SECTION 174.

I move amendment No. 233:

In page 133, lines 12 to 16, to delete paragraph (f), and substitute the following:

"(f) if the examiner considers it necessary or desirable to do so to facilitate the survival of the company, and the whole or any part of its undertaking, as a going concern, specify whatever changes should be made in relation to the management or direction of the company,

(g) if the examiner considers it necessary or desirable as aforesaid, specify any changes he considers should be made in the memorandum or articles of the company, whether as regards the management or direction of the company or otherwise.".

Section 174 (1) (f) currently allows the examiner to make recommendations about a change in company management only if he deems them necessary for adequate supervision of the implementation of the proposals and furthermore only in so far as concerns the company's memorandum and articles. On reflection I think this does not go as far as it should. In my view the examiner ought to be free to make whatever recommendations he wishes about changes in the management or structure of the company without any such strings attached. The first aim of this amendment, therefore, is to make it clear that the examiner is free to make recommendations regarding changes in company management without qualifying this by any reference to the supervision of the implementation of his proposals.

The second aim is to make it clear that the examiner is free to make recommendations regarding any changes in the company's memorandum or articles — in other words, whether these have to do with the actual management or direction of the company. I think this is a more clear-cut way to proceed and I am sure the Committee will agree that we should not circumscribe the options of the examiner in his report as the present text does.

Amendment agreed to.

I move amendment No. 234:

In page 133, subsection (2), line 19, after "liabilities", to insert "(including contingent and prospective liabilities)".

Amendment agreed to.
Section 174, as amended, agreed to.