Hong Kong Ordinances

BANKRUPTCY ORDINANCE - SECT 51B

Meaning of "associate"

(1) For the purposes of sections 49 to 51A, any question whether a person is
an associate of another person shall be determined in accordance with this
section. <* Note - Exp. X-Ref.: Sections 49, 49A, 50, 51, 51A *>

(2) A person is an associate of a debtor if that person is the debtor's
spouse, or is a relative, or the spouse of a relative of the debtor or his
spouse.

(3) A person is an associate of a debtor with whom he is in partnership, and
of the spouse or a relative of any debtor with whom he is in partnership.

(4) A person is an associate of a debtor whom he employs or by whom he is
employed and for this purpose, any director or other officer of a company
shall be treated as employed by that company.

(5) A person in his capacity as trustee of a trust is an associate of a debtor
if the beneficiaries of the trust include, or the terms of the trust confer a
power that may be exercised for the benefit of, that debtor or an associate of
that debtor.

(6) A company is an associate of a debtor if that debtor has control of it or
if that debtor and persons who are his associates together have control of it.

(7) For the purposes of this section, a person is a relative of a debtor if he
is that debtor's brother, sister, uncle, aunt, nephew, niece, lineal ancestor
or lineal descendant, treating-

   (a)  any relationship of the half blood as a relationship of the whole
        blood and the step child or adopted child of any person as his child;
        and

   (b)  an illegitimate child as the legitimate child of his mother and
        reputed father, and references in this section to a spouse shall
        include a former spouse.

(8) For the purposes of this section, a debtor shall be taken to have control
of a company if-

   (a)  the directors of the company or of another company which has control
        of it (or any of them) are accustomed to act in accordance with his
        directions or instructions, but a debtor shall not be considered to
        have control of a company by reason only that the directors act on
        advice given by him in a professional capacity; or

   (b)  he is entitled to exercise, or control the exercise of, 1/3 or more of
        the voting power at any general meeting of the company or of another
        company which has control of it, and where 2 or more persons together
        satisfy either of the above conditions, they shall be taken to have
        control of the company.

(9) In this section, "company" (公司) includes any body corporate

(whether incorporated in Hong Kong or elsewhere); and references to directors
and other officers of a company and to voting power at any general meeting of
a company shall have effect with any necessary modifications. (Added 76 of
1996 s. 36)

"company" (公司)