The new Companies Ordinance – no simplified financial reporting for regulated entities

Hong Kong’s new Companies Ordinance will take effect on 3 March 2014. Earlier this month, we issued a legal update on changes to financial statements for Hong Kong companies, including the option for small and medium-sized companies to produce simplified reports. As noted in the update, the option for simplified reporting is not available to SFC licensed corporations, banking or deposit-taking companies or insurance companies. For SFC licensed corporations, the requirements for financial statements are set out in the Securities and Futures (Accounts and Audit) Rules, which were issued in 2003. The SFC’s FAQs on the accounts and audit rules are available on its website.

The new Companies Ordinance will bring about significant changes to the articles of association of a Hong Kong company. Whilst there is no legal requirement to update a company’s existing memorandum and articles of association, it would be best practice to do so. Please see our legal alert for information on how we can help.