TNAG-1362-FCO40-1808-Hong-Kong-Hansard-reports-and-minutes-of-the-meetings-of-the-1985 — Page 80

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Registrar General has estimated that 44% of the cases

processed by the Official Receiver involve total

realisable assets of less than $10,000. Each liquidation

of this sort costs the Official Receiver alone an

estimated $16,000 or more, and only a small proportion of

the cost is recovered in fees and charges. The result of

introducing a minimum deposit and fee of $10,000 will be

to discourage creditors from petitioning for winding up

where the assets are not likely to yield a worth while

dividend. This will lead to a considerable saving in

time, effort and money.

5.

In respect of petitioners who are in receipt of

legal aid, the minimum deposit and fee of $10,000 will be

paid by the Director of Legal Aid in accordance with

existing practice.

6.

Other amendments increase the charges payable

under the Fees and Percentages Order and replace the

percentage scale with a flat rate of 10% chargeable on the

total assets realised by the Official Receiver. There is

power under section 9 of the Order for the Official

Receiver to apply to the court to reduce the fee if it

would produce an amount which, particularly in the

relatively straightforward cases and where the assets are

considerable, would not be justified by the effort

involved.

7.

Sir, I beg to move.