• Service: Tax, Mergers & Acquisitions, International Tax
  • Type: Regulatory update
  • Date: 3/26/2014

Hong Kong - New company law regime 

March 26:  Newly effective law—the Companies Ordinance—in Hong Kong is designed to facilitate business by modernising the company law regime and enhancing regulation.

The new Companies Ordinance aims to enhance corporate governance, provide for better regulation, facilitate business, and modernise corporate law. Among the changes are the repeal of a requirement of par values for shares, measures for strengthening auditor rights, provisions for greater shareholder protection, and repeal of the memorandum of association.

One change introduces a non-court sanctioned amalgamation—thereby making it easier for a group of companies to restructure and streamline its business.

Read a March 2014 report prepared by the KPMG member firm in Hong Kong: New Companies Ordinance comes into effect

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