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Second batch of subsidiary legislation under new Companies Ordinance gazetted

The second batch of two pieces of subsidiary legislation for the implementation of the new Companies Ordinance was gazetted today (March 22).

The two pieces of subsidiary legislation are the Companies (Revision of Financial Statements and Reports) Regulation and the Companies (Disclosure of Information about Benefits of Directors) Regulation.

A spokesman for the Financial Services and the Treasury Bureau said, "For the implementation of the new Companies Ordinance, we are making subsidiary legislation in batches to provide for the relevant administrative, technical and procedural matters. Following the introduction of the first batch comprising five pieces of subsidiary legislation in early February, we published in the Gazette today the second batch of subsidiary legislation. It comprises two Regulations to prescribe the detailed requirements about benefits to directors to be disclosed in the notes to financial statements as well as matters concerning the revision of reporting documents."

The spokesman added, "This batch of subsidiary legislation does not contain any provisions relating to the inspection of the Companies Register under the new Companies Ordinance."

The new Companies Ordinance, which was passed by the Legislative Council (LegCo) on July 12, 2012, provides a modernised legal framework for the incorporation and operation of companies in Hong Kong. Its objectives are to enhance corporate governance, improve regulation, facilitate business and modernise the law with a view to strengthening Hong Kong's competitiveness as a corporate domicile and enhancing its status as a major international commercial and financial centre.

The two pieces of subsidiary legislation under the second batch are made by the Financial Secretary. They will be tabled in LegCo on March 27 and subject to negative vetting procedures. The other subsidiary legislation is planned to be tabled in LegCo in May this year. LegCo has formed a sub-committee to scrutinise the subsidiary legislation made under the new Companies Ordinance and the sub-committee has completed its work in respect of the first batch. On the other hand, it is planned to take forward in the fourth quarter this year the legislative exercise for commencing the new Companies Ordinance, with a view to bringing the new legislation into operation in the first quarter of 2014. The subsidiary legislation will be brought into operation together with the new Companies Ordinance.