TNAG-1645-FCO40-2292-Company-law-reform-in-Hong-Kong-Companies-(Amendment)-(No.-2-1987 — Page 80

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Victorian.

The difficulties in interpreting

the term are so great, and the exceptions from

the term thrown up by the case law are so numerous

that various legal authorities have recommended

that this category of registrable charges be

repealed.

(ii) At an early stage, the Sub-Committee thought that

redrafting the paragraph along the lines of the

corresponding Australian legislation would be

helpful. Further consideration of this

proposal, however, showed that because of

certain differences in principle between the

provisions on registration of charges in the

Companies Ordinance and the Australian provisions,

the Australian definition of book charges

(a) would have to be extensively amended before

it could start to be regarded as reasonably

acceptable, and

(b) the amended version would be highly technical,

complicated and, regrettably, as much subject

to exceptions and as easily avoided by the

sophisticated as the existing provisions.

(iii) The Sub-Committee have therefore recommended that

paragraph (e) of subsection 80(2) be repealed.

(iv) However, if this recommendation for repeal is not

acceptable to Government, the Sub-Committee have

reached the conclusion that a considerable proportion

of the problems which arise with paragraph (e) in

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