This is a new section. It is mainly a drafting section and defines the phrase " a receiver of the property of a company ".
SECTION 323.
Question proposed : " That Section 323 stand part of the Bill ".
Question put and agreed to.
NEW SECTION.
I move amendment No. 103 :
Before Section 324 and in Part VII to insert a new section as follows:
" () A conveyance by a Receiver of any property in pursuance of a power contained in the instrument of his appointment shall operate to convey the legal estate of such property to the purchaser."
This amendment is suggested because of difficulties that arise in conveyancing, a receiver is appointed under the power given to a debenture. In fact, the debenture only creates equitable rights and the receiver can only get the legal estate to sell under his power when he can get the board of directors to affix the seal of the company to the conveyance. That is what is done in a lot of cases but it also happens in practice that not infrequently a judgment creditor may register his judgment as a mortgage and he usually captures by that the legal estate and the sale by the receiver can only in fact affect, in certain circumstances, the equitable interest in the property. I do not see how any injustice would be involved if we provided that the receiver can convey the legal estate of the property. I know that it is a matter of conveyancing rather than company law but I think we should consider the advisability of putting it in here. It would greatly facilitate the orderly winding up of companies and the orderly carrying on of receiverships.
As Deputy Costello mentioned in the last part of his statement, this point is more proper to conveyancing and property law. We took the Draftsman's advice and he confirmed that any provision along the lines of this amendment should be contained in such law and that it is not quite proper to company law.
Yes; well, perhaps the Minister might have a word with his colleague in another Department?
I will do that. We have a very active colleague in a certain Department who might be able to take this into account.
Tell him we are actively interested in this matter too.
Amendment, by leave, withdrawn.