Transfer of Businesses (Protection of Creditors) Ordinance

(1)
A transferee shall not become liable under
section 3
if a notice of transfer has been given not more than 4 months, and not less than 1 month, before the date of transfer and has become complete at the date of transfer.
(2)
Where a notice of transfer has been given but the notice has not become complete at the date of transfer, the liability of the transferee under
section 3
shall cease with effect from the date on which the notice of transfer becomes complete.
(3)
Where a notice of transfer has not been given before or at the date of transfer, the liability of the transferee under
section 3
shall cease with effect from the date on which a notice of transfer, which is given after the date of transfer, becomes complete.
(4)
A notice of transfer shall, subject to subsections (5) and (6), become complete upon the expiration of 1 month after the date of the last publication of the notice in accordance with
section 5
.
(5)
Subject to subsection (6), in the case of a notice of transfer referred
to—
(a)
in subsection (1), if proceedings are instituted against the transferor in respect of any liability of the transferor arising before such notice has become complete and out of the carrying on of his business; or
(b)
in subsection (2) or (3), if proceedings are instituted against the transferee in respect of any liability of the transferee under
section 3
arising before such notice becomes complete,
the notice of transfer shall (for the purposes of such proceedings only) be deemed incomplete pending the final determination of such proceedings, including all possible appeals, and pending the expiration of all periods during which such appeals may be brought.
(6)
Where proceedings are instituted, a notice of transfer shall not be deemed incomplete under subsection (5) unless within 1 month of the proceedings being
instituted—
(a)
they are served on the transferor or transferee, as the case may be; or
(b)
written notice that they have been instituted is sent by registered post to the last known address of such transferor or transferee.