17Transfer of business on formation of company

17 Transfer of business on formation of company

(1)  If a company is formed in respect of the business of, or a function performed by, a prescribed Government Business Enterprise, the Treasurer, by one or more notices published in the Gazette, may –

(a) transfer the whole, or any part, of the business of the prescribed Government Business Enterprise to the company (whether or not that transfer is for a consideration); and

(b) specify conditions relating to that transfer; and

(c) provide for any matter that is incidental to that transfer.

(2)  A Part 3 transfer notice may be made in anticipation of the formation of a company.

(3)  Consideration for the transfer under a Part 3 transfer notice of any transferred business may be by assumption of liabilities or otherwise.

(4)  On the transfer day, a Part 3 transfer notice takes effect and –

(a) any business of a relevant prescribed Government Business Enterprise, other than a liability, specified in and transferred by a Part 3 transfer notice vests in the company; and

(b) any business of a relevant prescribed Government Business Enterprise that is a liability and is specified in and transferred by a Part 3 transfer notice becomes the liability of the company.

(5)  Except as otherwise provided in a Part 3 transfer notice, on and after the transfer day the following provisions apply:

(a) a reference in an existing document to the relevant prescribed Government Business Enterprise, or the Board of the relevant prescribed Government Business Enterprise, in relation to the business that became the transferred business is taken, where appropriate, to be or to include a reference to the company or the Board of the company;

(b) legal proceedings that could have been instituted by or against the relevant prescribed Government Business Enterprise immediately before the transfer day and that relate to the business that became the transferred business may be instituted by or against the company;

(c) legal proceedings instituted by or against the relevant prescribed Government Business Enterprise that relate to the business that became the transferred business and are pending immediately before the transfer day may be continued by or against the company;