Among the criteria which apply to companies of Hong Kong which are explicitly stated within the Companies Ordinance relate to topics such as the rights and powers granted to a company based in Hong Kong, the regulations regarding the shareholders and directors of the company, the name of the company, and how a company may be restored after it has been struck off the Companies Registry.
The Companies Ordinance has existed for many years through changing economic and business conditions which have been present in Hong Kong. Thus, on multiple occasions, revisions of the Companies Ordinance have been made. Some of these revisions were changes which were extremely impactful towards all areas of Hong Kong’s business scene, while others had a more minor and understated effect.
Latest Changes to the Companies Ordinance
The most recent revision of Hong Kong’s Companies Ordinance is the Companies (Amendment) (No 2) Ordinance 2018. Although the year in its full title is 2018, this revision only took effect on February 1, 2019. This revision of the Companies Ordinance included 114 edits to various sections, schedules, and regulations to better reflect the current business environment of Hong Kong and how companies are to operate within it.
The amendments which were made include those intended to take new developments into account, those which clarified the purpose of some of the policies which had been mentioned, and those which removed any ambiguities and inconsistencies.
Perhaps the companies which were the most impacted by the amendments to the Companies Ordinance were holding companies based in Hong Kong. Holding companies which are part of two different types of corporate groups are now permitted to take advantage of the reporting exemption. Thus, they can use more simplified versions of accounting and financial reporting standards if the holding company in question as well as its subsidiaries fulfill the existing size criteria.