Would the Minister say something briefly about this section?
SECTION 106.
Question proposed: "That section 106 stand part of the Bill."
Section 106 deals with orders for payment or delivery of property against a person examined under section 245 of the Principal Act. This section inserts a new section 245A into the 1963 Act. It is essentially a supplementary section to section 245 of the 1963 Act, which is itself being amended by section 105 of the Bill. Section 245 of the Principal Act gives a wide-ranging power to the courts to summon before it and examine any person deemed capable of giving any information about their promotion, formation, trade, dealings, affairs or property of the company. This provision is intended to get over the difficulty in which the liquidator can be placed in that there are almost certain to be many transactions which are difficult to discover or to understand merely from the books and papers of the company. It also helps the liquidator if he cannot get proper or truthful answers to questions properly arising in the course of his duties.
Section 105 strengthens the power of the court under section 245, for example, giving the court power to require production of any documents or records held by a person — section 105 (3). In addition, the court may require such a person to submit a written statement of transactions between him and the company — section 105 (4). The basic purpose of section 106, like section 105, is to strengthen the position of the liquidator in order to improve the efficiency of liquidations generally. It should be noted that this increased efficiency is being carried out by means of increased powers of the court.
Section 106, in effect, extends section 236 of the 1963 Act. Under section 236 the court may require any contributory or any trustees, receiver, bank, agent or officer of the company to deliver to the liquidator any property to which the company is, prima facie, entitled. Section 106 goes further by providing that where any person is examined under section 245, as amended, he may be directed to hand back company property and pay any debt he owes to the company.
Question put and agreed to.
What about amendment No. 139?
That is being taken in a separate group.