TNAG-1645-FCO40-2292-Company-law-reform-in-Hong-Kong-Companies-(Amendment)-(No.-2-1987 — Page 104

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liquidator's appointment can be granted by the

creditors' meeting or the court, as appropriate.

Reason:

The existing subsection provides that a provisional

liquidator appointed under Section 228A shall, unless

a full liquidator is appointed under the ordinary

provisions of the Ordinance, hold office for 28 days

or such longer period as the Official Receiver may allow.

In practice, however, the Official Receiver may have

difficulties in knowing whether or not it would be

reasonable, in all the circumstances of a case, to

grant an extension of the appointment of the

provisional liquidator. He simply may not have enough

information available to allow him to reach a decision.

It is considered that the grant of any extension would

best be left to a meeting of creditors who will either

grant the extension or appoint a liquidator. Failing

a grant of an extension by a meeting of creditors,

there should be a residual power for the court to grant

the extension on an application being made by the

provisional liquidator.

(5) Subsection 228A(6)(b)

Amend as follows:

(i) Insert immediately after "to be entitled" in

subsection (6)(b):

"but without power of sale except of

perishable property or as may be necessary

in the ordinary course of carrying on business

under subsection (5)(a);".

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