TNAG-1645-FCO40-2292-Company-law-reform-in-Hong-Kong-Companies-(Amendment)-(No.-2-1987 — Page 99

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8.3

pursuant to section 278(1)(b) by notice

of less than seven days;".

We agree, and recommend accordingly."

The Jenkins Committee's recommendations have never been

implemented in Britain and the procedure set out in Section 228A

is therefore completely new.

8.4

The Standing Committee were approached in the first

instance by the Registrar General in his capacity as Official Receiver, who suggested that experience with operation of the new procedure had

shown that some amendments were necessary. The Committee then consulted

the Law Society of Hong Kong and the Hong Kong Society of Accountants

for their views and were also grateful for the views of a well-known

firm of solicitors which were submitted for consideration.

8.5

As a result of these consultations we recommend the following

amendments to Section 228A for the reasons stated:

(1) Subsection 228A(1)(b). Delete entirely and substitute:

"(b) the directors consider that it is necessary

that the company be wound up and that there

are good and sufficient reasons for such

winding up to be commenced under this section; and"

Reason:

There are doubts in the professions as to the meaning

of the existing provision which states that the directors

must make a statutory declaration that, inter alia, "it is

necessary that the company be wound up and that such

winding up be commenced under this section". The question

is,in what circumstances can it be said that it is

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