NEWS AND RESOURCES
4 February 2014
RESTRICTING CORPORATE DIRECTORSHIP IN PRIVATE COMPANIES
The new Companies Ordinance will provide a grace period of 6 months after the commencement date of the new Companies Ordinance for existing companies to comply with the new requirement.
PENALTY AND ENFORCEMENT
The Registrar of Companies may direct a company to appoint a director who is a natural person in compliance with the requirement. If a company fails to comply with the direction, the company and every responsible person of the company commit an offence, and each is liable to a fine of $100,000 and for a continuing offence, a further fine of $2,000 for each day during the period.
All companies should review their existing structures to ensure it is compliant with the new Companies Ordinance well before the new Companies Ordinance take effect. ALCPA would be able to assist in keeping your structure compliant during the transitional period and for subsequent periods. For more information, contact us today to find out more.
The new Companies Ordinance also has major changes affecting current and future directors for companies registered in Hong Kong. Stay tune to our updates in the coming weeks.
For more updates on the New Companies Ordinance, please also visit here.
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