XN000022-1989-07-12 — Page 5

WEDNESDAY, JULY 12, 1989

- 3

ON A SUGGESTION TO SPECIFICALLY LIMIT THE APPLICATION OF THIS OUT LAW TO TRANSACTIONS TAKING PLACE IN HONG KONG, MR BARNES POINTED THAT CLAUSE 25 CLEARLY STATED THAT A PERSON MUST ENTER INTO AN ARRANGEMENT BEFORE HE COULD COMMIT AN OFFENCE.

"THERE IS NO NEED FOR THE LAW TO STATE THAT ENTERING INTO AN ARRANGEMENT MUST TAKE PLACE IN HONG KONG BECAUSE THERE IS A COMMON LAW PRESUMPTION THAT, IN THE ABSENCE OF CLEAR AND

WORDS, COMPELLING STATUTES WILL NOT BE GIVEN EXTRA-TERRITORIAL EFFECT," HE SAID.

"LAWS IN HONG KONG ARE ALL DRAFTED ON THE BASIS OF THIS

AND THERE IS NO REASON TO DEPART FROM THE PRESUMPTION

IN PRINCIPLE

THIS CASE, HE ADDED.

||

BE

"NEVERTHELESS, IN VIEW OF THE CONTINUING CONCERN OF THE FINANCIAL SECTOR, I AGREE THAT THIS PART OF THE LEGISLATION SHOULD KEPT UNDER REVIEW IN THE LIGHT OF PRACTICAL EXPERIENCES GAINED ITS OPERATION AND THAT A REPORT SHOULD BE MADE TO THIS COUNCIL IN COURSE," MR BARNES SAID.

FROM DUE

POINTED

TO CONCERN TURNING

THAT THE OPERATION OF RESTRAINT ORDERS SHOULD NOT BE ALLOWED TO HURT BONA FIDE CREDITORS, MR BARNES OUT THAT THIS WAS NOT THE INTENTION OF THE LEGISLATION.

"IN THE UNITED KINGDOM IT HAS BEEN ACCEPTED BY. THE COURTS THAT RESTRAINT ORDERS MADE UNDER THE DRUG TRAFFICKING OFFENCES ACT, THE LEGISLATION CORRESPONDING 'TO OUR OWN BILL, OPERATE ON SIMILAR PRINCIPLES TO THE LEGALLY WELL KNOWN 'MAREVA' INJUNCTIONS IN CIVIL LAW.

THAT CREDITORS IN DEBTS, LIVING

"THUS, IN MAKING A RESTRAINT ORDER, THE COURT WILL ENSURE IT DOES NOT OPERATE OPPRESSIVELY AGAINST THIRD PARTY RESPECT OF A DEFENDANT'S BONA FIDE BUSINESS AND TRADE EXPENSES, LEGAL EXPENSES AND OTHER SIMILAR EXPENSES," HE SAID.

MADE IN THE SUPREME COURT RULES FOR CONDITIONS AND EXCEPTIONS TO BE ATTACHED TO RESTRAINT COURTS

"PROVISION

WILL BE

SHOULD THUS

ENSURE

PREJUDICED," HE ADDED.

THAT BONA

THE

FIDE

ORDERS.

THE

CREDITORS

ARE

NOT

OTHER AMENDMENTS RELATED TO THE CHINESE TEXT OF THE BILL WHICH

ON OMLECO SUB-GROUP

THE WAS THE RESULT OF PAINSTAKING WORK BY CHINESE TEXT, MR BARNES SAID.

EFFECTS LEGISLATION

SECURITY POINTED OUT THAT THE FINANCIAL BEING JUSTIFIABLY CONCERNED ABOUT THE POSSIBLE

ON THEIR OPERATIONS, HAD ASKED THAT THE

IMPLEMENTED FOR AT LEAST THREE MONTHS AFTER ITS

THE

SECRETARY FOR

INSTITUTIONS,

OF CLAUSE 25

SHOULD NOT

BE

ENACTMENT.

/"HOWEVER,