FRAUDULENT TRANSFERS OF BUSINESSES ORDINANCE

FRAUDULENT TRANSFERS OF BUSINESSES ORDINANCE

CHAPTER 49.

FRAUDULENT TRANSFERS OF BUSINESSES.

To prevent certain fraudulent transfers of businesses.

[12th October, 1923.]

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

2. In this Ordinance-

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

'business' means any trade or occupation, other than a profession,
carried on with a view to profit;

'transferor' and 'transferee' respectively include a 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
transferce shall, notwithstanding any agreement to the contrary become
liable for in 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 subsection (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
proceeding, including all possible appeals, and pendines 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 the
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,
and shall, subject to the proviso to subsection (2), be deemed to be
complete-

(a)upon the expiration of one month from the publication of the
notice in the manner aforesaid; or

(b)if such notice shall have been given during the Hong Kong
British Military Administration, upon the expiration of one
month after the re-establishnient of the court in its civil
jurisdiction.

(4) 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)a statement 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.

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

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

(7) Any approval given by the Secretary for Chinese Affairs for
the purposes of subsection (3) of this section may be withdrawn.
Originally 25 of 1923. Fraser 25 of 1923. 2 of 1946. 28 of 1948. Short title. Interpretation. Transferee of business to be liable for liabilities of transferor in certain cases. [s. 3 cont.] 2 of 1946, Schedule. 28 of 1948, s. 2.

Originally 25 of 1923. Fraser 25 of 1923. 2 of 1946. 28 of 1948. Short title. Interpretation. Transferee of business to be liable for liabilities of transferor in certain cases. [s. 3 cont.] 2 of 1946, Schedule. 28 of 1948, s. 2.

https://oelawhk.lib.hku.hk/items/show/1721

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