Hong Kong Ordinances

COMPANIES ORDINANCE - SECT 47D

Special restriction for listed companies

Listed Companies

(1) In the case of a listed company, section 47C(4) authorizes the giving of
financial assistance only if the company has net assets which are not thereby
reduced or, to the extent that those assets are thereby reduced, if the
assistance is provided out of distributable profits.

(2) For this purpose the following definitions apply-

        (a)	"net assets" (淨資產) means the amount by which the aggregate of 
the company's assets exceeds the aggregate of its liabilities (taking the
amount of both assets and liabilities to be as stated in the company's
accounting records immediately before the financial assistance is given);

        (b)	"liabilities" (負債) includes any amount retained as reasonably 
necessary for the purpose of providing for any liability or loss which is
either likely to be incurred, or certain to be incurred but uncertain as to
the amount or as to the date on which it will arise. (Added 77 of 1991 s. 3)
[cf. 1985 c. 6 s. 154 U.K.]

"net assets" (淨資產)

"liabilities" (負債)