32
1.
PART II
REPORTS TO BE SET OUT
It unissued shares or debentures of the company are to be applied
in the purchase of a business, a report made by accountants (who shall be named in the statement) upon-
(a) the profits or losses of the business in respect of each of the five financial years immediately preceding the delivery of the state- ment to the Registrar; and
(6) the assets and liabilities of the business at the last date to which
the accounts of the business were made up.
2. (1) If unissued shares or debentures of the company are to be applied directly or indirectly in any manner resulting in the acquisition of shares in a body corporate which by reason of the acquisition or anything to be done in consequence thereof or in connexion therewith will become a subsidiary of the company, a report made by accountants (who shall be named in the statement) with respect to the profits and losses and assets and liabilities of the other body corporate in accordance with sub- paragraph (2) or (3), as the case requires, indicating how the profits or losses of the other body corporate dealt with by the report would, in respect of the shares to be acquired, have concerned members of the company, and what allowance would have fallen to be made, in relation lp assets and liabilities so dealt with, for holders of other shares, If the company had at all material times bold the shares to be acquired,
(2) If the other body corporate has no subsidiaries, the report referred to in sub-paragraph (1) shall-
(a) so far as regards profits and losses, deal with the profits or losses of the body corporate in respect of each of the five financial years immediately preceding the delivery of the statement to the Registrar, and
(8) so far as regards assets and liabilities, deal with the assets and liabilities of the body corporate at the last date to which the accounts of the body corporate were made up.
(3) If the other body corporate bas subsidiaries, the report referred to in sub-paragraph (1) shall–
(0) so far as regards profils and losses, deal separately with the other body corporate's profits ar losses as provided by sub-paragraph (2), and in addition dest either-
() as a whole with the combined profits or losses of its subsidiaries, so far as they concern members of the other body corporate; or
(a) individually with the profits or losses of cach subsidiary, so far as they concern members of the other body corporate;
or, instead of dealing separately with the other body corporate's profits or losses, deal as a whole with the profits or losses of
33
the other body corporate and, so far as they concern members of the other body corporate, with the combined profits or losses of its subsidiaries; and
(b) so far as regards assets and liabilities, deal separately with the other body corporate's assets and liabilities as provided by sub- paragraph (2) and, in addition, deal either-
() as a whole with the combined assets and liabilities of its mubsidiaries, with or without the other body corporate's assets and liabilities; or
(H) individually with the assets and abilities of each subsidiary: and shall indicate as respects the assets and liabilities of the subsidiaries the allowance to be made for persons other than members of the company.
PART 111
PROVISIONS APPLYING TO PARTS 1 AND I OF THIS SCHEDULE
3. in this Schedule the expression "vendor" includes a vendor as defined in Part II of the Third Schedule and the cxpression "financial year has the meaning assigned to it in that Part of that Schedule,
H
4.
If in the case of a business which has been carried on, or of a body corporate which has been carrying on business, for less than five years, the accounts of the basiness or body corporate have only been made up in respect of four years, three years, two years or one year, Part II of this Schedule shall have effect as if references to four years, three years, two years or one year, as the case may be, were substituted for references to five years.
5. Any report required by Part 1 of this Schedule shall either indicate by way of note any adjustment as respects the figures of any profits or losses or assets and liabilities deall with by report which appear to the persons making the roport necessary or shall make those adjustments and indicate that adjustments have been made.
6. Any report by accountants required by Part II shall be made by accountants authorized under this Ordinance for appointment as auditora of a company and shall not be made by any accountant who is an officer or servant, or a partner of or in the employment of an officer or servant, of the company, or of the company's subsidiary or holding company or of a subsidiary of the company's holding company; and for the purposes of this paragraph the expression "officer" shall include a proposed director but not an auditor.
7. For the purposes of Part 1, the description of a person, that is to say, his profession, trade or other occupation shall be stated with particularity and precision; and the description "Company Director" shall be inadequate unless supplementary information is provided stating the nature of the relevant company's business.
*. For the purposes of Part I, "address" in the case of a natural person means the place of his usual residence,