XN000022-1988-06-21 — Page 9

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TUESDAY, JUNE 21, 1988

THIS FOLLOWS A DECISION BY THE EXECUTIVE COUNCIL THIS MORNING

(TUESDAY).

THE PROPOSED AMENDMENT IS PROMPTED BY A PROBLEM THAT ARISES UNDER THE SOCIETIES ORDINANCE WHERE LARGE PARTNERSHIPS WHICH FAIL ΤΟ REGISTER AS A SOCIETY ARE IN BREACH OF THE LAW AND ARE DEEMED TO BE "UNLAWFUL SOCIETIES". AS THE LAW WAS NEVER INTENDED ΤΟ APPLY TO LEGITIMATE BUSINESS ENTERPRISES, THE GOVERNMENT IS SEEKING TO RECTIFY THE MATTER.

THE SPOKESMAN EXPLAINED THAT UNDER THE LAW ALL ORGANISATIONS INCLUDING CLUBS, PARTNERSHIPS AND ASSOCIATIONS ARE REQUIRED TO BE REGISTERED UNDER THE SOCIETIES ORDINANCE, UNLESS THEY APPLY AND ARE EXEMPTED BY THE REGISTRAR OR THEY ARE SPECIFICALLY EXCLUDED IN THE SCHEDULE TO THE ORDINANCE.

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:

UNDER THE COMPANIES

CONSISTING OF

UNDER THE SCHEDULE, COMPANIES REGISTERED ORDINANCE ARE EXCLUDED. SO TOO ARE PARTNERSHIPS NOT MORE THAN 20 PERSONS, FORMED FOR THE SOLE PURPOSE OF CARRYING ON ANY LAWFUL BUSINESS AND REGISTERED UNDER ANY ORDINANCE.

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THE 20-PARTNER LIMIT REFLECTED THE POSITION UNDER THE COMPANIES ORDINANCE BEFORE MID-1978 WHICH PROHIBITED ANY WITH MORE THAN 20 PERSONS.

PARTNERSHIP

COMPANIES

HOWEVER, ON JULY 7, 1978 THIS PROHIBITION IN THE ORDINANCE WAS AMENDED TO PERMIT PARTNERSHIPS OF MORE THAN 20 PERSONS, PRACTISING AS SOLICITORS, ACCOUNTANTS OR STOCKBROKERS.

"BUT, BY AN OVERSIGHT, NO CONSEQUENTIAL AMENDMENT WAS MADE TO THE SCHEDULE OF THE SOCIETIES ORDINANCE ΤΟ SIMILARLY EXCLUDE SUCH LARGE PARTNERSHIPS FROM ITS AMBIT, THE SPOKESMAN SAID.

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THE PROBLEM IS THAT MANY PROFESSIONAL FIRMS HAVE EXPANDED BEYOND THE 20-PARTNER LIMIT SINCE THEN BUT THEY HAVE FAILED ΤΟ REGISTER UNDER THE SOCIETIES ORDINANCE.

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"THE CONSEQUENCE OF THEIR FAILURE TO REGISTER MEANS THEY HAVE BECOME UNLAWFUL SOCIETIES' TECHNICALLY RENDERING THEIR PARTNERS, AND POSSIBLY THEIR EMPLOYEES, LANDLORDS, CLIENTS AND OTHERS HAVING DEALINGS WITH THEM LIABLE ΤΟ CRIMINAL PROSECUTION, THE SPOKESMAN SAID.

THEIR UNLAWFUL STATUS COULD ALSO HAVE SERIOUS CONSEQUENCES IN

CIVIL LAW.

EXPLAINING THE DECISION ΤΟ AMEND THE LAW. HE SAID ORDINANCE IS AIMED MAINLY AT CONTROLLING TRIAD SOCIETIES.

THE

"CLEARLY, THE ORDINANCE WAS NEVER INTENDED ΤΟ APPLY ΤΟ LEGITIMATE BUSINESSES AND SHOULD NOT APPLY, HE SAID.

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THE SPOKESMAN