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Hong Kong Law Reform Commission |
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Chapter 6 - Renaming of Members’
(Solvent) Voluntary Winding-up and Creditors’ (Insolvent) Voluntary
Winding-up
6.1 We
have noted that the terms “members’ voluntary
winding-up” and “creditors’ voluntary
winding-up” create confusion even among legal and accountancy
professionals who might not deal regularly with the winding-up provisions. The
terms are not intuitive in that they do not convey their function in their
description.
6.2 We consider that the expressions “solvent
voluntary winding-up” and “insolvent voluntary
winding-up” are expressions that explain their function without the
need for further inquiry. We recommend that these expressions should replace
the references to “members’ voluntary winding-up” and
“creditors’ voluntary winding-up” in the Companies Ordinance
and other legislative provisions.
6.3 These recommendations would
involve amendments being made to the definitions of the two expressions under
section 2 and section 233(4) of the Companies Ordinance. We recommend that the
definitions, and all Part, sub-Part and section headings should contain the new
expression in brackets.[38]
[38] A practice that is followed in all
references to “creditors' (insolvent) voluntary winding -up” and
“members' (solvent) voluntary winding-up” in this report.