Winding Up Provision of the Companies Ordinance
The Commission's 1999 report on the winding-up provisions of the Companies Ordinance was the third and final part of the Commission's comprehensive review of insolvency related issues. The report makes over 250 recommendations, addressing both policy considerations and procedural aspects of winding-up.
In terms of policy issues, the report recommends that a new Ordinance should be created to bring together all insolvency and insolvency related matters in a single Ordinance. The report also recommends the establishment of a two-tier system for the licensing of insolvency practitioners with the introduction of "Licensed Insolvency Practitioners" and "Registered Insolvency Practitioners". A Panel under the auspices of the Official Receiver should also be established to adjudicate on the remuneration of insolvency practitioners.
As regards the procedural aspects, a number of recommendations would have an effect on company directors, including an obligation to obtain compensation insurance. The report proposes that preference payments to certain categories of creditors should be abolished and that, in relation to some insolvency offences, the burden of proving certain matters would shift from the prosecution to the accused person.
|Press Release (PDF) (MS Word)|
|Report (PDF) (MS Word)|