35Transfer of business to Crown

35 Transfer of business to Crown

(1)  If a part of the business of a prescribed Government Business Enterprise is sold under section 7(1) or a company is formed under section 14 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 to the Crown the whole or any part of the remaining business of the prescribed Government Business Enterprise or relevant prescribed Government Business Enterprise (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 4 transfer notice may be made in anticipation of the sale under section 7(1) of a part of the business of a prescribed Government Business Enterprise or the formation under section 14 of a company.

(3)  Consideration for the transfer under a Part 4 transfer notice of any transferred business may be by assumption of liabilities or otherwise.

(4)  On the transfer day –

(a) any business of a relevant prescribed Government Business Enterprise, other than a liability, specified in and transferred by the Part 4 transfer notice vests in the Crown; and

(b) any business of a relevant prescribed Government Business Enterprise that is a liability and is specified in and transferred by the Part 4 transfer notice becomes the liability of the Crown.

(5)  Except as otherwise provided in a Part 4 transfer notice, on and after the transfer day the following provisions apply:

(a) a reference in an existing document to the prescribed Government Business Enterprise or relevant prescribed Government Business Enterprise, or the Board of that 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 Crown;

(b) legal proceedings that could have been instituted by or against the prescribed Government Business Enterprise or 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 Crown;