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COMPANIES ACT AMENDMENT
BILL.
Mr Wynne, M.L.C., assenting to the re
quests made to him when the Companies
Act Amendment Bill was before the Legis
lative Council, has divided the measure into
two, and the first portion, repealing the
Voluntary L : qnidatinn Act of IS9I and deal
ing with compromises with creditors, has
now been circulated. The bill provides
that when a compromise or arrangement
with creditors is proposed respecting a
company in course of being wound up,
either voluntarily or under the Court
a meeting of creditors may be ordered by the
Court on the .summary application of any
creditor or of the liquidator. If a three
fourths majority in value of the creditors
present or represented agree to any arrange
ment, and it is sanctioned by an order of the
Court, it is to become binding on the
creditors, the liquidator, and the contribu
tories of the company. In cases where there
has been no order nr resolution for winding
up any creditor of the company may move in
a similar manner, and the Court is given
power to stay any proceedings against the
company, to order a meeting, and to make any
compromise arrived at by a majority in number
representing three-fourths in value binding
upon the shareholders and creditors. Power
is'also given the Court, on the application of
the company nr any person interested, to
order enquiries, to alter or vary the terms of
compromise, or to impose conditions before
giving sanction to the arrangement, and it is
provided that any shareholder transferring
his shares after the date of a creditors’
meeting of this hind ordered by the Court
shall retain his liability for one year after
the expiration of the term of any arrange
ment entered into. Building societies are
specifically included in the companies dealt
with by this bill.
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