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Standing Committee on Company Law Reform publishes annual report

The Standing Committee on Company Law Reform (SCCLR) today (November 28, 2014) published its 2013-14 annual report.

During the reporting period, the SCCLR discussed the consultation document on the legislative proposals to improve Hong Kong's corporate insolvency law issued in April 2013 and the legislative amendment proposal by the Securities and Futures Commission (SFC) concerning the regulation of sponsors (note). It was also briefed by the Administration on the progress on the making of subsidiary legislation under the new Companies Ordinance.

In addition, the SCCLR received an information paper from the Administration on the commencement of the new Companies Ordinance during the reporting period. The new ordinance subsequently commenced operation on March 3, 2014.

"The SCCLR has all along been our important partner in company law reform. The commencement of the new Companies Ordinance strengthens our status as an international commercial and financial centre. We are most grateful for its expert advice and valuable contribution throughout the years," a government spokesman said.

The SCCLR was set up in 1984. It advises the Financial Secretary on amendments to the Companies Ordinance and the Companies (Winding Up and Miscellaneous Provisions) Ordinance, as well as amendments to the Securities and Futures Ordinance on matters relating to corporate governance and shareholders’ protection, as and when necessary.

Members of the SCCLR include practitioners from relevant professions including legal, accountancy and company secretarial fields, academics, individuals from the business communities, as well as representatives from relevant government departments and financial regulators.

The 2013-14 annual report of the SCCLR is now available for public inspection at the websites of the Financial Services and the Treasury Bureau (www.fstb.gov.hk/fsb) and the Companies Registry (www.cr.gov.hk).

Note:
The SFC subsequently advised the SCCLR after 2013/14 that upon re-examination, no legislative amendments are required because sponsors are already covered under the prospectus liability provisions in the existing legislation.