The New Companies Ordinance in Hong Kong

16.07.2012 The corporate law of Hong Kong doesn’t stand still which is evidenced by introducing of the Companies Bill to the Parliament. The corporate law reform began in 2006 and ended, according to the government, quite successfully. This event has been named “a new chapter in Hong Kong’s corporate law”. It should be noticed that the goal of the Bill adoption is foremost increasing of corporate management level and surely strengthening of Hong Kong’s status of the international trade and financial center.

The mentioned Bill was developed in close co-operation with business elite and leading economists through consultations and public hearings that is undoubtedly an achievement of Hong Kong. It is presumed that adoption of the Bill will attract investments to region. The Bill introduces provisions relating to higher liability of the director which, according to the legislator, will enhance transparency of business. Moreover, the Bill clarifies director’s duties and his level of professionalism while managing the company and making decisions. The legislator also took into account the financial matters: rights of auditors were extended and information which is mandatory to be disclosed to the public increased.

The Hong Kong’s government notifies that the Bill adoption will be profitable not only for the major business, but for small and medium-sized enterprises as well, because the requirements of financial statement submitting were slightly attenuated for them.  

Expert’s opinion

“Once again we can ensure the excellent growth of Hong Kong!
Taking into account the possibility of carrying out business with the minimal tax rates, it should be noticed that Hong Kong has all chances to strengthen its business position on the global stage.
More and more businessmen are looking closely to Hong Kong and expand the boundaries of their business in the Asian region. And that is logical, as the government of the country endeavors to attract investors.
Furthermore, it is not afraid of providing relief including the corporate tax.”

On the basis: http://www.cr.gov.hk/en/publications/press20120712.htm

Lomakina Irina ( the director of Moscow office of Honest & Bright )