Hong Kong Ordinances

MASS TRANSIT RAILWAY ORDINANCE - SECT 43

Accounts

(1) For the purpose of any accounts prepared by the Corporation for the
purposes of the Companies Ordinance ( Cap 32)-

   (a)  the Corporation shall be treated, on and from the appointed  day, as
        if it were the continuation of MTRC;

   (b)  the value of any asset and the amount of any liability of MTRC vested
        in the Corporation by virtue of this Part is taken to be the value
        assigned to that asset or the amount assigned to that liability in the
        audited accounts of MTRC for the last complete financial year of MTRC;
        and

   (c)  the amount to be included in respect of any item is determined as if
        anything done by MTRC (whether by way of acquiring, revaluing or
        disposing of any asset or incurring, revaluing or discharging any
        liability, or by carrying any amount to any provision or reserve, or
        otherwise) had been done by the Corporation.

(2) Accordingly (and without affecting the generality of subsection

(1))-

   (a)  the amount to be included from time to time in any reserves of the
        Corporation as representing the Corporation's accumulated realised
        profits is determined as if the profits realised and retained by MTRC
        had been realised and retained by the Corporation;

   (b)  every other reserve or provision of MTRC becomes a reserve or
        provision of the Corporation; and

   (c)  the amount, description and character of every reserve or provision of
        the Corporation which becomes a reserve or provision of the
        Corporation pursuant to paragraph (b) is the same in all respects as
        those of the corresponding reserve or provision of MTRC immediately
        before the appointed day.

(3) Without affecting the generality of subsection (1), on and from the
appointed day all profits or losses of MTRC earned or incurred after the
beginning of the financial year of MTRC in which the appointed day occurs are
treated as profits or losses of the Corporation.

(4) For the purposes of the accounts of the Corporation prepared for the
purposes of the Companies Ordinance ( Cap 32), the vesting in the Corporation
effected by virtue of this Part is taken-

   (a)  to have been effected immediately after the end of the last complete
        financial year of MTRC; and

   (b)  to have been a vesting of all the property, rights and liabilities to
        which MTRC was entitled or subject immediately before the end of the
        last complete financial year of MTRC.

(5) Section 122(1) of the Companies Ordinance ( Cap 32) applies to and in
relation to the Corporation as if reference in that subsection to the period
since the incorporation of the company was a reference to the period beginning
immediately after the last complete financial year of MTRC.