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The Government today (April 16) launched a three-month public consultation on the legislative proposals to improve Hong Kong's corporate insolvency law.
The Secretary for Financial Services and the Treasury, Professor K C Chan, said, "An effective company winding-up process with due regard to the protection of creditors will maintain Hong Kong's status as a global major business centre and reinforce our position as an international financial centre."
Professor Chan added, "The proposals would facilitate more efficient administration of the winding-up process and increase the protection of creditors through streamlining and rationalising the company winding-up procedures and enhancing the regulation of the winding-up process."
The proposals cover the following five aspects of the winding-up process:
(1) the commencement of winding up;
(2) the appointment, powers, vacation of office and release of provisional liquidators and liquidators;
(3) the conduct of the winding-up process;
(4) voidable transactions; and
(5) the investigation during winding up, offences antecedent to or in the course of winding up and powers of the court.
In drawing up the legislative proposals, the Government has taken into account expert advice of an Advisory Group chaired by the Official Receiver and comprising representatives from the business and financial sectors, relevant professions, private insolvency practitioners and the academic sector, as well as members of the Standing Committee on Company Law Reform. Reference has been made to the relevant recommendations of the "Report on the Winding-up Provisions of the Companies Ordinance" issued earlier by the Law Reform Commission.
The consultation paper can be downloaded from the websites of the Financial Services and the Treasury Bureau (www.fstb.gov.hk/fsb/ppr/consult/index.htm) and the Official Receiver's Office (www.oro.gov.hk).
Members of the public are welcome to submit their comments by post to Division 4, Financial Services Branch, Financial Services and the Treasury Bureau, 15/F, Queensway Government Offices, 66 Queensway, Hong Kong, or by fax to (852) 2869 4195 or by email to corporate_insolvency_law@fstb.gov.hk on or before July 15, 2013.
Ends/Tuesday, April 16, 2013
Issued at HKT 16:43
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