Companies Ordinance Cap 32

Section Num: 47B    Version Date 13/02/2004

Definitions

(1) In sections 47A to 48-  <* Note - Exp. X-Ref.: Sections 47A, 47B, 47C, 47D, 47E, 47F, 47G, 48 *>

"distributable profits" (可分發利潤), in relation to the giving of any financial assistance-

(a) means those profits out of which the company could lawfully make a distribution equal in value to that assistance; and

(b) includes, in a case where the financial assistance is or includes a non-cash asset, any profit which, if the company were to make a distribution of that asset, would under section 79L be available for that purpose;

"distribution" (分發) has the meaning given by section 79A;

"financial assistance" (資助) means-

(a) financial assistance given by way of gift;

(b) financial assistance given by way of guarantee, security or indemnity, other than an indemnity in respect of the indemnifier's own neglect or default, or by way of release or waiver;

(c) financial assistance given by way of a loan or any other agreement under which any of the obligations of the person giving the assistance are to be fulfilled at a time when in accordance with the agreement any obligation of another party to the agreement remains unfulfilled, or by way of the novation of, or the assignment of rights arising under, a loan or such other agreement; or

(d) any other financial assistance given by a company the net assets of which are thereby reduced to a material extent or which has no net assets.

(2) In paragraph (d) of the definition of "financial assistance" in subsection (1), "net assets" (淨資產) has the same meaning as in section 157HA(15).  (Amended 28 of 2003 s. 14).

(3) In sections 47A to 48-  <* Note - Exp. X-Ref.: Sections 47A, 47B, 47C, 47D, 47E, 47F, 47G, 48 *>

(a) a reference to a person incurring a liability includes his changing his financial position by making an agreement or arrangement (whether enforceable or unenforceable, and whether made on his own account or with any other person) or by any other means; and

(b) a reference to a company giving financial assistance for the purpose of reducing or discharging a liability incurred by a person for the purpose of the acquisition of shares includes its giving such assistance for the purpose of wholly or partly restoring his financial position to what it was before the acquisition took place.

(Added 77 of 1991 s. 3)

[cf. 1985 c. 6 s. 152 U.K.]