FRAUDULENT TRANSFERS OF BUSINESSES ORDINANCE, 1923

FRAUDULENT TRANSFERS OF BUSINESSES ORDINANCE, 1923

No. 25 of 1923.

An Ordinance to prevent cerlain fraudulent transfers of
businesses.
[12th October, 1923.]

1. This Ordinance may be cited as the Fraudulent Transfers
of Businesses Ordinance, 1923.

A transfer of a business of a bankrupt by the Official Receiver or trustee
in bankruptcy is deerned to be exempted from the provisions of this
Ordinance : see No. 10 of 1931, s. 60 (a).





2. In this Ordinance,

(a) 'Appeal' includes a motion for a new trial or to set
aside a verdict, finding or judgment;

(b) 'Business' means any trade or occupation, other than
a profession, carried on with a view to profit;

(c) 'Court' means the Supreme Court in its original
jurisdiction

(d) 'Transferor' and 'transferee' respectively include a
sub-transferor and sub-transferee and, where the notice referred
to in section 3 is given before the date of the transfer, an
intended transferor and an intended transferee.

3. (1) Whenever any business or any portion of any
business is transferred, with or without the goodwill or any
portion thereof, the transferee shall, notwithstanding any
agreement to tlie contrary, become liable for all the liabilities
incurred in the business by the transferor, unless due notice in
accordance with this section has been given and has become
complete at the date of the transfer.

(2) The liability of the transferee under sub-section (i)
shall cease immediately notice given in accordance with this
section has become complete: Provided nevertheless that should
proceedings be instituted against the transferee before such
liability has ceased the said notice shall for'the purposes of
such proceedings but for such purposes only) be deemed
incomplete pending the final determination of such proceedings,
including all possible appeals, and pending the expiration of all
periods during which such appeals may be brought.

(3) The notice referred, to shall contain the particulars
hereinafter specified and shall be given by publication, either
before or after tile date of the transfer, in the Gazette and in
any two of such Chinese newspapers circulating in the Colony
as may from time to time be approved by the Secretary for
Chinese Affairs, add shall, subject to the proviso to sub-section
(2), be deemed to be complete upon the expiration of one month
from the publication of the notice in the manner aforesaid.

As amended by No. 13 of 1924 [31.12.24] and Law Rev. Ord., 1939,
Supp. Sched.





The particulars above referred to are as follows-

(a) the name and address of the transferor,.

(b) the name and address of the transferee.,

(c) the address where the transferee intends to carry on the
business;

(d) astatement as to whether the transferee is assuming or
is intended to assume all the liabilities incurred in the business
by the transferor; and

(e) a statement as to the nature of the business transferred
or to be transferred.

(4) The production of the Gazette containing the notice shall
be primd facie evidence as against both the transferor and the
transferee of the statements contained in the notice.

(5) Nothing in this section shall have the effect of relieving
the transferor from any liability to which he would otherwise
be subject.

No. 26 of 1923, incorporated in No. 7 Of 1896,
repealed by No. 21 of 1934.

No. 27 of 1923, incorporated in No. 34 Of 1910.

No. 28 of 1923, repealed by Law Revision
Ordinance 1939, Supp. Sched.

No. 29 of 1923, incorporated in No. 5 of 1912.

No. 30 of 1923, repealed by No. 7 Of 1932.

No. 31 of 1923, incorporated in No. 11 of 1900,
repealed by No. 37 Of 1932.
[Originally No. 25 of 1923. No. 13 of 1924. Law Rev. Ord., 1939.]* Short title. Interpretation. Transferee of business to be liable for liabilities of transferor in certain cases. [8.4.32.]

[Originally No. 25 of 1923. No. 13 of 1924. Law Rev. Ord., 1939.]* Short title. Interpretation. Transferee of business to be liable for liabilities of transferor in certain cases. [8.4.32.]

https://oelawhk.lib.hku.hk/items/show/1586

1937

v3

49

No. 25 of 1923

3