Hong Kong Ordinances

COMPANIES ORDINANCE - SECT 47A

Financial assistance generally prohibited

Financial assistance by a company for acquisition of its own shares

Provisions applying to all companies

(1) Subject to sections 47B to 48, where a person is acquiring or is proposing
to acquire shares in a company, it is not lawful for the company or any of its
subsidiaries to give financial assistance directly or indirectly for the
purpose of that acquisition before or at the same time as the acquisition
takes place. <* Note - Exp. X-Ref.: Sections 47B, 
 47C, 47D, 47E, 47F, 47G, 48 *>

(2) Subject to sections 47B to 48, where a person has acquired shares in a
company and any liability has been incurred (by that or any other person), for
the purpose of that acquisition, it is not lawful for the company or any of
its subsidiaries to give financial assistance directly or indirectly for the
purpose of reducing or discharging the liability so incurred. <* Note - Exp. X-Ref.: Sections 47B, 47C, 47D, 
 47E, 47F, 47G,
48 *>

(3) If a company acts in contravention of this section, it is liable to a
fine, and every officer who is in default is liable to imprisonment or a fine.
(Added 77 of 1991 s. 3) [cf. 1985 c. 6 s. 151 U.K.]