230553-1936-Supplementary-Draft-Bill--Companies-Amendment — Page 1

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J

LEGISLATIVE COUNCIL.

Draft Bill.

No. S. 43.-The following Bill is published for general information :-

[No. 32-12.2.36.-2.]

A BILL

Short title.

New para- graph (d) added to Ordinance No. 39 of 1932, s. 251 (1) as

amended by Ordinance No. 29 of 1933, s. 5.

INTITULED

An Ordinance to amend further the Companies Ordinance,

1932.

BE it enacted by the Governor of Hong Kong, with the advice and consent of the Legislative Council thereof, as follows:

1. This Ordinance may be cited as the Companies Amendment Ordinance, 1986.

2. Section 251 (1) of the Companies Ordinance, 1932. as amended by section 5 of the Companies Amendment Ordin- ance, 1933, is further amended by the addition of the follow- ing paragraph at the end thereof :-

(d) in the case of a China Company or of a Hong Kong China Company, all local rates due from the company to any municipality within the limits of the China Orders in Council at the relevant date, and having become due and payable within twelve months next before that date.

Objects and Reasons.

1. Section 251 (1) of the principal Companies Ordinance, No. 39 of 1932, contained a paragraph which provided that in a winding up all local rates due from the company at the relevant date, and having become due and payable within twelve months next before that date should be given a certain priority.

2. That paragraph and two others giving priority to certain wages, were repealed and replaced by three new paragraphs which were enacted by section 5 of Ordinance No. 29 of 1933.

3. The reason for that amendment was to make the priorities of debts in the case of companies in liquidation coincide with those provided by section 38 (1) of the Bank- ruptcy Ordinance, No. 10 of 1931, for ordinary bankruptcies, amendment to this effect having been suggested by the Secretary of State in the final paragraph of his despatch to the Governor of the 1st June, 1933.

4. Consequently for the paragraph relating to local rates there was substituted a paragraph giving a priority to all debts due from the Company to the Crown at the relevant date, and having become due and payable within twelve months next before that date.