKE THE OFFICIAL BANKRPUTCY

RECEIVER'S DISCRETIONARY RATHER ACCOUNTS A

THAN A TRUSTEES'

MANDATORY HON DAVID NENDICK, REQUIREMENT, THE ACTING FINANCIAL SECRETARY, THE SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

MR

NENDICK SAID MOVING THE SECOND READING OF THE BILL,

UNDER OF TRUSTEES IN BANKRPUTCY HAD TO BE THE ORDINANCE, ALL ACCOUNTS AUDITED BY THE OFFICIAL RECEIVER.

"THIS HAS PROVED TO BE VERY BURDENSOME FOR THE OFFICIAL RECEIVER AND IN MANY CASES UNNECESSARY," HE SAID.

MR NENDICK VOTE:

THAT THE

THE

BILL ALSO SOUGHT TO AMEND

IN BANKRPUTCY PROCEEDINGS ORDINANCE IN RELATION TO THE FEES PAYABLE AND THE SERVICE OF CREDITORS' BANKRUPTCY FETITIONS.

/CLAUSE 4

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