Part 3 Transfer of assets, rights and liabilities

5   Direction to transfer business undertaking

(1)  The Minister may, by order in writing, direct that the business undertaking of Hunter Water Corporation Limited be transferred to the Corporation, in exchange for the issue of shares or on any other basis.

(2)  The transfer of assets, rights and liabilities under this section is to take place at a value or values specified in the order.

(3)  On the commencement of the order, the following provisions have effect (subject to the order):

(a)  the assets of Hunter Water Corporation Limited comprised in its business undertaking vest in the Corporation by virtue of this section and without the need for any conveyance, transfer, assignment or assurance,

(b)  the rights and liabilities of Hunter Water Corporation Limited comprised in its business undertaking become by virtue of this section the rights and liabilities of the Corporation,

(c)  all proceedings relating to the business undertaking commenced before the transfer by or against Hunter Water Corporation Limited or a predecessor of Hunter Water Corporation Limited and pending immediately before the transfer are taken to be proceedings pending by or against the Corporation,

(d)  any act, matter or thing done or omitted to be done in relation to the business undertaking before the transfer by, to or in respect of Hunter Water Corporation Limited is (to the extent that that act, matter or thing has any force or effect) taken to have been done or omitted by, to or in respect of the Corporation,

(e)  a reference in any Act, in any instrument made under any Act or in any document of any kind to Hunter Water Corporation Limited or a predecessor of Hunter Water Corporation Limited is, subject to regulations under section 70 (2), to be read as, or as including, a reference to the Corporation.

(4)  The operation of this section is not to be regarded:

(a)  as a breach of contract or confidence or otherwise as a civil wrong, or

(b)  as a breach of any contractual provision prohibiting, restricting or regulating the assignment or transfer of assets, rights or liabilities, or

(c)  as giving rise to any remedy by a party to an instrument, or as causing or permitting the termination of any instrument, because of a change in the beneficial or legal ownership of any asset, right or liability.

(5)  The operation of this section is not to be regarded as an event of default under any contract or other instrument.

(6)  No attornment to the Corporation by a lessee from Hunter Water Corporation Limited is required.

(7)  Assets, rights or liabilities may not be transferred under this section to the Corporation unless the Corporation is a State owned corporation.

6   Excluded undertakings

(1)  The Minister may direct, by order in writing, that such assets, rights or liabilities of Hunter Water Corporation Limited as are specified or referred to in the order be excluded from Hunter Water Corporation Limited’s business undertaking.

(2)  On the date specified in the order, the excluded undertaking concerned is transferred to the Ministerial Corporation or such other person on behalf of the Crown as is so specified.

(3)  Section 5 applies to that transfer in the same way as it applies to the transfer of Hunter Water Corporation Limited’s business undertaking to the Corporation.

(4)  Different parts of any excluded undertaking may be so transferred to different persons.

(5)  The Ministerial Corporation or other person is authorised to dispose of any excluded undertaking so transferred or to retain it and conduct any business to which it relates.

7   Transfer of other assets, rights or liabilities

(1)  The Minister may direct, by order in writing, and on such terms and conditions as are set out or referred to in the order, that such other assets, rights or liabilities used by or attaching to Hunter Water Corporation Limited for the supply of water, the provision of sewerage and drainage services, the disposal of waste water and associated purposes, and belonging to the State or an authority of the State, as are specified in the order be transferred to the Corporation or to a subsidiary of the Corporation.

(2)  Section 5 applies to that transfer in the same way as it applies to the transfer of Hunter Water Corporation Limited’s business undertaking to the Corporation.