946
Title.
Preamble.
The advance of money on contract to receive a share of profits not to constitute the lender a partner,
The remuneration of agents, &c., by share of profits not to make them partners.
Certain annuitants not to be deemed partners.
Receipt of profits in consideration of sale of goodwill not to make the seller a partner.
In case of bankruptcy, &c., lender not to rank with other creditors.
ORDINANCE No. 7 of 1867.
Partnership Amendment.
No. of 1867.
An Ordinance to amend the Law of Partnership.
[17th June, 1867.]
WHEREAS it is expedient to extend to this Colony the provisions of an Act of the Imperial Parliament passed in the 28th and 29th years of the reign of Her Majesty Queen Victoria intituled "An Act to amend the Law of Partnership:" Be it therefore enacted and ordained by the Governor of Hongkong, with the advice of the Legislative Council thereof, as follows:-
1. The advance of money by way of loan to a person engaged or about to engage in any trade or undertaking upon a contract in writing with such person that the lender shall receive a rate of interest varying with the profits, or shall receive a share of the profits arising from carrying on such trade or undertaking, shall not, of itself, constitute the lender a partner with the person or the persons carrying on such trade or undertaking or render him responsible as such.
2. No contract for the remuneration of a servant or agent of any person engaged in any trade or undertaking by a share of the profits of such trade or undertaking shall, of itself, render such servant or agent responsible as a partner therein, nor give him the rights of a partner.
3. No person being the widow or child of the deceased partner of a trader, and receiving by way of annuity a portion of the profits made by such trader in his business, shall, by reason only of such receipt, be deemed to be a partner of or to be subject to any liabilities incurred by such trader.
4. No person receiving by way of annuity or otherwise a portion of the profits of any business, in consideration of the sale by him of the goodwill of such business, shall, by reason only of such receipt, be deemed to be a partner of or be subject to the liabilities of the person carrying on such business.
5. In the event of any such trader as aforesaid being adjudged a bankrupt, or entering into an arrangement to pay his creditors less than the full amount of their respective claims or dying in insolvent circumstances, the lender of any such loan as aforesaid shall not be entitled to recover any portion of his principal or of the profits or interest payable in respect of such loan, nor shall any such vendor of a goodwill as aforesaid...