XN000022-1992-07-01 — Page 42

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WEDNESDAY, JULY 1, 1992

THE PROPOSED NEW SECTION 290B PROVIDES THAT ALL PROPERTY AND RIGHTS VESTED IN OR HELD ON TRUST FOR THE COMPANY IMMEDIATELY BEFORE ITS DISSOLUTION SHALL BELONG TO THE GOVERNMENT IN LEGAL TERMS, THE PROPERTY AND RIGHTS SHALL BE DEEMED TO BE "BONA VACANTIA"

IT ALSO PROVIDES FOR CLAIMS TO BE MADE BY CREDITORS FOR PAYMENT OF DEBT OUT OF THE "BONA VACANTIA"

"THIS IS AN IMPROVEMENT ON THE PROVISIONS RELATING TO 'BONA VACANTIA' UNDER THE EXISTING DISSOLUTION PROCEDURES WHICH MAKE NO REFERENCE TO THE RIGHT OF CREDITORS TO MAKE ANY CLAIM,'

11 THE SPOKESMAN SAID.

ON THE PROPOSED AMENDMENTS TO INTRODUCE A NEW "DORMANT" STATUS FOR PRIVATE COMPANIES, THE SPOKESMAN SAID UNDER THE PROPOSED NEW SECTION 344A, A PRIVATE COMPANY MAY, BY SPECIAL RESOLUTION, AUTHORISE ITS DIRECTORS то SUBMIT A STATUTORY DECLARATION TO THE REGISTRAR DECLARING THE COMPANY TO BE "DORMANT".

WHICH

-

A COMPANY IS DEFINED AS BEING "DORMANT" DURING ANY PERIOD IN NO SIGNIFICANT ACCOUNTING TRANSACTION OCCURS.

A "SIGNIFICANT ACCOUNTING TRANSACTION" IS A TRANSACTION WHICH, SECTION 121 OF THE ORDINANCE, IS REQUIRED TO BE ENTERED INTO A COMPANY'S BOOKS.

UNDER

"A COMPANY REGARDED AS BEING DORMANT IS EXEMPTED FROM A NUMBER OF REQUIREMENTS UNDER THE ORDINANCE.

**THESE RELATE MAINLY TO THE SUBMISSION OF DOCUMENTATION, INCLUDING ANNUAL RETURNS, THE HOLDING OF MEETINGS AND RELATED MATTERS, AND REQUIREMENTS AS TO ACCOUNTS AND AUDITING, THE SPOKESMAN SAID.

AT PRESENT, COMPANIES WHICH ARE NOT UNDERTAKING ANY BUSINESS ARE, NEVERTHELESS, REQUIRED TO COMPLY WITH ALL THE REQUIREMENTS OF THE ORDINANCE INCLUDING SUBMITTING ANNUAL RETURNS, HOLDING ANNUAL GENERAL MEETINGS AND HAVING THEIR ACCOUNTS AUDITED.

TO

"THIS RESULTS IN THE NEED FOR CONSIDERABLE TIME AND RESOURCES, BOTH ON THE PART OF THE COMPANIES CONCERNED AND OF THE REGISTRAR, BE DEVOTED TO WORK WHICH SERVES LITTLE USEFUL PURPOSE,

M THE SPOKESMAN SAID.

"THE PROPOSED AMENDMENTS UNPRODUCTIVE WORK, HE ADDED.

LL

SEEK TO REDUCE THE NEED FOR SUCH

"A COMPANY WILL CEASE TO BE DORMANT AS SOON AS IT ENTERS INTO A SIGNIFICANT ACCOUNTING TRANSACTION," THE SPOKESMAN SAID.

DECLARATION TO DIRECTORS AND LIABILITY OF

A DORMANT COMPANY WHICH INTENDS ΤΟ ENTER INTO SUCH A TRANSACTION IS REQUIRED TO FILE A FURTHER STATUTORY THAT EFFECT WITH THE REGISTRAR, OTHERWISE ITS SHAREHOLDERS WILL BE PERSONALLY LIABLE FOR ANY DEBT OR THE COMPANY ARISING OUT OF THAT TRANSACTION.

/DORMANT COMPANY