XN000022-1990-05-30 — Page 4

m

WEDNESDAY, MAY 30, 1990

FOR MAKING HOWEVER, SECTION 209A DID NOT SPECIFY A TIME LIMIT ANY APPLICATION FOR CONVERSION

COMPULSORY WINDING-UP TO

A

VOLUNTARY WINDING-UP.

FROM A

"CREDITORS ARE ABLE TO APPLY FOR CONVERSION AT ANY TIME THE COURSE OF A COMPULSORY LIQUIDATION," SIR PIERS SAID.

THE

DURING

BARGAIN MADE WITH

"THIS FREEDOM STRIKES AT THE BASIS OF THE OFFICIAL RECEIVER,

"IN EFFECT IT ENABLES

CREDITORS ΤΟ SEEK CONVERSION SHORTLY REALISATION OF ASSETS IN BEFORE THE

ORDER TO AVOID FERS BEING PAID TO THE OFFICIAL RECEIVER."

AN

THE

OR

AS THE

RECTIFY TO

THE SITUATION, THE BILL

THAT PROPOSED APPLICATION FOR CONVERSION SHOULD BE MADE WITHIN THREE MONTHS DATE OF A RESOLUTION PASSED AT THE FIRST MEETING OF THE CREDITORS ANY ADJOURNMENT OF THAT MEETING OR WITHIN SUCH FURTHER PERIOD COURT MIGHT PERMIT.

TIME

FOR

CREDITORS

TO

NECESSARY

"WE BELIEVE THIS WILL GIVE SUFFICIENT REACH A DECISION ON THE BEST WAY FORWARD AND TO PREPARE THE DOCUMENTS FOR PRESENTATION TO THE COURT," SIR PIERS SAID.

SIR PIERS ALSO SAID SECTION 209A DID NOT SUFFICIENTLY SAFEGUARD THE PUBLIC INTEREST.

ΤΟ A

CREDITORS

+

VOLUNTARY

"THE EFFECT OF A CONVERSION WINDING-UP IS TO REMOVE THE LIQUIDATION FROM THE COURT'S SUPERVISION, HE SAID.

IN THE

"THERE MAY BE GOOD REASONS

PUBLIC INTEREST THAT APPLICATION SHOULD BE OPPOSED OR DENIED," HE ADDED.

AN

AND

HAD

RIGHT NO

OF AUDIENCE WAS ONLY REQUIRED TO TAKE INTO

IN CONTRIBUTORIES

DECIDING

AN

AT PRESENT, THE OFFICIAL RECEIVER BEFORE THE COURT, AND THE COURT ACCOUNT THE WISHES OF CREDITORS APPLICATION.

ON THE APPLICATION THE BILL THEREFORE PROPOSED THAT A REPORT

BY THE

AND SHOULD BE SUBMITTED TO THE COURT

LIQUIDATOR,

THAT THR OFFICIAL RECEIVER SHOULD HAVE THE RIGHT TO BE HEARD.

TO VARIOUS IT ALSO PROPOSED THAT THE COURT SHOULD HAVE REGARD

TO MATTERS RELATING

THE PUBLIC INTEREST IN

AN DECIDING WHETHER APPLICATION SHOULD BE ACCEPTED.

OR NOT THERE HAS BEEN

OF THE COMPANY OTHER BREACH OF DUTY IN

AN

"THESE ARE, ESSENTIALLY, WHETHER INVESTIGATION, PROSECUTION OR CONVICTION OF OFFICERS FOR FRAUD, DISHONESTY,

MISFEASANCE OR

RELATION TO THE AFFAIRS OF THE COMPANY," SIR PIERS ADDED.

/SIR PIERS