PN17 Business Trust


Under paragraph 5.3 of Practice Note 17, a PN17 Business Trust must, among others, record either a net profit or positive operating cash  flow in 2 consecutive quarterly results immediately after the completion of the implementation of the regularisation plan. If a PN17 Business Trust records positive cash flow but negative profits, would the PN17 Business Trust be considered as complying with this obligation to regularise its condition?

Yes. So long as any one of the requirement is fulfilled (whether it records a net profit or positive operating cash flow), the PN17 Business Trust is deemed to have complied with the requirement.