The rewrite of the Companies Ordinance will bring significant benefits to Hong Kong in strengthening its status as a global business and financial centre, Secretary for Financial Services & the Treasury Frederick Ma says.

The exercise will be conducted in two phases, and a public consultation on the ordinance's accounting and auditing provisions will be launched in the coming months.

In his latest FSTB & You article on the bureau's website, Mr Ma said the rewrite exercise involves complex issues and is probably the most extensive law-reform exercise ever conducted in Hong Kong.

However, the exercise will make the company law more user-friendly and clearer, while facilitating business.

Save costs

About 600,000 companies that are registered and incorporated in Hong Kong, as well as relevant stakeholders like the directors, can save business costs as a result of certain streamlined procedures or requirements, Mr Ma said.

"Over the past decade, most common law jurisdictions, such as the UK, Australia, Singapore and New Zealand, have completed or embarked on major company law reform. The new ordinance, which meets the needs of users and matches the best international practices, will help enhance Hong Kong's competitiveness," he added.

The rewrite exercise was launched in mid-2006. As it requires research, public consultations and drafting, the exercise will be conducted in two phases. The first phase will deal with provisions concerning the formation and operation of companies, while the second phase will cover the remaining provisions concerning the winding-up of companies.

Views sought

"We will leverage on the recent company law reforms conducted in other common law jurisdictions such as the UK, Australia and Singapore, and devise proposals that suit Hong Kong's situation," Mr Ma said.

Hong Kong would also look at company-law developments on the Mainland.  

"In the course of researching and drafting the new Companies Bill, we will seek views from the business community, relevant professionals, academics and the general public," he concluded.