Press Releases

Companies (Amendment) Ordinance 2010 facilitates electronic communication by companies

The provisions of the Companies (Amendment) Ordinance 2010, which facilitates website communication by companies and strengthens the company name registration system, will come into operation tomorrow (December 10).

To facilitate electronic communication and promote environmental friendliness, the Amendment Ordinance enables companies to dispatch documents and information in electronic form, including by means of company websites, if their members and debenture holders agree to such a mode of communication, or are deemed to have so agreed.

"The new provisions will enable companies to disseminate company information, including annual reports, on their websites. We believe that this will help reducing the compliance costs of companies," said Ms Ada Chung, the Registrar of Companies.

The Amendment Ordinance also streamlines the company name approval process and empowers the Registrar to direct a company to change its name pursuant to a court order or under other specified circumstances, including where the use of a company name constitutes a criminal offence or where a name is offensive or otherwise contrary to the public interest.

The Registrar is also empowered to replace a company name by the company's registration number if the company fails to comply with the Registrar's direction to change its name. "We believe that these amendments strengthen Hong Kong's company name registration system and effectively enhance enforcement against any possible abuse of famous trademarks or brand names by 'shadow companies'. The legislative amendments are welcomed by the business community," Ms Chung said.

The Amendment Ordinance also extends the scope of statutory derivative actions to cover "multiple" statutory derivative actions by allowing a member of a related company of a specified corporation to commence or intervene in proceedings on behalf of the specified corporation. "This amendment further enhances the protection of the interests of minority shareholders," she continued.