Hong Kong Ordinances

BANKRUPTCY ORDINANCE - SECT 60

Powers of provisional trustee and trustee to deal with property of the bankrupt

(Past version on 01/04/1998).
(Past version on 30/06/1997).

(1) Subject to the provisions of this Ordinance and to any order of the court,
a trustee or the Official Receiver when acting as provisional  trustee may do
all or any of the following things- (Amended 18 of 2005 s. 17)

   (aa) take into his custody or under his control all the property to which
        the bankrupt is or appears to be entitled; (Added 18 of 2005 s. 17)

   (a)  sell all or any part of the property of the bankrupt (including the
        goodwill of the business, if any, and the book debts due or growing
        due to the bankrupt), by public auction or private contract, with
        power to transfer the whole thereof to any person or company, or to
        sell the same in parcels, and any transfer of a business of a bankrupt
        by the trustee or the Official Receiver when acting as
        provisional trustee shall be deemed to be exempted from the provisions
        of the Transfer of Businesses  (Protection of Creditors) Ordinance (
        Cap 49); (Amended 18 of 2005 s. 17)

   (b)  give receipts for any money received by him, which receipts shall
        effectually discharge the person paying the money from all
        responsibility in respect of the application thereof;

   (c)  prove, rank, claim and draw a dividend in respect of any debt due to
        the bankrupt;

   (d)  exercise any powers the capacity to exercise which is vested in the
        trustee under this Ordinance and execute any powers of attorney, deeds
        and other instruments for the purpose of carrying into effect the
        provisions of this Ordinance;

   (e)  subject to section 61, do all such other things as may be necessary
        for administering the estate and distributing its assets. (Added 76 of
        1996 s. 40) (Amended 33 of 1939; G.N. 840 of 1940 Supp. Schedule; 20
        of 1948 s. 4)

(2) Notwithstanding any other provisions of this Ordinance but subject to
subsections (3) and (4), a provisional trustee other than the
Official Receiver may do all or any of the following things-

   (a)  take into his custody or under his control all the property to which
        the bankrupt is or appears to be entitled;

   (b)  sell or dispose of perishable goods, or any property (other than
        derivatives, warrants, options, shares or choses in action) the
        estimated value of which is less than $100000 and is likely to
        significantly diminish if such property is not immediately sold or
        disposed of;

   (c)  subject to section 61, do all such other things as may be necessary
        for protecting or preserving the bankrupt’s property;

   (d)  exercise any power the capacity to exercise which is vested in the
        provisional trustee under this Ordinance and execute any powers of
        attorney, deeds and other instruments for the purpose of carrying into
        effect the provisions of this Ordinance;

   (e)  subject to section 61, do all such other things as may be necessary
        for administering the estate pending the appointment of a trustee.
        (Added 18 of 2005 s. 17)

(3) A provisional trustee other than the Official Receiver may also exercise a
power under subsection (1) if the power is exercised under an order of the
court or with the prior approval of the Official Receiver. (Added 18 of 2005
s. 17)

(4) A provisional trustee other than the Official Receiver shall not sell or
dispose of anything under subsection (2)(b) to a person who is an associate of
the bankrupt, unless the sale or disposal is under an order of the court or
with the prior approval of the Official Receiver. (Added 18 of 2005 s. 17)

(5) For the purposes of subsection (4), any question whether a person is an
associate of another person shall be determined in accordance with section 51B
as if-

   (a)  that section were applicable also for the purposes of such
        determination; and

   (b)  references to the “debtor” in that section were references to the
        “bankrupt” in subsection (4). (Added 18 of 2005 s. 17)

(6) The Official Receiver shall not be personally liable for any costs and
charges incurred by any person as a result of any refusal to grant approval
under subsection (3) or (4). (Added 18 of 2005 s. 17) [cf. 1914 c. 59 s. 55
U.K.]