TNAG-1645-FCO40-2292-Company-law-reform-in-Hong-Kong-Companies-(Amendment)-(No.-2-1987 — Page 78

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it was agreed that it would be preferable to follow the British

2.3

precedent because Section 79 itself is based on the British precedent.

We therefore recommended that Section 79(1) of the Companies

Ordinance be amended by inserting the words "a charge which, as created,

was" after the words "secured by". Legislation along these lines has

been introduced by the Companies (Amendment) Bill published on

12 December 1986.

3. Section 80(2)(c) & (e) of the Companies Ordinance

(Registration of charges created by companies)

Report of the Sub-Committee

3.1

Section 80 of the Companies Ordinance sets out a basic

obligation to register certain types of charges created by companies

and subsection (2) specifies the types of charges to which the

obligation applies. Paragraphs (c) and (e) of subsection (2) apply to:

a charge created or evidenced by an instrument

3.2

"(c)

which, if executed by an individual, would

require registration as a bill of sale; and

(e) a charge on book debts of the company;"

The Report of the Standing Committee for 1984 mentioned,

in paragraphs 1.26 and 1.27, that a number of professional organisations

had asked Government to clarify the scope of paragraphs (c) & (e) of

subsection 80(2) and that a Sub-Committee consisting of Mr. Wrangham

as Chairman, Professor Willoughby, and two co-opted members, had been

appointed to consider the subject.

3.3

The Sub-Committee has now submitted its Report to the

Standing Committee and this has brought home to Members once again

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