Offences by Officers of Companies Penalty for Falsification of Books Frauds by Officers of Companies Liability where Proper Accounts Responsibility of Directors Power of Court to Assess Prosecution of Delinquent Officers Disqualification for Appointment Corrupt Inducement Enforcement of Duty of Liquidator Notification on Company Liquidation Exemption of Certain Documents Books of Company to be Evidence Disposal of Books and Papers Pending Liquidations Unclaimed Assets to be Paid Resolutions Passed at Meetings Meetings to Ascertain Wishes Affidavits, &c. Power of Court to Declare Dissolution Repealed 30 of 1999 s. 18 Government Disclaimer of Property Effect of Government Disclaimer Repealed 30 of 1999 s. 21 Striking Defunct Company Power of Court to Order Company Application for Deregistration Reinstatement Registrar to Act as Representative Property and Books etc. Effect on Section 292 Companies Liquidation Account Investment of Surplus Funds Accounts of Particular Estates General Rules and Fees Disqualification for Appointment Disqualification of Undischarged Power to Appoint Official Receiver Receivers Appointed out of Court Notification Power of Court to Fix Remuneration Provisions as to Information Special Provisions as to Statement Delivery to Registrar of Accounts Enforcement of Duty of Receiver Construction of References Registration Offices Protection of Registrar etc. Fees Inspection, Production and Evidence Authentication of Documents Enforcement of Duties: Ordinance Application to Companies Formed Application to Companies Registered Companies re-Registered Companies Capable Definition of Joint Stock Company Registration: Joint Stock Companies Other than Joint Stock Companies Authentication of Statements Registrar May Require Evidence Exemption of Certain Companies Addition of "Limited" etc., to Name Certificate of Registration Vesting of Property on Registration Saving for Existing Liabilities Continuation of Existing Actions Effect of Registration Power to Substitute Memorandum Power of Court to Stay Actions on Winding-up Order Meaning of Unregistered Companies Winding up of Unregistered Oversea Companies May be Contributories in Winding up Power to Restrain Proceeding Actions Stayed on Winding-up Provisions of Part X Cumulative Saving for Enactments Application of Part XI Documents, etc. to be Delivered Continuing Obligation in Respect Termination of Registration Registrar to Keep an Index Return to be Delivered to Registrar Accounts of Oversea Company Obligation to State Name Notice of Commencement Regulation of Use of Corporate Service of Documents on Oversea Notice to be Given Removal etc. of Name Penalties Interpretation of Part XI Dating of Prospectus and Particulars Exemption of Certain Persons Provisions as to Expert's Consent Registration of Prospectus Amendment of Prospectus Prospectus May Consist Submission of Certified Copies Penalty for Contravention Civil Liability for Misstatements Criminal Liability for Misstatements Interpretation of Provisions Dormant Companies Prohibition of Partnerships Documents Delivered to Registrar Power of Registrar to Accept Power of Registrar to Refuse Registrar not Responsible for Disposal of Documents Form of Registers etc. Power of Registrar to Keep Records Penalty for False Statements Penalty for Dishonest Destruction Penalty for Improper Use of "Limited" Obligation to Give Notice Injunctions Provision for Punishment Limitation on Commencement Production and Inspection of Books Application of Fines Saving as to Private Prosecutors Saving for Privileged Communications Service of Documents on Company Costs in Actions Power of Court to Grant Relief Power to Enforce Orders Power to Make Regulations Power to Amend Requirements Repealed 30 of 1999 s. 34 Power to Refuse Registration Power to Order Company Certain Sections not to Apply Vesting and Disposal of Property Provisions Applicable to Winding up Certain Sections to Apply Calls on Contributories Continuation of Legal Proceedings Obstruction of Official Receiver Control of Official Receiver Audit of Official Receiver's Accounts Protection of Official Receiver Companies to Which Part XI Applies Saving Saving II Saving III Savings and Transitional Transitional Application of the Amending
Chapter: 32  COMPANIES ORDINANCE

Section Num: 342  Version Date 03/12/2004

Dating of prospectus and particulars to be contained therein

PART XII

RESTRICTIONS ON SALE OF SHARES AND

OFFERS OF SHARES FOR SALE

(1) Subject to section 342A, it shall not be lawful for any person to issue, circulate or distribute in Hong Kong any prospectus offering for subscription or purchase shares in or debentures of a company incorporated outside Hong Kong, whether the company has or has not established a place of business in Hong Kong unless the prospectus is dated (which date shall, unless the contrary is proved, be taken as the date of publication of the prospectus) and-  (Amended 86 of 1992 s. 12; 30 of 2004 s. 2)

(a) contains particulars with respect to the following matters-

(i) the instrument constituting or defining the constitution of the company;

(ii) the enactments, or provisions having the force of an enactment, by or under which the incorporation of the company was effected;

(iii) an address in Hong Kong where the said instrument, enactments or provisions, or copies thereof, and if the same are in a language other than English or Chinese a translation thereof in English or Chinese certified in the prescribed manner, can be inspected;  (Amended 83 of 1995 s. 19)

(iv) the date on which and the country in which the company was incorporated;

(v) whether the company has established a place of business in Hong Kong, and, if so, the address of its principal office in Hong Kong;

(b) subject to the provisions of this section, is either in the English language and contains a Chinese translation or in the Chinese language and contains an English translation, and states the matters specified in Part I of the Third Schedule and sets out the reports specified in Part II of that Schedule, subject always to the provisions contained in Part III of that Schedule:  (Amended 83 of 1995 s. 19)

Provided that the provisions of paragraph (a)(i), (ii) and (iii) shall not apply in the case of a prospectus issued more than 2 years after the date at which the company is entitled to commence business, and, in the application of Part I of the Third Schedule for the purposes of this subsection, paragraph 5 thereof shall have effect with the substitution,

for the reference to the articles, of a reference to the constitution of the company.  (Amended 6 of 1984 s. 259)

(2) Any condition requiring or binding an applicant for shares or debentures to waive compliance with any requirement imposed by virtue of subsection (1)(a) or (b), or purporting to affect him with notice of any contract, document or matter not specifically referred to in the prospectus, shall be void.

(2A) Every prospectus to which subsection (1) applies must contain a statement specified in Part 2 of the Eighteenth Schedule.  (Added 30 of 2004 s. 2)

(3) Subject to section 342A, it shall not be lawful for any person to issue to any person in Hong Kong a form of application for shares in or debentures of such a company as is mentioned in subsection (1) unless the form is issued with a prospectus which complies with this Part and the issue whereof in Hong Kong does not contravene the provisions of section 342B:  (Amended 6 of 1984 s. 259; 86 of 1992 s. 12)

Provided that this subsection shall not apply if it is shown that the form of application was issued-  (Amended 30 of 2004 s. 2)

(a) in connection with a bona fide invitation to a person to enter into an underwriting agreement with respect to the shares or debentures;

(b) in relation to shares or debentures which were not offered to the public; or  (Amended 30 of 2004 s. 2)

(c) in connexion with an offer specified in Part 1 of the Seventeenth Schedule as read with the other Parts of that Schedule.

(Added 30 of 2004 s. 2)

(4) In the event of non-compliance with or contravention of any of the requirements imposed by subsection (1)(a) and (b), a director or other person responsible for the prospectus shall not incur any liability by reason of the non-compliance or contravention, if-

(a) as regards any matter not disclosed, he proves that he was not cognisant thereof; or

(b) he proves that the non-compliance or contravention arose from an honest mistake of fact on his part; or

(c) the non-compliance or contravention was in respect of matters which, in the opinion of the court dealing with the case, were immaterial or were otherwise such as ought, in the opinion of that court, having regard to all the circumstances of the case, reasonably to be excused:

Provided that, in the event of failure to include in a prospectus a statement with respect to the matters contained in paragraph 19 of the Third Schedule, no director or other person shall incur any liability in respect of the failure unless it be proved that he had knowledge of the matters not disclosed.

(5) This section shall not apply-

(a) to the issue to existing members or debenture holders of a company of a prospectus or form of application relating to shares in or debentures of the company, whether an applicant for shares or debentures will or will not have the right to renounce in favour of other persons; or

(b) to the issue of a prospectus or a form of application relating to shares or debentures which are or are to be in all respects uniform with shares or debentures previously issued and for the time being listed on a recognized stock market;  (Amended 6 of 1984 s. 259; 10 of 1987 s. 11; 5 of 2002 s. 407) but, subject as aforesaid, this section shall apply to a prospectus or form of application whether issued on the formation of a company or subsequently.

(6) Nothing in this section shall limit or diminish any liability which any person may incur under the general law or this Ordinance apart from this section.

(7) It is hereby declared that the provisions of the Third Schedule applied by this section are also applied to a guarantor corporation in relation to an offer or invitation to the public to subscribe for or purchase debentures of a company incorporated outside Hong Kong.  (Added 30 of 2004 s. 2)

(8) In subsection (7), guarantor corporation, in relation to an offer or invitation to the public to subscribe for or purchase debentures of a company incorporated outside Hong Kong, means a corporation that guarantees or agrees to guarantee-

(a) the repayment of any money received or to be received by the company in response to the offer or invitation;

(b) any other obligations of the company under or in respect of the debentures; or

(c) in favour of the company any amount-

(i) to which the company is entitled; and

(ii) receipt of which, as stated in the prospectus concerned, is

intended to enable the company to wholly or partly discharge any of its obligations under or in respect of the debentures.  (Added 30 of 2004 s. 2)

(Replaced 78 of 1972 s. 18)

[cf. 1948 c. 38 s. 417 U.K.]

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