ENG-1977 — Page 56

INDUSTRY AND TRADE

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Order 1977, the Limited Partnerships (Amendment) Ordinance 1977 and the Money- Lenders (Registration) (Amendment) Regulations 1977 respectively.

Bankruptcies and Liquidations

In Hong Kong, the number of business failures leading to formal insolvency pro- ceedings in court is always comparatively small in relation to the total number of businesses closing down. During the year, there were 67 petitions in bankruptcy and 82 petitions for the compulsory winding-up of companies. The court made 39 receiving orders, two administration orders, one order in aid and 70 winding-up orders. As in past years, the Official Receiver was appointed trustee or liquidator in almost every case. Assets realised by the Official Receiver during 1977 amounted to about $28 million. In addition to these compulsory windings-up, 396 companies went into voluntary liquidation - 372 by members' voluntary winding-up and 24 by creditors' voluntary winding-up.

The Bankruptcy-(Amendment) Ordinance 1977 amended the provisions of the principal ordinance relating to the order in which debts are paid from the property of a bankrupt, and the Companies (Amendment) Ordinance 1977 introduced similar amendments for the winding-up of companies. These ordinances also raised the limit on priority debts for salaries, wages and severance payments to $8,000 for any one creditor.

The Companies (Winding-up) (Amendment) Rules 1977 were made by the Chief Justice on August 26. These rules made a number of administrative amendments to the principal rules, including increasing from $300 to $1,000 the deposit made by a petitioner with the Official Receiver. The amendments also introduced a new rule dealing with the administration of small liquidations.

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