SECTION 159.

I move amendment No. 224a:

In page 123, subsection (1), lines 44 and 45, to delete "at the date of appointment of the examiner".

Section 159 applies to a situation where either a receiver or a provisional liquidator has been appointed to a company and the company is subsequently put under the protection of the court. This amendment addresses a procedural problem which might arise in subsection (1) of section 159 unless we clarify it. The problem is that one interpretation of the subsection is that it restricts the time at which the court may make an order under the subsection to the time when it is appointing the examiner. Since the court really should be free to exercise this right while the company remains under its protection such an interpretation would be too restrictive.

Amendment No. 224a would remove the possible interpretation by simply deleting the words "at the date of the appointment of the examiner". Making this clarification would also be in line with the general principle underlying Part IX that the examiner does not automatically assume control or management of the company to which he is appointed but if the circumstances warrant it he can be given such powers. In other words, I would like to preserve the possibility of the receiver and manager continuing to run the company while the examiner carries out his examination unless the court rules otherwise under section 159.

Amendment agreed to.

Amendment No. 225 in the name of the Minister.

I move amendment No. 225:

In page 124, between lines 32 and 33, to insert the following subsection:

"(4) Where the court makes an order under subsection (1) or (2), it may, for the purpose of giving full effect to the order, include such conditions in the order and make such ancillary or other orders as it deems fit.".

Under the Bill as it stands, where an examiner is appointed to a company in relation to which a receiver or provisional liquidator is already acting, section 159 will allow the court to make a range of orders under subsection (1) and (2). Amendment No. 225 is fairly straight-forward and simply gives the court the power to sort out any practical problems which may arise where an examiner is appointed to a company in such circumstances. For example, a receiver may well have entered contractual commitments before the arrival of the examiner which may be difficult to unravel and the amendment would give the court wide powers to make whatever order it saw fit should this kind of thing have happened. In other words I want to make sure that the court has enough powers to be able to give full effect to any order it does make under either subsection (1) or (2).

Amendment agreed to.
Section 159, as amended, agreed to.