Special Committee on the Companies (No. 2) Bill, 1987 debate -
Tuesday, 3 Apr 1990

SECTION 152.

Miss Harney

I move amendment No. 216:

In page 120, lines 29 and 30, to delete "shall not resign unless", and substitute "may resign, provided".

This amendment has been prepared following representations by the accountancy bodies who rightly say that there are no statutory provisions at present under which a receiver may resign. While it was the intention that section 152 of the Bill would achieve this objective, I am not certain that it has done so since it only provides that "a receiver shall not resign unless. . .in other words, it still does not seem to give the receiver the actual right to resign. The amendment would make this clear while preserving the other provisions in the section about notice and so on.

Amendment agreed to.

Section 152, as amended, agreed to.

NEW SECTION.

Miss Harney

I move amendment No. 217:

In page 120, before section 153, to insert the following new section:

153.—The provisions of section 117 shall, with the necessary modifications, apply to a company in receivership as if the references therein to the liquidator and to winding up were construed as references to the receiver and to receivership.".

Section 117 of the Bill gives the court the useful power in a liquidation to order the return of company assets which can be shown to the court to have been "improperly transferred". It struck us that this would be a useful power to have in a receivership also to prevent receivers being frustrated by improper means. Therefore the purpose of amendment No. 217 is to apply the provisions of section 117 to receiverships with the necessary modifications.

Amendment agreed to.