The "Hongkong Gazette" contains the draft of an Ordinance to amend further the Companies Ordinance, 1932, 1t'is explained that Section 251 (1) of the principal Companies Ordinance, No, 30 of 1092, contained a paragraph which provided that in a winding up all Tocal rates due from the compan At the relevant date, and having be-Jcome due and payable within twelve months next before that date should be given a certain priority. That parn~ graph and we others giving priority {o certain wages, were repealed and replaced by three new paragraphs which were enacted by section 5 of Ordinance No, 20 of 1933.
"The reason for that amendment was to make the priorities of debis: the ease of companies in liquidation coincide with those provided by sec tion 28-(1) of the Bankruptey Ordinance, No. 10 of 1931, for ordinary bankruptcies, amendment to this effect having, been suggested by the Secretary of State in the final parn= raph of his despatch to the Governor June 1, 1983. Consequently for ihe paragraph relating. to local rates there was. substituted a. paragraph giving to priority to all debts fne from the Company to the Crown fat the relevant date, and having become due and payable within twelve months next before that date, Tu the Colony of Hongkong rates are levied by the Government as presenting the Crown and paid into the general revenues of the Colony, Provision for parochial and other local rates was' therefore considered Effect on Shanghai has been pointed out recently by His "Majesty's Consular representative at Shanghai that the 1988 amend. ment has had the effect of depriving the Municipal Council of the Interna. tional Settlement of its claim to legal priority In respect of rates due by China Companies in liquidation als though that Council receives pret ferential treatment where winding. up takes place under the jurisdiction of the Belgian, French and Netherlands Authorities, The object of this new amending BIN ig to add a further paragraph which will restored the former prior Ity of local rates in the case of China Companies and Hongkong China Companies, which are defined in sce tion '§48 of the principal Ordinance.
"This special provision is limited to Chinn Companies and HongkongChina Companies. Such companies, though registered in Hongkong, carry on their business within the limits of the China" Order-in-Council and, for reasons of jurisdiction and otherwise, receive special treatment under the Companies Ordinance.
It Is not considered necessary to extend the special priority to, com= panies generally oF to ordinary bank fupteles, as it doos not appear to be accordance with the general policy of English law, on which the Inw of the Colony is founded, to afford special facilities for the enforcement rales imposed by foreign muni Cipalities for their domestic purposes, The introduction of this 'HI has been approved by the Secretary of State in his despateh No. 5 of January 8, 1036,
Text read from the printed page and cleaned; old type leaves the occasional error.