Division 1     Preliminary
666.
Interpretation
In this Part—
child (子女) includes a step-child, an illegitimate child and a
child adopted in any manner recognized by the law of
Hong Kong;
cohabitation relationship (同居關係) means a relationship
between 2 persons (whether of the same sex or of the
opposite sex) who live together as a couple in an intimate
relationship;
offer period (要約期), in relation to an offer, means the period
within which the offer can be accepted;
repurchasing company (回購公司), in relation to a general offer,
means the listed company that makes the offer.
667.
Associate
(1) In this Part, a reference to an associate of an offeror or
member, is—
(a) if the offeror or member is a natural person, a
reference to—
(i) the offeror’s or member’s spouse;
(ii) a person who is in a cohabitation relationship
with the offeror or member;

(iii) a child of the offeror or member;
(iv) a child of a person falling within subparagraph (ii)
who—
(A) is not a child of the offeror or member;
(B) lives with the offeror or member; and
(C) has not attained the age of 18;
(v) a parent of the offeror or member;
(vi) a body corporate in which the offeror or member
is substantially interested; or
(vii) a person who is a party, or a nominee of a party,
to an acquisition agreement with the offeror or
member; or
(b) if the offeror or member is a body corporate, a
reference to—
(i) a body corporate in the same group of companies
as the offeror or member;
(ii) a body corporate in which the offeror or member
is substantially interested; or
(iii) a person who is a party, or a nominee of a party,
to an acquisition agreement with the offeror or
member.
(2) In this Part, a reference to an associate of a repurchasing
company is a reference to—
(a) a body corporate in the same group of companies as
the repurchasing company;
(b) a body corporate in which the repurchasing company
is substantially interested; or
(c) a person who is a party, or a nominee of a party,
to an acquisition agreement with the repurchasing
company.(3) For the purposes of subsections (1) and (2), an offeror,
member or repurchasing company is substantially interested
in a body corporate if—
(a) the body corporate, or its directors or a majority of its
directors, are accustomed to act in accordance with
the directions or instructions of the offeror, member
or repurchasing company; or
(b) the offeror, member or repurchasing company is
entitled to exercise, or control the exercise of, more
than 30% of the voting power at any general meeting
of the body corporate.
(4) In subsection (3), a reference to voting power the exercise
of which is controlled by an offeror, member or
repurchasing company includes voting power the exercise
of which is controlled by another body corporate if the
offeror, member or repurchasing company is entitled to
exercise, or control the exercise of, more than 50% of the
voting power at any general meeting of that other body
corporate.
(5) For the purposes of subsections (1) and (2), an agreement
is an acquisition agreement if—
(a) it is an agreement for the acquisition of—
(i) any of the shares to which the takeover offer or
general offer relates; or
(ii) an interest in those shares; and
(b) it includes provisions imposing obligations or
restrictions on any of the parties to it with respect to
the use, retention or disposal of the party’s interests in
the shares acquired pursuant to the agreement.

Division 2     Arrangements and Compromises
668.
Interpretation
(1) In this Division—
arrangement (安排) includes a reorganization of the company’s
share capital by the consolidation of shares of different
classes, or by the division of shares into different classes, or
both;
company (公司), except in section 675, means a company liable
to be wound up under the Companies (Winding Up and
Miscellaneous Provisions) Ordinance (Cap. 32).
(2) In this Division, a reference to a company’s articles, in the
case of a company not having articles, is to be read as the
instrument constituting or defining the constitution of the
company.
669.
Application of Division
This Division applies if an arrangement or compromise is
proposed to be entered into by a company with either or both
of the following—
(a) the creditors, or any class of the creditors, of the
company;
(b) the members, or any class of the members, of the
company.
670.
Court may order meeting of creditors or members to be
summoned
(1) The Court may, on application made for the purposes of
this subsection—

Division 3     Amalgamation of Companies within Group
678.
Interpretation
(1) In this Division, a company is a wholly owned subsidiary
of another company if it has no members except—
(a) that other company;
(b) a nominee of that other company;
(c) a wholly owned subsidiary of that other company; or
(d) a nominee of that subsidiary.
(2) A cancellation of shares under this Division is not a
reduction of share capital for the purposes of Part 5.
(3) For the purposes of this Division, a resolution approving
an amalgamation mentioned in section 680(1) or 681(1) is
an amalgamation proposal that has been approved.
679.
Solvency statement
(1) In this Division, a reference to a solvency statement made
by the directors of an amalgamating company is a reference
to a statement made before the time specified in subsection
(2) that—
(a) in the directors’ opinion—
(i) as at the date of the statement, there is no ground
on which the amalgamating company could be
found to be unable to pay its debts; and
(ii) the amalgamated company will be able to pay its
debts as they fall due during the period of
12 months immediately after the date on which
the amalgamation is to become effective; and(b) as at the date of the statement—
(i) none of the following exists—
(A) any
floating
charge
created
by
the
amalgamating company;
(B) any
other
security
created
by
the
amalgamating company over a class of assets,
to any of which the security interest has not
attached; or
(ii) there exists such a floating charge or other
security, and each person entitled to the charge or
security has consented in writing to the
amalgamation proposal.
(2) The time specified for the purposes of subsection (1) is—
(a) if the amalgamation is to be approved by a resolution
passed on a poll at a general meeting, the date of the
meeting; or
(b) if the amalgamation is to be approved by a written
resolution, the circulation date of the resolution.
(3) In forming an opinion for the purposes of subsection
(1)(a)(ii), the directors must take into account all
the liabilities of the amalgamated company (including
contingent and prospective liabilities).
(4) In subsection (2)(b)—
circulation date (傳閱日期) has the meaning given by section
547(1).
680.
Vertical amalgamation
(1) A company (amalgamating holding company), and one or
more of its wholly owned subsidiaries, may amalgamate,
and continue, as one company if—(a) the members of the amalgamating holding company
approve the amalgamation on the terms specified in
subsection (2); and
(b) the members of each of the amalgamating subsidiaries
approve the amalgamation on the terms specified in
subsection (2).
(2) The terms are—
(a) that the shares of each of the amalgamating
subsidiaries will be cancelled without payment or other
consideration;
(b) that the articles of the amalgamated company will be
the same as the articles of the amalgamating holding
company;
(c) that the directors of each amalgamating company—
(i) are satisfied that, as at the date of the solvency
statement made by them, there is no ground on
which the amalgamating company could be found
to be unable to pay its debts; and
(ii) after taking into account all the liabilities of the
amalgamated company (including contingent and
prospective liabilities), are satisfied that the
amalgamated company will be able to pay its
debts as they fall due during the period of 12
months immediately after the date on which the
amalgamation is to become effective;
(d) that the directors of each amalgamating company have
confirmed that as at the date of the solvency statement
made by them—
(i) none of the following exists—
(A) any floating charge created by the amalgamating company;

(B) any other security created by the
amalgamating company over a class of assets,
to any of which the security interest has not
attached; or
(ii) there exists such a floating charge or other
security, and each person entitled to the charge or
security has consented in writing to the
amalgamation proposal;
(e) that the person or persons named in the resolution will
be the director or directors of the amalgamated
company.
(3) An approval for the purposes of subsection (1)(a) must be
obtained by a special resolution of the company passed on
a poll at a general meeting but not by a written resolution.
(4) An approval for the purposes of subsection (1)(b) must be
obtained by a special resolution of the company passed on
a poll at a general meeting or by a written resolution.
(5) This section does not apply unless each amalgamating
company is a company limited by shares.
681.
Horizontal amalgamation
(1) Two or more of the wholly owned subsidiaries of a
company may amalgamate, and continue, as one company
if the members of each amalgamating company approve
the amalgamation on the terms specified in subsection (2).
(2) The terms are—
(a) that the shares of all but one of the amalgamating
companies will be cancelled without payment or other
consideration;
(b) that the articles of the amalgamated company will be
the same as the articles of the amalgamating company
whose shares are not cancelled;

(c) that the directors of each amalgamating company—
(i) are satisfied that, as at the date of the solvency
statement made by them, there is no ground on
which the amalgamating company could be found
to be unable to pay its debts; and
(ii) after taking into account all the liabilities of the
amalgamated company (including contingent and
prospective liabilities), are satisfied that the
amalgamated company will be able to pay its
debts as they fall due during the period of 12
months immediately after the date on which the
amalgamation is to become effective;
(d) that the directors of each amalgamating company have
confirmed that as at the date of the solvency statement
made by them—
(i) none of the following exists—
(A) any
floating
charge
created
by
the
amalgamating company;
(B) any other security created by the
amalgamating company over a class of assets,
to any of which the security interest has not
attached; or
(ii) there exists such a floating charge or other
security, and each person entitled to the charge or
security has consented in writing to the
amalgamation proposal;
(e) that the person or persons named in the resolution will
be the director or directors of the amalgamated
company.
(3) An approval for the purposes of subsection (1) must be
obtained by a special resolution of the amalgamating
company passed on a poll at a general meeting or by a
written resolution.(4) This section does not apply unless each amalgamating
company is a company limited by shares.
682.
Directors of amalgamating company must notify secured creditors
of proposed amalgamation
(1) The directors of each amalgamating company under
section 680 or 681 must comply with subsection (2)—
(a) if the amalgamation is to be approved by a resolution
passed on a poll at a general meeting, at least 21 days
before the date of the meeting; or
(b) if the amalgamation is to be approved by a written
resolution, on or before the circulation date of the
resolution.
(2) Those directors—
(a) must give written notice of the proposed amalgamation
to every secured creditor of the amalgamating
company; and
(b) must publish notice of the proposed amalgamation in
an English language newspaper, and a Chinese
language newspaper, circulating generally in Hong
Kong.
(3) If the directors of an amalgamating company contravene
subsection (1), each of them commits an offence and is
liable to a fine at level 3.
(4) In subsection (1)(b)—
circulation date (傳閱日期) has the meaning given by section
547(1).683.
Director of amalgamating company must issue certificate on
solvency statement
(1) Every director of the amalgamating company who votes in
favour of making a solvency statement must issue a
certificate—
(a) stating—
(i) that, in the director’s opinion, the conditions
specified in section 679(1)(a)(i) and (ii) are
satisfied; and
(ii) the grounds for that opinion; and
(b) stating that the condition specified in section 679(1)(b)
is satisfied.
(2) A person who contravenes subsection (1) commits an
offence and is liable to a fine at level 4.
(3) A director of the amalgamating company commits an
offence if the director votes in favour of making a solvency
statement, or otherwise causes a solvency statement to be
made, without having reasonable grounds for the opinion
and fact expressed in the statement.
(4) A person who commits an offence under subsection (3) is
liable—
(a) on conviction on indictment to a fine of $150,000 and
to imprisonment for 2 years; or
(b) on summary conviction to a fine at level 6 and to
imprisonment for 6 months.
684.
Registration of amalgamation
(1) For the purpose of effecting an amalgamation, the
following documents must be delivered to the Registrar for
registration within 15 days after the approval of the
amalgamation proposal—(a) the amalgamation proposal that has been approved;
(b) every certificate required by section 683(1);
(c) a certificate issued by the directors of each
amalgamating company stating that the amalgamation
has been approved in accordance with—
(i) this Division; and
(ii) the articles of the amalgamating company;
(d) a notice of appointment of the directors of the
amalgamated company;
(e) a certificate issued by the directors, or the proposed
directors, of the amalgamated company stating that
where the proportion of the claims of the
amalgamated company’s creditors in relation to the
value of that company’s assets is greater than the
proportion of the claims of an amalgamating
company’s creditors in relation to the value of that
company’s assets, no creditor will be prejudiced by that
fact.
(2) A document mentioned in subsection (1)(a), (b), (c), (d) or
(e) must be in the specified form.
(3) As soon as practicable after the documents mentioned in
subsection (1) are registered, the Registrar must issue a
certificate of amalgamation.
(4) A certificate of amalgamation may be issued in any form
that the Registrar thinks fit.
685.
Effective date of amalgamation
(1) A certificate of amalgamation issued under section 684(3)
must specify a date as the effective date of the
amalgamation.(2) If an amalgamation proposal specifies a date on which the
amalgamation is intended to become effective, and that
date is the same as or later than the date on which the
Registrar registers the documents mentioned in section
684(1), that date must be specified in the certificate of
amalgamation as the effective date of the amalgamation.
(3) On the effective date of an amalgamation—
(a) the amalgamation takes effect;
(b) each amalgamating company ceases to exist as an
entity separate from the amalgamated company; and
(c) the amalgamated company succeeds to all the property,
rights and privileges, and all the liabilities and
obligations, of each amalgamating company.
(4) On and after the effective date of an amalgamation—
(a) any
proceedings
pending
by
or
against
an
amalgamating company may be continued by or
against the amalgamated company;
(b) any conviction, ruling, order or judgment in favour of
or against an amalgamating company may be enforced
by or against the amalgamated company; and
(c) any agreement entered into by an amalgamating
company may be enforced by or against the
amalgamated company unless otherwise provided in
the agreement.
(5) As soon as practicable after the effective date of an
amalgamation, the Registrar must make a note of the
amalgamation in the Companies Register in relation to
each amalgamating company.
686.
Court may intervene in amalgamation proposal in certain cases
(1) If the Court is satisfied that giving effect to an
amalgamation proposal would unfairly prejudice a memberor creditor of an amalgamating company or a person to
whom an amalgamating company is under an obligation, it
may, on application by the member, creditor or person
made before the date on which the amalgamation becomes
effective, make any order it thinks fit in relation to the
amalgamation proposal.
(2) Without limiting subsection (1), the Court may make an
order—
(a) directing that effect must not be given to the
amalgamation proposal;
(b) modifying the amalgamation proposal in the manner
specified in the order; or
(c) directing the amalgamating company or its directors
to reconsider the amalgamation proposal or any part
of that proposal.
(3) Without limiting subsection (1), the Court may also make
an order directing the amalgamated company, or any other
party to the proceedings, to purchase shares of a member
of an amalgamating company who would be unfairly
prejudiced by the amalgamation proposal.
(4) On making an application for the purposes of subsection (1),
the applicant must deliver to the Registrar for registration a
notice of the application in the specified form.
(5) If the Registrar receives a notice under subsection (4), he
or she must withhold registration of the documents
mentioned in section 684(1) unless the Court otherwise
directs or the application is dismissed by the Court or is
withdrawn.
(6) If an order is made under this section, every company in
relation to which the order is made must deliver an office
copy of the order to the Registrar for registration within 7
days after the order is made.(7) If a company contravenes subsection (6), the company, and
every responsible person of the company, commit an
offence, and each is liable to a fine at level 3 and, in the
case of a continuing offence, to a further fine of $300 for
each day during which the offence continues.
 

Division 4     Compulsory Acquisition after Takeover Offer
Subdivision 1     Preliminary
687.
Interpretation
In this Division—
nominee (代名人), in relation to a company that is a member of
a group of companies, includes a nominee on behalf of
another company that is a member of the group.
688.
Application of Division to convertible securities and debentures
(1) This Division applies in relation to debentures of a
company that are convertible into shares in the company,
or to securities of a company that are convertible into, or
entitle the holder to subscribe for, shares in the company,
as if those debentures or securities were shares of a
separate class of the company. A reference to a holder of
shares, and to shares being allotted, is to be read
accordingly.

(2) In this Division, a reference to 90% in number of the
shares of any class is—
(a) in the case of securities mentioned in subsection (1), a
reference to 90% of the number of those securities;
and
(b) in the case of debentures mentioned in subsection (1),
a reference to 90% of the total amount payable on
those debentures.
689.
Takeover offer
(1) For the purposes of this Division, an offer to acquire
shares in a company is a takeover offer if—
(a) it is an offer to acquire all the shares, or all the shares
of any class, in the company, except those that, at the
date of the offer, are held by the offeror; and
(b) the terms of the offer are the same—
(i) where the offer does not relate to shares of
different classes, in relation to all the shares to
which the offer relates; or
(ii) where the offer relates to shares of different
classes, in relation to all the shares of each class
to which the offer relates.
(2) In subsection (1)—
shares (股份) means shares that have been allotted on the date
of the offer.
(3) In subsection (1)(a), a reference to shares that are held by
an offeror—
(a) includes shares that the offeror has contracted,
unconditionally or subject to conditions being
satisfied, to acquire; but
(b) excludes shares that are the subject of a contract—(i) entered into by the offeror with a holder of shares
in the company in order to secure that the holder
will accept the offer when it is made; and
(ii) entered into for no consideration and by deed,
for consideration of negligible value, or for
consideration consisting of a promise by the
offeror to make the offer.
(4) For the purposes of subsection (1)(b), even though, in
relation to all the shares, or all the shares of a class of
shares, to which an offer relates, there is a difference in the
value of consideration offered for the shares allotted earlier
as against the value of consideration offered for those
allotted later, the terms of the offer are to be regarded as
the same in relation to all the shares concerned if—
(a) shares carry an entitlement to a particular dividend
that other shares of the same class, by reason of being
allotted at a different time, do not carry;
(b) the difference in value of consideration merely reflects
that difference in entitlement to dividend; and
(c) but for the difference in the value of consideration, the
terms of the offer would be the same in relation to all
the shares concerned.
(5) For the purposes of subsection (1)(b), even though, in
relation to all the shares, or all the shares of a class of
shares, to which an offer relates, there is a difference in the
form of consideration offered, the terms of the offer are to
be regarded as the same in relation to all the shares
concerned if—
(a) the law of a place outside Hong Kong precludes an
offer of consideration in the form specified in the
terms of the offer, or precludes it except after
compliance by the offeror with conditions with which
the offeror is unable to comply or that the offeror
regards as unduly onerous;(b) consideration in another form is offered to a person to
whom an offer of consideration in the specified form
is so precluded;
(c) the person is able to receive consideration in that other
form that is of substantially equivalent value; and
(d) but for the difference in the form of consideration, the
terms of the offer would be the same in relation to all
the shares concerned.
(6) Despite subsection (1), a takeover offer may include, among
the shares to which it relates, shares that will be allotted
after the date of the offer but before a date specified in the
offer.
690.
Non-communication etc. does not prevent offer from being
takeover offer
(1) Even though an offer to acquire shares is not
communicated to a holder of shares, that does not prevent
the offer from being a takeover offer for the purposes of
this Division if—
(a) no Hong Kong address for the holder is registered in
the company’s register of members;
(b) the offer was not communicated to the holder in order
not to contravene the law of a place outside Hong
Kong; and
(c) either—
(i) the offer is published in the Gazette; or
(ii) the offer can be inspected, or a copy of it
obtained, at a place in Hong Kong or on a
website, and a notice is published in the Gazette
specifying the address of that place or website.(2) It is not to be inferred from subsection (1) that an offer
that is not communicated to a holder of shares cannot be a
takeover offer for the purposes of this Division unless the
conditions specified in paragraphs (a), (b) and (c) of that
subsection are satisfied.
(3) Even though it is impossible or more difficult for a person,
by reason of the law of a place outside Hong Kong, to
accept an offer to acquire shares, that does not prevent the
offer from being a takeover offer for the purposes of this
Division.
(4) It is not to be inferred from subsection (3) that an offer
that is impossible, or more difficult, for certain persons to
accept cannot be a takeover offer for the purposes of this
Division unless the reason for the impossibility or difficulty
is the one mentioned in that subsection.
691.
Shares to which takeover offer relates
(1) For the purposes of this Division, if, after a takeover offer
is made but before the end of the offer period, the offeror
acquires, or contracts unconditionally to acquire, any of
the shares to which the offer relates but does not do so by
virtue of acceptances of the offer, those shares are not to
be regarded as shares to which the offer relates. This
subsection has effect subject to subsection (2).
(2) For the purposes of this Division, those shares are to be
regarded as shares to which the takeover offer relates, and
the offeror is to be regarded as having acquired or
contracted to acquire them by virtue of acceptances of that
offer, if—
(a) the value of the consideration for which the shares are
acquired, or contracted to be acquired, at the time of
the acquisition or contract, does not exceed the value
of the consideration specified in the terms of that
offer; or(b) those terms are subsequently revised so that when the
revision is announced, the value of the consideration
for which the shares are acquired, or contracted to be
acquired, at the time of the acquisition or contract, no
longer exceeds the value of the consideration specified
in those terms.
(3) For the purposes of this Division, shares that an associate
of the offeror, or a nominee on the offeror’s behalf, holds,
or has contracted, unconditionally or subject to conditions
being satisfied, to acquire, whether at the date of the
takeover offer or subsequently, are not to be regarded as
shares to which that offer relates, even if that offer extends
to those shares. This subsection has effect subject to
subsection (4).
(4) For the purposes of this Division, where, after a takeover
offer is made but before the end of the offer period, an
associate of the offeror, or a nominee on the offeror’s
behalf, acquires, or contracts unconditionally to acquire,
any of the shares to which the offer relates, the shares are
to be regarded as shares to which the offer relates if—
(a) the value of the consideration for which the shares are
acquired, or contracted to be acquired, at the time of
the acquisition or contract, does not exceed the value
of the consideration specified in the terms of the offer;
or
(b) those terms are subsequently revised so that when the
revision is announced, the value of the consideration
for which the shares are acquired, or contracted to be
acquired, at the time of the acquisition or contract, no
longer exceeds the value of the consideration specified
in those terms.692.
Revised offer not to be regarded as fresh offer
For the purposes of this Division, a revision of the terms of an
offer to acquire shares is not to be regarded as the making of a
fresh offer if—
(a) the terms of the offer make provision for—
(i) their revision; and
(ii) acceptances on the previous terms to be treated as
acceptances on the revised terms; and
(b) the revision is made in accordance with that provision.
 

Subdivision 2     “Squeeze-out”
693.
Offeror may give notice to buy out minority shareholders
(1) If, in the case of a takeover offer that does not relate
to shares of different classes, the offeror has, by virtue
of acceptances of the offer, acquired, or contracted
unconditionally to acquire, at least 90% in number of the
shares to which the offer relates, the offeror may give notice
to the holder of any other shares to which the offer relates
that the offeror desires to acquire those shares.
(2) If, in the case of a takeover offer that relates to shares of
different classes, the offeror has, by virtue of acceptances
of the offer, acquired, or contracted unconditionally to
acquire, at least 90% in number of the shares of any class
to which the offer relates, the offeror may give notice to the
holder of any other shares of that class to which the offer
relates that the offeror desires to acquire those shares.
(3) If, in the case of a takeover offer that does not relate
to shares of different classes, the offeror has, by virtue
of acceptances of the offer, acquired, or contracted
unconditionally to acquire, less than 90% in number of the

shares to which the offer relates, the offeror may apply to
the Court for an order authorizing the offeror to give
notice to the holder of any other shares to which the offer
relates that the offeror desires to acquire those shares.
(4) If, in the case of a takeover offer that relates to shares of
different classes, the offeror has, by virtue of acceptances
of the offer, acquired, or contracted unconditionally to
acquire, less than 90% in number of the shares of any class
to which the offer relates, the offeror may apply to the
Court for an order authorizing the offeror to give notice to
the holder of any other shares of that class to which the
offer relates that the offeror desires to acquire those shares.
(5) The Court may, on application under subsection (3) or (4),
make the order if it is satisfied that—
(a) after reasonable enquiry, the offeror has been unable
to trace one or more of the persons holding shares to
which the takeover offer relates;
(b) had the person, or all those persons, accepted the
takeover offer, the offeror would have, by virtue of
acceptances of that offer, acquired, or contracted
unconditionally to acquire, at least 90% in number of
the shares, or the shares of any class, to which that
offer relates; and
(c) the consideration offered is fair and reasonable.
(6) The Court must not make the order unless it is satisfied
that it is just and equitable to do so having regard to all the
circumstances and, in particular, to the number of holders
of shares who have been traced but who have not accepted
the takeover offer.
(7) If the Court makes an order authorizing the offeror to give
notice to the holder of any shares, the offeror may give
notice to that holder.694.
Notice to minority shareholders
(1) A notice to a holder of shares under section 693—
(a) must be given in the specified form; and
(b) must be given to the holder before whichever is the
earlier of the following—
(i) the end of the period of 3 months beginning on
the day after the end of the offer period of the
takeover offer;
(ii) the end of the period of 6 months beginning on
the date of the takeover offer.
(2) The notice must be given to the holder of shares—
(a) by delivering it personally to that holder in Hong
Kong;
(b) by sending it by registered post to that holder to—
(i) an address of that holder in Hong Kong
registered in the books of the company; or
(ii) if there is no such address, an address in Hong
Kong supplied by that holder to the company for
the giving of notice to that holder; or
(c) in the manner directed by the Registrar on an
application made under subsection (3).
(3) An offeror may apply to the Registrar for directions
regarding the manner in which the notice is to be given to
a holder of shares if—
(a) there is no address of the holder in Hong Kong
registered in the books of the company; and
(b) the holder has not supplied to the company an address
in Hong Kong for the giving of notice to the holder.
(4) If the takeover offer gives the holder of shares a choice of
consideration, the notice—(a) must give particulars of the choices;
(b) must state that the holder may, within 2 months after
the date of the notice, indicate the holder’s choice by a
letter sent to the offeror at an address specified in the
notice; and
(c) must state which consideration specified in the offer
will apply if the holder does not indicate a choice.
(5) If the takeover offer provides that the holder of shares is to
receive shares in or debentures of the offeror, with an option
to receive some other consideration to be provided by a
third party instead, the offeror may indicate in the notice
that the terms of the takeover offer include the option.
(6) If the offeror does not indicate in the notice that the terms
of the takeover offer include the option, the offeror may
offer in the notice a corresponding option to receive some
other consideration to be provided by the offeror.
(7) For the purposes of subsection (5), consideration is to be
regarded as being provided by a third party if it is made
available to the offeror on terms that it is to be used by the
offeror as consideration for the takeover offer.
695.
Offeror’s right to buy out minority shareholders
(1) This section applies if a notice is given under section 693 to
the holder of any shares.
(2) Unless the Court makes an order under subsection (3), the
offeror is entitled and bound to acquire the shares on the
terms of the takeover offer.
(3) The Court may, on application by the holder made within
2 months after the date on which the notice was given,
order that—
(a) the offeror is not entitled and bound to acquire the
shares; or(b) the offeror is entitled and bound to acquire the shares
on the terms specified in the order.
(4) For the purposes of subsection (2)—
(a) if the takeover offer falls within section 694(4), the
terms of the takeover offer are to be regarded as
including the particulars and statements included in
the notice for the purposes of that section;
(b) if the takeover offer falls within section 694(5), the
terms of the takeover offer are to be regarded as not
including the option unless the offeror indicates
otherwise in the notice; and
(c) if, within 2 months after the date of the notice, the
holder of the shares, by a letter sent to the offeror at
an address specified in the notice, exercises the
corresponding option offered under section 694(6), the
terms of the takeover offer are to be regarded as
including the corresponding option.
696.
Obligations of offeror with right to buy out minority shareholders
(1) If, by virtue of section 695(2), an offeror is entitled and
bound to acquire any shares in a company, the offeror must
comply with subsection (3) within 2 months after the date
of the notice.
(2) If an application for the purposes of section 695(3) is
pending at the end of those 2 months, the offeror must
comply with subsection (3) as soon as practicable after the
application has been disposed of, unless the Court orders
that the offeror is not entitled and bound to acquire the
shares.
(3) The offeror—
(a) must send to the company—
(i) a copy of the notice under section 693; and(ii) an instrument of transfer of the shares to which
the notice relates, executed on behalf of the
holder of the shares by a person appointed by the
offeror; and
(b) must pay or transfer to the company the consideration
for the shares to which the notice relates.
(4) Subsection (3)(a)(ii) does not require the offeror to send to
the company an instrument of transfer of any shares for
which a share warrant is for the time being outstanding.
697.
Company must register offeror as shareholder
On receiving an instrument of transfer under section 696(3)(a)(ii),
the company must register the offeror as the holder of the
shares.
698.
Company must hold consideration paid by offeror on trust
(1) On receiving any consideration under section 696(3)(b) in
respect of any shares, the company must hold the
consideration on trust for the person who, before the
offeror acquired the shares, was entitled to them.
(2) If the consideration consists of any money, the company
must deposit the money into a separate interest-bearing
bank account.
(3) The company must not pay out or deliver the consideration
to any person claiming to be entitled to it unless the person
produces to the company—
(a) the share certificate or other evidence of title to the
shares; or
(b) an indemnity to the company’s satisfaction.
699.
Provisions supplementary to section 698
(1) This section applies if—(a) the person entitled to the consideration held on trust
under section 698(1) cannot be found;
(b) the company has made reasonable enquiries at
reasonable intervals to find that person; and
(c) 12 years have elapsed since the consideration was
received, or the company is wound up.
(2) The company, or if the company is wound up, the
liquidator, must sell—
(a) any consideration other than cash; and
(b) any benefit other than cash that has accrued from the
consideration.
(3) The company, or if the company is wound up, the
liquidator, must pay into court a sum representing—
(a) the consideration so far as it is cash;
(b) the proceeds of any sale under subsection (2); and
(c) any interest, dividend or other benefit that has accrued
from the consideration.
(4) The trust terminates on the payment being made under
subsection (3).
(5) The expenses of the following may be paid out of the
consideration held on trust—
(a) the enquiries mentioned in subsection (1)(b);
(b) the sale mentioned in subsection (2);
(c) the proceedings relating to the payment into court
mentioned in subsection (3).

Subdivision 3     “Sell-out”
700.
Offeror may be required to buy out minority shareholders
(1) If, in the case of a takeover offer that does not relate to
shares of different classes—
(a) the offeror has, by virtue of acceptances of the offer,
acquired, or contracted unconditionally to acquire,
some but not all of the shares to which the offer
relates; and
(b) at any time before the end of the offer period, the
shares in the company controlled by the offeror
represent at least 90% in number of the shares in the
company,
the holder of any shares to which the offer relates who has
not accepted the offer before the end of that period may,
by a letter addressed to the offeror, require the offeror to
acquire those shares.
(2) If, in the case of a takeover offer that relates to shares of
different classes—
(a) the offeror has, by virtue of acceptances of the offer,
acquired, or contracted unconditionally to acquire,
some but not all of the shares of any class to which
the offer relates; and
(b) at any time before the end of the offer period, the
shares in the company controlled by the offeror
represent at least 90% in number of the shares of that
class,
the holder of any shares of that class to which the offer
relates who has not accepted the offer before the end of
that period may, by a letter addressed to the offeror, require
the offeror to acquire those shares.

(3) Rights given to the holder of any shares by this section to
require an offeror to acquire the shares are only exercisable
within 3 months after whichever is the later of the
following—
(a) the end of the offer period;
(b) the date of the notice given to the holder under section
701.
(4) If the takeover offer gives the holder of shares a choice of
consideration, that holder may indicate the holder’s choice
in the letter requiring the offeror to acquire the shares.
(5) In this section, a reference to shares controlled by an
offeror is a reference to—
(a) shares that are held by the offeror, by an associate of
the offeror or by a nominee on the offeror’s behalf;
(b) shares that the offeror has, by virtue of acceptances
of the takeover offer, acquired or contracted
unconditionally to acquire; or
(c) other shares that the offeror, an associate of the
offeror, or a nominee on the offeror’s behalf, has
acquired, or has contracted, unconditionally or subject
to conditions being satisfied, to acquire.
701.
Offeror must notify minority shareholders of right to be bought
out
(1) If the holder of any shares is entitled under section 700 to
require an offeror to acquire the shares, the offeror must
give notice to the holder of—
(a) the holder’s rights under that section; and
(b) the period within which those rights are exercisable.
(2) Subsection (1) does not apply if the offeror has given the
holder a notice under section 693 that the offeror desires to
acquire the shares.(3) An offeror who contravenes subsection (1) commits an
offence and is liable to a fine at level 5.
702.
Notice to minority shareholders
(1) A notice to a holder of shares under section 701—
(a) must be given in the specified form; and
(b) must be given to the holder within one month after the
first day on which the holder of the shares is entitled
under section 700 to require the offeror to acquire
those shares.
(2) If the notice is given before the end of the offer period of
the takeover offer, it must state that the offer is still open
for acceptance.
(3) The notice must be given to the holder of shares—
(a) by delivering it personally to that holder in Hong
Kong;
(b) by sending it by registered post to that holder to—
(i) an address of that holder in Hong Kong
registered in the books of the company; or
(ii) if there is no such address, an address in Hong
Kong supplied by that holder to the company for
the giving of notice to that holder; or
(c) in the manner directed by the Registrar on an
application made under subsection (4).
(4) An offeror may apply to the Registrar for directions
regarding the manner in which the notice is to be given to
a holder of shares if—
(a) there is no address of the holder in Hong Kong
registered in the books of the company; and
(b) the holder has not supplied to the company an address
in Hong Kong for the giving of notice to the holder.(5) If the takeover offer gives the holder of shares a choice of
consideration, the notice—
(a) must give particulars of the choices;
(b) must state that the holder may indicate the holder’s
choice in the letter requiring the offeror to acquire any
shares under section 700; and
(c) must state which consideration specified in the offer
will apply if the holder does not indicate a choice.
(6) If subsection (1), (2), (3) or (5) is contravened, the offeror
commits an offence and is liable to a fine at level 4.
(7) If the takeover offer provides that the holder of shares is to
receive shares in or debentures of the offeror, with an
option to receive some other considerations to be provided
by a third party instead, the offeror may indicate in the notice
that the terms of the takeover offer include the option.
(8) If the offeror does not indicate in the notice that the terms
of the takeover offer include the option, the offeror may
offer in the notice a corresponding option to receive some
other consideration to be provided by the offeror.
(9) For the purposes of subsection (7), consideration is to be
regarded as being provided by a third party if it is made
available to the offeror on terms that it is to be used by the
offeror as consideration for the takeover offer.
703.
Minority shareholders’ right to be bought out by offeror
(1) This section applies if the holder of any shares requires the
offeror to acquire the shares under section 700.
(2) Unless the Court makes an order under subsection (3), the
offeror is entitled and bound to acquire the shares on the
terms of the takeover offer or on other terms as agreed
between that holder and the offeror.(3) The Court may, on application by the holder or offeror,
order that the offeror is entitled and bound to acquire the
shares on the terms specified in the order.
(4) For the purposes of subsection (2)—
(a) if the takeover offer falls within section 702(5), the
terms of the takeover offer are to be regarded as
including the particulars and statements included in
the notice for the purposes of that section;
(b) if the takeover offer falls within section 702(7), the
terms of the takeover offer are to be regarded as not
including the option unless the offeror indicates
otherwise in the notice under section 701; and
(c) if, when requiring the offeror to acquire the shares, the
holder of the shares exercises the corresponding option
offered under section 702(8), the terms of the takeover
offer are to be regarded as including the corresponding
option.
704.
Shareholder to be regarded as not having exercised right to be
bought out in certain circumstances
(1) This section applies if—
(a) the holder of any shares exercises rights given by
section 700 to require an offeror to acquire the shares;
(b) at the time when those rights are exercised, there are
shares in the company—
(i) that the offeror has contracted to acquire subject
to conditions being satisfied; and
(ii) in relation to which the contract has not become
unconditional; and
(c) the requirement imposed by section 700(1)(b) or (2)(b)
(as the case may be) would not be satisfied if those
shares were not taken into account.(2) For the purposes of section 703, the holder of shares is to
be regarded as not having exercised the rights to require the
offeror to acquire the shares unless, at any time before the
end of the period during which those rights are
exercisable—
(a) in the case of a takeover offer that does not relate to
shares of different classes, the shares that the offeror
has, by virtue of acceptances of the offer, acquired or
contracted unconditionally to acquire, with or without
any other shares in the company that the offeror has
acquired, or has contracted unconditionally to acquire,
represent at least 90% in number of the shares in the
company; or
(b) in the case of a takeover offer that relates to shares of
different classes, the shares of any class that the offeror
has, by virtue of acceptances of the offer, acquired or
contracted unconditionally to acquire, with or without
any other shares of that class that the offeror has
acquired, or has contracted unconditionally to acquire,
represent at least 90% in number of the shares of that
class.
 

Division 5     Compulsory Acquisition after General Offer for Share Buy-back    

Subdivision 1     Preliminary
705.
Interpretation
(1) In this Division—

nominee (代名人), in relation to a company that is a member of
a group of companies, includes a nominee on behalf of
another company that is a member of the group;
non-tendering member (不售股成員), in relation to a general
offer, means a member who gives notice under section
711(1) that the member will not tender any shares to be
bought back by the repurchasing company under the offer.
(2) In this Division, a reference to shares that are held by a
non-tendering member includes—
(a) shares that are held by an associate of the non-
tendering member or by a nominee on the non-
tendering member’s behalf; and
(b) shares that the non-tendering member, an associate of
the non-tendering member, or a nominee on the non-
tendering
member’s
behalf,
has
contracted,
unconditionally or subject to conditions being
satisfied, to acquire.
706.
Application of Division to convertible securities and debentures
(1) This Division applies in relation to debentures of a
repurchasing company that are convertible into shares in
the company, or to securities of a repurchasing company
that are convertible into, or entitle the holder to subscribe
for, shares in the company, as if those debentures or
securities were shares of a separate class of the company. A
reference to a holder of shares, and to shares being
allotted, is to be read accordingly.
(2) In this Division, a reference to 90% in number of the
shares of any class is—
(a) in the case of securities mentioned in subsection (1), a
reference to 90% of the number of those securities;
and(b) in the case of debentures mentioned in subsection (1),
a reference to 90% of the total amount payable on
those debentures.
707.
General offer
(1) For the purposes of this Division, a listed company’s offer
to buy back shares in the company is a general offer if—
(a) it is an offer to buy back all the shares, or all the
shares of any class, in the company, except—
(i) those that, at the date of the offer, are held by a
member residing in a place where such an offer is
contrary to the law of the place; and
(ii) those that, at the date of the offer, are held by the
repurchasing company; and
(b) the terms of the offer are the same—
(i) where the offer does not relate to shares of
different classes, in relation to all the shares to
which the offer relates; or
(ii) where the offer relates to shares of different
classes, in relation to all the shares of each class
to which the offer relates.
(2) In subsection (1)—
shares (股份) means shares that have been allotted on the date
of the offer.
(3) In subsection (1)(a)(ii), a reference to shares that are held
by the repurchasing company—
(a) is a reference to shares that the repurchasing company
has
contracted,
unconditionally
or
subject
to
conditions being satisfied, to acquire; but
(b) excludes shares that are the subject of a contract—(i) entered into by the repurchasing company with a
holder of shares in that company in order to
secure that the holder will accept the offer when it
is made; and
(ii) entered into for no consideration and by deed, for
consideration
of
negligible
value,
or
for
consideration consisting of a promise by the
repurchasing company to make the offer.
(4) For the purposes of subsection (1)(b), even though, in
relation to all the shares, or all the shares of a class of
shares, to which an offer relates, there is a difference in the
value of consideration offered for the shares allotted earlier
as against the value of consideration offered for those
allotted later, the terms of the offer are to be regarded as
the same in relation to all the shares concerned if—
(a) shares carry an entitlement to a particular dividend
that other shares of the same class, by reason of being
allotted at a different time, do not carry;
(b) the difference in value of consideration merely reflects
that difference in entitlement to dividend; and
(c) but for the difference in the value of consideration, the
terms of the offer would be the same in relation to all
the shares concerned.
(5) For the purposes of subsection (1)(b), even though, in relation
to all the shares, or all the shares of a class of shares, to which
an offer relates, there is a difference in the form of
consideration offered, the terms of the offer are to be regarded
as the same in relation to all the shares concerned if—
(a) the law of a place outside Hong Kong precludes an
offer of consideration in the form specified in the
terms of the offer, or precludes it except after
compliance by the repurchasing company with
conditions with which the repurchasing company isunable to comply or that the repurchasing company
regards as unduly onerous;
(b) consideration in another form is offered to a person to
whom an offer of consideration in the specified form
is so precluded;
(c) the person is able to receive consideration in that other
form that is of substantially equivalent value; and
(d) but for the difference in the form of consideration, the
terms of the offer would be the same in relation to all
the shares concerned.
(6) Despite subsection (1), a general offer may include, among
the shares to which it relates, shares that will be allotted
after the date of the offer but before a date specified in the
offer.
708.
Non-communication etc. does not prevent offer from being general
offer
(1) Even though an offer to buy back shares is not communicated
to a holder of shares, that does not prevent the offer from
being a general offer for the purposes of this Division if—
(a) no Hong Kong address for the holder is registered in
the repurchasing company’s register of members;
(b) the offer was not communicated to the holder in order
not to contravene the law of a place outside Hong
Kong; and
(c) either—
(i) the offer is published in the Gazette; or
(ii) the offer can be inspected, or a copy of it
obtained, at a place in Hong Kong or on a
website, and a notice is published in the Gazette
specifying the address of that place or website.(2) It is not to be inferred from subsection (1) that an offer
that is not communicated to a holder of shares cannot be a
general offer for the purposes of this Division unless the
conditions specified in paragraphs (a), (b) and (c) of that
subsection are satisfied.
(3) Even though it is impossible or more difficult for a person,
by reason of the law of a place outside Hong Kong, to
accept an offer to buy back shares, that does not prevent
the offer from being a general offer for the purposes of this
Division.
(4) It is not to be inferred from subsection (3) that an offer
that is impossible, or more difficult, for certain persons to
accept cannot be a general offer for the purposes of this
Division unless the reason for the impossibility or difficulty
is the one mentioned in that subsection.
709.
Shares to which general offer relates
(1) For the purposes of this Division, if, after a general
offer is made but before the end of the offer period,
the repurchasing company buys back, or contracts
unconditionally to buy back, any of the shares to which
the offer relates but does not do so by virtue of acceptances
of the offer, those shares are not to be regarded as shares
to which the offer relates. This subsection has effect subject
to subsection (2).
(2) For the purposes of this Division, those shares are to be
regarded as shares to which the general offer relates, and
the repurchasing company is to be regarded as having
bought them back or contracted to buy them back by
virtue of acceptances of that offer, if—(a) the value of the consideration for which the shares are
bought back, or contracted to be bought back, at the
time of the buy-back or contract, does not exceed the
value of the consideration specified in the terms of
that offer; or
(b) those terms are subsequently revised so that when the
revision is announced, the value of the consideration
for which the shares are bought back, or contracted
to be bought back, at the time of the buy-back
or contract, no longer exceeds the value of the
consideration specified in those terms.
(3) For the purposes of this Division, shares that an associate
of the repurchasing company, or a nominee on the
repurchasing company’s behalf, holds, or has contracted,
unconditionally or subject to conditions being satisfied, to
buy back, whether at the date of the general offer or
subsequently, are not to be regarded as shares to which that
offer relates, even if that offer extends to those shares. This
subsection has effect subject to subsection (4).
(4) For the purposes of this Division, where, after a general
offer is made but before the end of the offer period, an
associate of the repurchasing company, or a nominee on
the repurchasing company’s behalf, buys back, or contracts
unconditionally to buy back, any of the shares to which
the offer relates, the shares are to be regarded as shares to
which the offer relates if—
(a) the value of the consideration for which the shares are
bought back, or contracted to be bought back, at the time
of the buy-back or contract, does not exceed the value of
the consideration specified in the terms of the offer; or(b) those terms are subsequently revised so that when the
revision is announced, the value of the consideration
for which the shares are bought back, or contracted
to be bought back, at the time of the buy-back
or contract, no longer exceeds the value of the
consideration specified in those terms.
(5) For the purposes of this Division, the shares held by a non-
tendering member are not to be regarded as shares to
which the general offer relates, even if that offer extends to
those shares.
710.
Revised offer not to be regarded as fresh offer
For the purposes of this Division, a revision of the terms of an
offer to buy back shares is not to be regarded as the making of
a fresh offer if—
(a) the terms of the offer make provision for—
(i) their revision; and
(ii) acceptances on the previous terms to be treated as
acceptances on the revised terms; and
(b) the revision is made in accordance with that provision.
711.
Member may give notice that member will not tender shares for
buy-back under general offer
(1) A member of a repurchasing company may, on or before
the date on which notice of an authorizing meeting of the
company is given, give notice to every other member of the
company that the member will not tender any shares held
by the member to be bought back by the company under
the general offer.
(2) A non-tendering member is not entitled to tender any
shares held by the member to be bought back by the
repurchasing company under the general offer even if that
offer extends to those shares.(3) In this section—
authorizing meeting (授權會議), in relation to a repurchasing
company, means a meeting of the company called for the
purpose of authorizing a general offer that the company
intends to make.
 

Subdivision 2     “Squeeze-out”
712.
Repurchasing company may give notice to buy out minority
shareholders
(1) This section applies if a member or members of the
repurchasing company has or have given notice under
section 711 that the member or members will not tender
any shares to be bought back by that company under a
general offer.
(2) If, in the case of a general offer that does not relate to
shares of different classes, the repurchasing company has,
by virtue of acceptances of the offer, bought back, or
contracted unconditionally to buy back, at least 90% in
number of the shares to which the offer relates, the
repurchasing company may give notice to the holder of any
other shares to which the offer relates that it desires to buy
back those shares.
(3) If, in the case of a general offer that relates to shares of
different classes, the repurchasing company has, by virtue
of acceptances of the offer, bought back, or contracted
unconditionally to buy back, at least 90% in number of the
shares of any class to which the offer relates, the
repurchasing company may give notice to the holder of any
other shares of that class to which the offer relates that it
desires to buy back those shares.

(4) If, in the case of a general offer that does not relate to
shares of different classes, the repurchasing company has,
by virtue of acceptances of the offer, bought back, or
contracted unconditionally to buy back, less than 90% in
number of the shares to which the offer relates, the
repurchasing company may apply to the Court for an order
authorizing it to give notice to the holder of any other
shares to which the offer relates that it desires to buy back
those shares.
(5) If, in the case of a general offer that relates to shares of
different classes, the repurchasing company has, by virtue
of acceptances of the offer, bought back, or contracted
unconditionally to buy back, less than 90% in number of
the shares of any class to which the offer relates, the
repurchasing company may apply to the Court for an order
authorizing it to give notice to the holder of any other
shares of that class to which the offer relates that it desires
to buy back those shares.
(6) The Court may, on application under subsection (4) or (5),
make the order if it is satisfied that—
(a) after reasonable enquiry, the repurchasing company
has been unable to trace one or more of the persons
holding shares to which the general offer relates;
(b) had the person, or all those persons, accepted the
general offer, the repurchasing company would have,
by virtue of acceptances of that offer, bought back, or
contracted unconditionally to buy back, at least 90%
in number of the shares, or the shares of any class, to
which that offer relates; and
(c) the consideration offered is fair and reasonable.(7) The Court must not make the order unless it is satisfied
that it is just and equitable to do so having regard to all the
circumstances and, in particular, to the number of holders
of shares who have been traced but who have not accepted
the general offer.
(8) If the Court makes an order authorizing the repurchasing
company to give notice to the holder of any shares, the
repurchasing company may give notice to that holder.
713.
Notice to minority shareholders
(1) A notice to a holder of shares under section 712—
(a) must be given in the specified form; and
(b) must be given to the holder before whichever is the
earlier of the following—
(i) the end of the period of 3 months beginning on
the day after the end of the offer period of the
general offer;
(ii) the end of the period of 6 months beginning on
the date of the general offer.
(2) The notice must be given to the holder of shares—
(a) by delivering it personally to that holder in Hong
Kong;
(b) by sending it by registered post to that holder to—
(i) an address of that holder in Hong Kong
registered in the books of the company; or
(ii) if there is no such address, an address in Hong
Kong supplied by that holder to the company for
the giving of notice to that holder; or
(c) in the manner directed by the Registrar on an
application made under subsection (3).(3) The repurchasing company may apply to the Registrar for
directions regarding the manner in which the notice is to be
given to a holder of shares if—
(a) there is no address of the holder in Hong Kong
registered in the books of the company; and
(b) the holder has not supplied to the company an address
in Hong Kong for the giving of notice to the holder.
(4) If the general offer gives the holder of shares a choice of
consideration, the notice—
(a) must give particulars of the choices;
(b) must state that the holder may, within 2 months after
the date of the notice, indicate the holder’s choice by a
letter sent to the repurchasing company at an address
specified in the notice; and
(c) must state which consideration specified in the offer
will apply if the holder does not indicate a choice.
714.
Repurchasing company’s right to buy out minority shareholders
(1) This section applies if a notice is given under section 712 to
the holder of any shares.
(2) Unless the Court makes an order under subsection (3), the
repurchasing company is entitled and bound to buy back
the shares on the terms of the general offer.
(3) The Court may, on application by the holder made within
2 months after the date on which the notice was given,
order that—
(a) the repurchasing company is not entitled and bound
to buy back the shares; or
(b) the repurchasing company is entitled and bound to
buy back the shares on the terms specified in the
order.(4) For the purposes of subsection (2), if the general offer falls
within section 713(4), the terms of the general offer are to
be regarded as including the particulars and statements
included in the notice for the purposes of that section.
715.
Obligations of repurchasing company with right to buy out
minority shareholders
(1) If, by virtue of section 714(2), a repurchasing company is
entitled and bound to buy back any shares in the company,
the company must comply with section 716 within 2
months after the date of the notice.
(2) If an application for the purposes of section 714(3) is
pending at the end of those 2 months, the repurchasing
company must comply with section 716 as soon as
practicable after the application has been disposed of.
716.
Repurchasing company must pay for shares to which notice relates
(1) The repurchasing company must pay the consideration for
any shares to which the notice under section 712 relates to
the holder of the shares if that holder produces to the
repurchasing company—
(a) the share certificate or other evidence of title to the
shares; or
(b) an
indemnity
to
the
repurchasing
company’s
satisfaction.
(2) The repurchasing company must cancel any other shares to
which the notice under section 712 relates and deposit the
consideration for those shares into a separate interest-
bearing bank account.
(3) The repurchasing company must hold any consideration
deposited into a bank account under subsection (2) on
trust for the person who, before the company bought back
the shares, was entitled to them.(4) The repurchasing company must not pay out or deliver the
consideration to any person claiming to be entitled to it
unless the person produces to the repurchasing company—
(a) the share certificate or other evidence of title to the
shares; or
(b) an
indemnity
to
the
repurchasing
company’s
satisfaction.
717.
Provisions supplementary to section 716
(1) This section applies if—
(a) the person entitled to the consideration held on trust
under section 716(3) cannot be found;
(b) the repurchasing company has made reasonable
enquiries at reasonable intervals to find that person;
and
(c) 12 years have elapsed since the consideration was
received, or the repurchasing company is wound up.
(2) The repurchasing company, or if the repurchasing company
is wound up, the liquidator or provisional liquidator, must
sell—
(a) any consideration other than cash; and
(b) any benefit other than cash that has accrued from the
consideration.
(3) The repurchasing company, or if the repurchasing company
is wound up, the liquidator or provisional liquidator, must
pay into court a sum representing—
(a) the consideration so far as it is cash;
(b) the proceeds of any sale under subsection (2); and
(c) any interest, dividend or other benefit that has accrued
from the consideration.(4) The trust terminates on the payment being made under
subsection (3).
(5) The expenses of the following may be paid out of the
consideration held on trust—
(a) the enquiries mentioned in subsection (1)(b);
(b) the sale mentioned in subsection (2);
(c) the proceedings relating to the payment into court
mentioned in subsection (3).
 

Subdivision 3     “Sell-out”
718.
Repurchasing company may be required to buy out minority
(1) This section applies if a member or members of the
repurchasing company has or have given notice under
section 711 that the member or members will not tender
any shares to be bought back by that company under a
general offer.
(2) If, in the case of a general offer that does not relate to
shares of different classes—
(a) the repurchasing company has, by virtue of
acceptances of the offer, bought back, or contracted
unconditionally to buy back, some but not all of the
shares to which the offer relates; and
(b) at any time before the end of the offer period, the
shares in the repurchasing company controlled by that
company, with or without the shares in the
repurchasing company held by the non-tendering
member, represent at least 90% in number of the
shares in the repurchasing company,