After a long rewriting exercise, the new Companies Ordinance of Hong Kong was gazetted on 10 August 2012. In our previous update, New Companies Ordinance Expected to Take Effect in 2014, we highlighted some of the major purposes and initiatives of the new Companies Ordinance (CO) which are expected to take effect in 2014.
In this legal update we focus on the new provisions in the CO that could impact the financing related transactions of our clients. The key points to note are:
Improvements to Registration of Charges:
What new items must now be registered?
What no longer needs to be registered?
Documentation and timing requirements:
Consequences of failing to register:
Relaxation of Financial Assistance provisions:
In addition to exceptions carried across from the old Companies Ordinance, all types of companies (whether listed or unlisted) can provide financial assistance to another party to acquire the company's own shares or the shares of its holding company subject to:
For inquiries related to this Legal Update, please contact Richard Stock or your usual contacts with our firm.
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