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Standing Committee on Company Law Reform publishes annual report

The Standing Committee on Company Law Reform (SCCLR) today (November 25) published its 2015-16 annual report.

During the reporting period, the SCCLR discussed issues relating to the introduction of a statutory corporate rescue procedure and insolvent trading provisions.

"The SCCLR has all along been our important partner in company law reform. We are thankful for its efforts and contribution throughout the years," a government spokesman said. Taking into account the helpful advice of the SCCLR, the Government is preparing the drafting instructions for the introduction of a statutory corporate rescue procedure and insolvent trading provisions.

The SCCLR was also briefed by the Government on the legislative progress of the Companies (Winding Up and Miscellaneous Provisions) (Amendment) Bill 2015 and on the legislative proposal to introduce an open-ended fund company (OFC) regime in Hong Kong during the period covered by the annual report. Subsequent to the briefing, the two relevant Amendment Ordinances, i.e. the Companies (Winding Up and Miscellaneous Provisions) (Amendment) Ordinance 2016 and the Securities and Futures (Amendment) Ordinance 2016, were enacted by the Legislative Council on May 27, 2016, and June 2, 2016, respectively. The Government is planning to commence the former Amendment Ordinance in the first quarter of 2017. As regards the latter Amendment Ordinance, the relevant subsidiary legislation and code are being formulated with a view to implementing the OFC regime as soon as practicable.

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 and individuals from the business communities, as well as representatives from relevant government departments and financial regulators.

The 2015-16 annual report of the SCCLR is available at the websites of the Financial Services and the Treasury Bureau (www.fstb.gov.hk/fsb) and the Companies Registry (www.cr.gov.hk).