Under the old Companies Ordinance (Cap. 32) ("the old Ordinance"), eight different types of companies could be formed. Under the new CO, companies that can be formed are streamlined into five types with abolition of some types of companies which are obsolete and re-grouping others into new categories. The types of companies that may be formed under the old Ordinance and the new CO are set out in the table below –
The types of companies that may be formed under the new CO are provided in section 66. The definitions of the different types of companies are provided in sections 7 to 12.
No. Under section 17, the new CO applies to an existing company formed and registered under any of the former Companies Ordinances prior to the commencement of the new CO. The definitions of the types of companies in sections 7 to 12 of the new CO are applicable to determine, for the purposes of the new CO, the type of company an existing company belongs. In particular, for the purposes of the new CO –
Existing companies that are companies limited by guarantee (whether private or non-private i.e. items (c) and (d) of the table in Q1 above) now form a separate category of companies under section 9 of the new CO, i.e. companies limited by guarantee ("the Guarantee Companies"). These existing companies are required to comply with the requirements in the new CO applicable to Guarantee Companies.
Requirement for notification of the company's new accounting reference date under section 371(2);
Requirement for holding of annual general meeting ("AGM") within 9 months after the end of the company's accounting reference period under section 610 (instead of in each calendar year under section 111 of the old Ordinance);
Guarantee Companies may also be qualified for the reporting exemption under Division 2 of Part 9 of the new CO; and
Members of Guarantee Companies are entitled to appoint proxies under section 596 upon removal of the restriction in section 114C(1A) of the old Ordinance relating to companies not having a share capital.
Existing non-private companies limited by shares (i.e. item (b) of the table in Q1 above) are “public companies” under section 12 of the new CO and are defined as companies other than private companies or Guarantee Companies. These existing companies are required to comply with the requirements in the new CO applicable to public companies.
Example:
- There are references to non-private companies in subsections (1) and (3) of section 109 of the old Ordinance which provide that "Except where the company is a private company ……the annual return shall….." be completed within 42 days after the AGM and a copy of the return including certified copies of the balance sheet and reports shall forthwith be forwarded to the Registrar of Companies ("the Registrar"). Under the new CO such non-private companies are required to comply with the requirement applicable to a public company for delivering the annual return to the Registrar for registration under sections 662(3) and (4)(a).
Such a company formed before 13 February 2004 (i.e. the date when such type of company can no longer be formed under section 4(4) of the old Ordinance is regarded as a company limited by guarantee under section 9(2) of the new CO.
Such a company is a company limited by guarantee under section 9 of the new CO. For more information about the changes in the requirements in relation to this type of company, please refer to Q5 below.
Yes. Pursuant to sections 453 and 456 of the new CO, on the commencement of the new CO, such a company is required to have at least 2 directors and a body corporate must not be appointed as a director. Such a company is required to file annual returns together with certified true copies of the relevant financial statements, directors’ reports and auditor’s report in respect of every financial year of the company pursuant to sections 662(3), (4)(b), 664 and Part 3 of Schedule 6 to the new CO. For details, please refer to FAQs on Annual Returns of Local Companies.
Companies limited by guarantee are required to file annual returns together with certified true copies of the relevant financial statements, directors’ reports and auditor’s report in respect of every financial year of the company pursuant to sections 662(3), (4)(b), 664 and Part 3 of Schedule 6 to the new CO. For details, please refer to FAQs on Annual Returns of Local Companies.
An escalating scale of annual registration fee is introduced by the Companies (Fees) Regulation (Cap. 622K) for the delivery of an annual return of a company limited by guarantee to encourage compliance of statutory filing requirement. In the case of late delivery, substantially higher registration fees are payable. The escalating fee scale is the same as the one applicable to a private company limited by shares and is as follows:
The requirement for a company limited by guarantee to notify the Registrar of an increase in the number of members, which is contained in section 114 of the new CO, is the same as the requirement under section 10(3) of the old Ordinance. The requirement is that where a company limited by guarantee has increased the number of its members beyond the registered number, the company must, within 15 days after the increase is resolved by the company or takes place (whichever is the earlier), deliver to the Registrar for registration a notice of the increase. The only change is that a specified form is introduced under the new CO for notification of the increase.
