October 9, 2014 Leave a comment
October 9, 2014 8 Comments
By Siu Ho Yue
The government has finished the 3-month consultation of the reform of the regulatory regime for listed entity auditors. This article would mainly focus on the changes in the independence of the Financial Reporting Council.
The government has set up the Financial Reporting Council in 2006. Its role is to conduct independent investigations into possible auditing and reporting problems relating to the listed entities and also enquire into possible non-compliances with accounting requirements on the part of listed entities. At the same time, Hong Kong Institute of Certified Public Accountants, which was founded in 1973, is also responsible for regulating and promoting efficient practices in Hong Kong, and they are indeed performing similar duties.
Does Company Ordinance be enough to cover online-to-office business: Joint Venture of Wanda, Baidu and Tencent
October 8, 2014 4 Comments
By Chan Wai Cheung
Wanda, Tencent and Baidu, three Chinese e-commerce giant, announced to form a Hong Kong registered joint venture on 29th August seeking to expand the online-to-offline business. Wanda, Baidu and Tencent will work together in developing the e-commerce in all Wanda’s plazas, hotels and resorts. The joint venture agreement states clear that the Wanda holds 70% of total equity and Baidu and Tencent hold 15% of total equity respectively (Forbes, 2014).
October 8, 2014 8 Comments
By Liu Yanjie
On August 14 2014, HKSFC said it had started an insider trading case against Salina Yu, the former chief executive of Water Oasis Group. After the company being informed of the termination on exclusive distribution rights of water products in mainland China and Taiwan, Salina sold all her shares in Water Oasis to avoid a loss of about HK$281,346 before the announcement about the termination was put out by her company (Chiang, August 15, 2014).
October 8, 2014 13 Comments
By KIM, Kyu Baek
The Competition Ordinance (2012) is not yet effective; guidelines for the ordinance are to be released soon and the actual implementation will take place in 2015.
Key provisions include:
- Anti-Competition agreements (First Conduct Rule, Section 6 of the Ordinance); namely price fixing, market allocation, output restriction, and bid-rigging
- Abuse of substantial market power (Second Conduct Rule, Section 21 of the Ordinance); and
- The establishment of anti-trust mergers (Merger Rule – only applies to telecommunications sector, Section 177, Schedule 7 of the Ordinance)
October 8, 2014 13 Comments
By Siu Chun Him
On October 1, the State Council of China implemented the new Provisional Rules on Enterprise Information Disclosure. All companies registered in China, including both local firms and foreign invested enterprises, are required to disclose information through a new Enterprise Credit and Information Disclosure System. (Livdahl, Sheng & Li, 2014)
October 8, 2014 11 Comments
By Kwong Po Yi
A few years ago, there were scandals revealing the lack of financial transparency of some charitable organizations in the territory. Since charitable donations are humongous sums of money (HKD$5billion in 2009) (The Law Reform Commission of HK – Charities Sub-Committee, 2011), and relate to public interest, critics call for comprehensive regulations on charities.
Since Hong Kong lacks charities laws, obligations of charities, which are incorporated as companies limited by guarantee (CLG), were written into Companies Ordinance (Cap.32). Some called for amendment of Companies Ordinance or establishment of charities laws for better regulating charities, such as clear review of financial status, flow of donations and etc. The scope of discussion below will focus on how charities are better regulated under the New Companies Ordinance (Cap. 622).