Professional Accountants Ordinance


Published: 2004-09-08

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Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 1

Chapter: 50 PROFESSIONAL ACCOUNTANTS ORDINANCE Gazette Number Version Date

Long title 23 of 2004 08/09/2004


To establish the Hong Kong Institute of Certified Public Accountants and to provide for the registration and control of
the accountancy profession, and for matters ancillary to or connected with the purposes aforesaid.

(Amended 23 of 2004 s. 2)


[1 January 1973] L.N. 267 of 1972

(Originally 68 of 1972)

Part: I PRELIMINARY 30/06/1997




Section: 1 Short title 30/06/1997


This Ordinance may be cited as the Professional Accountants Ordinance.

Section: 2 Interpretation L.N. 204 of 2006 01/12/2006


(1) In this Ordinance, unless the context otherwise requires- (Amended 10 of 2005 s. 48)
**"appointed day" (指定日期) means the day appointed by the Secretary for Financial Services and the Treasury

under section 1(3) of the Professional Accountants (Amendment) Ordinance 2004 (23 of 2004); (Added 23 of
2004 s. 3)

"appointed member" (委任理事) means a member of the Council appointed by the Chief Executive under section
10(2)(e); (Added 23 of 2004 s. 3)

"certified public accountant" (會計師) means a person registered as a certified public accountant by virtue of section
22; (Replaced 23 of 2004 s. 3)

"certified public accountant (practising)" (執業會計師) means a certified public accountant holding a practising
certificate; (Added 23 of 2004 s. 3)

"co-opted member" (增選理事) means a member of the Council co-opted under section 10(4); (Added 96 of 1994 s.
2)

"corporate practice" (執業法團) means a company which is for the time being registered under section 28E; (Added
85 of 1995 s. 2)

"Council" (理事會) means the Council of the Institute established under section 10; (Amended 23 of 2004 s. 54)
"Disciplinary Committee" (紀律委員會 ) means a Disciplinary Committee constituted under section 33(3);

(Replaced 96 of 1994 s. 2)
"Disciplinary Committee Convenor" (紀律委員會召集人) means the Disciplinary Committee Convenor appointed

under section 33(1)(a); (Added 23 of 2004 s. 3)
"Disciplinary Panels" (紀律小組) means the Disciplinary Panel A and Disciplinary Panel B constituted under section

33(1) and "Disciplinary Panel A" and "Disciplinary Panel B" shall be construed accordingly; (Added 23 of 2004
s. 3)

"elected member" (當選理事) means a member of the Council elected under section 10(2)(c);
"firm name" (事務所名稱) means, in relation to a certified public accountant (practising) practising on his own

account, the name or style under which he practises if that name or style is otherwise than his own name without
any addition as registered under section 22(2), and in relation to a certified public accountant (practising)
practising in partnership, the name or style under which the partnership practises; (Added 96 of 1994 s. 2.
Amended 23 of 2004 s. 3)

"FRC" (財務匯報局) means the Financial Reporting Council established by section 6(1) of the Financial Reporting
Council Ordinance (Cap 588 ); (Added 18 of 2006 s. 68)



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 2

"Institute" (公會) means the Hong Kong Institute of Certified Public Accountants (香港會計師公會) incorporated
by section 3; (Added 23 of 2004 s. 3)

"Investigation Committee" (調查委員會) means the committee appointed under section 42C; (Added 96 of 1994 s.
2)

"Investigation Committee Convenor" (調查委員會召集人) means the Investigation Committee Convenor appointed
under section 42B(1)(a); (Added 23 of 2004 s. 3)

"Investigation Panels" (調查小組) means the Investigation Panel A and Investigation Panel B constituted under
section 42B(1) and "Investigation Panel A" and "Investigation Panel B" shall be construed accordingly; (Added
23 of 2004 s. 3)

"lay person" (業外人士) means a person who is not-
(a) a certified public accountant; or
(b) a member of an accountancy body which is a member of the International Federation of Accountants;

(Added 23 of 2004 s. 3)
"practice review" (執業審核), in relation to a practice unit, means an examination or a review described in section

32B(1)(b); (Added 14 of 1992 s. 2)
"Practice Review Committee" (執業審核委員會) means the committee established under section 32A; (Added 14

of 1992 s. 2)
"practice unit" (執業單位) means-

(a) a firm of certified public accountants (practising) practising accountancy pursuant to this Ordinance;
(Replaced 23 of 2004 s. 3)

(b) a certified public accountant (practising) practising accountancy on his own account pursuant to this
Ordinance; or (Added 14 of 1992 s. 2. Amended 85 of 1995 s. 2; 23 of 2004 s. 3)

(c) a corporate practice; (Added 85 of 1995 s. 2)
"practising certificate" (執業證書) means a current practising certificate issued under section 30;
"President" (會長) means the President of the Institute elected under section 4 and any person acting as President;

(Amended 23 of 2004 s. 54)
"professional accountant" (專業會計師) means a person registered as a professional accountant before the relevant

day; (Replaced 23 of 2004 s. 3)
"professional indemnity insurance" (專業彌償保險) includes insurance indemnifying a certified public accountant, a

firm of certified public accountants (practising) or a corporate practice against liability to compensate a third
party who has sustained financial loss or any other damage or injury due to a breach of professional duty by or to
professional negligence of such accountant, firm or practice (including such negligence by any director of the
practice) or fraud or dishonesty; (Added 85 of 1995 s. 2. Amended 23 of 2004 s. 3)

"professional standards" (專業標準) means any-
(a) statement of professional ethics; or
(b) standards of accounting, auditing and assurance practices, (Amended 23 of 2004 s. 3)

issue or specified or deemed to be issued or specified under section 18A; (Added 14 of 1992 s. 2)
"public accountant" (註冊核數師) means a person registered as a professional accountant by virtue of the repealed

section 24(2) before the relevant day; (Replaced 23 of 2004 s. 3)
"register" (註冊紀錄冊) means the register of certified public accountants kept under section 22; (Amended 23 of

2004 s. 54)
"registered address" (註冊地址) means any address of a certified public accountant which is entered in the register

under section 22(2); (Amended 23 of 2004 s. 54)
"registered office" (註冊辦事處) means the registered office referred to in section 31;
"Registrar" (註冊主任) means the Registrar appointed under section 21;
"relevant day" (有關日期) means the day on which the Professional Accountants (Amendment) Ordinance 2004 (23

of 2004) comes into operation* under section 1(2) of that Ordinance; (Added 23 of 2004 s. 3)
"repealed section 24(2)" (已廢除的第24(2)條) means section 24(2) of this Ordinance repealed by the Professional

Accountants (Amendment) Ordinance 2004 (23 of 2004); (Added 23 of 2004 s. 3)
"reviewer" (審核人員) means any person appointed or engaged by the Council under section 32B(1)(d); (Added 14



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 3

of 1992 s. 2)
"Vice-President" (副會長) means the Vice-President of the Institute elected under section 4 and any person acting as

Vice-President. (Amended 23 of 2004 s. 54)
(Amended 8 of 1993 s. 8; 96 of 1994 s. 2; 23 of 2004 s. 3)

(2) For the purposes of sections 27(4)(b), 28D(10)(b)(i), 35(3) and 38(2), an appeal to the Court of Appeal shall
be deemed to be finally determined when the earliest of the following events occurs, whichever is applicable in the
circumstances-

(a) when the appeal to the Court of Appeal is withdrawn or abandoned;
(b) when the specified period expires without an application for leave to appeal having been made to the

Court of Appeal;
(c) if, before the expiry of the specified period, an application for leave to appeal is made to the Court of

Appeal-
(i) when the application is withdrawn or abandoned;
(ii) if the application is refused, when the specified period expires without an application for leave to

appeal having been made to the Court of Final Appeal; or
(iii) if the application is granted, when the appeal to the Court of Final Appeal is withdrawn,

abandoned or disposed of; or
(d) if, before the expiry of the specified period, an application for leave to appeal is made to the Court of

Final Appeal-
(i) when the application is withdrawn, abandoned or refused; or
(ii) if the application is granted, when the appeal to the Court of Final Appeal is withdrawn,

abandoned or disposed of. (Added 10 of 2005 s. 48)
(3) In subsection (2)-

"application for leave to appeal" (上訴許可申請) means an application made to the Court of Appeal or the Court of
Final Appeal under section 24 of the Hong Kong Court of Final Appeal Ordinance (Cap 484) for leave to appeal
to the Court of Final Appeal from a judgment of the Court of Appeal;

"specified period" (指明限期)-
(a) in the case of an application for leave to appeal made to the Court of Appeal, means-

(i) subject to subparagraph (ii), the period of 28 days within which the notice of motion referred to
in section 24(2) of the Hong Kong Court of Final Appeal Ordinance (Cap 484) is required to be
filed; or

(ii) if, on an application made within the 28-day period referred to in subparagraph (i), the Court of
Appeal extends that period, the period as so extended; or

(b) in the case of an application for leave to appeal made to the Court of Final Appeal, means-
(i) subject to subparagraph (ii), the period of 28 days within which the notice of motion referred to

in section 24(4) of the Hong Kong Court of Final Appeal Ordinance (Cap 484) is required to be
filed; or

(ii) if, on an application made within the 28-day period referred to in subparagraph (i), the Court of
Final Appeal extends that period, the period as so extended. (Added 10 of 2005 s. 48)

______________________________________________________________________________
Note:
** appointed day : 26 November 2004.
* The Professional Accountants (Amendment) Ordinance 2004 (23 of 2004) comes into operation on 8

September 2004.

Part: II The Hong Kong Institute of Certified Public Accountants* E.R. 1 of 2013 25/04/2013


(#Format changes—E.R. 1 of 2013)

____________________________________________________________________________
Notes:
* (Amended 23 of 2004 s. 4)
# The format of Part II has been updated to the current legislative styles.




Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 4

Section: 3 Incorporation of Institute E.R. 1 of 2013 25/04/2013


The persons registered as certified public accountants under section 22 shall- (Amended 23 of 2004 s. 54)
(a) be a body corporate with perpetual succession;
(b) be known as the Hong Kong Society of Accountants (香港會計師公會) before the relevant day, and the

Hong Kong Institute of Certified Public Accountants (香港會計師公會) with effect from the relevant
day; and (Amended 23 of 2004 s. 5)

(c) in that name be capable of suing and being sued and, subject to this Ordinance, of doing and suffering all
such other acts as a body corporate may lawfully do and suffer.


Section: 4 Appointment of President and Vice-President E.R. 1 of 2013 25/04/2013


(1) There shall be a President and 2 Vice-Presidents of the Institute, who shall be elected by the Council from the
elected members. (Amended 23 of 2004 s. 54)

(2) The President and the Vice-Presidents shall, unless they-
(a) resign their offices by notice in writing delivered to the Registrar; or
(b) are deemed by virtue of section 15(1) to have vacated their offices as members of the Council, (Amended

23 of 2004 s. 6)
hold office from the date of their election until the conclusion of the annual general meeting next occurring.

(Replaced 22 of 1977 s. 2)
(3) If a casual vacancy occurs in the office of President, the Council shall elect one of the Vice-Presidents to act as

President.
(4) If a casual vacancy occurs in any of the offices of Vice-President, the Council may elect an elected member to

fill the vacancy.
(5) For the purposes of this section and section 11, a casual vacancy shall be deemed to occur when a person is

temporarily absent from Hong Kong or is temporarily unable to attend to the business of the Council.
(6) Notwithstanding subsection (1), if only one elected member is proposed for election to fill a vacancy in the

office of President, such elected member shall, without taking a vote upon the proposal, be deemed to have been
elected at the conclusion of the meeting of the Council at which the vacancy is to be filled.

(7) Notwithstanding subsection (1), if not more than 2 elected members are proposed to fill the vacancies in the
offices of Vice-Presidents, such elected member or members shall, without taking a vote upon the proposal, be
deemed to have been elected at the conclusion of the meeting of the Council at which the vacancies are to be
filled. (Added 96 of 1994 s. 3)

(Amended 96 of 1994 s. 3)

Section: 5 Office of Institute E.R. 1 of 2013 25/04/2013


Office of Institute
(Amended 23 of 2004 s. 54)


The Institute shall maintain an office the address of which shall be notified to the Registrar of Companies.

(Amended 8 of 1993 s. 4; 23 of 2004 s. 54)

Section: 6 Official seal and authentication thereof, and instruments

executed thereunder
E.R. 1 of 2013 25/04/2013



(1) The Institute shall have and may use a common seal, the affixing of which shall be authenticated by the
signature of the Registrar.

(2) Any instrument purporting to be executed under the seal of the Institute shall be received in evidence and shall,
unless the contrary is proved, be deemed to be an instrument so executed.

(Amended 23 of 2004 s. 54)




Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 5

Section: 7 Objects of the Institute E.R. 1 of 2013 25/04/2013


The objects of the Institute shall be- (Amended 23 of 2004 s. 54)
(a) to maintain a register of certified public accountants, firms of certified public accountants (practising) and

corporate practices; (Amended 85 of 1995 s. 3; 23 of 2004 ss. 7 & 54)
(b) to regulate the practice of the accountancy profession;
(c) to conduct examinations and act in such other manner as may be necessary to ascertain whether persons are

qualified to be admitted to the register;
(d) to encourage the study of accountancy by accountants and students, and to give certificates, bursaries,

scholarships and rewards on such terms and conditions as may be specified from time to time;
(e) to maintain a library and reading rooms for the use of accountants and students;
(f) to establish and assist in establishing and supporting associations, funds, trusts and schemes intended to

benefit accountants or their dependents, and to grant pensions and allowances to any accountant or his
dependents;

(g) to represent the views of the profession and to preserve and maintain its reputation, integrity and status;
(Amended 23 of 2004 s. 7)

(h) to discourage dishonourable conduct and practices by certified public accountants, and for this purpose to
hold inquiries into the conduct of certified public accountants, firms and corporate practices referred to in
paragraph (a); (Amended 85 of 1995 s. 3; 23 of 2004 ss. 7 & 54)

(i) to provide for the settlement of disputes within the accountancy profession; (Amended 85 of 1995 s. 3)
(j) to take such action as the Institute considers necessary in any matter affecting the professional interests of

the accountancy profession; (Amended 85 of 1995 s. 3; 23 of 2004 s. 54)
(k) to do all such other things as are incidental or conducive to the attainment of the above objects.


Section: 7A Power of Institute to make contributions to FRC E.R. 1 of 2013 25/04/2013


The Institute may contribute to the FRC such amount, as the Institute thinks fit, of the costs and expenses reasonably
incurred by the FRC for the performance of the FRC's functions.

(Added 18 of 2006 s. 69)

Section: 8 Power of Institute to make by-laws E.R. 1 of 2013 25/04/2013


(1) The Institute may, subject to the approval of the Chief Executive in Council, make by-laws- (Amended 31 of
1999 s. 3; 23 of 2004 s. 54)
(a) regulating the practice of accountancy by professional accountants in Hong Kong;
(b) (Repealed 22 of 1977 s. 3)
(c) regulating meetings of the Institute and the Council;
(d) governing the registration, training and education of students; (Amended 22 of 1977 s. 3)
(e) governing the discipline of students;
(f) empowering the Council to make rules prescribing examinations of the Institute, the fees payable therefor

and all matters incidental to the holding thereof including exemptions or concessions which may be granted
in respect of the examinations; (Amended 22 of 1977 s. 3)

(g) regulating the conditions on which examiners shall be engaged;
(h) regulating the appointment of an auditor;
(i) providing for the use and custody of the common seal of the Institute;
(j) providing for the custody, investment and expenditure of the funds and the management of property of the

Institute; (Amended 23 of 2004 s. 54)
(k) (Repealed 14 of 1985 s. 2)
(l) specifying the designations for certified public accountants and the initials by which certified public

accountants may be known; (Amended 23 of 2004 s. 54)
(la) providing for the admission of persons as affiliates of the Institute and specifying the designations for such

affiliates and the initials by which such affiliates may be known; (Added 23 of 2004 s. 8)
(m) (Repealed 22 of 1977 s. 3)
(n) regulating the nomination and election of elected members of the Council;
(o) conferring on members of the Council and employees and auditors of the Institute a right of indemnity



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 6

against the Institute for actions brought against them for things done by them in the execution of the
Ordinance; (Amended 23 of 2004 s. 54)

(oa) providing for and regulating the provision and retention of information, the giving of any notice and
communication, the election of any person, the voting on any matter, the signature of any person, under or
pursuant to this Ordinance, by electronic means; (Added 23 of 2004 s. 8)

(p) prescribing anything which is to be or may be prescribed by the Ordinance;
(q) generally for the better carrying into effect of the purposes of this Ordinance and for the furtherance of the

objects of the Institute.
(2) A copy of any by-laws made by the Institute shall, as soon as practicable after the making thereof, be duly

certified by the President and transmitted by him for the approval of the Chief Executive in Council. (Amended
L.N. 137 of 1981; 31 of 1999 s. 3)

(3) A by-law under subsection (1) may be made only by a majority of two-thirds of the certified public accountants
present in person or by proxy and voting at a general meeting of the Institute convened for the purpose of
making the by-laws. Notice of such meeting and of the by-laws to be proposed thereat shall be sent to every
certified public accountant not less than 21 days before the date fixed for the meeting, but the non-receipt of
such a notice by any certified public accountant shall not invalidate the proceedings thereat. (Amended 22 of
1977 s. 3; 23 of 2004 s. 8)

(4) (Repealed 32 of 2000 s. 48)
(Amended 23 of 2004 s. 54)


Section: 9 General meetings E.R. 1 of 2013 25/04/2013


(1) The first annual general meeting of the Institute shall be held within 9 months after the commencement of this
Ordinance.

(2) An annual general meeting of the Institute shall be held not less than once in every calendar year, and not more
than 15 months after the holding of the last preceding annual general meeting.

(3) General meetings of the Institute, other than the annual general meeting, shall be held as required by the by-
laws.

(4) Any certified public accountant may, at any meeting of the Institute, move any resolution which is not
inconsistent with the purposes and provisions of this Ordinance but may not move a resolution in respect of any
act done in pursuance of the powers conferred by section 18B, 26, 27, 28A, 30, 32B, 32C, 32D, 32E, 32F, 34,
35, 36, 39, 42C, 42D, 42E or 42F. (Amended 23 of 2004 s. 9)

(Amended 23 of 2004 s. 54)

Part: III THE COUNCIL OF THE INSTITUTE* L.N. 152 of 2004 26/11/2004

__________________________________________________________________

Note:
* (Amended 23 of 2004 s. 54)


Section: 10 Establishment and composition of the Council L.N. 152 of 2004 26/11/2004


(1) There is hereby established the Council of the Hong Kong Institute of Certified Public Accountants.
(2) The Council shall, subject to subsection (4), consist of the following members- (Amended 23 of 2004 s.

10)
(a) the Financial Secretary, or a person appointed by him as his representative;
(b) the Director of Accounting Services, or a person appointed by him as his representative; (Amended

L.N. 16 of 1977)
(c) 14 certified public accountants (not being persons entitled to be registered as a professional accountant

by virtue of the repealed section 24(2) immediately before the relevant day) elected at an annual
general meeting of the Institute, each of whom shall on the day of the meeting be ordinarily resident in
Hong Kong and of whom at the time of election- (Amended 85 of 1995 s. 4; 23 of 2004 ss. 10 & 54)
(i) not less than 6 shall be certified public accountants in full time practice as certified public



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 7

accountants (practising); (Replaced 23 of 2004 s. 10)
(ii) not less than 6 shall be certified public accountants otherwise than in full time practice as

certified public accountants (practising); (Replaced 23 of 2004 s. 10)
(d) the immediate past President of the Institute who shall, unless he is also an elected member, hold office

as a member of the Council for a period from the time when he ceased to be President until the
conclusion of the annual general meeting next occurring; and (Added 23 of 2004 s. 10)

(e) 4 lay persons appointed by the Chief Executive. (Added 23 of 2004 s. 10)
(2A) For the purpose of subsection (2)(c), a certified public accountant- (Amended 23 of 2004 s. 54)

(a) shall be regarded as being in full time practice as a certified public accountant (practising) if he-
(Amended 23 of 2004 s. 10)
(i) holds a practising certificate;
(ii) is free to devote substantially the whole of his time during normal office hours to provide his

services as a certified public accountant (practising); and
(iii) has not entered into and there is not subsisting a contract of employment between him and an

employer (other than an employer who is a certified public accountant (practising) or a firm of
certified public accountants (practising) or a corporate practice) under which he is bound to
devote the whole or substantially the whole of his time during normal office hours to his
employment; and

(b) holding a practising certificate shall not be treated as not being in full time practice as a certified public
accountant (practising) by reason only of the fact that he is in the employment of a certified public
accountant (practising) or a firm of certified public accountants (practising) or a corporate practice,

and normal office hours shall mean those hours at which banks are generally open for business in Hong Kong.
(Added 96 of 1994 s. 4)

(3) An appointed member shall not be appointed for a term exceeding 2 years but shall be eligible for
reappointment for a further term or terms of not exceeding 2 years each. (Replaced 23 of 2004 s. 10)

(4) In addition to the members specified in subsection (2), the Council may, at the first meeting of the Council
held after an annual general meeting, or as soon thereafter as is practicable, co-opt not more than 2 certified public
accountants, each of whom should then be ordinarily resident in Hong Kong, as members of the Council. (Added 96
of 1994 s. 4. Amended 85 of 1995 s. 4; 23 of 2004 s. 54)

(5) In addition to applying for the purposes of section 29A, subsection (5)(b) of that section shall also apply for
the purposes of this section. (Added 85 of 1995 s. 4)

(Amended 23 of 2004 s. 10)

Section: 11 Filling vacancies in Council 23 of 2004 08/09/2004


(1) If a casual vacancy occurs under section 4(3) or (4), or a vacancy is deemed to arise under section 15(1), the
Council may, in the case of a co-opted member, appoint a certified public accountant, and in the case of an elected
member, appoint a certified public accountant of the class referred to in subparagraph (i) or (ii) of section 10(2)(c), as
the vacancy may require, to fill the vacancy. (Amended 96 of 1994 s. 5; 23 of 2004 ss. 11 & 54)

(2) A certified public accountant appointed under subsection (1) to fill- (Amended 23 of 2004 s. 54)
(a) a casual vacancy under section 4(3) or (4) shall hold office for so long as the member in whose place

he is appointed would have held office or until the member resumes his office on the Council,
whichever is the earlier; or

(b) a vacancy under section 15(1) shall hold office for so long as the member in whose place he is
appointed would have held office.

(Amended 23 of 2004 s. 11)

Section: 12 Compulsory retirement of elected members L.N. 152 of 2004 26/11/2004


(1) Subject to subsection (1A) and section 13(2), immediately before the conclusion of each annual general
meeting of the Institute, the 7 elected members who have been longest in office since their last election shall retire
from office. (Amended 96 of 1994 s. 6; 23 of 2004 ss. 12 & 54)

(1A) Subject to section 13(2), immediately before the conclusion of the first 2 annual general meetings of the
Institute after the appointed day-

(a) in the case of the first such annual general meeting, 6 elected members who have been longest in office



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 8

since their last election shall retire from office; and
(b) in the case of the second such annual general meeting, 6 elected members who have been longest in

office since their last election, and one elected member from among the remaining 8 elected members
who shall be selected by lot, shall retire from office. (Added 23 of 2004 s. 12)

(2) (Repealed 96 of 1994 s. 6)
(3) Every elected member who retires from office in accordance with this section shall be eligible for re-

election.
(4) A co-opted member shall hold office until immediately before the conclusion of the next annual general

meeting and he shall be eligible to be co-opted again or (except in the case of a person entitled to be registered as a
professional accountant by virtue of the repealed section 24(2) immediately before the relevant day) elected as a
member of the Council. (Added 96 of 1994 s. 6. Amended 23 of 2004 s. 12)

(Replaced 14 of 1985 s. 4)

Section: 13 Procedure for election of certified public accountants as

elected members
23 of 2004 08/09/2004



Procedure for election of certified public accountants as elected members
(Amended 23 of 2004 s. 54)


(1) If the number of certified public accountants nominated as candidates for election to the Council t an annual

general meeting of the Institute- (Amended 23 of 2004 s. 54)
(a) does not exceed the number of vacancies for elected members, the candidates shall be deemed to have

been elected to the Council with effect from immediately before the conclusion of the annual general
meeting at which the vacancies are to be filled;

(b) exceeds the number of vacancies for elected members, the election shall be determined by ballot, and
the candidates so elected shall hold office as elected members with effect from immediately before the
conclusion of the annual general meeting; or

(c) is less than the number of vacancies in respect of elected members, the Chief Executive may appoint a
certified public accountant to fill any vacancy among the elected members of the Council remaining
unfilled at the conclusion of the annual general meeting,

(2) A certified public accountant appointed by the Chief Executive under subsection (1)(c) shall hold office
until the next annual general meeting.

(Amended 31 of 1999 s. 3; 23 of 2004 s. 54)

Section: 14 Chief Executive may appoint a certified public accountant

to Council if Council fails to fill a vacancy
23 of 2004 08/09/2004



Chief Executive may appoint a certified public accountant to Council if Council fails to fill a vacancy
(Amended 23 of 2004 s. 54)


If a vacancy is not filled by the Council within 30 days by appointment under section 11(1), the Chief Executive

may appoint a certified public accountant of the class referred to in sub-paragraph (i) or (ii) of section 10(2)(c) to fill
the vacancy, as the vacancy may require.

(Amended 31 of 1999 s. 3; 23 of 2004 s. 54)

Section: 15 Vacation of office by Council members L.N. 152 of 2004 26/11/2004


(1) An elected or co-opted member shall be deemed to have vacated his office as a member of the Council if-
(Amended 96 of 1994 s. 7; 23 of 2004 s. 13)

(a) he resigns his office, by notice in writing delivered to the Registrar;
(b) he is absent without permission of the President from 3 consecutive meetings of the Council of which

he has had notice to attend, and the Council resolves that his office shall be vacant;
(c) he becomes bankrupt or makes an arrangement or composition with his creditors;
(d) he ceases to be ordinarily resident in Hong Kong;
(e) his name is removed from the register under section 27(1)(a) or section 35(1)(a); or (Amended 80 of



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 9

1997 s. 102; 23 of 2004 s. 13)
(f) in the case of an elected member he ceases to belong to the class of which he was a member under sub-

paragraph (i) or (ii) of section 10(2)(c) and in the case of a co-opted member he ceases to be a certified
public accountant: (Amended 96 of 1994 s. 7; 23 of 2004 s. 54)

Provided that this paragraph shall not apply if the remaining number of elected members of that
class is not less than 6. (Amended 14 of 1985 s. 5; 23 of 2004 s. 13)

(2) Subsection (1)(a), (b), (c), (d) and (e) shall apply to the immediate past President of the Institute who
becomes a member of the Council pursuant to section 10(2)(d) except that no vacancy is to arise upon his vacation of
office in such circumstances. (Added 23 of 2004 s. 13)

(3) An appointed member shall be deemed to have vacated his office as a member of the Council if-
(a) he becomes bankrupt or makes an arrangement or composition with his creditors; or
(b) he ceases to be ordinarily resident in Hong Kong. (Added 23 of 2004 s. 13)


Section: 16 Accounts 23 of 2004 08/09/2004


(1) The Council shall maintain proper accounts of all transactions of the Institute and shall prepare for every
financial year a statement of the accounts of the Institute, containing an income and expenditure account and a balance
sheet, both of which shall be signed by the President.

(2) The Institute in general meeting shall appoint an auditor who shall be entitled at any time to have access to
all books of account, vouchers and other financial records of the Institute and to require such information and
explanations thereon as he thinks fit.

(3) The auditor shall audit the statements drawn up under subsection (1) as soon as possible and shall make a
report thereon to all the certified public accountants. (Amended 96 of 1994 s. 8)

(4) A copy of the signed and audited statement of accounts, together with the auditor's report made under
subsection (3), shall be submitted for approval at the annual general meeting of the Institute next following the end of
the financial year to which they relate. (Replaced 23 of 2004 s. 14)

(4A) A summary of financial statements shall be sent to each certified public accountant with the notice of the
annual general meeting. (Added 23 of 2004 s. 14)

(4B) A certified public accountant may inspect a copy of the signed and audited statement of accounts at all
reasonable times at the office of the Institute and the Institute shall provide to a certified public accountant on
application a copy of the signed and audited statement of accounts without charge. (Added 23 of 2004 s. 14)

(5) The auditor shall be entitled to attend the annual general meeting of the Institute at which the statement of
accounts which have been reported on by him are to be submitted for approval and to make any statement or
explanation he desires with respect to the accounts.

(6) The Council shall determine the period, which may be more or less than 12 months, in respect of which the
accounts of the Institute shall be made up.

(7) In this section, "financial year" (財政年度) means the period determined by the Council under subsection
(6) as the period in respect of which the accounts of the Institute shall be made up; and "summary of financial
statements" (財務報表撮要) means a summary, approved by the Council, of the audited statement of accounts of the
Institute required to be laid before the annual general meeting of the Institute. (Amended 23 of 2004 s. 14)

(Amended 23 of 2004 s. 54)

Section: 17 General powers of Council 23 of 2004 08/09/2004


(1) The management and control of the Institute and of its property shall be vested in the Council and all such
powers, acts or things as may be exercised or done by the Institute which are not required by this Ordinance, or by a
resolution passed by the Institute in general meeting, to be exercised or done by the Institute may be exercised or done
by the Council.

(2) No such resolution of the Institute shall invalidate the exercise of any power or the doing of any act or thing
by the Council before the date of the resolution.

(3) Subject to this Ordinance, the Council may regulate its own procedure and that of any committee appointed
under section 18(1)(m) relating to-

(a) the holding of meetings;
(b) the notice to be given of such meetings;



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 10

(c) the proceedings at such meetings;
(d) the keeping of minutes at such meetings; and
(e) the custody, production and inspection of such minutes.

(Amended 23 of 2004 s. 54)

Section: 18 Particular powers of Council L.N. 204 of 2006 01/12/2006


(1) Without derogating from the generality of the power conferred by section 17(1), the Council may-
(a) do anything necessary for the better carrying out of the objects of the Institute;
(aa) fix registration and other fees, including those payable by the practice units, or a class of the practice

units, to the Institute for the purpose of the contribution under section 7A; (Added 22 of 1977 s. 4.
Amended 18 of 2006 s. 70)

(b) appoint such employees and agents as it deems necessary;
(c) appoint the bankers of the Institute;
(d) purchase, take on lease or in exchange, hire or otherwise acquire any movable or immovable property,

and erect any buildings;
(e) sell, lease, mortgage, dispose of or otherwise deal with any movable or immovable property of the

Institute;
(f) invest moneys of the Institute;
(g) borrow moneys upon security or otherwise;
(h) exchange information with similar bodies and with members of the profession in places outside Hong

Kong and arrange with such bodies for the reciprocal recognition of accountants; (Amended 31 of
1999 s. 3)

(i) establish and maintain branches of the Institute, whether in Hong Kong or elsewhere, and delegate the
powers, duties and functions of the Institute to such branches; (Amended 23 of 1998 s. 2)

(j) institute, conduct, defend, compound or abandon any legal proceedings by or against the Institute or its
office or otherwise concerning the affairs of the Institute and compound or allow time for payment or
satisfaction of any debts due or of any claims or demands made by or against the Institute;

(k) refer any claim or demand by or against the Institute to arbitration and comply with any award made as
a result of such arbitration;

(l) make and give receipts, releases and other discharges for moneys payable to and for claims and
demands of the Institute;

(m) appoint committees to assist or advise the Council in the exercise of its powers and delegate to such
committees such of its powers as it may from time to time determine; and

(n) publish periodicals, booklets or other written material, and produce or sponsor the production of
documentary films or other audio-visual material, and distribute the same by sale, loan, hire or
otherwise, with or without charge, as the Council thinks fit.

(1A) For the purposes of subsection (1)(aa), the Council may, in order to provide for particular circumstances or
cases, fix different fees for the same matter, service or facility. (Added 18 of 2006 s. 70)

(2) A committee appointed under subsection (1)(m) may, subject to the by-laws of the Institute, include persons
who are not certified public accountants.

(Amended 23 of 2004 s. 54)

Section: 18A Council's power to specify professional standards 23 of 2004 08/09/2004


(1) The Council may, in relation to the practice of accountancy, issue or specify any-
(a) statement of professional ethics; or
(b) standards of accounting, auditing and assurance practices,

required to be observed, maintained or otherwise applied by any certified public accountant. (Amended 23 of 2004 s.
54)

(2) Any-
(a) statement of professional ethics; or
(b) standards of accounting, auditing and assurance practices,

issued or specified by the Council and which were in force immediately before the coming into operation of this
section shall be deemed to have been issued or specified under subsection (1).



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 11

(Added 14 of 1992 s. 3. Amended 23 of 2004 s. 15)

Section: 18B Council's power to give directions L.N. 204 of 2006 01/12/2006


(1) The Council may, in connection with the discharge of any of its functions or duties or the exercise of any of
its powers, give directions either generally to certified public accountants or to any one or more certified public
accountants-

(a) requiring the production or provision to the Institute by a certified public accountant of any document
or information in connection with the registration of any certified public accountant or firm name, or
the issue of a practising certificate;

(b) requiring a certified public accountant to deliver up to the Institute any certificate of registration or
practising certificate in the possession, custody or control of the certified public accountant if the
registration to which the certificate relates has ceased or the practising certificate has been cancelled or
ceased to be valid;

(c) requiring a certified public accountant to give to the Institute an explanation of any act or omission of
the certified public accountant which appears to the Council to be conduct unbecoming of a certified
public accountant, or conduct which may affect the reputation, integrity and status of the Institute or of
the accountancy profession or conduct which may fall within section 34(1)(a)(iii) to (xii).

(1A) Without prejudice to the generality of subsection (1), the Council may, in connection with the payment by a
practice unit of any fees fixed under section 18(1)(aa) for the purpose of the contribution under section 7A, give
directions to practice units requiring the production or provision to the Institute by a practice unit of any document or
information to enable the Institute to ascertain whether or not the practice unit falls within a particular class for the
purpose of such payment. (Added 18 of 2006 s. 71)

(2) A direction given under this section shall be a direction lawfully given by the Council for the purpose of
section 34(1)(a)(ix).

(3) The Council may prescribe penalties of an amount not exceeding $50000 to be imposed for failure by a
certified public accountant to comply with a direction given to him but no penalty shall be imposed on a certified
public accountant unless he admits to the failure and agrees to the penalty and any penalty so imposed may be
recovered by the Institute from the certified public accountant as a civil debt.

(4) Subsections (1), (2) and (3) apply mutatis mutandis in relation to a firm of certified public accountants
(practising) and to a corporate practice as they apply to a certified public accountant.

(Added 23 of 2004 s. 16)

Section: 19 Council may accept grants, gifts, etc. 23 of 2004 08/09/2004


(1) The Council may, on behalf of the Institute, accept property, by way of grant, gift, testamentary disposition
or otherwise, on such conditions as it may determine.

(2) A list shall be kept by the Registrar of all donations to the Institute and the name of the donor and any
special conditions attached to the donation shall be entered in the list.

(3) Property donated to the Institute for a specific purpose shall be applied for that purpose.
(Amended 23 of 2004 s. 54)


Section: 20 Reimbursement of expenses of Council members 23 of 2004 08/09/2004


No fees shall be paid to any member of the Council for his services as a member, but a member may be repaid
from the funds of the Institute any expenses incurred by him in relation to the affairs of the Institute.

(Amended 23 of 2004 s. 54)

Part: IV REGISTRATION OF CERTIFIED PUBLIC

ACCOUNTANTS*
23 of 2004 08/09/2004


________________________________________________________________

Note:

* (Amended 23 of 2004 s. 54)



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 12


Section: 21 Appointment of Registrar and notification to Registrar of

Companies
23 of 2004 08/09/2004



(1) The Council shall appoint, on such terms and conditions as it thinks fit, a Registrar.
(1A) If a vacancy occurs in the office of the Registrar, or if the Registrar is ill or temporarily absent from Hong

Kong, the Council may appoint another person to act in the office of the Registrar until the vacancy therein is filled or,
as the case may be, until the Registrar resumes his duties. (Added 96 of 1994 s. 9)

(2) The Registrar shall be the secretary to the Institute and to the Council and shall, on the instruction of the
President, convene any meeting of the Institute or of the Council. (Amended 23 of 2004 s. 54)

(3) The Council shall register the appointment of the Registrar or any appointment under subsection (1A) with
the Registrar of Companies (Amended 8 of 1993 s. 4; 96 of 1994 s. 9)

Section: 22 Register of certified public accountants 23 of 2004 08/09/2004


(1) The Registrar shall keep a register for the purposes of this Ordinance and shall be responsible for the
custody thereof. (Replaced 85 of 1995 s. 5)

(1A) The register shall be divided into 2 parts as follows-
(a) Part I which shall contain the following-

(i) all the entries and other particulars or matter which comprised the register immediately before
the commencement of this subsection; and

(ii) any particulars to be entered in the register pursuant to subsection (2) or section 28C; and
(b) Part II which shall contain such particulars as are required to be entered in that Part by section

28D(8)(a) or 28E(1). (Added 85 of 1995 s. 5)
(1B) Subject to subsection (1A), the register shall be in such form as may be specified by the Council. (Added

85 of 1995 s. 5)
(1C) The register may be maintained-

(a) in a documentary form; or
(b) by recording the information required under subsection (1A) otherwise than in a documentary form, so

long as the information is capable of being reproduced in a legible form. (Added 23 of 2004 s. 17)
(2) Upon the making of an order for the registration of an applicant under section 26(1), the Registrar shall

enter in the register the following particulars of the person to be registered-
(a) his name;
(b) his residential address and any business address or, if he holds a practising certificate, his residential

address and his registered office under section 31; (Amended 85 of 1995 s. 5)
(c) the qualification by virtue of which he is registered; and
(d) such other particulars as the Council may direct.

(3) For the purposes of enabling any member of the public to ascertain whether he is dealing with a certified
public accountant, a certified public accountant (practising), a firm of certified public accountants (practising) or a
corporate practice and to ascertain the particulars of registration of such person, the register or (where the register is
maintained otherwise than in a documentary form) a reproduction of the information or the relevant part of it in a
legible form shall at all reasonable times be made available for public inspection without charge. (Replaced 23 of
2004 s. 17)

(4) Any person registered as a professional accountant immediately before the relevant day shall be deemed to
be registered as a certified public accountant. (Added 23 of 2004 s. 17)

Section: 23 Certificate of registration 30/06/1997


When a person has been registered under section 22, the Registrar shall issue to him a certificate of registration
in such form as the Council may determine.

Section: 24 Qualifications for registration as certified public

accountant
23 of 2004 08/09/2004



(1) A person shall be qualified to be registered under this Ordinance as a certified public accountant if he



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 13

proves to the satisfaction of the Council that- (Amended 23 of 2004 s. 54)
(a) he has attained the age of 21 years;
(b) he is of good character and is a fit and proper person to be a certified public accountant; (Amended 22

of 1977 s. 5; 96 of 1994 s. 10)
(c) any one of the following applies to him-

(i) as a student registered as such with the Institute, he has passed such examinations in accountancy
and other subjects as may be prescribed by the Council;

(ii) he is a member in good standing of an accountancy body with which there is in force an
agreement of mutual or reciprocal recognition between the accountancy body and the Institute
and he has complied with all conditions for the recognition as may be provided in the agreement;

(iii) he is a member in good standing of an accountancy body for which members-
(A) the Council has granted full exemption pursuant to subsection (1A) from all the

requirements of subparagraph (i); or
(B) the Council has granted partial exemption pursuant to subsection (1A) from some of the

requirements of subparagraph (i) and he has complied with all other requirements of that
subparagraph for which no exemption was granted;

(iv) he was registered as a professional accountant at any time before the relevant day; and
(Replaced 23 of 2004 s. 18)

(d) he has complied with such requirements relating to practical experience as may be prescribed by the
Council. (Added 96 of 1994 s. 10)

(1A) The Council may grant exemptions in whole or in part from the requirements of subsection (1)(c)(i)
including exemption from the requirement of registration as a student of the Institute to a person who is a member of
an accountancy body accepted by the Council by resolution approved by two-thirds of its members as being of a
standard similar to that of the Institute: (Amended 23 of 2004 s. 18)

Provided that-
(a) no exemption shall be granted to such a person in respect of any examinations prescribed under

subsection (1)(c)(i) unless he has satisfied the Council that he has passed such examinations of that
accountancy body as the Council considers to be of equivalent standard as the examinations for which
exemption is granted; and (Replaced 23 of 2004 s. 18)

(b) the acceptance of that accountancy body may be revoked by the Council by resolution approved by
two-thirds of its members. (Added 96 of 1994 s. 10)

(2) (Repealed 23 of 2004 s. 18)
(Amended 23 of 2004 s. 54)


Section: 25 Application for registration 23 of 2004 08/09/2004


(1) A person shall apply to the Council to be registered as a certified public accountant under this Ordinance, in
such form as the Council may specify, and shall lodge with his application such registration fee as may be fixed by the
Council. (Amended 23 of 2004 s. 54)

(2) The applicant shall, if so directed by the Council, attend in person before the Council.

Section: 26 Acceptance or refusal of registration 23 of 2004 08/09/2004


(1) The Council may order that an application for registration be approved or rejected.
(2) If the Council orders the rejection of an application under subsection (1)-

(a) the order of rejection, which shall state the reason for rejection, shall be served forthwith by the
Registrar upon the applicant either personally or by post addressed to the address shown in the
application; and (Amended 23 of 2004 s. 19)

(b) the registration fee lodged with the application for registration shall be refunded to the applicant.

Section: 27 Removal from register of certain persons 10 of 2005 08/07/2005


(1) The Council shall order a name to be removed from the register-
(a) in case the name is that of a certified public accountant, if he- (Amended 23 of 2004 s. 54)

(i) resigns;



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 14

(ii) dies;
(iii) has been registered by mistake or in consequence of any misleading, false or fraudulent

statement, declaration or representation, either oral or in writing;
(iv) has failed to renew his registration under section 28;

(b) in case the name is that of a corporate practice, if-
(i) the practice ceases to be qualified for such registration;
(ii) the practice has been so registered by mistake or in consequence of any misleading, false or

fraudulent statement, declaration or representation, either oral or in writing;
(iii) the practice has failed to renew its registration under section 28E;
(iv) a receiver has been appointed in respect of the practice or it is being wound up. (Replaced 85 of

1995 s. 6)
(2) The name of a certified public accountant shall not be removed from the register under subsection

(1)(a)(iv)- (Amended 85 of 1995 s. 6; 23 of 2004 s. 54)
(a) unless notice is sent to him requiring him to renew his registration within 30 days from the date of the

notice; or (Amended 23 of 2004 s. 20)
(b) if and for so long as the Council may, pursuant to section 49(3), refuse to accept his resignation from

the Institute. (Replaced 96 of 1994 s. 11)
(3) The order of the Council to remove the name of any certified public accountant from the register under

subsection (1)(a)(iii) shall be served forthwith by the Registrar upon the certified public accountant concerned either
personally or by post addressed to his registered address. (Amended 85 of 1995 s. 6; 23 of 2004 s. 20)

(4) The Registrar shall not remove the name of a certified public accountant from the register- (Amended 23 of
2004 s. 54)

(a) before the expiry of 30 days after the date of service of the order under subsection (3); or
(b) in the case of an appeal made to the Court of Appeal against the order under section 41, before the

appeal is finally determined. (Amended 10 of 2005 s. 49)
(5) When the name of a certified public accountant is removed from the register, under subsection (1)(a)(iii),

the Registrar shall, as soon as practicable thereafter, cause to be published in the Gazette a notice to that effect.
(Amended 14 of 1985 s. 6; 85 of 1995 s. 6)

(6) If the name of a certified public accountant is removed from the register under this section or section 35-
(Amended 23 of 2004 s. 54)

(a) the certificate of registration and the practising certificate, if any, issued to the certified public
accountant shall be deemed to be cancelled with effect from the date on which his name is so removed;
and

(b) no refund of the registration fee or any part thereof shall be made.
(Amended 23 of 2004 s. 54)


Section: 28 Expiry of registration and renewal 23 of 2004 08/09/2004


(1) Registration of a person as a certified public accountant shall- (Amended 23 of 2004 s. 54)
(a) remain in force until 1 January in the year following the year in which he was so registered; and
(b) be renewable annually.

(2) An application for renewal of registration as a certified public accountant- (Amended 23 of 2004 s. 54)
(a) shall be made to the Registrar not later than 15 December in the year preceding the year of renewal (or

such later day as the Council may approve either generally or in respect of any application) in such
form as the Council may specify; (Amended 22 of 1977 s. 6; 23 of 2004 s. 21)

(b) shall not be granted except on payment of the registration fee fixed by the Council; and (Amended 23
of 2004 s. 21)

(c) shall not be granted unless the applicant has satisfied the Council that he has complied with the
requirements for the time being prescribed by the Council for continuing professional development.
(Added 23 of 2004 s. 21)


Section: 28A Registration of firm name 23 of 2004 08/09/2004


(1) A certified public accountant (practising) practising on his own account under a firm name shall apply to
the Council for registration of the firm name under this Ordinance.



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 15

(2) A firm of certified public accountants (practising) shall apply to the Council for registration of a firm name
under this Ordinance. (Amended 23 of 2004 s. 22)

(3) No person shall practise-
(a) on his own account as a certified public accountant (practising) under a firm name; or
(b) in partnership as a firm of certified public accountants (practising),

unless his firm name or, as the case may be, the firm in which he is a partner is registered under this Ordinance.
(4) The Council may reject an application under subsection (1) or (2) if the firm name proposed to be

registered-
(a) is the same as a firm name already registered;
(b) so nearly resembles a firm name already registered as to be likely to cause confusion; or
(c) is, in the opinion of the Council, misleading, offensive or otherwise contrary to the public interest.

(5) A firm of certified public accountants (practising) shall not be qualified to be registered under subsection
(2) unless all partners of the firm are certified public accountants and at least such proportion as the Council may from
time to time prescribe of its partners is or are certified public accountant (practising) or certified public accountants
(practising).

(6) For the avoidance of doubt, it is hereby declared that a person other than the holder of a current practising
certificate shall not be entitled to sign an audit report on behalf of a firm of certified public accountants (practising).
(Added 23 of 2004 s. 22)

(Replaced 96 of 1994 s. 12. Amended 23 of 2004 s. 22)

Section: 28B Application for registration of a firm 23 of 2004 08/09/2004


Application for registration of a firm of certified public accountants (practising) under this Ordinance shall be
made to the Council in such form as the Council may specify and there shall be lodged with the application such
registration fee as may be fixed by the Council.

(Added 22 of 1977 s. 7. Amended 23 of 2004 s. 23)

Section: 28C Provisions of sections 22, 23, 26, 27, 28, 39 and 41 to apply

to firms and firm names
23 of 2004 08/09/2004



The provisions of sections 22, 23, 26, 27(1)(a)(iii) and (iv), (2), (3), (4), (5) and (6), 28, 39 and 41 (1)(a) and
(b)(i) shall apply mutatis mutandis in relation to the registration of a firm and a firm name as they apply in relation to
the registration of a certified public accountant.

(Added 22 of 1977 s. 7. Amended 96 of 1994 s. 13; 85 of 1995 s. 7; 23 of 2004 ss. 24 & 54)

Section: 28D Qualification for registration of company as corporate

practice
L.N. 162 of 2013;
L.N. 163 of 2013

03/03/2014



(1) Subject to subsection (11)(b), only a company limited by shares, and formed and registered under either of
the following Ordinances, is qualified for registration as a corporate practice- (Amended 28 of 2012 ss. 912 & 920)

(a) the Companies Ordinance (Cap 622); or
(b) the Companies Ordinance (Cap 32) as in force from time to time before the commencement date* of

section 2 of Schedule 9 to the Companies Ordinance (Cap 622). (Amended 28 of 2012 ss. 912 & 920)
(1A) If a company mentioned in subsection (1) is so registered, it is qualified to remain registered as a corporate

practice if and only for as long as the requirements specified in subsection (2) are complied with in relation to it.
(Added 28 of 2012 ss. 912 & 920)
(2) (a) The requirements referred to in subsection (1A) are that the company concerned is and continues to be

a qualified company and that the requirements of paragraph (b) or, where appropriate, paragraph (c)
are complied with in relation to it. (Amended 28 of 2012 ss. 912 & 920 and L.N. 162 of 2013)

(b) Where a qualified company has for the time being 2 or more members- (Amended 15 of 2013 s. 3)
(i) each of its members must be both a director of the company and a certified public accountant and

at least such proportion as the Council may from time to time prescribe of its members must be a
certified public accountant (practising) or certified public accountants (practising), and only
persons who are members of the company may be a director of the company;

(ii) the requirements referred to in subparagraph (i) must be complied with as regards the company at



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 16

all times;
(iii) the company must at all times be covered by professional indemnity insurance provided by an

approved insurer on terms which are either specified in rules under section 51 or, if not so
specified, have been approved of by the Council and that the scope of the indemnity which the
insurance affords is, as regards any amount payable thereunder and in every other respect, at least
as extensive as rules under section 51 require in that regard; and

(iv) the company's articles of association must comply with the requirements of rules (if any) made
under section 51. (Amended 28 of 2012 ss. 912 & 920)

(c) Where a qualified company has for the time being only 1 member- (Amended 15 of 2013 s. 3)
(i) the member must be a certified public accountant (practising); and (Replaced 15 of 2013 s. 3)
(ii) the company must comply at all times with both the requirement of subparagraph (i) as regards

the member and the requirements described in paragraph (b)(iii) and (iv).
(3) Subject to subsection (4), an application for registration under section 28E is to be allowed if, and only if,

the Council is satisfied that- (Amended 15 of 2013 s. 3)
(a) the applicant is a qualified company;
(b) if the application were allowed, the applicant would thenceforth be covered by insurance described in

subsection (2)(b)(iii); and
(c) (i) in case the applicant is a company described in subsection (2)(b)-

(A) the requirements of the company's articles of association include requirements which are
appropriate having regard to the requirements of subparagraph (i) of that subsection; and

(B) the requirements of subparagraph (iv) of that subsection are complied with as regards it;
and

(ii) in case the applicant is a company described in subsection (2)(c)-
(A) the requirements of the company's articles of association include requirements which are

appropriate having regard to the requirement of subparagraph (i) of that subsection; and
(B) the requirements described in subsection (2)(b)(iv) are complied with as regards it.

(4) An application for registration under section 28E must be made to the Council and must be in such form as
the Council may specify and there must be lodged with the application such registration fee as may be fixed by the
Council.

(5) (Repealed 15 of 2013 s. 3)
(6) (a) If a corporate practice at any time ceases to comply with any of the requirements described in

subsection (2) applying to it, it must, within 14 days beginning on the day of the cessation, notify the
Council in writing of the cessation. (Replaced 15 of 2013 s. 3)

(b) (Repealed 15 of 2013 s. 3)
(c) Where notice of a cessation described in paragraph (a) is received by the Council, it may, for the

purpose of requiring the relevant corporate practice to comply with any or all of the requirements
referred to in that paragraph, attach one or more specified conditions to the practice's registration under
section 28E and direct the Registrar to record the conditions in Part II of the register in such manner as
he considers appropriate.

(7) In case a condition is attached pursuant to this section, the corporate practice concerned must comply with
it, and if the condition requires compliance within a specified period it must be so complied with.

(8) Where-
(a) there is a failure to comply with a requirement of subsection (2)(b)(ii), (iii) or (iv) or subsection

(2)(c)(ii);
(b) there is a failure to comply with a notification requirement of subsection (6)(a) or section 28H(1) or

(2); or
(c) a condition attached under subsection (6)(c) or (9)(c) is not complied with,
(d) (Repealed 15 of 2013 s. 3)

the Council may, if it thinks fit, give the Registrar a direction under this subsection.
(9) (a) A direction under subsection (8) must, as specified in the direction, require the Registrar- (Amended

15 of 2013 s. 3)
(i) to remove, either permanently or for a period specified in the direction, the name of the corporate

practice concerned and any other relevant particulars from the register forthwith; or
(ii) to give forthwith to such practice a notice described in paragraph (b).

(b) A notice referred to in paragraph (a) must be in writing and be signed by the Registrar and must state



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 17

that a direction under subsection (8) has been given by the Council as regards the corporate practice to
which the notice is addressed and that such practice may, within the period of 21 days beginning on the
date of the notice, make representations to the Council as to why the Registrar should not comply with
the direction (which representations are hereby authorized to be made).

(c) (i) Where representations are made pursuant to paragraph (b), the Registrar must refer the relevant
matter to the Council together with such observations (if any) as he considers appropriate and the
Council, having considered such observations (if any) and representations, may either-
(Amended 15 of 2013 s. 3)
(A) if it considers it appropriate, attach specified conditions to the relevant corporate practice's

registration under section 28E and direct the Registrar to record the conditions in Part II of
the register in such manner as he considers appropriate; or

(B) direct the Registrar to remove the name of such practice and any other relevant particulars
from the register forthwith.

(ii) Where such representations are not made within the period specified in paragraph (b), the
Registrar must remove the name of the corporate practice concerned and any other relevant
particulars from the register.

(d) Where pursuant to a direction under this section the name of a corporate practice is removed from Part
II of the register-
(i) the Registrar must as soon as is reasonably practicable give the practice written notice of the

removal; and
(ii) the practice may, within the period of 21 days beginning on the date of the notice, or such longer

period as the Court of Appeal may allow, appeal to that court against the removal.
(e) In determining an appeal under this subsection the Court of Appeal may-

(i) order the Registrar to restore to Part II of the register the name of the corporate practice
concerned together with such other particulars as were removed by him pursuant to the relevant
direction under this section;

(ii) grant such other remedy or relief, or make such other order, if any, as the court considers
appropriate; or

(iii) confirm such direction.
(10) (a) Subject to paragraph (b), where the name of a corporate practice is removed from the register pursuant

to a direction under this section (including a direction confirmed on appeal), the Council must cause
notice of the removal to be published in the Gazette.

(b) A notice referred to in paragraph (a) must not be published in the Gazette before- (Amended 10 of
2005 s. 50; 15 of 2013 s. 3)
(i) in case an appeal is made to the Court of Appeal as regards the removal under subsection

(9)(d)(ii), the appeal is finally determined; or (Amended 10 of 2005 s. 50)
(ii) in any other case, the time for taking such an appeal has expired.

(11) (a) For the avoidance of doubt it is hereby declared that nothing in this section is to be construed as
repealing by implication or otherwise affecting any provision of Part IVA of the Companies (Winding
Up and Miscellaneous Provisions) Ordinance (Cap 32) in its application to a director of a corporate
practice. (Amended 28 of 2012 ss. 912 & 920)

(b) It is hereby declared that-
(i) a company of which a corporation is either a member or a director is not qualified for being

registered under this section;
(ii) a corporation is not qualified for being either a member or a director of a corporate practice; and
(iii) a person other than the holder of a current practising certificate is not entitled to sign an audit

report on behalf of a corporate practice. (Amended 23 of 2004 s. 25)
(12) In this section-

"approved insurer" (認可保險人) means an insurer who is approved by the Council as regards the provision by him
of professional indemnity insurance to any company registered under section 28E;

"qualified company" (合資格公司) means a company described in subsection (1).
(Added 85 of 1995 s. 8. Amended 15 of 2013 s. 3)

________________________________________________________________________________
Note:
For transitional provision relating to the amendments made by the Professional Accountants (Amendment)



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 18

Ordinance 2013 (15 of 2013), see section 7 of the Amendment Ordinance.

* Commencement date : 3 March 2014.

Section: 28E Registration of corporate practices L.N. 163 of 2013 03/03/2014


(1) Where an application under section 28D(3) is allowed, the Registrar shall enter in Part II of the register the
following particulars of the company to which the application related-

(a) its name;
(b) its registered office in Hong Kong; and (Amended 28 of 2012 ss. 912 & 920)
(c) such other particulars (if any) as are for the time being specified for the purposes of this section by the

Council.
(2) A corporate practice shall for the purposes of section 27(2), (3), (4), (5) and (6) be deemed to be a certified

public accountant. (Amended 23 of 2004 s. 54)
(Added 85 of 1995 s. 8)


Section: 28F Certificate of registration of corporate practice 30/06/1997


When a company is registered in the register, the Registrar shall issue to the corporate practice concerned a
certificate of such registration in such form as the Council shall determine.

(Added 85 of 1995 s. 8)

Section: 28G Provisions of sections to apply to a company L.N. 152 of 2004 26/11/2004


(1) The provisions of sections 26, 28, 28A(4), 33B, 35, 35B, 36(1A), 37, 38, 39, 40 and 41(1) shall apply
mutatis mutandis in relation to a corporate practice as they apply in relation to a certified public accountant.
(Amended 23 of 2004 s. 26)

(2) Subsection (1) shall not be construed as limiting or otherwise affecting in any manner any liability incurred
by a certified public accountant in the course of practising accountancy.

(Added 85 of 1995 s. 8. Amended 23 of 2004 s. 54)

Section: 28H Articles of association of corporate practices 30/06/1997


(1) Where it is proposed to alter or add to the articles of association of a corporate practice ("the amendment"),
it shall send to the Registrar written notice of the proposal and such notice shall be so sent not later than the day on
which notice is given to its members of the meeting of the practice at which the amendment is to be considered.

(2) Where a corporate practice alters or adds to its articles of association, the practice shall before the
expiration of the period of 21 days beginning on the day on which the relevant special resolution is passed, notify the
Registrar in writing of the alteration or addition.

(Added 85 of 1995 s. 8)

Section: 29 Requirements to practise as certified public accountant

(practising)
L.N. 163 of 2013 03/03/2014



(1) No person, other than a corporate practice, shall practise as a certified public accountant (practising) unless
he is registered as a certified public accountant and holds a practising certificate. (Amended 85 of 1995 s. 9; 23 of
2004 s. 27)

(2) Unless he is either the holder of a practising certificate or a corporate practice, a person shall not hold any
appointment or render any services, whether unpaid or otherwise- (Amended 85 of 1995 s. 9)

(a) as an auditor of a company within the meaning of the Companies Ordinance (Cap 622); or (Amended
28 of 2012 ss. 912 & 920)

(b) as an auditor of accounts for the purpose of any other Ordinance.
(3) Nothing in this Ordinance shall prevent-

(a) a person from
(i) practising publicly and describing himself as an accountant, secretary, book-keeper, tax-agent,



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 19

tax-consultant or cost- consultant; or
(ii) describing himself by any other designation, initials or characters not conveying the impression

that he is entitled to practise as a certified public accountant (practising); or
(iii) acting as an auditor of a registered trade union with the approval of the Registrar of Trade

Unions; or
(b) a member of a club, institution or association, which is not carried on with a view to profit, from acting

as auditor of the club, institution or association; or
(c) the Council, upon application, from exempting any person from the provisions of subsection (2)(b).

(Amended 23 of 2004 s. 27)

Section: 29A Requirements for issue of a practising certificate 23 of 2004 08/09/2004


(1) Subject to subsections (1A), (1B) and (2), a practising certificate shall not be issued to a certified public
accountant unless the Council is satisfied that he- (Amended 96 of 1994 s. 14; 23 of 2004 ss. 28 & 54)

(a) has, after becoming a member of an accountancy body with which there is in force an agreement of
mutual or reciprocal recognition between the accountancy body and the Institute, or after becoming a
member of an accountancy body accepted by the Council under section 24(1A), or after registration as
a certified public accountant, had not less than a total of 30 months full time approved accounting
experience in the office of- (Amended 96 of 1994 s. 14; 23 of 2004 ss. 28 & 54)
(i) a certified public accountant holding a practising certificate issued under this Ordinance; or

(Replaced 96 of 1994 s. 14. Amended 23 of 2004 s. 54)
(ii) a person practising public accountancy under the jurisdiction of an accountancy body with which

there is in force an agreement of mutual or reciprocal recognition between the accountancy body
and the Institute, or an accountancy body accepted by the Council under section 24(1A); or
(Replaced 96 of 1994 s. 14)

(iii) (Repealed 96 of 1994 s. 14)
(b) has had a period of not less than 4 years full time approved accounting experience in an office or

offices referred to in subparagraph (i) or (ii) of paragraph (a) or any combination thereof of which at
least 1 year shall have been acquired after he has become a member of an accountancy body with
which there is in force an agreement of mutual or reciprocal recognition between the accountancy body
and the Institute, or an accountancy body accepted by the Council under section 24(1A) or after his
registration as a certified public accountant. (Replaced 96 of 1994 s. 14. Amended 23 of 2004 ss. 28 &
54)

(1A) For the purpose of subsection (1) the Council may require the whole or any part of the 30 months of full
time accounting experience under subsection (1)(a) or the 4 years of full time accounting experience under subsection
(1)(b) to have been acquired within such period preceding the application for a practising certificate as may from time
to time be specified by the Council. (Added 96 of 1994 s. 14)

(1B) A practising certificate shall not be issued to an applicant if there is in force against him an order of the
Disciplinary Committee under section 35(1)(db) to that effect. (Added 23 of 2004 s. 28)

(2) A practising certificate shall not be issued to an applicant unless he satisfies the Council that he-
(a) is ordinarily resident in Hong Kong; and
(b) possesses such local experience and knowledge of local law and practice as the Council may consider

necessary.
(3) For the purposes of subsection (2)(b) the Council may require an applicant to sit such examinations as it

may prescribe which shall include an examination in local law and taxation, and may require an applicant to have had
not less than 1 year full time approved accounting experience in Hong Kong.

(4) If the Council considers that an applicant has acquired substantial experience in accountancy, either in
Hong Kong or elsewhere over a considerable period of time the Council may dispense with the requirements of
subsection (2).

(5) For the purposes of this section-
(a) "approved accounting experience" (認可會計經驗) means such professional accountancy experience

as the Council may approve from time to time as sufficient practical experience; and
(b) a person shall be treated as ordinarily resident if he has been present in Hong Kong for not less than

180 days in the preceding 12 months.
(Added 22 of 1977 s. 8. Amended 14 of 1985 s. 7)



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 20


Section: 29B (Repealed 96 of 1994 s. 15) 30/06/1997




Section: 30 Practising certificates 23 of 2004 08/09/2004


(1) A certified public accountant may apply to the Registrar in the month of November in any year, for a
practising certificate, in the form specified by the Council. (Amended 23 of 2004 s. 54)

(2) If the Council is satisfied that the applicant has complied with the requirements for the time being of section
29A and intends to practise as a certified public accountant (practising), the Registrar shall, on payment of the fee
fixed by the Council, issue to the certified public accountant a practising certificate in the form specified by the
Council for the period of one calendar year from 1 January next following the date of the application. (Amended 22
of 1977 s. 9; 96 of 1994 s. 16; 23 of 2004 ss. 29 & 54)

(3) The Council may permit the application for a practising certificate to be made under subsection (1) at any
time and upon such application the Registrar may issue to the applicant a practising certificate for any period not
exceeding one calendar year and ending on 31 December in any year.

(4) Notwithstanding subsections (1) and (2), a person registered as a public accountant immediately before the
relevant day is exempted from complying with the requirements of section 29A(1) and (2). (Replaced 23 of 2004 s.
29)

(5) If the Council refuses an application under subsection (1), the Registrar shall forthwith inform the applicant
by notice in writing, served either personally or by post, of the decision of the Council and of the reasons for refusing
to issue the practising certificate. (Amended 23 of 2004 s. 29)

(6) If a certified public accountant fails to commence practice within 6 months from the date of issue of the
practising certificate the Council may cancel the practising certificate. (Added 22 of 1977 s. 9. Amended 23 of 2004
s. 54)

(7) A practising certificate shall not be issued to, and the Council may cancel the practising certificate of, a
certified public accountant who is or has become bankrupt or has entered into a voluntary arrangement with his
creditors within the meaning of the Bankruptcy Ordinance (Cap 6). (Added 23 of 2004 s. 29)

(8) Notwithstanding subsections (2) and (4), the Council may-
(a) refuse to issue a practising certificate if the applicant has failed to satisfy the Council that he has

complied with the Institute's requirements for continuing professional development; or
(b) issue a practising certificate to an applicant subject to the condition that he shall comply with the

Institute's requirements for continuing professional development within a specified period. (Added 23
of 2004 s. 29)

(9) Where the Council is of the opinion that a certified public accountant has failed to comply with any
condition imposed under subsection (8) it may, after affording the certified public accountant the opportunity to make
representations, suspend or cancel the practising certificate of the certified public accountant with or without
refunding the fee paid for the certificate. (Added 23 of 2004 s. 29)

Section: 31 Registered office L.N. 163 of 2013 03/03/2014


(1) Every certified public accountant (practising) shall have a registered office in Hong Kong to which all
communications and notices may be addressed.

(2) The address of the registered office shall be given in the application for a practising certificate.
(3) Any change in such address shall be notified to the Registrar within 14 days thereof and shall be entered in

the register by the Registrar.
(4) Any certified public accountant (practising) who practises in contravention of this section shall be guilty of

an offence and shall be liable on conviction to a fine at level 2. (Amended 22 of 1977 s. 10)
(5) (a) The references in this section to a certified public accountant (practising) shall each be construed as

including a reference to- (Amended 23 of 2004 ss. 30 & 54)
(i) a certified public accountant (practising) who practises under a firm name;
(ii) a firm of certified public accountants (practising); and
(iii) a corporate practice.

(b) In the application of subsection (1) to a corporate practice-
(i) that subsection shall be construed as if the reference therein to a registered office were a



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 21

reference to the registered office of the practice for the purposes of the Companies Ordinance
(Cap 622); and (Amended 28 of 2012 ss. 912 & 920)

(ii) that subsection's requirements shall be regarded as being complied with by the practice for so
long as it has an office for the purposes of that Ordinance. (Added 85 of 1995 s. 10)

(c) In the application of subsection (2) to a certified public accountant (practising) who practises under a
firm name, a firm of certified public accountants (practising) and a corporate practice, that subsection
shall be construed as if the reference therein to a practising certificate were a reference to registration
of the firm name, the firm and the corporate practice respectively. (Added 23 of 2004 s. 30)

(Amended 23 of 2004 s. 30; E.R. 1 of 2013)

Section: 32 Publication of list of certified public accountants holding

practising certificates and list of firm names and evidence
of same

23 of 2004 08/09/2004



Publication of list of certified public accountants holding practising certificates and list of firm names and evidence of
same

(Amended 23 of 2004 s. 31)


(1) As soon as practicable after 1 January in every year, the Registrar shall cause to be published in the
Gazette-

(a) a list of certified public accountants holding practising certificates for the period specified in such list
and the addresses of their registered offices; (Amended 23 of 2004 s. 54)

(b) a list of firm names registered under the Ordinance and the addresses of their registered offices; and
(Replaced 22 of 1977 s. 11. Amended 96 of 1994 s. 17)

(c) a list of the corporate practices for the time being, and the addresses of their registered offices referred
to in section 28E(1)(b). (Added 85 of 1995 s. 11)

(2) As soon as practicable after 1 July in every year, the Registrar shall cause to be published in the Gazette a
list of amendments to the lists referred to in subsection (1). (Amended 22 of 1977 s. 11)

(3) (a) The list of certified public accountants published under subsection (1)(a), and any amendments thereto
under subsection (2), shall be evidence that any person whose name appears therein is a certified
public accountant holding a practising certificate for the period specified therein. (Amended 22 of
1977 s. 11; 23 of 2004 s. 54)

(b) The list of corporate practices published under subsection (1)(c), and any amendments thereto under
subsection (2), shall be evidence that any such practice whose name appears therein was registered in
the register and remained so registered during any period specified in such list as regards that practice.
(Added 85 of 1995 s. 11)

(4) A certificate purporting to be signed by the Registrar that the name of a person or firm has or has not been
entered in or has been removed from the register, or that a person registered holds or does not hold a practising
certificate or that a corporate practice has or has not been entered in or has been removed from the register, shall be
evidence of the facts stated therein.

(Amended 85 of 1995 s. 11)

Part: IVA PRACTICE REVIEWS 30/06/1997


(Part IVA added 14 of 1992 s. 4)


Section: 32A Establishment and appointment of members of Practice

Review Committee
23 of 2004 08/09/2004



(1) There shall be a body to be known as the Practice Review Committee.
(2) Subject to subsections (3) and (4), the Council shall from time to time appoint from among certified public

accountants the members of the Practice Review Committee and designate one of the members to be its chairman.
(Amended 23 of 2004 s. 54)

(3) (a) The Practice Review Committee shall consist of such number of members, being not less than 5, as the



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 22

Council shall fix and of whom not more than 2 may also be members of the Council.
(b) Of the members of the Practice Review Committee not less than 2/3rds shall each hold a practising

certificate.
(4) A person shall not be a member of the Practice Review Committee and the Disciplinary Committee at the

same time.
(5) The term of office of a member of the Practice Review Committee shall be specified by the Council in the

instrument under which he is appointed.
(6) Section 50(a) of the Interpretation and General Clauses Ordinance (Cap 1) shall not apply as regards the

Practice Review Committee.
(7) The quorum for any meeting of the Practice Review Committee shall be not less than half of the members

of the Practice Review Committee for the time being.
(8) The Practice Review Committee may appoint sub-committees of its members and may delegate to any such

sub-committee, with or without restrictions, any of its functions or powers except the powers conferred on it by
section 32D(5).

(9) A delegation under subsection (8) shall not preclude the exercise or performance by the Practice Review
Committee of any power or function to which the delegation relates.

(10) Subject to this Part and any directions issued by the Council under section 32B, the Practice Review
Committee or any sub-committee thereof may regulate its own procedure and business.

Section: 32B Council's powers under this Part 23 of 2004 08/09/2004


(1) The Council may-
(a) specify the particular professional standards in relation to which practice reviews are to be carried out;
(b) issue directions to the Practice Review Committee requiring an examination or a review, to determine

whether professional standards specified under paragraph (a) are being, or when so specified, have
been observed, maintained or applied, to be carried out as regards-
(i) every practice unit; or
(ii) such practice units as specified by it;

(c) issue directions to the Practice Review Committee relating to the exercise of any power conferred
under section 32D(1), (2), (3) or (5); and

(d) without affecting the generality of section 18(1)(b), appoint or engage any certified public accountant-
(Amended 23 of 2004 s. 54)
(i) holding such qualifications; and
(ii) on such terms and conditions,
as it may determine, for the purpose of carrying out practice reviews.

(2) The remuneration or other payments payable to a reviewer and any reasonable expenses incurred by him in
relation to the conduct of a practice review shall be paid from the funds of the Institute. (Amended 23 of 2004 s. 54)

(3) The Council shall furnish a reviewer with a copy of his appointment.

Section: 32C Conduct of practice reviews 23 of 2004 08/09/2004


(1) Where the Council issues a direction under section 32B(1)(b), the Practice Review Committee shall by
notice in writing inform the Registrar of the issue and contents of such direction.

(2) Upon receipt of a notice under subsection (1), the Registrar shall-
(a) determine the order in which the practice units to which the direction referred to in the notice relates,

are to be reviewed or examined; and
(b) for the purpose of and to the extent necessary for giving effect to that direction assign a reviewer or

reviewers to carry out a practice review as regards each such practice unit.
(3) A reviewer who carries out a practice review pursuant to this section shall make a report to the Practice

Review Committee at the conclusion of the practice review and at any other stage thereof as may be required by the
Practice Review Committee.

(4) A reviewer shall, before making a report required by subsection (3), send a dated draft of the proposed
report to the practice unit concerned and to each individual (if any) who is named in the report by post or recorded
delivery addressed to the registered office or registered address of the practice unit or the individual, as the case may
be. (Amended 23 of 2004 s. 32)



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 23

(5) Where-
(a) a corporate practice, a firm, a certified public accountant practising on his own account or any other

individual is sent a draft of a proposed report pursuant to the requirements of subsection (4), such
practice, firm, accountant or other individual may, within the period of 21 days beginning on the day
after the draft report is so sent, make submissions or representations in writing to the reviewer
concerned as regards the proposed report; and (Amended 85 of 1995 s. 12; 23 of 2004 s. 54)

(b) any submissions or representations are made under paragraph (a), they shall be considered by the
reviewer concerned.

(6) A reviewer shall attach to a report referred to in subsection (3) submissions or representations (if any) made
under subsection (5) as regards the report in its draft form.

(7) Where a reviewer makes a report under subsection (3) he shall send to the practice unit or the individual
concerned a copy of such report by post or recorded delivery addressed to the registered office or registered address of
the practice unit or the individual, as the case may be. (Amended 23 of 2004 s. 32)

(8) A reviewer shall comply with any instructions given under section 32D(1)(b).

Section: 32D Powers of the Practice Review Committee L.N. 152 of 2004 26/11/2004


(1) The Practice Review Committee may subject to any directions issued under section 32B(1)-
(a) determine the practice and procedure to be observed in relation to practice reviews;
(b) issue instructions to any reviewer on any matter relating to practice reviews or a particular practice

review;
(c) do or perform any other thing or act as may be incidental to or which it considers necessary or

expedient for the performance of its functions or exercise of its powers under this Ordinance.
(2) After receipt of a report under section 32C(3), the Practice Review Committee, having had regard to the

report and submissions or representations (if any) attached to it, if thought fit, may make recommendations to the
practice unit concerned regarding the application by it of professional standards.

(3) The Practice Review Committee, having had regard to a report issued by a reviewer and submissions or
representations (if any) attached to it, may-

(a) issue an instruction to a reviewer to carry out, within such period as may be specified in the instruction
(which period shall not commence earlier than 6 months after the date on which the instruction is
issued), a further practice review as regards the practice unit to which the report relates; and

(b) specify in the instruction, the matters as regards which the review is to be carried out.
(4) Nothing in section 32B(1) or 32C(2) shall be construed as preventing the Practice Review Committee from

issuing an instruction under subsection (3) and for the avoidance of doubt it is hereby declared that the powers
conferred by subsection (1) shall operate as regards any practice review carried out pursuant to such instruction.

(5) Where after the conclusion of a practice review the Practice Review Committee is, having had regard to any
report issued by a reviewer and submissions or representations (if any) attached to it, of the opinion that-

(a) in case the review related to a firm, any one or more or all of the partners in the firm;
(b) in case the review related to a certified public accountant practising on his own account, that

accountant;
(c) in case the review related to a corporate practice, 1 or more or all of the directors of the practice,

(Added 85 of 1995 s. 13)
may have failed to observe, maintain or apply, as the case may be, professional standards, then subject to subsection
(7) the Practice Review Committee may make a complaint regarding any such director, such partner or other certified
public accountant concerned or, in case there is more than one such person concerned, a separate complaint in respect
of each of them, to the Registrar. (Amended 85 of 1995 s. 13; 23 of 2004 s. 54)

(6) A complaint under subsection (5) shall, for the purposes of Part V, be deemed to have been made under
section 34(1).

(7) Where-
(a) a complaint is made under subsection (5); and
(b) immediately prior to the commencement of the relevant practice review-

(i) the director, partner or other certified public accountant to whom the complaint relates had not
previously been a director of any corporate practice or a partner in any firm at any time when a
practice review was carried out as regards that practice or that firm; and (Replaced 85 of 1995 s.
13)



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 24

(ii) a practice review had not previously been carried out as regards his practising on his own
account,

the Council shall not refer the complaint to the Disciplinary Panels under section 34(1) unless it decides by a majority
of 3/4ths of its members for the time being that, were the grounds of complaint or any such ground or any matter or
matters complained of established, the relevant act or omission by such director, such partner or other certified public
accountant would have amounted to serious professional misconduct. (Amended 96 of 1994 s. 18; 85 of 1995 s. 13;
23 of 2004 ss. 33 & 54)

Section: 32E Powers of reviewers 23 of 2004 08/09/2004


(1) The following provisions shall apply as regards any practice review-
(a) Any person, to whom this paragraph applies, and who is reasonably believed by a reviewer to have in

his possession or under his control any record or other document which contains or is likely to contain
information relevant to the practice review shall, subject to subsection (3)-
(i) produce to the reviewer or afford him access to, any record or document specified by the

reviewer or any record or other document which is of a class or description so specified and
which is in his possession or under his control being in either case a record or other document
which the reviewer reasonably believes is or may be relevant to the practice review, within such
time and at such place as the reviewer may reasonably require;

(ii) if so required by the reviewer, give to him such explanation or further particulars in respect of
anything produced in compliance with a requirement under subparagraph (i) as the reviewer shall
specify;

(iii) give to the reviewer all assistance in connection with the practice review which he is reasonably
able to give.

(b) Where any information or matter relevant to a practice review is recorded otherwise than in a legible
form, any power to require the production of any record or other document conferred under paragraph
(a), shall include the power to require the production of a reproduction of any such information or
matter or of the relevant part of it in a legible form.

(c) A reviewer may inspect, examine or make copies of or take any abstract of or extract from a record or
document which may be required to be produced under paragraph (a) or (b).

(d) Where-
(i) a copy of any record or document is supplied by or on behalf of the practice unit for the purposes

of this section; or
(ii) a copy thereof is made in the exercise of any power conferred under this section and a

photocopying machine or other facility of the practice unit is used to make such copy,
the Institute shall reimburse the reasonable photocopying or other expenses incurred in making such
copy.

(e) A reviewer exercising a power under this section shall, if so requested by a person affected by such
exercise, produce for inspection by such person a copy of the appointment furnished to him under
section 32B(3).

(2) Subsection (1)(a) applies to any certified public accountant of the practice unit to which the particular
practice review relates or to any person employed by or whose services are engaged by such unit.

(3) Nothing in this section shall be taken to compel the production by a person of a record or document
containing a privileged communication by or to a legal practitioner in that capacity.

(Amended 23 of 2004 s. 54)

Section: 32F Referral of disputes 23 of 2004 08/09/2004


(1) Subject to subsection (4), where a dispute arises in relation to whether or how a power or powers of a
reviewer under section 32E may be exercised in a particular case, either the practice unit or the reviewer concerned, or
both, may refer the dispute to the Practice Review Committee.

(2) Where a dispute is referred under subsection (1), after considering any submissions or representations
(which shall be in writing) made by the relevant practice unit or the relevant reviewer, the Practice Review
Committee-

(a) shall determine the dispute and communicate such determination to each of the parties to the dispute;



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 25

and
(b) may issue directions relating to the matter in dispute to such practice unit or the reviewer concerned

and require such unit or reviewer to comply with them.
(3) Where a practice unit or a reviewer is required to comply with a direction under subsection (2)(b) and fails

to comply with the requirement, the Practice Review Committee may make a complaint to the Registrar regarding any
corporate practice or any certified public accountant concerned, and in case such a complaint is made it shall, for the
purposes of Part V, be deemed to have been made under section 34(1). (Amended 85 of 1995 s. 14; 23 of 2004 s. 54)

(4) Nothing in this Part shall be construed as enabling the Practice Review Committee or a reviewer finally to
determine whether or not the provisions of section 32E(3) apply in relation to any record or document.

Section: 32G Immunity 30/06/1997


(1) A person who complies with a requirement made under section 32E shall not incur any liability to any
person by reason only of that compliance.

(2) No liability shall be incurred by any person in respect of anything done or omitted to be done by him in
good faith in the performance or exercise or purported performance or exercise of any function or power under this
Part.

Section: 32H Secrecy E.R. 1 of 2013 25/04/2013


(1) Subject to subsection (2), and except in the performance, or assisting in the performance, of a function
under this Part, the Registrar, any reviewer, member of the Practice Review Committee or the Council or a person
holding any other position who assists the Registrar, reviewer or a member of the Practice Review Committee or the
Council in the performance of a function under this Part-

(a) shall at all times after his appointment as the Registrar, a reviewer, or a member of the Practice Review
Committee or the Council or to such other position, as the case may be, or during or after the
performance of or assisting in the performance of such function, preserve and aid in preserving secrecy
with regard to any matter coming to his knowledge in the performance or in assisting in the
performance of any such function;

(b) shall not at any time communicate any such matter to any other person; and
(c) shall not at any such time suffer or permit any other person to have any access to any record, document

or other thing which is in his possession or under his control by virtue of his being or having been so
appointed or his having performed or having assisted any other person in the performance of such a
function.

(2) Subsection (1) shall not apply in relation to- (Amended 18 of 2006 s. 72)
(a) any disclosure made in relation to or for the purpose of any disciplinary proceedings under Part V or

criminal proceedings; or
(b) any disclosure to the FRC for the purpose of enabling or assisting the FRC to perform its functions

under the Financial Reporting Council Ordinance (Cap 588). (Amended 18 of 2006 s. 72)
(3) Any person who contravenes subsection (1) commits an offence and is liable on conviction to a fine at level

6 and to imprisonment for 6 months.
(Amended E.R. 1 of 2013)


Section: 32I Change in composition of practice unit 23 of 2004 08/09/2004


(1) In this section, a reference to a change in composition of a practice unit means-
(a) in relation to a firm of certified public accountants (practising), a change in the persons who comprise

the partners of the firm, if at least one of the partners of the firm before the change is a partner of the
firm after the change;

(b) in relation to a corporate practice, a change in the persons who comprise the directors of the corporate
practice;

(c) in relation to a certified public accountant (practising) practising on his own account, the admission by
him of any partner to his practice; and

(d) in relation to any practice unit, a change in the name of the practice unit, whether or not following or in
consequence of an event described in paragraph (a), (b) or (c).



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 26

(2) Where a change in composition of a practice unit occurs, a reference in this Part to a practice unit shall
include the practice unit after the change in composition.

(3) The powers under this Part shall be exercisable as regards a practice unit notwithstanding a change in
composition of the practice unit.

(4) No change in composition of a practice unit shall affect-
(a) any right, obligation or liability acquired or incurred by or accrued to a practice unit under this Part

before the change; or
(b) any practice review or further practice reviews of a practice unit, and any practice review or further

practice reviews may be carried out and continued as regards the practice unit notwithstanding a
change or further changes in composition of the practice unit.

(5) This section applies to changes in composition of practice units whenever occurring and practice reviews
whenever conducted.

(Added 23 of 2004 s. 34)

Part: V DISCIPLINARY PROCEEDINGS 30/06/1997




Section: 33 Disciplinary Panels L.N. 152 of 2004 26/11/2004


(1) There shall be 2 Disciplinary Panels-
(a) Disciplinary Panel A shall consist of not less than 18 lay persons appointed by the Chief Executive of

whom one shall be appointed by the Chief Executive to be the Disciplinary Committee Convenor and
another to be his alternate;

(b) Disciplinary Panel B shall consist of not less than 12 certified public accountants appointed by the
Council of whom not less than 6 shall be holders of practising certificates. (Replaced 23 of 2004 s. 35)

(1A) The Disciplinary Committee Convenor shall not be appointed for a term exceeding 1 year but shall be
eligible for reappointment for a further term or terms of not exceeding 1 year each. (Added 23 of 2004 s. 35)

(1B) The alternate of the Disciplinary Committee Convenor shall act in place of the Disciplinary Committee
Convenor if the Disciplinary Committee Convenor is precluded by illness, absence from Hong Kong or any other
cause from performing his functions as such. (Added 23 of 2004 s. 35)

(2) A person who is a member of the Council or is for the time being appointed under section 42B shall be
disqualified for membership of any of the Disciplinary Panels and, accordingly, if a member of any of the Disciplinary
Panels either becomes a member of the Council or is so appointed his membership of any of the Disciplinary Panels
shall thereupon cease.

(3) (a) Where pursuant to section 34 a complaint is referred to the Disciplinary Panels, the Council shall
constitute a Disciplinary Committee to deal with the complaint by directing the Disciplinary
Committee Convenor to appoint the chairman and other members of the Disciplinary Committee, and
the Disciplinary Committee Convenor shall act in accordance with such direction.

(b) Subject to section 33B(4), a Disciplinary Committee constituted pursuant to paragraph (a) shall consist
of the following 5 members- (Amended 23 of 2004 s. 35)
(i) a person appointed by the Disciplinary Committee Convenor from Disciplinary Panel A who

shall be the chairman of the Disciplinary Committee;
(ii) 2 persons appointed by the Disciplinary Committee Convenor from Disciplinary Panel A; and
(iii) 2 persons appointed by the Disciplinary Committee Convenor from Disciplinary Panel B of

whom one shall be the holder of a practising certificate.
(c) The Disciplinary Committee Convenor shall not be appointed as a member of a Disciplinary

Committee. (Replaced 23 of 2004 s. 35)
(Replaced 96 of 1994 s. 19. Amended 23 of 2004 s. 35)


Section: 33A (Repealed 85 of 1995 s. 15) 30/06/1997






Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 27

Section: 33B Dealing with complaints 23 of 2004 08/09/2004


(1) Subject to subsection (2), the quorum for a Disciplinary Committee shall be 4.
(2) If immediately before commencing to deal with a complaint, or if at any stage in the course of dealing with

a complaint (being a stage at which the certified public accountant against whom the complaint has been made is
entitled to be present or represented) one of the members of the Disciplinary Committee is absent, such certified
public accountant or his representative may object to the complaint's being dealt with in the absence of such member,
and in case an objection is made pursuant to this subsection and is not withdrawn the Disciplinary Committee
concerned shall neither commence to deal nor, where appropriate, further deal with the relevant complaint until either
the objection is withdrawn or the member whose absence occasioned the objection is present. (Amended 23 of 2004 s.
54)

(3) Where-
(a) (i) a Disciplinary Committee, having given the certified public accountant concerned or his

representative an opportunity of being heard in the proceedings, is unable to decide whether an
order under section 35, or what kind of such order, should be made; and (Amended 23 of 2004 s.
54)

(ii) the committee's inability so to decide is because one of its members is absent or is otherwise
unable to participate in the committee's deliberations regarding the decision; or

(b) the Council is of opinion that because an objection made under subsection (2) which has not been
withdrawn or because of the death, illness or other incapacity or the absence from Hong Kong of the
person who is the chairman of a Disciplinary Committee, it is impracticable for the committee to
continue to deal with the complaint with which it is concerned the Council shall by resolution dissolve
the committee.

(4) (a) Where a Disciplinary Committee is dissolved pursuant to subsection (3), the following shall apply-
(i) subject to paragraph (b), the Council shall at the same time constitute another Disciplinary

Committee to deal with the complaint with which the dissolved committee was concerned; and
(ii) in dealing with the complaint, the Disciplinary Committee constituted pursuant to the

requirement of subparagraph (i) shall deal with it afresh and, accordingly, it shall not have any
regard to the proceedings of the committee which before its dissolution under subsection (3) was
concerned with the complaint.

(b) Where a Disciplinary Committee is dissolved under subsection (3), a person who was a member of the
dissolved committee and who participated in any way in its proceedings shall not be eligible for
membership of the Disciplinary Committee constituted pursuant to the requirements of paragraph
(a)(i).

(Added 96 of 1994 s. 21)

Section: 34 Disciplinary provisions L.N. 104 of 2007 16/07/2007


(1) A complaint that-
(a) a certified public accountant- (Amended 23 of 2004 s. 54)

(i) has been convicted of any offence under Part V (Perjury) of the Crimes Ordinance (Cap 200);
(ia) has been convicted of any offence under section 31 of the Financial Reporting Council

Ordinance (Cap 588); (Added 18 of 2006 s. 73)
(ib) has been punished by the Court of First Instance under section 32(2)(b) of the Financial

Reporting Council Ordinance (Cap 588) for failing to comply with a requirement imposed under
section 25, 26, 27 or 28 of that Ordinance or for being involved in the failure; (Added 18 of
2006 s. 73)

(ic) has been punished by the Court of First Instance under section 45(2)(b) of the Financial
Reporting Council Ordinance (Cap 588) for failing to comply with a requirement imposed under
section 43 of that Ordinance or for being involved in the failure; (Added 18 of 2006 s. 73)

(ii) has been convicted in Hong Kong or elsewhere of any offence involving dishonesty;
(iii) whether as a certified public accountant or not- (Amended 23 of 2004 s. 54)

(A) falsified or caused to be falsified any document;
(B) made any statement which is material and which he knows to be false or does not believe to

be true, in respect of any document;



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 28

(iv) has been negligent in the conduct of his profession;
(v) without reasonable excuse, failed or neglected to comply with any direction issued under section

32F(2) and with which he was required by the Practice Review Committee to comply;
(vi) failed or neglected to observe, maintain or otherwise apply a professional standard;
(vii) without reasonable excuse, failed or neglected to comply with any requirement made under

section 42D in relation to him by an Investigation Committee;
(viii) has been guilty of professional misconduct;
(ix) refused or neglected to comply with the provisions of any bylaw or rule made or any direction

lawfully given by the Council;
(x) was guilty of dishonourable conduct;
(xi) while a director of a corporate practice, rendered any service as, or purporting to be, a director of

a company whose name did not appear in Part II of the register at the time when the service was
rendered; or

(xii) being such a director, practised accountancy as such a director at a time when the corporate
practice was covered by professional indemnity insurance either not at all or not to the extent
required by this Ordinance;

(b) a corporate practice-
(i) or any of its directors-

(A) falsified or caused to be falsified any document;
(B) made any statement which is material and which any of its directors knows to be false or

does not believe to be true, in respect of any document;
(ii) failed to comply with a requirement referred to in section 28D(6)(a) or (7) or ceased or failed to

comply with any requirement of section 28D(2)(b) or (c) applying to it;
(iii) rendered any service under a company name other than the name which then appeared in relation

to the practice in the register;
(iv) being such a practice, practised accountancy without being covered by professional indemnity

insurance at all or to the extent required by this Ordinance; or
(v) did or omitted to do something which, were the practice an individual certified public accountant,

would reasonably be regarded as being dishonourable conduct by an individual,
shall be made to the Registrar who shall submit the complaint to the Council which may, in its discretion but subject
to section 32D(7), refer the complaint to the Disciplinary Panels. (Amended 14 of 1992 s. 6)

(1AAA) If the Council decides not to refer the complaint to the Disciplinary Panels, the complainant who is
aggrieved by the Council's decision may request the Council to refer the complaint to the Disciplinary Panels,
whereupon the Council shall, unless it is of the opinion that no prima facie case has been shown for the complaint, or
that the complaint is frivolous or vexatious, refer the complaint to the Disciplinary Panels. (Added 23 of 2004 s. 36)

(1AA) The provisions of subparagraphs (ia), (ib), (ic), (iv), (v), (vi), (vii), (viii) and (ix) of paragraph (a) of
subsection (1) shall apply mutatis mutandis in relation to a corporate practice and accordingly, in addition to those
specified in subsection (1)(b), a complaint under subsection (1) may be made against such a practice on any 1 or more
of the grounds specified in those subparagraphs as so applied. (Added 85 of 1995 s. 16. Amended 18 of 2006 s. 73)

(1A) Where the Registrar has reason to believe that subsection (1)(a) or (b), or subsection (1)(a) as applied by
subsection (1AA), applies to a certified public accountant or a corporate practice, he shall submit the facts to the
Council which may, in its discretion, refer the complaint to the Disciplinary Panels. (Added 22 of 1977 s. 12.
Amended 14 of 1985 s. 10)

(2) For the purposes of subsection (1)(a)(x) and (b)(v), "dishonourable conduct" (不名譽的行為) means an
act or omission of a certified public accountant, whether or not in the course of carrying out professional work or as a
certified public accountant, which would reasonably be regarded as bringing or likely to bring discredit upon the
certified public accountant himself, the Institute or the accountancy profession.

(3) A person who was a member of the Practice Review Committee at any time when a complaint was made by
it under section 32D(5) shall not take part as a member of a Disciplinary Committee in any proceedings relating to
such complaint. (Added 14 of 1992 s. 6)

(Amended 96 of 1994 s. 22; 85 of 1995 s. 16; 23 of 2004 ss. 36 & 54)

Section: 35 Disciplinary powers of Disciplinary Committee L.N. 104 of 2007 16/07/2007


(1) If a Disciplinary Committee is satisfied that a complaint referred to it under section 34 is proved, the



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 29

Disciplinary Committee may, in its discretion make any one or more of the following orders-
(a) an order that the name of the certified public accountant be removed from the register, either

permanently or for such period as it may think fit;
(b) an order that the certified public accountant be reprimanded;
(c) an order that the certified public accountant pay a penalty not exceeding $500000 to the Institute;
(d) an order that the certified public accountant- (Amended 18 of 2006 s. 74)

(i) pay the costs and expenses of and incidental to an investigation against him under Part VA; and
(ii) where the disciplinary proceedings were instituted as a result of an investigation under the

Financial Reporting Council Ordinance (Cap 588), pay to the FRC the sum the Disciplinary
Committee considers appropriate for the costs and expenses in relation or incidental to the
investigation reasonably incurred by the FRC; (Amended 18 of 2006 s. 74)

(da) an order that the practising certificate issued to the certified public accountant be cancelled; (Added
23 of 2004 s. 37)

(db) an order that a practising certificate shall not be issued to the certified public accountant either
permanently or for such period as the Disciplinary Committee may think fit, (Added 23 of 2004 s. 37)

(e) (Repealed 23 of 2004 s. 37)
and the Disciplinary Committee may in any case- (Amended 23 of 2004 s. 37)

(i) provide for an order to take effect on such date as the Disciplinary Committee thinks fit;
(ii) provide for an order to take effect only upon the happening or non-happening of such event within

such period as may be specified by the Disciplinary Committee;
(iii) make such order as the Disciplinary Committee thinks fit with regard to the payment of costs and

expenses of and incidental to the proceedings, whether of the Institute (including the costs and
expenses of the Disciplinary Committee) or of any complainant or of the certified public accountant,
and any costs and expenses or penalty ordered to be paid may be recovered as a civil debt. (Replaced
96 of 1994 s. 23. Amended 23 of 2004 ss. 37 & 54)

(1A) Where any rules made under section 51 provide for a re-hearing by a Disciplinary Committee of a
complaint referred to it under section 34, any order or decision made under subsection (1) shall, if a Disciplinary
Committee re-hears the complaint, cease to have effect and subsection (1) shall apply to such re-hearing as if it were
the original hearing. (Added 14 of 1985 s. 11. Amended 85 of 1995 s. 17)

(2) Nothing in this section shall be deemed to require a Disciplinary Committee to inquire into the question
whether a professional accountant was properly convicted but the Committee may consider the record of a case in
which such conviction was recorded and such other evidence as may show the nature and gravity of the offence.

(3) A Disciplinary Committee shall cause a copy of any order made under subsection (1)(a) or, if the order is
varied on appeal, the order as so varied to be published in the Gazette together with a summary of the nature of the
complaint to which the order relates:

Provided that no order shall be so published before the expiry of 30 days after the date of service of the order on
the professional accountant under section 38(1) or, in the case of an appeal made to the Court of Appeal against the
order under section 41, before the appeal is finally determined. (Amended 10 of 2005 s. 51)

(Amended 96 of 1994 s. 23)

Section: 35A Payment of fees to members of Disciplinary Committee 23 of 2004 08/09/2004


The Institute may pay fees at such rates as the Council may from time to time fix and such expenses as the
Council may deem fit to any members of a Disciplinary Committee for the performance by them of their duties or for
any work done by them, and such fees and expenses shall for the purpose of section 35(1) form part of the costs and
expenses of the Institute of and incidental to the disciplinary proceedings.

(Added 23 of 2004 s. 38)

Section: 35B Consent order L.N. 104 of 2007 16/07/2007


(1) Where a complaint that section 34(1)(a)(vi), (viii), (ix) or (x) applies to a certified public accountant is
referred to the Disciplinary Committee and the Disciplinary Committee, without hearing either the complainant or the
certified public accountant, is of the view that the complaint is of such a nature that if the complaint is proved, the
appropriate order or orders to be made should fall within one or more of the following orders under section 35-

(a) an order that the certified public accountant be reprimanded;



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 30

(b) an order that the certified public accountant pay a penalty not exceeding $50000 to the Institute;
(ba) an order that the certified public accountant pay to the FRC the sum the Disciplinary Committee

considers appropriate for the costs and expenses in relation or incidental to an investigation under the
Financial Reporting Council Ordinance (Cap 588) reasonably incurred by the FRC; (Added 18 of
2006 s. 75)

(c) an order that the certified public accountant pay the costs and expenses of and incidental to the
proceedings, whether of the Institute (including the costs and expenses of the Disciplinary Committee)
or of the complainant,

the Disciplinary Committee may give notice to the complainant and the certified public accountant.
(2) A notice given by the Disciplinary Committee under subsection (1) shall state-

(a) the order or orders, being order or orders no more than those referred to in subsection (1), which the
Disciplinary Committee proposes to make if the certified public accountant admits to the complaint;
and

(b) the time (being not earlier than 14 days from the date when the notice was given, or such further time
as the Disciplinary Committee may allow) within which each of the complainant and the certified
public accountant is required to inform the Disciplinary Committee as to whether he will consent to the
proposed order or orders.

(3) If the complainant and the certified public accountant consent to the proposed order or orders, the
Disciplinary Committee shall make an order or orders in terms of the proposed order or orders and such order and
orders shall be deemed to be an order or orders made under section 35, save that sections 38(2) and 41(1)(b)(iii) shall
not apply to such order or orders.

(4) If the complainant or the certified public accountant informs the Disciplinary Committee that he does not
consent to the proposed order or orders, or if the Disciplinary Committee considers that the consent of either the
complainant or the certified public accountant is not forthcoming notwithstanding the notice under subsection (2)(b),
the Disciplinary Committee shall inform the Council and the following shall apply-

(a) the Disciplinary Committee shall be dissolved;
(b) the Council shall constitute a new Disciplinary Committee to deal with the complaint with which the

dissolved committee was concerned by directing the Disciplinary Committee Convenor to appoint the
chairman and other members of the new Disciplinary Committee;

(c) a person who was a member of the dissolved committee shall not be eligible for membership of the
new Disciplinary Committee; and

(d) the new Disciplinary Committee shall deal with the complaint afresh without regard to this section
and, accordingly, it shall not have any regard to any proceedings of the dissolved committee, including
the proposed order or orders of the dissolved committee or any failure or refusal of the complainant or
the certified public accountant to consent to the proposed order or orders.

(Added 23 of 2004 s. 38)

Section: 36 Powers of Disciplinary Committee with regard to

obtaining evidence and the conduct of proceedings
23 of 2004 08/09/2004



(1) For the purposes of proceedings under section 35 a Disciplinary Committee shall have the following
powers-

(a) to take evidence on oath;
(b) to summon any person to attend the proceedings to give evidence or produce any document or other

thing in his possession and to examine him as a witness;
(c) (Repealed 23 of 2004 s. 39)
(d) to award to a witness such expenses as, in the opinion of a Disciplinary Committee, he has incurred by

reason of his attendance.
(1A) Every hearing of the Disciplinary Committee shall be held in public unless the Disciplinary Committee-

(a) on its own motion; or
(b) on the application of-

(i) the complainant; or
(ii) the certified public accountant against whom the complaint is made,

determines that in the interests of justice a hearing or any part thereof shall not be held in public in which case it may
hold the hearing or the part thereof (as the case may be) in private. (Added 23 of 2004 s. 39)



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 31

(2) A summons to a witness shall be in the prescribed form and shall be signed by the chairman of a
Disciplinary Committee.

(Amended 96 of 1994 s. 24)

Section: 37 Conduct of proceedings and legal representation 23 of 2004 08/09/2004


(1) At the hearing of a complaint-
(a) the complainant, or his solicitor or counsel, or, with the approval of the Disciplinary Committee, some

other person appointed by the complainant to represent him; or
(b) the Registrar or his solicitor or counsel or some other person appointed by the Registrar to represent

him; or
(c) a member of an Investigation Committee appointed under section 42C, or the solicitor or counsel of

such member, or some other person appointed by the Investigation Committee to represent it,
(Replaced 96 of 1994 s. 25)

shall present the case against the accountant whose conduct is the subject of proceedings under section 35.
(2) A certified public accountant whose conduct is the subject of such proceedings shall be entitled to be

represented by counsel or a solicitor, or, with the approval of the Disciplinary Committee, by some other person
appointed by the certified public accountant to represent him throughout the proceedings. (Amended 23 of 2004 s. 54)

(Amended 96 of 1994 s. 25; 23 of 2004 s. 40)

Section: 38 Provisions relating to orders of the Disciplinary Committee 10 of 2005 08/07/2005


(1) The Registrar shall cause a copy of any order made under section 35(1) to be served forthwith upon the
professional accountant concerned, either personally or by post addressed to his registered address. (Amended 96 of
1994 s. 26)

(2) The Registrar shall not remove the name of a certified public accountant from the register by virtue of an
order made under subsection (1)(a) of section 35, record a reprimand or penalty or an order to pay costs and expenses
or an order in respect of practising certificate in the register by virtue of an order made under subsection (1)(b), (c),
(d), (da) or (db) of that section or enforce payment of a penalty or costs or expenses under subsection (1)(c) or (d) of
that section before the expiry of 30 days after the date of service of the order on the accountant or, in the case of an
appeal made to the Court of Appeal against the order under section 41, before the appeal is finally determined.
(Replaced 96 of 1994 s. 26. Amended 23 of 2004 s. 54; 10 of 2005 s. 52)

(Amended 23 of 2004 s. 41)

Section: 39 Restoration of name of certified public accountant to

register
23 of 2004 08/09/2004



Restoration of name of certified public accountant to register
(Amended 23 of 2004 s. 54)


(1) A person whose name has been removed from the register under the provisions of this Ordinance may apply

to the Council for the restoration of his name to the register.
(2) The Council may, after making such inquiry as it may consider necessary, reject an application under

subsection (1) or allow it, subject to such conditions if any as it may think fit to impose.
(3) The Council shall, if it allows an application under subsection (1), order the Registrar to restore the name of

the applicant to the register and thereupon the Registrar shall restore the name accordingly.

Section: 40 Restriction on removal of name of certified public

accountant from register
23 of 2004 08/09/2004



Restriction on removal of name of certified public accountant from register
(Amended 23 of 2004 s. 54)


The name of a certified public accountant shall not be removed from the register by reason of any conviction



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 32

involving dishonesty if prior to the date of his registration the Council was aware of the conviction.
(Amended 23 of 2004 s. 54)


Section: 41 Appeals 10 of 2005 08/07/2005


(1) An appeal shall lie to the Court of Appeal by-
(a) any person whose application for registration has been rejected by an order under section 26(1);
(b) a certified public accountant- (Amended 23 of 2004 s. 54)

(i) whose name the Council has ordered under section 27(1)(a)(iii) or (iv) to be removed from the
register; (Amended 85 of 1995 s. 18)

(ii) whose application under section 30 for a practising certificate is refused; or
(iii) who is aggrieved by an order made in respect of him under section 35(1); (Amended 96 of 1994

s. 27; 85 of 1995 s. 18)
(c) a corporate practice-

(i) whose name the Council has ordered under section 27(1)(b) to be removed from the register;
(ii) in respect of which an order is made under section 35(1)(a) or (b), (Added 85 of 1995 s. 18)

and the Court of Appeal may confirm, vary or reverse the order or decision appealed against.
(2) (Repealed 10 of 2005 s. 47)
(3) In any such appeal the Court of Appeal may exercise such powers as are vested in it by the High Court

Ordinance (Cap 4) and the practice and procedure shall be in accordance with rules of court made under that
Ordinance: (Amended 25 of 1998 s. 2)

Provided that the Court of Appeal shall not hear any such appeal unless notice of the appeal has been given by
the appellant within 30 days after service upon him of-

(a) a copy of an order under section 26(1);
(b) a copy of an order under section 27(1)(a)(iii) or (iv); (Amended 14 of 1985 s. 12; 85 of 1995 s. 18)
(bb) a copy of an order under section 27(1)(b); (Added 85 of 1995 s. 18)
(c) a copy of a decision under section 30; or
(d) a copy of an order under section 35 (1). (Amended 96 of 1994 s. 27)

(Amended 23 of 2004 s. 42)

Section: 41A Application of disciplinary provisions to firms L.N. 152 of 2004 26/11/2004


Sections 33B, 34(1) (other than subparagraphs (i), (ii), (iii), (xi) and (xii) of paragraph (a)), 34(1A) except in so
far as it relates to those subparagraphs, 34(1)(b)(iii), 35, 35B, 36(1A), 37, 38, 39, 40 and 41 shall apply mutatis
mutandis to a firm of certified public accountants (practising) as they apply to a certified public accountant or, as the
case may be, to a corporate practice and so that in any proceedings against a firm of certified public accountants
(practising) it shall be sufficient to prove that the act or omission complained of was the act or omission of any of the
partners of the firm.

(Added 96 of 1994 s. 28. Amended 85 of 1995 s. 19; 23 of 2004 ss. 43 & 54)

Section: 41B Immunity 23 of 2004 08/09/2004


(1) The chairman or a member of the Disciplinary Committee performing any function under or pursuant to this
Part shall have the same privileges and immunities a judge of the Court of First Instance has in relation to civil
proceedings in that court.

(2) A party to any hearing or any witness, counsel, solicitor or person representing a party appearing before a
hearing shall have the same privileges or immunities such a party, witness, counsel, solicitor or person representing a
party respectively would have had in relation to civil proceedings in the Court of First Instance.

(Added 23 of 2004 s. 44)

Part: VA INVESTIGATIONS INTO MISCONDUCT OF

CERTIFIED PUBLIC ACCOUNTANTS*
23 of 2004 08/09/2004



(Part VA added 96 of 1994 s. 29)



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 33



___________________________________________________________
Note:
* (Amended 23 of 2004 s. 54)

Section: 42A Interpretation 23 of 2004 08/09/2004


In this Part, unless the context otherwise requires-
"chairman" (主席) means the chairman of an Investigation Committee.

Section: 42B Investigation Panels L.N. 152 of 2004 26/11/2004


(1) There shall be 2 Investigation Panels-
(a) Investigation Panel A shall consist of not less than 18 lay persons appointed by the Chief Executive of

whom one shall be appointed by the Chief Executive to be the Investigation Committee Convenor and
another to be his alternate;

(b) Investigation Panel B shall consist of not less than 12 certified public accountants appointed by the
Council of whom not less than 6 shall be holders of practising certificates. (Replaced 23 of 2004 s. 45)

(1A) The Investigation Committee Convenor shall not be appointed for a term exceeding 1 year but shall be
eligible for reappointment for a further term or terms of not exceeding 1 year each. (Added 23 of 2004 s. 45)

(1B) The alternate of the Investigation Committee Convenor shall act in place of the Investigation Committee
Convenor if the Investigation Committee Convenor is precluded by illness, absence from Hong Kong or any other
cause from performing his functions as such. (Added 23 of 2004 s. 45)

(2) A person who is a member of the Council or is for the time being appointed under section 33 shall be
disqualified for membership of any of the Investigation Panels and, accordingly, if a member of any of the
Investigation Panels either becomes a member of the Council or is so appointed his membership of any of the
Investigation Panels shall thereupon cease. (Amended 23 of 2004 s. 45)

Section: 42C Appointment of Investigation Committee L.N. 152 of 2004 26/11/2004


(1) Where pursuant to a direction under subsection (2) an Investigation Committee informs the Council that in
its opinion there is a prima facie case against the certified public accountant, the firm of certified public accountants
(practising) or corporate practice, the Council may in its discretion refer the matter to the Disciplinary Panels and
constitute a Disciplinary Committee pursuant to section 33(3) and the Disciplinary Committee concerned shall deal
with it as if it were a complaint referred to the Disciplinary Panels under section 34(1) and for that purpose the matter
shall be deemed to be a complaint made to the Registrar by the Investigation Committee.

(2) (a) Where the Council reasonably suspects or believes that-
(i) a certified public accountant has acted in a manner described in section 34(1)(a)(iii), (xi) or (xii);

(Amended 80 of 1997 s. 102)
(ii) subparagraph (iv), (v), (vi), (vii), (viii), (ix) or (x) of section 34(1)(a) applies to a certified public

accountant or a firm of certified public accountants (practising), (Amended 80 of 1997 s. 102)
(iii) section 34(1)(a) or (b), as applied by section 34(1AA), applies to a corporate practice, (Added

23 of 2004 s. 46)
the Council may, in its discretion, constitute an Investigation Committee and direct the Committee,
having considered the matter, to inform the Council as to whether in its opinion, were a complaint
made against him or it, the certified public accountant or firm or corporate practice concerned would
have a case to answer.

(b) The following provisions shall apply as regards an Investigation Committee-
(i) the Council shall direct the Investigation Committee Convenor to appoint the chairman and other

members of the Investigation Committee and the Investigation Committee Convenor shall act in
accordance with the direction; (Replaced 23 of 2004 s. 46)

(ii) the Investigation Committee shall consist of the following 5 members-
(A) a person appointed by the Investigation Committee Convenor from Investigation Panel A

who shall be the chairman of the Investigation Committee;
(B) 2 persons appointed by the Investigation Committee Convenor from Investigation Panel A;



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 34

and
(C) 2 persons appointed by the Investigation Committee Convenor from Investigation Panel B

of whom one shall be the holder of a practising certificate; (Replaced 23 of 2004 s. 46)
(iii) the Investigation Committee Convenor shall not be appointed as a member of an Investigation

Committee. (Replaced 23 of 2004 s. 46)
(Amended 23 of 2004 ss. 46 & 54)


Section: 42CA Referral of matter to FRC L.N. 104 of 2007 16/07/2007


(1) Where it appears to the Council that there are circumstances suggesting—
(a) that—

(i) a certified public accountant has acted in a manner described in section 34(1)(a)(iii), (xi) or (xii);
(ii) section 34(1)(a)(iv), (vi), (viii), (ix) or (x) applies to a certified public accountant or a firm of

certified public accountants (practising); or
(iii) section 34(1)(a) (as applied by section 34(1AA)) or (b) applies to a corporate practice; and

(b) that the matter constitutes a relevant irregularity in relation to a listed entity for the purposes of the
Financial Reporting Council Ordinance (Cap 588),

the Council shall refer the matter to the FRC and shall not, even if it may do so under section 42C(2)(a), constitute an
Investigation Committee in relation to the matter.

(2) For the avoidance of doubt, subsection (1) does not apply if a complaint of the matter is submitted to the
Council, or the matter otherwise comes to the Council’s attention, before the commencement* of section 76 of the
Financial Reporting Council Ordinance (Cap 588).

(Added 18 of 2006 s. 76)
______________________________________________________________________________
Note:
*Commencement date: 16 July 2007.

Section: 42D Powers of Investigation Committee as regards its

proceedings
23 of 2004 08/09/2004



(1) The following provisions shall apply as regards the proceedings of an Investigation Committee-
(a) any person to whom this paragraph applies, and whom the relevant Investigation Committee

reasonably believes to have in his possession or under his control any record or other document which
appears to that Committee as containing or being likely to contain information relevant to the
proceedings of the Committee, shall subject to subsection (5)-
(i) produce to the Committee or afford to the Committee access to, any record or other document

specified by the Committee which is of a class or description so specified and which is in his
possession or under his control being in either case a record or other document which is or
appears to the Committee to be relevant to the proceedings, within such time and at such place as
the Committee may reasonably require;

(ii) if so required by the Committee, give to it or him such explanation or further particulars in
respect of anything produced or to which access is given in compliance a requirement under
subparagraph (i) as the Committee shall specify;

(iii) give to the Committee all assistance in connection with its proceedings which he is reasonably
able to give;

(b) where any information or matter relevant to the proceedings of an Investigation Committee is recorded
otherwise than in legible form, any power to require the production of any record or other document
conferred under paragraph (a), shall include the power to require the production of a reproduction of
any such information or matter or of the relevant part of it in legible form;

(c) an Investigation Committee may inspect, examine or make copies of or take any abstract of or extract
from a record or document which may be required to be produced under paragraph (a) or (b);

(d) where-
(i) a copy of any record or document is supplied by any person for the purposes of this section;
(ii) a copy of any record or document is made in the exercise of any power conferred under this

section and a photocopying machine or other facility of a person is used to make such copy,



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 35

the Institute shall reimburse the person concerned the reasonable photocopying or other expenses
incurred in making such copy; (Amended 23 of 2004 s. 54)

(e) a person exercising any power under this section by virtue of a delegation under section 42E shall, if so
required by a person affected by such exercise, produce for inspection by such person the relevant
instrument referred to in section 42E or a copy thereof.

(2) Subsection (1)(a) applies-
(a) to the certified public accountant, firm of certified public accountants (practising) or corporate practice

to whom the Investigation Committee's proceedings relate and-
(i) where the proceedings relate to a certified public accountant, also to that accountant's employer

and former employer (if any) and to any employee or former employee of such accountant; and
(ii) where the proceedings relate to a firm of certified public accountants (practising) or corporate

practice, also to any employee or former employee of such firm or corporate practice; and
(b) to any certified public accountant, firm of certified public accountants (practising) or corporate

practice other than those specified in paragraph (a), and any employee or former employee of such
accountant, firm or corporate practice who is a certified public accountant or a student registered with
the Institute. (Replaced 23 of 2004 s. 47)

(3) A person who complies with a requirement of an Investigation Committee which is made by virtue of
subsection (1) shall not incur any liability to any other person by reason only of the compliance.

(4) A person is not excused from complying with a requirement of an Investigation Committee under
subsection (1) on the ground that to do so might tend to incriminate him but, where that person claims, before he
answers a question put to him under subsection (1)(a)(ii), that the answer might tend to incriminate him, neither the
question nor the answer is admissible in evidence against him in criminal proceedings.

(5) Nothing in this section shall be taken to compel the production by a person of a record or document
containing a privileged communication by or to a legal practitioner in that capacity.

Section: 42E Delegation of powers of Investigation Committee 30/06/1997


(1) An Investigation Committee may, by instrument in writing signed by its chairman, delegate to any person
holding such qualifications as the Council may from time to time prescribe all or any of the powers conferred on it by
section 42D.

(2) A refusal by a person to comply with any requirement made under section 42D by a person to whom the
relevant power is delegated under subsection (1) shall be treated as a refusal to comply with a requirement made under
that section by the Investigation Committee.

Section: 42F Payment of fees to members of Investigation Committee 23 of 2004 08/09/2004


The Institute may pay fees at such rates as the Council may form time to time fix and such expenses as the
Council may deem fit to members of an Investigation Committee, and to persons to whom the powers of the
Investigation Committee have been delegated under section 42E, for the performance by them of their duties or for
any work done by them, and such fees and expenses shall for the purposes of section 35(1) form part of the expenses
of and incidental to an investigation under this Part.

(Amended 23 of 2004 s. 54)

Section: 42G Secrecy L.N. 204 of 2006 01/12/2006


(1) Subject to subsection (2), and except in the performance, or assisting in the performance, of a function
under this Part, the Registrar, any member of the Investigation Committee or the Council, any person to whom any of
the powers of the Investigation Committee is delegated under section 42E(1) or any person holding any other position
who assists any of such persons in the performance of a function under this Part-

(a) shall at all times after his appointment as the Registrar, a member of the Investigation Committee or
the Council, a person to whom any of the powers of the Investigation Committee is delegated under
section 42E(1) or to such other position, as the case may be, or during or after the performance of or
assisting in the performance of such function, preserve and aid in preserving secrecy with regard to any
matter coming to his knowledge in the performance or in assisting in the performance of any such
function;



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 36

(b) shall not at any time communicate any such matter to any other person; and
(c) shall not at any such time suffer or permit any other person to have any access to any record, document

or other thing which is in his possession or under his control by virtue of his being or having been so
appointed or his having performed or having assisted any other person in the performance of such a
function.

(2) Subsection (1) shall not apply in relation to- (Amended 18 of 2006 s. 77)
(a) any disclosure made in relation to or for the purpose of any disciplinary proceedings under Part V or

criminal proceedings; or
(b) any disclosure to the FRC for the purpose of enabling or assisting the FRC to perform its functions

under the Financial Reporting Council Ordinance (Cap 588). (Amended 18 of 2006 s. 77)
(3) Any person who contravenes subsection (1) commits an offence and is liable on conviction to a fine at level

6 and to imprisonment for 6 months.

Section: 42H Immunity 23 of 2004 08/09/2004


No liability shall be incurred by any person in respect of anything done or omitted to be done by him in good
faith in the performance or exercise or purported performance or exercise of any function or power under this Part.

(Added 23 of 2004 s. 48)

Part: VI OFFENCES 30/06/1997




Section: 42 Offences and penalties L.N. 191 of 2013 24/01/2014


(1) Subject to this section, any person who-
(a) being summoned to attend as a witness or to produce a document or other thing under section 36(1)(b),

refuses or fails to do so or to answer any question put to him by the Disciplinary Committee;
(Amended 14 of 1985 s. 13)

(b) fraudulently procures himself or any other person to be registered by means of any misleading, false or
fraudulent representation or statement, either oral or in writing;

(c) makes or causes to be made any falsification in the register or in any matter relating to the register;
(d) personates or represents himself as being the person referred to in any certificate or document

presented to the Council or the Disciplinary Committee;
(e) falsely pretends to be qualified to practise as a certified public accountant (practising); (Amended 23

of 2004 s. 49)
(f) falsely takes or uses any name, initials, title, addition or description implying that he is qualified to be

registered as a certified public accountant or to practise as a certified public accountant (practising);
(Amended 23 of 2004 ss. 49 & 54)

(g) not being a certified public accountant, either directly or indirectly, practises as a certified public
accountant (practising); (Amended 23 of 2004 ss. 49 & 54)

(h) not being a certified public accountant-
(i) knowingly permits the use of or uses in connection with his business, trade, calling or profession

the description "professional accountant", "certified public accountant" or "certified accountant",
or the characters "專業會計師", "會計師" or "註冊會計師", or any written words, initials or
abbreviations of words intended to cause, or which may reasonably cause, any person to believe
that the person using the same is a certified public accountant; or

(ii) uses after or in conjunction with his name the initials "CPA"; (Replaced 23 of 2004 s. 49)
(ha) being a body corporate which is not a corporate practice- (Amended 15 of 2013 s. 4)

(i) provides, offers to provide or holds itself out as providing any professional service which only a
practice unit may lawfully provide; or (Amended 23 of 2004 s. 49)

(ii) advertises or represents itself as qualified to practise as a practice unit or permits itself to be so
advertised or represented; or (Amended 23 of 2004 s. 49)

(iii) uses in conjunction with its name the description "certified public accountant (practising)" or
"public accountant", or uses after or otherwise in conjunction with its name the initials "CPA



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 37

(practising)" or "PA" or the characters "執業會計師", "註冊核數師", "核數師" or "審計師",
or permits the use of or uses such description, initials or characters in connection with its
business; or (Added 85 of 1995 s. 20. Amended 80 of 1997 s. 108; 23 of 2004 s. 49; 15 of 2013
s. 4)

(iv) includes in, or uses in conjunction with, its name the description “certified public accountant”,
the initials “CPA” or the characters “會計師” (in each case other than as part of the
description, initials or characters referred to in subparagraph (iii)) with the intention of causing,
or in a way which may reasonably cause, a person to believe that it is a practice unit; (Added 15
of 2013 s. 4)

(i) not being a certified public accountant holding a practising certificate or not being a practice unit the
firm name of which is registered under section 28A- (Amended 23 of 2004 ss. 49 & 54)
(i) advertises, publishes or represents himself as qualified to practise as a certified public accountant

(practising) or knowingly permits himself to be so advertised, published or represented; or
(ii) takes or uses in conjunction with his name, or any name which he may have assumed or by

which he may describe himself, the description "certified public accountant (practising)" or
"public accountant" or uses after or in conjunction with his name the initials "CPA (practising)"
or "PA" or the characters "執業會計師", "註冊核數師", "核數師" or "審計師", or
knowingly permits the use of or uses such description, initials or characters in connection with
his business, trade, calling or profession; (Amended 14 of 1985 s. 13; 85 of 1995 s. 20, 80 of
1997 s. 108; 23 of 2004 s. 49)

(ia) being a certified public accountant who does not hold a practising certificate, carries on a business,
trade or profession in a name or style-
(i) otherwise than his own name without any addition as registered under section 22(2); and
(ii) which includes the description "certified public accountant", the initials "CPA" or the characters

"會計師"; (Added 23 of 2004 s. 49)
(j) being a corporate practice, fails to comply with any condition attached to the practice's registration by

virtue of section 28D(6)(c) or (9)(c)(i); (Added 85 of 1995 s. 20)
(k) signs a client's audit report which he is not qualified to sign at the time of signing or signs in the

manner described in section 28D(11)(b)(iii); (Added 85 of 1995 s. 20)
(l) being a certified public accountant (practising), a firm of certified public accountants (practising) or a

corporate practice, fails to notify the Registrar of a change of location of its registered office as
required by section 31(3), (Added 85 of 1995 s. 20. Amended 23 of 2004 s. 49)

shall be guilty of an offence and shall be liable on conviction as follows-
(i) in the case of an individual, to a fine at level 4 and to imprisonment for 12 months, except where the

offence is a failure described in paragraph (l) in which case he shall be liable to a fine at level 2; and
(ii) in the case of a firm of certified public accountants (practising) or in the case of a body corporate

(including a corporate practice) registered or formerly or never registered in the register, to a fine at
level 4 except where the offence is a failure described in paragraph (l) in which case it shall be liable to
a fine at level 2. (Amended 22 of 1977 s. 13; 85 of 1995 s. 20; 23 of 2004 s. 49; 15 of 2013 s. 4)

(2) Subsection (1) shall not apply in relation to the use by any member of any body or institute of accountants
outside Hong Kong, not being a certified public accountant, of any description or initials which he is entitled to use
under the constitution of that body or institute if by such use he does not represent that he is a certified public
accountant or is entitled to practise as a certified public accountant (practising). (Amended 23 of 1998 s. 2; 23 of 2004
ss. 49 & 54)

(3) No person shall be required to answer any question or produce any document or other thing which, in the
opinion of the Disciplinary Committee, may tend to incriminate him; and a witness shall, in respect of any evidence
given by him before the Disciplinary Committee, be entitled to the same privileges to which he would be entitled if he
were giving evidence before a court.

(4) (a) Where an offence under this section or section 31(4) has been committed by a corporate practice or
other body corporate and it is proved that the act or omission comprising the offence was that of a
director or other officer concerned in the management of the practice or other body corporate, the
director or other officer shall be guilty of the like offence. (Amended 15 of 2013 s. 4)

(b) In proceedings for an offence described in paragraph (a) it shall be a defence to satisfy the court that as
regards a relevant act or omission the defendant acted in a manner which, having regard to the



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 38

particular circumstances, was not unreasonable. (Added 85 of 1995 s. 20)
*(5) (Repealed 15 of 2013 s. 4)

(Amended E.R. 1 of 2013)
________________________________________________________________________________
Note:
* For transitional provision relating to the amendments made by the Professional Accountants (Amendment)

Ordinance 2013 (15 of 2013), see section 7 of the Amendment Ordinance.

Part: VII MISCELLANEOUS 30/06/1997




Section: 43 (Repealed 23 of 2004 s. 50) 23 of 2004 08/09/2004




Section: 44 Ordinance not to apply to public officers in connexion with
their duties

30/06/1997



This Ordinance shall not apply to the Director of Audit or to any other public officer in connexion with his
duties as such.

Section: 45 Fees and expenses 23 of 2004 08/09/2004


Subject to the provisions of this Ordinance, no person shall be entitled to recover any fees, remuneration or
expenses for or in respect of any appointment held or services rendered by him as a certified public accountant
(practising) unless he is a certified public accountant holding a practising certificate or a corporate practice.

(Amended 85 of 1995 s. 22; 23 of 2004 ss. 51 & 54)

Section: 46 Fees payable to Registrar of Companies 31 of 1999 01/07/1997


Remarks:
Adaptation amendments retroactively made - see 31 of 1999 s. 3


There shall be paid to the Registrar of Companies for the registration of any document required by this
Ordinance to be registered or to be delivered, sent or forwarded to the Registrar of Companies such fees as the Chief
Executive may prescribe by notice in the Gazette.

(Amended 8 of 1993 s. 4; 31 of 1999 s. 3)

Section: 47 (Repealed 96 of 1994 s. 30) 30/06/1997




Section: 48 Omission to give notice of meetings 23 of 2004 08/09/2004


The omission to give notice of any meeting of the Council or any general meeting of the Institute, or the failure
by a member of the Council or a certified public accountant to receive such a notice shall not invalidate the
proceedings at the meeting or any resolution passed thereat.

(Amended 23 of 2004 s. 54)

Section: 49 Resignation from the Institute 23 of 2004 08/09/2004


Resignation from the Institute
(Amended 23 of 2004 s. 54)


(1) A certified public accountant may, by notice in writing under his hand, tender to the Council his resignation

from the Institute.



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 39

(2) The resignation shall take effect upon the deletion from the register, with the approval of the Council, of the
certified public accountant's name.

(3) The Council may refuse to accept the resignation of a certified public accountant if- (Amended 23 of 2004
s. 54)

(a) it has reason to believe that such accountant has been guilty of conduct, or that circumstances exist,
which could justify the removal of his name from the register under section 35(1)(a);

(b) it is aware that a complaint concerning such accountant has been preferred and is before the Council or
the Disciplinary Committee; or

(c) the certified public accountant is indebted to the Institute.
(Amended 23 of 2004 s. 54)


Section: 50 Application of a corporate practice for removal from the

register
30/06/1997



(1) A corporate practice may apply in writing to the Council to be removed from the register.
(2) The provisions of section 49(2) and (3) shall apply mutatis mutandis to an application under this section.

(Added 85 of 1995 s. 23)

Section: 51 Power of Council to make rules L.N. 163 of 2013 03/03/2014


(1) The Council may make rules-
(a) specifying provisions to be included in the articles of association of companies applying for

registration under section 28E or registered in the register; (Amended 28 of 2012 ss. 912 & 920)
(b) specifying all or any of the terms on which insurance policies to which this section applies are to be

provided including terms as to run-offs;
(c) specifying the following amounts in Hong Kong dollars, namely, the minimum cover as regards any

particular claim by way of professional indemnity on foot of insurance policies to which this section
applies and the minimum aggregate cover provided as regards a specified period by way of such
indemnity;

(d) specifying 1 or more formulae or a scheme by the use of or by reference to which an amount, being
such minimum cover or minimum aggregate cover, is to be calculated or otherwise ascertained;

(e) enabling professional indemnity insurance to be effected by means of a policy covering all or any 1 or
more of the following-
(i) every certified public accountant for the time being; (Amended 23 of 2004 s. 54)
(ii) every firm for the time being of certified public accountants (practising); (Amended 23 of 2004

s. 52)
(iii) (Repealed 23 of 2004 s. 52)
(v) all such accountants, firms or practices as are of a class or description specified in the rules;

(f) regulating the conduct of inquiries by the Disciplinary Committee and for other matters relating to
such inquiries including re-hearings in specified circumstances; and

(g) providing for matters incidental or supplementary to any matter mentioned in the foregoing
paragraphs.

(2) Rules under this section may also relate to all companies described in subsection (1)(a) or all insurance
policies to which this section applies or to such companies or policies as are of a class or description specified in the
rules.

(3) This section applies to insurance policies of professional indemnity insurance which are, or are proposed to
be, effected, whether wholly or partly, for the purposes of section 28D.

(4) For the avoidance of doubt, it is hereby declared that section 34 of the Interpretation and General Clauses
Ordinance (Cap 1) does not apply to rules made under this section. (Added 23 of 2004 s. 52)

(Added 85 of 1995 s. 23)

Section: 52 Council may delegate 23 of 2004 08/09/2004


(1) The Council may delegate to any person or to a committee of the Council any of the powers or duties
granted to or imposed on the Council under this Ordinance, other than the power to make rules under section 51.



Cap 50 - PROFESSIONAL ACCOUNTANTS ORDINANCE 40

(2) Where the Council makes a delegation under subsection (1) it may at the same time authorize the person or
committee to whom the delegation is made to sub-delegate the power delegated and such authorization may contain
restrictions or conditions as regards the exercise of the power to sub-delegate under the authorization.

(Added 23 of 2004 s. 53)

Section: 53 Immunity for the members of the Council, etc. 23 of 2004 08/09/2004


No personal liability shall be incurred by any of the members of the Council, the Registrar or any officer or
employee of the Institute or any person to whom any powers or duties of the Council is delegated in respect of any act
done or any omission made by him in good faith in the performance or exercise or purported performance or exercise
of any function or power under this Ordinance.

(Added 23 of 2004 s. 53)

Schedule: SCHEDULE (Repealed 96 of 1994 s. 31) 30/06/1997

Related Laws