TNAG-1734-FCO40-2447-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1988 — Page 94

り

Ar

مو

2

In 1978 the Companies Ordinance was amended to permit

partnerships of more than 20 solicitors, accountants or

stockbrokers. But, by an apparent oversight, no corresponding

amendment was made to Item (6). Subsequently, many professional

firms expanded beyond the 20 partner limit. By failing to

register they have become unlawful societies rendering their partners, employees, landlords and others having dealings with them liable to criminal prosecution. Equally, as the courts will

not enforce illegal contracts, such persons may be unable to sue

for their fees, wages, rent, and other debts.

Sir,

Clearly the Societies Ordinance was never intended to apply to legitimate business enterprises and it is unjust that through its operation persons engaged in business associations

may have been rendered liable to criminal prosecution and unable

to use the law to enforce their civil claims.

Yes.

2/4

le

le

مریشک

به

Clause 2 of the Bill amends the schedule

so that any

partnership, irrespective of the number of members, will be

excluded from the requirement to register as a society provided

that it is solely engaged in a lawful business and is registered:

under any other Ordinance (such as the Business Registration

Ordinance). By clause 1(2) the amendment will be retrospective to the date when the new Section 345(2) of the Companies Ordinance came into effect in 1978. By Clause 1(3) current legal

proceedings will be excluded from the retrospective operation of

the amendment.

/...3