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The Standing Committee on Company Law Reform (SCCLR) published its 2006/07 annual report today (November 16).
During the reporting period, the SCCLR considered proposals relating to the accounting and auditing provisions of the Companies Ordinance (CO) made by a joint working group involving representatives from the government and the Hong Kong Institute of Certified Public Accountants. It also considered the draft public consultation paper on the accounting and auditing provisions of the CO.
"The consultation paper on accounting and auditing provisions of the CO was issued on March 29, 2007, for public consultation. We are now studying the public responses received and will seek the joint working group and SCCLR's views before finalising the proposals in early 2008," a government spokesman said.
Another main focus of the SCCLR was on the rewriting of the CO, which began in mid-2006. In this respect, the SCCLR considered five topics, including the general framework of the new Companies Bill (CB) and the proposed workplan; the types of companies allowed to be formed and incorporated under the new CO and definitions of private and public companies; beneficial owners' enjoyment of members' rights; directors' duties; and electronic communications between companies and shareholders and other communication related matters.
"SCCLR's recommendations on the CB will be incorporated into a White Bill for public consultation in mid-2009, with a view to introducing the new CB into the Legislative Council by the third quarter of 2010," the spokesman said.
"As part of our efforts to engage the public in the rewrite exercise before the White Bill consultation, we will launch another topical consultation on other complex issues including directors' duties, no par value share regime and capital maintenance, registration of charges, company name registration and court-free merger procedure in the second quarter of 2008."
"With thanks to the work of the SCCLR, we will continue to rely heavily on the expertise and advice of its members, in particular, in the rewrite of the CO," the spokesman added.
The SCCLR was formed in 1984 to advise the Financial Secretary on necessary amendments to the CO and other relevant legislation, in order to ensure that such legislation continues to meet the needs of the business community.
The membership of the SCCLR is drawn from a wide spectrum of sectors, including lawyers, accountants, company secretaries, and representatives of government departments and regulatory bodies.
The SCCLR's annual report for 2006/07 is available to the public at the websites of the Financial Services and the Treasury Bureau (www.fstb.gov.hk/fsb) and the Companies Registry (www.cr.gov.hk/).
Ends/Friday, November 16, 2007
Issued at HKT 15:02
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