Chapter: 32  COMPANIES ORDINANCE

Section Num: 157J  Version Date 13/02/2004

Criminal penalties for contravention of section 157H

(1) Where a company enters into a transaction in contravention of section 157H(2), (3) or (4), the following persons shall, subject to subsection (2), be guilty of an offence-

(a) if the transaction is entered into in contravention of section 157H(2)(a) or (b), (3)(a) or (b) or (4)(a) or (b), the company;

(b) any director of the company who wilfully authorized or permitted the transaction to be entered into; and

(c) any person who knowingly procured the company to enter into the transaction.

(1A) Where a company enters into an arrangement in contravention of section 157H(5) or (7), the following persons shall, subject to subsection

(2), be guilty of an offence-

(a) if the arrangement is entered into in connection with a transaction described in section 157H(2)(a) or (b), (3)(a) or (b) or (4)(a) or (b), the company;

(b) any director of the company who wilfully authorized or permitted the arrangement to be entered into; and

(c) any person who knowingly procured the company to enter into the arrangement.

(2) A person shall not be guilty of an offence under this section if he shows that, at the time the transaction or arrangement was entered into, he did not know the relevant circumstances.

(3) A person guilty of an offence under this section shall be liable to imprisonment and a fine.

(4) In this section-

"company" has the same meaning as in section 157H(10);

"director" includes a shadow director;

"the relevant circumstances", in relation to a contravention of section 157H, means all the facts and other circumstances constituting that contravention including, in the case of a transaction or arrangement which but for any fact or circumstance would be authorized by any provision of section 157HA, that fact or circumstance.

(Replaced 28 of 2003 s. 64)