XN000022-1993-04-21 — Page 18

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WEDNESDAY, APRIL 21, 1993

INSTEAD, IT WILL BE MANDATORY

BY THE HAS

THAT AN ORDER BE MADE COURT IF A PERSON IS OR HAS BEEN A DIRECTOR OF ONE COMPANY WHICH BECOME INSOLVENT AND IF, IN THE OPINION OF THE COURT, HIS CONDUCT AS A

WITH TOGETHER OF DIRECTOR

THAT COMPANY EITHER ALONE, OR TAKEN CONDUCT AS A DIRECTOR OF ANY OTHER COMPANIES, MAKES HIM UNFIT CONCERNED IN THE MANAGEMENT OF A COMPANY.

HIS

TO BE

MATTERS

THE BILL ALSO INTRODUCES A SEPARATE SCHEDULE OUTLINING TO WHICH THE COURT SHOULD HAVE REGARD IN DETERMINING THE UNFITNESS DIRECTORS.

OF

"THESE NEW PROVISIONS SHOULD HELP то PREVENT UNSCRUPULOUS DIRECTORS FROM SIMPLY STARTING UP AGAIN IN A SIMILAR VEIN WITHOUT ANY CONCERN FOR CREDITORS WHO MAY SUBSEQUENTLY BE LEFT EMPTY-HANDED AS A RESULT OF THEIR IRRESPONSIBLE OR CYNICAL CONDUCT," MR CARTLAND SAID.

MOREOVER, THE BILL ENABLES THE FINANCIAL SECRETARY TO APPLY FOR OR A DISQUALIFICATION ORDER IF IT APPEARS FROM AN INSPECTOR'S REPORT

OR B, THAT IT IS IN THE FROM DOCUMENTS OBTAINED UNDER SECTIONS 152A PUBLIC INTEREST THAT A PERSON SHOULD BE DISQUALIFIED.

MR CARTLAND SAID OTHER PROVISIONS OF THE BILL WERE MORE SHARPLY FOCUSED AND PROVIDED GREATER ASSISTANCE TO THE COURT.

A

"IT IS, FOR EXAMPLE, MADE CLEAR THAT WHERE A COURT MAY MAKE DISQUALIFICATION ORDER IN THE COURSE OF PROSECUTION OF AN OFFENCE, THE ORDER WITHOUT COURT MAY ITSELF TAKE THE INITIATIVE TO MAKE SUCH AN WAITING FOR AN APPLICATION," HE SAID.

THE BILL PROPOSES THAT DISQUALIFICATION ORDERS MAY RANGE FROM ONE TO 15 YEARS DEPENDING UPON THE SERIOUSNESS OF THE MISCONDUCT.

NAMED

SUCH ORDERS MAY BE MADE NOT ONLY AGAINST PERSONS WHO ARE

WHO ARE ACTING AS SHADOW OFFICE BEARERS BUT ALSO AGAINST PERSONS DIRECTORS.

AS

BECOMES INVOLVED IN INVOLVED IN PERSON WHOM HE DEBTS

THE BILL ALSO PROVIDES THAT A PERSON WHO THE MANAGEMENT OF A COMPANY WHILE DISQUALIFIED OR WHO IS THE MANAGEMENT AND WHO FOLLOWS THE INSTRUCTIONS OF A KNOWS TO BE DISQUALIFIED, MAY BE HELD PERSONALLY LIABLE FOR ANY OF THE COMPANY INCURRED DURING THE RELEVANT PERIOD.

THE

FUTHERMORE, THE REGISTRAR OF COMPANIES WILL BE REQUIRED TO KEEP A REGISTER OF DISQUALIFICATION ORDERS WHICH WILL BE ACCESSIBLE TO PUBLIC UPON PAYMENT OF A SUITABLE FEE.

MR

CARTLAND

STANDING COMMITTEE

SAID THE PROPOSALS HAD BEEN ON COMPANY LAW REFORM AFTER

RECOMMENDED CONSULTATION

BY

THE WITH A

NUMBER OF PROFESSIONAL AND TRADE BODIES.

DEBATE ON THE BILL WAS ADJOURNED.

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