Companies Ordinance


Published: 2014-03-03

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Cap 622 - Companies Ordinance 1

Chapter: 622 Companies Ordinance Gazette Number Version Date

Long title L.N. 163 of 2013 03/03/2014


An Ordinance to reform and modernize Hong Kong company law, to restate part of the enactments relating to
companies, to make other provision relating to companies, and to provide for incidental and connected matters.


[Parts 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 13, 14, 15, 17, 18, 19

and 21
Part 2, except—

section 27(3), (4), (5) and (6) in so far as it relates to a
director or reserve director

sections 47, 49, 50, 51 and 52 and Subdivision 2 of
Division 7

Part 12, except—
section 643(1)(a)(ii), (2)(b) and (3)(b) in so far as it

relates to a correspondence address
sections 643(5), 644, 645(5), 647(4) and (5), 651 and

657(2)(g)
Part 16, except sections 791(4) and 802(4) and (5)
Part 20, except section 908
Schedules 1, 3, 4, 5, 7, 9 and 10
Schedule 2, except section 3(1)(a)(iii) and (2)
Schedule 6, except sections 3 and 4
Schedule 11, except section 115


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3 March 2014 L.N. 163 of 2013]

(Enacting provision omitted—E.R. 1 of 2013)


(Originally 28 of 2012)

Part: 1 Preliminary L.N. 163 of 2013 03/03/2014


(*Format changes—E.R. 1 of 2013)
____________________________________________________________________________
Note:
* The format of Part 1 has been updated to the current legislative styles.

Part:
Division:

1
1

Short Title and Commencement L.N. 163 of 2013 03/03/2014





Section: 1 Short title and commencement L.N. 163 of 2013 03/03/2014


(1) This Ordinance may be cited as the Companies Ordinance.
(2) This Ordinance comes into operation on a day to be appointed by the Secretary for Financial Services and the

Treasury by notice published in the Gazette.

Part:
Division:

1
2

Interpretation of this Ordinance: General L.N. 163 of 2013 03/03/2014







Cap 622 - Companies Ordinance 2

Section: 2 Interpretation L.N. 163 of 2013 03/03/2014


(1) In this Ordinance—
accounting transaction (會計交易) , in relation to a company, means a transaction that is required by section 373 to

be entered in the company’s accounting records, excluding a transaction arising from the payment of any fee
that the company is required by an Ordinance to pay;

articles (章程細則) , in relation to a company, means the articles of association of the company;
Note—

Please also see section 98. A condition of an existing company’s memorandum of association is to be regarded as a provision of the
company’s articles.

associated company (有聯繫公司) , in relation to a body corporate, means—
(a) a subsidiary of the body corporate;
(b) a holding company of the body corporate; or
(c) a subsidiary of such a holding company;

body corporate (法人團體) —
(a) includes—

(i) a company; and
(ii) a company incorporated outside Hong Kong; but

(b) excludes a corporation sole;
certified public accountant (practising) (執業會計師) has the meaning given by section 2(1) of the Professional

Accountants Ordinance (Cap 50);
commencement date (生效日期) , in relation to any provision of this Ordinance, means the date on which that

provision comes into operation;
Companies Register (公司登記冊) means the records kept under section 27;
company (公司) means—

(a) a company formed and registered under this Ordinance; or
(b) an existing company;

company secretary (公司秘書) includes any person occupying the position of company secretary (by whatever name
called);

contributory (分擔人), in relation to a company, means a person liable to contribute to the assets of the company in
the event of its being wound up;

Court means the Court of First Instance;
court (法院) means a court of competent jurisdiction of the Hong Kong Special Administrative Region and includes a

magistrate;
debenture (債權證), in relation to a company, includes debenture stock, bonds and any other debt securities of the

company, whether or not constituting a charge on the assets of the company;
director (董事) includes any person occupying the position of director (by whatever name called);
document (文件) includes—

(a) a summons, notice, order and any other legal process; and
(b) a register;

electronic record (電子紀錄) means a record generated in digital form by an information system, which can be—
(a) transmitted within an information system or from one information system to another; and
(b) stored in an information system or other medium;

existing company (原有公司) means a company formed and registered under a former Companies Ordinance;
financial year (財政年度 ) , in relation to a company, means a financial year of the company determined in

accordance with Division 3 of Part 9;
former Companies Ordinance (《舊有公司條例》) means—

(a) the Companies Ordinance 1865 (1 of 1865);
(b) the Companies Ordinance 1911 (58 of 1911); or
(c) the predecessor Ordinance;

founder member (創辦成員) —
(a) in relation to a company formed and registered under this Ordinance, means a person who signs on the



Cap 622 - Companies Ordinance 3

company’s articles for the purposes of section 67(1)(a); or
(b) in relation to an existing company, means a person who subscribed to or signed on the company’s

memorandum of association;
group of companies (公司集團) means any 2 or more bodies corporate one of which is the holding company of the

other or others;
identity card(身分證) means an identity card issued under the Registration of Persons Ordinance (Cap 177);
Index of Company Names (《公司名稱索引》) means the index of names kept under section 30;
information system (資訊系統) has the meaning given by section 2(1) of the Electronic Transactions Ordinance (Cap

553);
listed company (上市公司) means a company that has any of its shares listed on a recognized stock market;
listing rules (《上市規則》) means the rules made under section 23 of the Securities and Futures Ordinance (Cap

571) by a recognized exchange company that govern the listing of securities on a stock market it operates;
manager (經理) , in relation to a company—

(a) means a person who performs managerial functions in relation to the company under the directors’
immediate authority; but

(b) excludes—
(i) a receiver or manager of the company’s property; and
(ii) a special manager of the company’s estate or business appointed under section 216 of the Companies

(Winding Up and Miscellaneous Provisions) Ordinance (Cap 32);
member (成員) , in relation to a company, means—

(a) a founder member of the company; or
(b) a person who agrees to become a member of the company and whose name is entered, as a member, in the

company’s register of members;
non-Hong Kong company (非香港公司) means a company incorporated outside Hong Kong that—

(a) establishes a place of business in Hong Kong on or after the commencement date of Part 16; or
(b) has established a place of business in Hong Kong before that commencement date and continues to have a

place of business in Hong Kong at that commencement date;
officer (高級人員), in relation to a body corporate, includes a director, manager or company secretary of the body

corporate;
Official Receiver (破產管理署署長) means the Official Receiver appointed under the Bankruptcy Ordinance (Cap 6);
ordinary resolution (普通決議) —see section 563;
predecessor Ordinance (《前身條例》) means the Companies Ordinance (Cap 32) as in force from time to time

before the commencement date* of section 2 of Schedule 9;
recognized exchange company (認可交易所) means a company recognized under section 19(2) of the Securities and

Futures Ordinance (Cap 571) as an exchange company for operating a stock market;
recognized stock market (認可證券市場) has the meaning given by section 1 of Part 1 of Schedule 1 to the Securities

and Futures Ordinance (Cap 571);
redeemable shares (可贖回股份) means shares that are to be redeemed, or are liable to be redeemed, at the option of

the company or the shareholder;
registered non-Hong Kong company (註冊非香港公司) means a non-Hong Kong company that is registered in the

Companies Register as a registered non-Hong Kong company;
Registrar (處長) means the Registrar of Companies appointed under section 21(1);
reserve director (備任董事) , in relation to a private company, means a person nominated as a reserve director of the

company under section 455(1);
Secretary (局長) means the Secretary for Financial Services and the Treasury;
shadow director (幕後董事) , in relation to a body corporate, means a person in accordance with whose directions or

instructions (excluding advice given in a professional capacity) the directors, or a majority of the directors, of
the body corporate are accustomed to act;

share (股份) —
(a) means a share in a company’s share capital; and
(b) if any of the company’s shares is converted into stock, includes stock;



Cap 622 - Companies Ordinance 4

share warrant (股份權證) means a warrant—
(a) stating that the bearer is entitled to the shares specified in the warrant; and
(b) enabling the shares to be transferred by delivery of the warrant;

special resolution (特別決議) —see section 564;
specified form (指明格式) means the form specified under section 23;
unlisted company (非上市公司) means a company that does not have any of its shares listed on a recognized stock

market;
written resolution (書面決議) —see Subdivision 2 of Division 1 of Part 12.
(2) In this Ordinance—

(a) a reference to this Ordinance includes any subsidiary legislation made under this Ordinance; and
(b) a reference to a provision of the predecessor Ordinance, except in Part 21 and Schedule 11, includes the

provision, or such part of the provision, having a continuing effect under Schedule 11 or by virtue of section
23 of the Interpretation and General Clauses Ordinance (Cap 1).

(3) In this Ordinance—
(a) a reference to a manager of the property of a body corporate includes a manager of part of that property;
(b) a reference to a receiver of the property of a body corporate includes—

(i) a receiver of part of that property; and
(ii) a receiver of the income arising from that property or part of that property; and

(c) a reference to the appointment of a manager or receiver made under powers contained in an instrument
includes—
(i) an appointment made under powers conferred by an Ordinance; and
(ii) an appointment made under powers that, by virtue of an Ordinance, are implied in and have effect as if

contained in an instrument.
(4) For the purposes of this Ordinance—

(a) a document or information is sent or supplied in hard copy form if it is sent or supplied—
(i) in paper form; or
(ii) in a similar form capable of being read;

(b) a document or information is sent or supplied in electronic form if it is sent or supplied—
(i) by electronic means; or
(ii) by any other means while in electronic form; and

(c) a document or information is sent or supplied by electronic means if it is sent or supplied in the form of an
electronic record to an information system.

(5) In subsection (4)—
(a) a reference to sending a document—

(i) includes supplying, delivering, forwarding or producing the document and, in the case of a notice,
giving the document; but

(ii) excludes serving the document; and
(b) a reference to supplying information includes sending, delivering, forwarding or producing the information.

(6) A note located in the text of this Ordinance is provided for information only and has no legislative effect.
___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 3 Responsible person L.N. 163 of 2013 03/03/2014


(1) This section applies—
(a) where a provision of this Ordinance provides that a responsible person of a company or non-Hong Kong

company commits an offence if there is—
(i) a contravention of this Ordinance, or of a requirement, direction, condition or order; or
(ii) a failure to comply with a requirement, direction, condition or order; or

(b) where this Ordinance empowers a person to make subsidiary legislation that will contain such a provision.
(2) For the purposes of the provision, a person is a responsible person of a company or non-Hong Kong company if

the person—



Cap 622 - Companies Ordinance 5

(a) is an officer or shadow director of the company or non-Hong Kong company; and
(b) authorizes or permits, or participates in, the contravention or failure.

(3) For the purposes of the provision, a person is also a responsible person of a company or non-Hong Kong
company if—
(a) the person is an officer or shadow director of a body corporate that is an officer or shadow director of the

company or non-Hong Kong company;
(b) the body corporate authorizes or permits, or participates in, the contravention or failure; and
(c) the person authorizes or permits, or participates in, the contravention or failure.


Section: 4 Certified translation L.N. 163 of 2013 03/03/2014


(1) For the purposes of this Ordinance, a translation made in Hong Kong of a document is a certified translation if—
(a) it is certified as a correct translation of the document by the translator; and
(b) a person specified in subsection (3) certifies that in that person’s belief the translator is competent in

translating the document into English or Chinese (as the case may be).
(2) For the purposes of this Ordinance, a translation made in a place outside Hong Kong of a document is a certified

translation if—
(a) in the case of a translator specified in subsection (4), it is certified as a correct translation of the document

by the translator; or
(b) in the case of any other translator—

(i) it is certified as a correct translation of the document by the translator; and
(ii) a person specified in subsection (5) certifies that in that person’s belief the translator is competent in

translating the document into English or Chinese (as the case may be).
(3) The person specified for the purposes of subsection (1)(b) is—

(a) a notary public practising in Hong Kong;
(b) a solicitor practising in Hong Kong;
(c) a certified public accountant (practising);
(d) a consular officer in Hong Kong; or
(e) a professional company secretary practising in Hong Kong.

(4) The translator specified for the purposes of subsection (2)(a) is a translator appointed by a court of law of the
place.

(5) The person specified for the purposes of subsection (2)(b)(ii) is—
(a) a notary public practising in the place;
(b) a lawyer practising in the place;
(c) a professional accountant practising in the place;
(d) an officer of a court of law duly authorized by the law of the place to certify documents for any judicial or

other legal purpose;
(e) a consular officer in the place;
(f) a professional company secretary practising in the place; or
(g) any other natural person specified by the Registrar.

(6) The Secretary may, by notice published in the Gazette, amend subsection (3), (4) or (5).

Section: 5 Dormant company L.N. 163 of 2013 03/03/2014


(1) If a qualified private company passes a special resolution specified in subsection (2), and the resolution is
delivered to the Registrar for registration, the company is a dormant company for the purposes of Parts 9, 10 and
12 as from the date mentioned in subsection (2)(a) as declared by the resolution.

(2) The special resolution specified for the purposes of subsection (1) is one—
(a) declaring that the qualified private company will become dormant as from—

(i) the date of delivery of that resolution to the Registrar; or
(ii) any later date that is specified in that resolution; and

(b) authorizing the directors to deliver that resolution to the Registrar for registration.
(3) If—



Cap 622 - Companies Ordinance 6

(a) before the repeal of section 344A of the predecessor Ordinance by section 912, a company passed a special
resolution under subsection (1) of that section, and the resolution has not been delivered to the Registrar;
and

(b) the resolution is delivered to the Registrar for registration after the repeal,
the company is also a dormant company for the purposes of Parts 9, 10 and 12 as from the date of delivery of the

resolution to the Registrar or as from a later date as is specified in the resolution.
(4) If, immediately before the repeal of section 344A of the predecessor Ordinance by section 912, a company was a

dormant company for the purposes of that section, the company continues to be a dormant company for the
purposes of Parts 9, 10 and 12 as from the commencement date* of this section.

(5) A company that is a dormant company for the purposes of Parts 9, 10 and 12 ceases to be such dormant
company if—
(a) the company passes a special resolution declaring that the company intends to enter into an accounting

transaction, and the resolution is delivered to the Registrar for registration; or
(b) there is an accounting transaction in relation to the company.

(6) In this section—
qualified private company (合資格私人公司) means a private company that is not a company specified in subsection

(7).
(7) A company specified for the purposes of the definition of qualified private company in subsection (6) is—

(a) an authorized institution as defined by section 2(1) of the Banking Ordinance (Cap 155);
(b) an insurer as defined by section 2(1) and (2) of the Insurance Companies Ordinance (Cap 41);
(c) a corporation licensed under Part V of the Securities and Futures Ordinance (Cap 571) to carry on a

business in any regulated activity as defined by section 1 of Part 1 of Schedule 1 to that Ordinance;
(d) an associated entity, within the meaning of Part VI of the Securities and Futures Ordinance (Cap 571), of a

corporation mentioned in paragraph (c);
(e) an approved trustee as defined by section 2(1) of the Mandatory Provident Fund Schemes Ordinance (Cap

485);
(f) a company having a subsidiary that falls within paragraph (a), (b), (c), (d) or (e); or
(g) a company that fell within paragraph (a), (b), (c), (d), (e) or (f) at any time during the 5 years immediately

before the special resolution is passed.
(8) The Financial Secretary may, by notice published in the Gazette, amend subsection (7).
___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 6 Offering shares or debentures to public, etc. L.N. 163 of 2013 03/03/2014


(1) In this Ordinance, a reference to offering shares or debentures of a company to the public includes offering them
to a section of the public, whether selected—
(a) as members or debenture holders of the company;
(b) as clients of the person making the offer; or
(c) in any other manner.

(2) In this Ordinance and in a company’s articles, a reference to an invitation to the public to subscribe for shares
or debentures of a company includes an invitation to a section of the public, whether selected—
(a) as members or debenture holders of the company;
(b) as clients of the person making the invitation; or
(c) in any other manner.

(3) Neither subsection (1) nor subsection (2) operates to treat a private offer of shares or debentures, or a private
invitation to subscribe for shares or debentures, as an offer or invitation made to the public.

(4) In particular—
(a) a provision in a company’s articles prohibiting invitations to the public to subscribe for shares or

debentures is not to be regarded as prohibiting a private invitation to subscribe for shares or debentures to
be made to members or debenture holders; and

(b) the provisions of this Ordinance relating to private companies are to be construed accordingly.
(5) In this section, an offer of shares or debentures, or an invitation to subscribe for shares or debentures, is a private



Cap 622 - Companies Ordinance 7

offer or invitation if the offer or invitation can properly be regarded, in all the circumstances, as being—
(a) not calculated to result, directly or indirectly, in the shares or debentures becoming available for

subscription or purchase by persons other than those receiving the offer or invitation; or
(b) a domestic concern of the persons making and receiving the offer or invitation.


Part:
Division:

1
3

Interpretation of this Ordinance: Types of Companies L.N. 163 of 2013 03/03/2014





Part:
Division:
Subdivision:

1
3
1

Limited Company and Unlimited Company L.N. 163 of 2013 03/03/2014





Section: 7 Limited company L.N. 163 of 2013 03/03/2014


For the purposes of this Ordinance, a company is a limited company if it is a company limited by shares or by
guarantee.

Section: 8 Company limited by shares L.N. 163 of 2013 03/03/2014


(1) For the purposes of this Ordinance, a company is a company limited by shares if the liability of its members is
limited by the company’s articles to any amount unpaid on the shares held by the members.

(2) For the purposes of subsection (1), the liability of the members of an existing company is to be regarded as being
limited by the company’s articles to any amount unpaid on the shares held by the members if a condition of the
memorandum of association of the company stating that the liability of the members is limited is regarded as a
provision of the articles by virtue of section 98.


Section: 9 Company limited by guarantee L.N. 163 of 2013 03/03/2014


(1) For the purposes of this Ordinance, a company is a company limited by guarantee if—
(a) it does not have a share capital; and
(b) the liability of its members is limited by the company’s articles to the amount that the members undertake,

by those articles, to contribute to the assets of the company in the event of its being wound up.
(2) Subsection (1)(a) does not apply if the company was formed as, or became, a company limited by guarantee

under a former Companies Ordinance before 13 February 2004.

Section: 10 Unlimited company L.N. 163 of 2013 03/03/2014


For the purposes of this Ordinance, a company is an unlimited company if there is no limit on the liability of its
members.

Part:
Division:
Subdivision:

1
3
2

Private Company and Public Company L.N. 163 of 2014 03/03/2014





Section: 11 Private company L.N. 163 of 2013 03/03/2014


(1) For the purposes of this Ordinance, a company is a private company if—
(a) its articles—

(i) restrict a member’s right to transfer shares;
(ii) limit the number of members to 50; and



Cap 622 - Companies Ordinance 8

(iii) prohibit any invitation to the public to subscribe for any shares or debentures of the company; and
(b) it is not a company limited by guarantee.

(2) In subsection (1)(a)(ii)—
member(成員) excludes—

(a) a member who is an employee of the company; and
(b) a person who was a member while being an employee of the company and who continues to be a member

after ceasing to be such an employee.
(3) For the purposes of this section, 2 or more persons who hold shares in a company jointly are to be regarded as

one member.

Section: 12 Public company L.N. 163 of 2013 03/03/2014


For the purposes of this Ordinance, a company is a public company if—
(a) it is not a private company; and
(b) it is not a company limited by guarantee.


Part:
Division:

1
4

Interpretation of this Ordinance: Holding Company and
Subsidiary, and Parent Undertaking and Subsidiary
Undertaking

L.N. 163 of 2013 03/03/2014





Section: 13 Holding company L.N. 163 of 2013 03/03/2014


(1) For the purposes of this Ordinance, a body corporate is a holding company of another body corporate if—
(a) it controls the composition of that other body corporate’s board of directors;
(b) it controls more than half of the voting rights in that other body corporate; or
(c) it holds more than half of that other body corporate’s issued share capital.

(2) For the purposes of this Ordinance, a body corporate is also a holding company of another body corporate if it is
a holding company of a body corporate that is that other body corporate’s holding company.

(3) For the purposes of subsection (1)(a), a body corporate controls the composition of another body corporate’s
board of directors if it has power to appoint or remove all, or a majority, of that other body corporate’s
directors without any other person’s consent.

(4) For the purposes of subsection (3), a body corporate has the power to make such an appointment if—
(a) without the exercise of the power in a person’s favour by the body corporate, the person cannot be

appointed as a director of that other body corporate; or
(b) it necessarily follows from a person being a director or other officer of the body corporate that the person is

appointed as a director of that other body corporate.
(5) In subsection (1)(c), a reference to a body corporate’s issued share capital excludes any part of it that carries no

right to participate beyond a specified amount in a distribution of profits or capital.

Section: 14 Provisions supplementary to section 13 L.N. 163 of 2013 03/03/2014


(1) For the purposes of this Division—
(a) if any share is held, or any power is exercisable, by a body corporate in a fiduciary capacity, the share or

power is to be regarded as not being held or exercisable by the body corporate; and
(b) subject to subsections (2) and (3), if any share is held, or any power is exercisable, by a subsidiary of a body

corporate, or by a person as nominee for a body corporate or such a subsidiary, the share or power is to be
regarded as being held or exercisable by the body corporate.

(2) For the purposes of this Division, any share in another body corporate held, or any power in relation to another
body corporate exercisable, by a person by virtue of a debenture of that other body corporate, or of a trust deed
for securing an issue of such a debenture, is to be regarded as not being held or exercisable by the person.

(3) For the purposes of this Division, any share held, or any power exercisable, by a body corporate or a subsidiary
of a body corporate, or by a person as nominee for a body corporate or such a subsidiary, is to be regarded as not



Cap 622 - Companies Ordinance 9

being held or exercisable by the body corporate or subsidiary if—
(a) the ordinary business of the body corporate or subsidiary includes the lending of money; and
(b) the share or power is held or exercisable by way of security only for the purpose of a transaction entered

into in the ordinary course of that business.
(4) In subsection (1)(b), a reference to a body corporate or subsidiary excludes a body corporate or subsidiary that is

concerned only in a fiduciary capacity.

Section: 15 Subsidiary L.N. 163 of 2013 03/03/2014


For the purposes of this Ordinance, a body corporate is a subsidiary of another body corporate if that other body
corporate is a holding company of it.

Section: 16 Parent undertaking and subsidiary undertaking L.N. 163 of 2013 03/03/2014


A reference in this Ordinance to a parent undertaking or subsidiary undertaking is to be construed in accordance with
Schedule 1.

Part:
Division:

1
5

Application of this Ordinance L.N. 163 of 2013 03/03/2014





Section: 17 Application to existing company L.N. 163 of 2013 03/03/2014


(1) This Ordinance applies to an existing company, in the same manner as if—
(a) in the case of a company limited by guarantee, the company had been formed and registered under this

Ordinance as a company limited by guarantee;
(b) in the case of a limited company other than a company limited by guarantee, the company had been formed

and registered under this Ordinance as a company limited by shares; or
(c) in the case of a company other than a limited company, the company had been formed and registered under

this Ordinance as an unlimited company.
(2) For the purpose of applying this Ordinance to an existing company, a reference in this Ordinance to the date of

registration is to be read as the date on which the company was registered under a former Companies Ordinance.

Section: 18 Application to unlimited company registered in pursuance

of former Companies Ordinance as limited company
L.N. 163 of 2013 03/03/2014



(1) This Ordinance applies to an unlimited company registered as a limited company in pursuance of the
predecessor Ordinance or section 58 of the Companies Ordinance 1911 (58 of 1911), in the same manner as it
applies to an unlimited company registered under this Ordinance as a limited company.

(2) For the purpose of applying this Ordinance to a company mentioned in subsection (1), a reference in this
Ordinance to the date of registration is to be read as the date on which the company was registered in pursuance
of the predecessor Ordinance or section 58 of the Companies Ordinance 1911 (58 of 1911).


Section: 19 Application to company registered, but not formed, under

former Companies Ordinance
L.N. 163 of 2013 03/03/2014



(1) This Ordinance applies to a company registered, but not formed, under a former Companies Ordinance, in the
same manner as it applies to an eligible company registered under Part 17.

(2) For the purpose of applying this Ordinance to a company mentioned in subsection (1), a reference in this
Ordinance to the date of registration is to be read as the date on which the company was registered under the
former Companies Ordinance.





Cap 622 - Companies Ordinance 10

Part: 2 Registrar of Companies and Companies Register L.N. 163 of 2013 03/03/2014


(*Format changes—E.R. 1 of 2013)
____________________________________________________________________________
Note:
* The format of Part 2 has been updated to the current legislative styles.

Part:
Division:

2
1

Preliminary L.N. 163 of 2013 03/03/2014





Section: 20 Interpretation L.N. 163 of 2013 03/03/2014


(1) In this Part—
company (公司) includes—

(a) a non-Hong Kong company registered under section 777(1); or
(b) a company that was, at any time before the commencement date of Part 16, registered in the register kept

under section 333AA of the predecessor Ordinance;
digital signature (數碼簽署) has the meaning given by section 2(1) of the Electronic Transactions Ordinance (Cap

553);
document (文件) includes a document in electronic form or any other form;
electronic signature (電子簽署) has the meaning given by section 2(1) of the Electronic Transactions Ordinance (Cap

553);
in electronic form (電子形式) means in the form of an electronic record;
in hard copy form (印本形式) means in a paper form or similar form capable of being read.
(2) In this Part, a reference to delivering a document includes sending, supplying, forwarding or producing it.

Part:
Division:

2
2

Registrar of Companies L.N. 163 of 2013 03/03/2014





Section: 21 Office of Registrar L.N. 163 of 2013 03/03/2014


(1) The Chief Executive may appoint a person to be the Registrar of Companies.
(2) The Chief Executive may appoint other officers for the purposes of this Ordinance.
(3) For the purpose of the registration of companies under this Ordinance, an office is to be established at a place

designated by the Chief Executive.
(4) The Chief Executive may direct a seal to be prepared for the authentication of documents required for or

connected with the performance of the Registrar’s functions.

Section: 22 Registrar’s functions L.N. 163 of 2013 03/03/2014


The Registrar’s functions are those conferred on the Registrar by or under this Ordinance or any other Ordinance.

Section: 23 Registrar may specify form L.N. 163 of 2013 03/03/2014


(1) The Registrar may specify the form of any document required for the purposes of this Ordinance.
(2) Subsection (1) does not apply to a document—

(a) the form of which is prescribed by this Ordinance; or
(b) the form of which is or may be prescribed by regulations made under this Ordinance.

(3) In specifying the form of a document under subsection (1), the Registrar may specify more than one form of the
document, whether as alternatives or to provide for different circumstances.





Cap 622 - Companies Ordinance 11

Section: 24 Registrar may issue guidelines L.N. 163 of 2013 03/03/2014


(1) The Registrar may issue guidelines—
(a) indicating the manner in which the Registrar proposes to perform any function or exercise any power; or
(b) providing guidance on the operation of any provision of this Ordinance.

(2) The Registrar—
(a) must publish the guidelines in a manner appropriate to bring them to the notice of persons affected by them;

and
(b) must make copies of the guidelines available to the public (in hard copy form or electronic form).

(3) Guidelines issued under this section are not subsidiary legislation.
(4) The Registrar may amend or revoke any of the guidelines. Subsections (2) and (3) apply to an amendment or

revocation of guidelines in the same way as they apply to the guidelines.
(5) A person does not incur any civil or criminal liability only because the person has contravened any of the

guidelines. If, in any legal proceedings, the court is satisfied that a guideline is relevant to determining a matter
that is in issue—
(a) the guideline is admissible in evidence in the proceedings; and
(b) proof that the person contravened or did not contravene the guideline may be relied on by any party to the

proceedings as tending to establish or negate the matter.

Section: 25 Registrar may authenticate document etc. L.N. 163 of 2013 03/03/2014


(1) If a document is required by this Ordinance to be signed by the Registrar or to bear the Registrar’s printed
signature, the Registrar may authenticate it in any manner that the Registrar thinks fit.

(2) If anything is authorized to be certified by the Registrar under this Ordinance or any other Ordinance, the
Registrar may certify it in any manner that the Registrar thinks fit.


Section: 26 Fees payable to Registrar L.N. 163 of 2013 03/03/2014


(1) The Financial Secretary may make regulations to require payment to the Registrar of fees in respect of—
(a) the performance of any of the Registrar’s functions; or
(b) the provision by the Registrar of services or facilities for purposes incidental to, or otherwise connected

with, the performance of any of the Registrar’s functions.
(2) The regulations may—

(a) provide for the amount of the fees to be fixed by or determined under the regulations;
(b) provide for different fees to be payable in respect of the same matter in different circumstances; and
(c) specify when and how fees are to be paid.

(3) The Registrar—
(a) may, subject to the approval of the Financial Secretary, determine what fees are chargeable in respect of the

performance of functions or the provision of services or facilities—
(i) for which fees are not provided for by the regulations; or
(ii) in circumstances other than those for which fees are provided by the regulations; and

(b) may charge such fees.
(4) Fees received by the Registrar must be paid into the general revenue, unless the fees are required by section 5 of

the Trading Funds Ordinance (Cap 430) to be paid into the Companies Registry Trading Fund.

Part:
Division:

2
3

Companies Register L.N. 163 of 2013 03/03/2014





Section: 27 Registrar must keep records of companies L.N. 163 of 2013 03/03/2014


Remarks:
Section 27(3), (4), (5) and (6) in so far as it relates to a director or reserve director is not yet in operation.



Cap 622 - Companies Ordinance 12


(1) The Registrar must keep records of—

(a) the information contained in every document that is delivered to the Registrar for registration and that the
Registrar decides to register under this Part;

(b) the information contained in every certificate that is issued by the Registrar under this Ordinance; and
(c) the information contained in every prospectus registered by the Registrar under section 38D or 342C of the

Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap 32).
(2) The Registrar must continue to keep the records that were, immediately before the commencement date of this

section, kept for the purpose of a register of companies under the predecessor Ordinance.
(3) For the purposes of subsections (1) and (2), the Registrar must record the specified address as the

correspondence address of a director, reserve director or company secretary of the following company—
(a) an existing company;
(b) a company falling within paragraph (a) of the definition of company in section 20(1) that is registered under

section 777(1) by virtue of section 132 of Schedule 11; or
(c) a company falling within paragraph (b) of the definition of company in section 20(1).

(4) After the specified address is recorded under subsection (3) as the correspondence address of a director, reserve
director or company secretary of a company, the Registrar must update the entry of such correspondence address
with—
(a) the latest address of the company’s registered office contained in a notice of change of address of the

company’s registered office—
(i) that is sent under section 92(3) of the predecessor Ordinance or section 658(3); and
(ii) that is registered by the Registrar under this Part; or

(b) the latest address of the company’s principal place of business in Hong Kong contained in a return in
respect of the change of address of the company’s principal place of business in Hong Kong—
(i) that is delivered under section 335(1)(d) of the predecessor Ordinance or section 791(1); and
(ii) that is registered by the Registrar under this Part.

(5) Subsection (4) does not apply if, in relation to the director, reserve director or company secretary of a company

(a) a notice or return is delivered under section 645(4), 652(2) or 791(1) in respect of a change of the person’s

correspondence address; and
(b) the notice or return is registered by the Registrar under this Part.

(6) For the purposes of subsection (3), an address is the specified address in relation to a director, reserve director or
company secretary of a company if—
(a) immediately before the commencement date of this section, the address was shown on the register of

companies under the predecessor Ordinance as the address of the company’s registered office or principal
place of business in Hong Kong;

(b) the address is contained, as the address of the company’s registered office, in an incorporation form—
(i) delivered before the commencement date* of Division 1 of Part 3 to the Registrar for registration

under section 15(1) of the predecessor Ordinance; and
(ii) registered on or after that commencement date* under section 16(1) of the predecessor Ordinance; or

(c) the address is contained, as the address of the company’s principal place of business in Hong Kong, in an
application for registration delivered before the commencement date of Division 2 of Part 16 to the
Registrar under section 333 of the predecessor Ordinance and the registration takes place under section
777(1).

___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 28 Provisions supplementary to section 27 L.N. 163 of 2013 03/03/2014


(1) The records kept under section 27 must be such that information relating to a company is associated with the
company in a manner determined by the Registrar, so as to enable all the information relating to the company to
be retrieved.



Cap 622 - Companies Ordinance 13

(2) A record of information for the purposes of section 27(1) must be kept in such form as to enable any person to
inspect the information contained in the record and to make a copy of the information.

(3) Subject to subsections (1) and (2), a record of information for the purposes of section 27(1) may be kept in any
form that the Registrar thinks fit.

(4) If the Registrar keeps a record of information in a form that differs from the form in which the document
containing the information was delivered to, or generated by, the Registrar, the record is presumed, unless the
contrary is proved, to represent the information contained in the document as delivered or generated.

(5) If the Registrar records the information contained in a document for the purposes of section 27(1), the Registrar
is to be regarded as having discharged any duty imposed by law on the Registrar to keep, file or register the
document.


Section: 29 Registrar not required to keep certain documents etc. L.N. 163 of 2013 03/03/2014


(1) The Registrar may destroy or dispose of any document delivered to the Registrar for registration under an
Ordinance if the information contained in the document has been recorded by the Registrar in any other form for
the purposes of section 27(1) or for the purpose of a register of companies under the predecessor Ordinance.

(2) If a document or certificate has been kept by the Registrar for at least 7 years for the purposes of section 27(1) or
for the purpose of a register of companies under the predecessor Ordinance, the Registrar may destroy or dispose
of the document or certificate.

(3) If the Registrar is required by section 48 not to make any information available for public inspection, the
Registrar is not required to keep a record of the information for any longer than appears to the Registrar to be
reasonably necessary for the purpose for which the information was delivered to the Registrar.


Section: 30 Registrar must keep Index of Company Names L.N. 163 of 2013 03/03/2014


The Registrar must keep an index of the names of every company.

Part:
Division:

2
4

Registration of Document L.N. 163 of 2013 03/03/2014





Part:
Division:
Subdivision:

2
4
1

Preliminary L.N. 163 of 2013 03/03/2014





Section: 31 Unsatisfactory document L.N. 163 of 2013 03/03/2014


(1) For the purposes of this Division, a document delivered to the Registrar for registration is unsatisfactory if—
(a) the information contained in the document is not capable of being reproduced in legible form;
(b) in the case of a document that is neither in English nor in Chinese, it is not accompanied by a certified

translation of it in English or Chinese;
(c) the requirements specified in relation to the document under section 32 are not complied with;
(d) the document is not delivered in accordance with an agreement made under section 33, and any regulations

made under section 34, in relation to it;
(e) the applicable requirements of the Ordinance under which the document is delivered are not complied with;
(f) the document is not accompanied by the fee payable for the registration;
(g) the document, or any signature on, or any digital or electronic signature accompanying, the document—

(i) is incomplete or incorrect; or
(ii) is altered without proper authority;

(h) the information contained in the document—
(i) is internally inconsistent; or
(ii) is inconsistent with other information on the Companies Register or other information contained in

another document delivered to the Registrar;



Cap 622 - Companies Ordinance 14

(i) the information contained in the document derives from anything that—
(i) is invalid or ineffective; or
(ii) has been done without the company’s authority; or

(j) the document contains matters contrary to law.
(2) In this section—
applicable requirements(適用規定), in relation to a document, means the requirements as regards—

(a) the contents of the document;
(b) the form of the document;
(c) the authentication of the document; and
(d) the manner of delivery of the document.


Section: 32 Registrar may specify requirements (for section 31(1)) L.N. 163 of 2013 03/03/2014


(1) The Registrar may, in relation to any document required or authorized to be delivered to the Registrar under an
Ordinance—
(a) specify requirements for the purpose of enabling the Registrar to make copies or image records of the

document and to keep records of the information contained in it;
(b) specify requirements as to the authentication of the document; and
(c) specify requirements as to the manner of delivery of the document.

(2) The Registrar may, in relation to any document authorized to be delivered to the Registrar for registration under
section 41(3) for the purpose of rectification of an error, specify requirements as to—
(a) the delivery of the document in a form and manner enabling it to be associated with the document

containing the error; and
(b) the identification of the document containing the error.

(3) For the purposes of subsections (1) and (2), the Registrar may specify different requirements for different
documents or classes of documents, or for different circumstances.

(4) For the purposes of subsection (1)(b), the Registrar may—
(a) require the document to be authenticated by a particular person or a person of a particular description;
(b) specify the means of authentication; and
(c) require the document to contain, or to be accompanied by, the name or registration number, or both, of the

company to which it relates.
(5) For the purposes of subsection (1)(c), the Registrar may—

(a) require the document to be in hard copy form, electronic form or any other form;
(b) require the document to be delivered by post or any other means;
(c) specify requirements as to the address to which the document is to be delivered; and
(d) in the case of a document to be delivered by electronic means, specify requirements as to the hardware and

software to be used and the technical specifications.
(6) This section does not empower the Registrar—

(a) to require a document to be delivered to the Registrar by electronic means; or
(b) to specify any requirement that is inconsistent with any requirement prescribed by an Ordinance as to—

(i) the authentication of the document; and
(ii) the manner of delivery of the document to the Registrar.

(7) Requirements specified under this section are not subsidiary legislation.

Section: 33 Registrar may agree to delivery by electronic means (for

section 31(1))
L.N. 163 of 2013 03/03/2014



(1) The Registrar may enter into an agreement with a company to provide that any document, or any class of
document, that relates to the company, and is required or authorized to be delivered to the Registrar under an
Ordinance—
(a) will be delivered by electronic means, except as provided for in the agreement; and
(b) will conform to the requirements—

(i) specified in the agreement; or



Cap 622 - Companies Ordinance 15

(ii) specified by the Registrar in accordance with the agreement.
(2) An agreement with a company may also provide that any document, or any class of document, that relates to the

company, and is required or authorized to be delivered by the Registrar to it under an Ordinance, will be
delivered by electronic means.

(3) The Registrar may specify a standard form for an agreement and the extent to which the form is to be used.
(4) This section does not empower the Registrar to make any agreement that is inconsistent with regulations made

under section 34.

Section: 34 Financial Secretary may make regulations requiring

delivery by electronic means (for section 31(1))
L.N. 163 of 2013 03/03/2014



(1) The Financial Secretary may make regulations requiring any document required or authorized to be delivered to
the Registrar under an Ordinance to be delivered by electronic means.

(2) The regulations are subject to the approval of the Legislative Council.

Part:
Division:
Subdivision:

2
4
2

Registrar’s Powers to Refuse to Accept and to Register
Document

L.N. 163 of 2013 03/03/2014





Section: 35 Registrar may refuse to accept or register document L.N. 163 of 2013 03/03/2014


(1) If the Registrar is of the opinion that a document delivered to him or her for registration under an Ordinance is
unsatisfactory, the Registrar—
(a) may refuse to accept the document; or
(b) may, after having accepted the document, exercise the powers specified in subsection (3) or (4).

(2) Subsection (1) does not apply to a prospectus as defined by section 2(1) of the Companies (Winding Up and
Miscellaneous Provisions) Ordinance (Cap 32).

(3) The Registrar may refuse to register the document and return the document to the person who delivered it for
registration.

(4) The Registrar may also advise that—
(a) the document be appropriately amended or completed, and be redelivered for registration with or without a

supplementary document; or
(b) a fresh document be delivered for registration in its place.

(5) If the Registrar—
(a) refuses to accept a document under subsection (1)(a);
(b) has not received a document; or
(c) refuses to register a document under subsection (3),

the document is to be regarded as not having been delivered to the Registrar in satisfaction of the provision of
the Ordinance that requires or authorizes the document to be delivered to the Registrar.


Section: 36 Registrar may withhold registration of document pending

further particulars etc.
L.N. 163 of 2013 03/03/2014



For the purpose of determining whether the powers specified in section 35(3) and (4) are exercisable in relation to a
document, the Registrar may—

(a) withhold the registration of the document pending compliance with the request under paragraph (b); and
(b) request the person who is required or authorized to deliver the document to the Registrar for registration

under the Ordinance to do any or all of the following within a period specified by the Registrar—
(i) to produce any other document, information or evidence that, in the Registrar’s opinion, is necessary

for the Registrar to determine the question as to whether the document is unsatisfactory;
(ii) to appropriately amend or complete the document, and redeliver it for registration with or without a

supplementary document;
(iii) to apply to the court for any order or direction that the Registrar thinks necessary and to conduct the



Cap 622 - Companies Ordinance 16

application diligently;
(iv) to comply with other directions of the Registrar.


Section: 37 Appeal against Registrar’s decision to refuse registration L.N. 163 of 2013 03/03/2014


(1) If a person is aggrieved by a decision of the Registrar to refuse to register a document under section 35(3), the
person may, within 42 days after the decision, appeal to the Court against the decision.

(2) The Court may make any order that it thinks fit, including an order as to costs.
(3) If the Court makes an order as to costs against the Registrar under subsection (2), the costs are payable out of the

general revenue, and the Registrar is not personally liable for the costs.

Section: 38 Certain period to be disregarded for calculating daily

penalty for failure to deliver document to Registrar
L.N. 163 of 2013 03/03/2014



(1) This section applies if—
(a) a document is delivered to the Registrar for registration under an Ordinance; and
(b) the Registrar refuses to register the document under section 35(3).

(2) The Registrar must send a notice of the refusal, and the reasons for the refusal, to—
(a) the person who is required to deliver the document to the Registrar for registration under the Ordinance or,

if there is more than one person who is so required, any of those persons; or
(b) if another person delivers, on behalf of the person so required, the document to the Registrar for

registration, that other person.
(3) If a notice is sent to a person under subsection (2) with respect to a document, the period specified in subsection

(4) is to be disregarded for the purpose of calculating the daily penalty under an Ordinance that makes it an
offence for failing to comply with a requirement to deliver the document and that imposes a penalty for each day
during which the offence continues.

(4) The period is one beginning on the date on which the document was delivered to the Registrar and ending with
the fourteenth day after the date on which the notice is sent under subsection (2).


Part:
Division:

2
5

Registrar’s Powers in relation to Keeping Companies
Register

L.N. 163 of 2013 03/03/2014





Section: 39 Registrar may require company to resolve inconsistency
with Companies Register

L.N. 163 of 2013 03/03/2014



(1) If it appears to the Registrar that the information contained in a document registered by the Registrar in respect
of a company is inconsistent with other information relating to the company on the Companies Register, the
Registrar may give notice to the company—
(a) stating in what respect the information contained in the document appears to be inconsistent with other

information on the Companies Register; and
(b) requiring the company to take steps to resolve the inconsistency.

(2) For the purposes of subsection (1)(b), the Registrar may require the company to deliver to the Registrar within
the period specified in the notice—
(a) information required to resolve the inconsistency; or
(b) evidence that proceedings have been commenced by the company in the Court for the purpose of resolving

the inconsistency and that the proceedings are being conducted diligently.
(3) If a company fails to comply with a requirement under subsection (1)(b), the company, and every responsible

person of the company, commit an offence, and each is liable to a fine at level 5 and, in the case of a continuing
offence, to a further fine of $1000 for each day during which the offence continues.

(4) If a person is charged with an offence under subsection (3) for failure to comply with a requirement, it is a
defence to establish that the person took all reasonable steps to secure compliance with the requirement.





Cap 622 - Companies Ordinance 17

Section: 40 Registrar may require further information for updating
etc.

L.N. 163 of 2013 03/03/2014



(1) For the purpose of ensuring that a person’s information on the Companies Register is accurate or bringing the
information up to date, the Registrar may send a notice to the person requiring the person to give the Registrar,
within a period specified by the Registrar, any information about the person, being information of the kind that is
included on the Companies Register.

(2) If a person fails to comply with a requirement under subsection (1)—
(a) where the person is a company, the company, and every responsible person of the company, commit an

offence; or
(b) where the person is not a company, the person commits an offence.

(3) A person who commits an offence under subsection (2) is liable to a fine at level 5 and, in the case of a
continuing offence, to a further fine of $1000 for each day during which the offence continues.

(4) If a person is charged with an offence under subsection (2) for failure to comply with a requirement, it is a
defence to establish that the person took all reasonable steps to secure compliance with the requirement.


Section: 41 Registrar may rectify typographical or clerical error in

Companies Register
L.N. 163 of 2013 03/03/2014



(1) The Registrar may, on his or her own initiative, rectify a typographical or clerical error contained in any
information on the Companies Register.

(2) The Registrar may, on application by a company, rectify a typographical or clerical error contained in any
information relating to the company on the Companies Register.

(3) If, in relation to an application for the purposes of subsection (2), a document showing the rectification is
delivered to the Registrar for registration, the Registrar may rectify the error by registering the document.


Section: 42 Registrar must rectify information on Companies Register

on order of Court
L.N. 163 of 2013 03/03/2014



(1) The Court may, on application by any person, by order direct the Registrar to rectify any information on the
Companies Register or to remove any information from it if the Court is satisfied that—
(a) the information derives from anything that—

(i) is invalid or ineffective; or
(ii) has been done without the company’s authority; or

(b) the information—
(i) is factually inaccurate; or
(ii) derives from anything that is factually inaccurate or forged.

(2) If, in relation to an application for the purposes of subsection (1), a document showing the rectification is filed
with the Court, the Court may require the Registrar to rectify the information by registering the document.

(3) This section does not apply if the Court is specifically empowered under any other Ordinance or any other
provision of this Ordinance to deal with the rectification of the information on or the removal of the information
from the Companies Register.

(4) The Court must not order the removal of any information from the Companies Register under subsection (1)
unless it is satisfied that—
(a) even if a document showing the rectification in question is registered, the continuing presence of the

information on the Companies Register will cause material damage to the company; and
(b) the company’s interest in removing the information outweighs the interest of other persons in the

information continuing to appear on the Companies Register.
(5) If the Court makes an order for the rectification of any information on or the removal of any information from

the Companies Register under subsection (1), the Court may make any consequential order that appears to it to
be just with respect to the legal effect (if any) to be accorded to the information by virtue of its having appeared
on the Companies Register.

(6) If the Court makes an order for the removal of any information from the Companies Register under subsection



Cap 622 - Companies Ordinance 18

(1), it may direct—
(a) that a note made under section 44(1) in relation to the information is to be removed from the Companies

Register;
(b) that the order is not to be made available for public inspection as part of the Companies Register; and
(c) that—

(i) no note is to be made under section 44(1) as a result of the order; or
(ii) any such note is to be restricted to providing information in relation to the matters specified by the

Court.
(7) The Court must not give a direction under subsection (6) unless it is satisfied that—

(a) any of the following may cause damage to the company—
(i) the presence on the Companies Register of the note or an unrestricted note (as the case may be);
(ii) the availability for public inspection of the order; and

(b) the company’s interest in non-disclosure outweighs the interest of other persons in disclosure.
(8) If the Court makes an order under this section, the person who made the application must deliver an office copy

of the order to the Registrar for registration.

Section: 43 Registrar may appear in proceedings for rectification L.N. 163 of 2013 03/03/2014


(1) In any proceedings before the Court for the purposes of section 42, the Registrar—
(a) is entitled to appear or be represented, and be heard; and
(b) must appear if so directed by the Court.

(2) Whether or not the Registrar appears in those proceedings, the Registrar may submit to the Court a statement in
writing signed by the Registrar, giving particulars of the matters relevant to the proceedings and within the
Registrar’s knowledge.

(3) Unless otherwise directed by the Court, a statement submitted under subsection (2) is to be regarded as forming
part of the evidence in the proceedings.


Section: 44 Registrar may annotate Companies Register L.N. 163 of 2013 03/03/2014


(1) The Registrar may make a note in the Companies Register for the purpose of providing information in relation to

(a) a rectification of an error contained in any information on the Companies Register under section 41;
(b) a rectification of any information on the Companies Register under section 42;
(c) a removal of any information from the Companies Register under section 42; or
(d) any other information on the Companies Register.

(2) For the purposes of this Ordinance, a note made under subsection (1) is part of the Companies Register.
(3) The Registrar may remove a note if the Registrar is satisfied that it no longer serves any useful purpose.

Part:
Division:

2
6

Inspection of Companies Register L.N. 163 of 2013 03/03/2014





Section: 45 Registrar must make Companies Register available for
public inspection

L.N. 163 of 2013 03/03/2014



(1) The Registrar must make the Companies Register available for public inspection at all reasonable times so as to
enable any member of the public—
(a) to ascertain whether the member of the public is dealing with—

(i) a company to which this subsection applies, or its directors or other officers, in matters of or connected
with any act of the company;

(ii) a director or other officers of such a company in matters of or connected with the administration of the
company, or of its property;

(iii) a person against whom a disqualification order has been made by a court;



Cap 622 - Companies Ordinance 19

(iv) a person who has entered into possession of the property of such a company as mortgagee;
(v) a person who is appointed as the provisional liquidator or liquidator in the winding up of such a

company; or
(vi) a person who is appointed as the receiver or manager of the property of such a company; and

(b) to ascertain the particulars of the company, its directors or other officers, or its former directors (if any), or
the particulars of any person mentioned in paragraph (a)(iv), (v) or (vi).

(2) Subsection (1) applies to—
(a) a company falling within the definition of company in section 20(1); and
(b) an unregistered company as defined by section 326 of the Companies (Winding Up and Miscellaneous

Provisions) Ordinance (Cap 32).
(3) For the purposes of subsection (1), the Registrar must, on receiving the fee payable under the regulations made

under section 26, allow a person to inspect any information on the Companies Register in any form that the
Registrar thinks fit.

(4) For the purposes of subsection (1), the Registrar may, on receiving the fee payable under the regulations made
under section 26, produce to a person a copy or a certified true copy of any document or information on the
Companies Register, in so far as the document or information may be made available for public inspection, in
any form that the Registrar thinks fit.

(5) In this section—
disqualification order(取消資格令), in relation to a person, means an order that, for a period specified in the order

beginning on the date of the order, the person must not, without the leave of the court—
(a) be a director, or a liquidator or provisional liquidator, of any company to which subsection (1) applies;
(b) be a receiver or manager of the property of such a company; or
(c) in any way, whether directly or indirectly, be concerned or take part in the promotion, formation or

management of such a company.

Section: 46 Registrar’s certified true copy admissible as evidence L.N. 163 of 2013 03/03/2014


In any proceedings—
(a) a document purporting to be a copy of any information produced under section 45(4), and purporting to be

certified by the Registrar as a true copy of the information, is admissible in evidence on its production
without further proof; and

(b) on being admitted in evidence under paragraph (a), the document is proof of the information in the absence
of evidence to the contrary.


Part:
Division:

2
7

Materials in Companies Register Unavailable for Public
Inspection

L.N. 163 of 2013 03/03/2014





Part:
Division:
Subdivision:

2
7
1

General Protection L.N. 163 of 2013 03/03/2014





Section: 47 Interpretation


Remarks:
Not yet in operation

In this Subdivision—
withheld address (不提供的地址) means an address withheld from public inspection under section 49(1)(a);
withheld identification number (不提供的身分識別號碼) means a number withheld from public inspection under

section 49(1)(b);
withheld information (不提供的資料) means a withheld address or a withheld identification number.



Cap 622 - Companies Ordinance 20


Section: 48 Information excluded from public inspection by law or

court order
L.N. 163 of 2013 03/03/2014



The Registrar must not make available for public inspection under section 45 any information excluded from public
inspection by or under an Ordinance or by an order of the court.

Section: 49 Registrar may withhold residential address and

identification number from public inspection




Remarks:
Not yet in operation

(1) The Registrar may, on application made for the purposes of this subsection, withhold from public inspection

under section 45—
(a) a relevant address of the applicant contained, as an address of the applicant’s location, in a document to

which this subsection applies; or
(b) a number contained, as the full number of the identity card or passport of the applicant, in a document to

which this subsection applies.
(2) Subsection (1) applies to a document delivered to the Registrar for registration under any of the following

Ordinances before, on or after the commencement date of this section—
(a) this Ordinance;
(b) the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap 32);
(c) the predecessor Ordinance.

(3) If a person’s address is withheld from public inspection under subsection (1)(a), the Registrar must instead
make available for public inspection an address contained in the person’s application as the person’s
correspondence address.

(4) An application for the purposes of subsection (1)(a) may be made only by a director, reserve director or
company secretary, or a former director, reserve director or company secretary, of a company. An application for
the purposes of subsection (1)(b) may be made by any person.

(5) If an address is required by section 56(6) to be entered in a register of directors as the usual residential address
and the correspondence address of a director within a period of 5 years specified in that section, an application
must not be made for the purposes of subsection (1) in relation to the address during the period.

(6) If an address is not prohibited by section 56(7) from being entered in a register of directors as the
correspondence address of a director, or from being stated in a notice or return as the changed correspondence
address of a director, during a period of 5 years specified in that section, an application must not be made for the
purposes of subsection (1) in relation to the address during the period.

(7) An application for the purposes of subsection (1) must—
(a) contain the information required by regulations made under subsection (8)(a);
(b) be accompanied by the documents required by regulations made under subsection (8)(b); and
(c) be accompanied by a fee prescribed by regulations made under subsection (8)(c).

(8) The Financial Secretary may make regulations—
(a) providing for the information to be contained in an application made for the purposes of subsection (1),

including—
(i) the correspondence address required for the purposes of subsection (3); and
(ii) any other information specified by the Registrar for such an application;

(b) providing for the documents to accompany such an application, including any document specified by the
Registrar for such an application;

(c) prescribing the fees to accompany such an application; and
(d) providing for the powers of the Registrar to require additional documents and information to be provided to

the Registrar for the purposes of determining such an application.
(9) The regulations may provide that the correspondence address required for the purposes of subsection (3) must

not be a post office box number.



Cap 622 - Companies Ordinance 21

(10) In this section—
relevant address(有關地址), in relation to an applicant who makes an application for the purposes of subsection (1),

means an address specified by the applicant in the application as a usual residential address of the applicant as at
the date of the document in which the address is contained.


Section: 50 Restriction on use or disclosure of withheld information


Remarks:
Not yet in operation

The Registrar must not use or disclose withheld information except—

(a) as permitted by section 51; or
(b) in accordance with section 52.


Section: 51 Permitted use or disclosure of withheld information by

Registrar




Remarks:
Not yet in operation

(1) The Registrar may use—

(a) a withheld address for communicating with the director, reserve director or company secretary in question;
or

(b) a withheld identification number for communicating with the person in question.
(2) The Registrar may use withheld information for the purpose of or in connection with the performance of the

Registrar’s functions.
(3) The Registrar may, on application made for the purposes of this subsection, disclose withheld information to a

person specified by regulations made under subsection (5)(e). A disclosure may only be made in accordance
with regulations made under subsection (5).

(4) An application for the purposes of subsection (3) must—
(a) contain the information required by regulations made under subsection (5)(a);
(b) be accompanied by the documents required by regulations made under subsection (5)(b); and
(c) be accompanied by a fee prescribed by regulations made under subsection (5)(c).

(5) The Financial Secretary may make regulations—
(a) providing for the information to be contained in an application made for the purposes of subsection (3),

including any information specified by the Registrar for such an application;
(b) providing for the documents to accompany such an application, including any document specified by the

Registrar for such an application;
(c) prescribing the fees payable for the purposes of subsection (3) to accompany such an application;
(d) providing for the powers of the Registrar to require additional documents and information to be provided to

the Registrar for the purposes of determining such an application;
(e) specifying the persons to whom withheld information may be disclosed; and
(f) providing for the conditions in accordance with which withheld information may be disclosed to such

persons, including the extent to which such information may be disclosed to them.

Section: 52 Disclosure under order of Court


Remarks:
Not yet in operation

(1) The Court may make an order for the disclosure by the Registrar of a withheld address—

(a) if—
(i) there is evidence that the service of documents at an address contained in an application under section



Cap 622 - Companies Ordinance 22

49(1) as the correspondence address is not effective to bring them to the notice of the director, reserve
director or company secretary in question; or

(ii) it is necessary or expedient for the withheld address to be disclosed in connection with the enforcement
of an order or decree of a court; and

(b) if the Court is satisfied that it is appropriate to make the order.
(2) The Court may make an order for the disclosure by the Registrar of a withheld identification number—

(a) if it is necessary or expedient for the number to be disclosed in connection with the enforcement of an order
or decree of a court; and

(b) if the Court is satisfied that it is appropriate to make the order.
(3) An order under subsection (1) or (2) may be made on the application of—

(a) a creditor of the company in respect of which the document containing the withheld information is
delivered to the Registrar for registration under this Ordinance, the Companies (Winding Up and
Miscellaneous Provisions) Ordinance (Cap 32) or the predecessor Ordinance; or

(b) any other person appearing to the Court to have a sufficient interest.
(4) An order under subsection (1) or (2) must specify the persons to whom, and purposes for which, the disclosure is

authorized.

Part:
Division:
Subdivision:

2
7
2

Protection of Residential Address and Identification
Number Contained in Certain Documents





Remarks:
Not yet in operation

Section: 53 Interpretation


Remarks:
Not yet in operation

(1) In this Subdivision—
director (董事) includes a person nominated as a reserve director under section 455(1);
protected address (受保護地址) means, subject to subsection (2)(a), an address that falls within section 54(2)(a);
protected identification number (受保護身分識別號碼) means a number that falls within section 54(2)(b);
protected information (受保護資料) means a protected address or a protected identification number;
relevant correspondence address (有關通訊地址) , in relation to a director of a company, means the address

contained, as the correspondence address of the director, in whichever is the most recent of the following—
(a) in the case of a company other than those falling within paragraph (a) or (b) of the definition of company in

section 20(1)—
(i) an incorporation form delivered to the Registrar for registration under section 67(1)(b) in relation to

the formation of the company;
(ii) a notice delivered to the Registrar for registration under section 645(1) or (2) in relation to the

appointment of a director, or the nomination of a reserve director, of the company;
(iii) a notice delivered to the Registrar for registration under section 645(4) in relation to a change in the

particulars contained in the register of directors of the company;
(iv) a notice delivered to the Registrar for registration under section 684(1)(d) in relation to the

appointment of a director of the company; or
(v) an application delivered for the purposes of section 807(1) in relation to the registration of the

company;
(b) in the case of a company falling within paragraph (a) or (b) of the definition of company in section 20(1)—

(i) an application to the Registrar under section 776(2) or (3) for registration of the company;
(ii) a return delivered to the Registrar for registration under section 791(1) in relation to a change in the

directors of the company; or
(iii) a return delivered to the Registrar for registration under section 791(1) in relation to a change in the



Cap 622 - Companies Ordinance 23

particulars of the directors of the company delivered to the Registrar under Part 16.
(2) For the purposes of this Subdivision—

(a) an address of a person does not cease to fall within section 54(2)(a) just because the person ceases to be a
director of the company; and

(b) a reference to a director includes, to that extent, a former director.
(3) Subsection (2)(b) does not apply to a reference to a director in section 55 or 56.

Section: 54 Registrar must not make residential address and

identification number available for public inspection




Remarks:
Not yet in operation

(1) Subsection (2) applies if—

(a) a document—
(i) is delivered to the Registrar for registration in respect of a company under this Ordinance or the

Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap 32) and is in a form
prescribed by or under, or specified under, the relevant Ordinance; or

(ii) is delivered to the Registrar for registration in respect of a company under a provision of the
predecessor Ordinance having a continuing effect under Schedule 11 or by virtue of section 23 of the
Interpretation and General Clauses Ordinance (Cap 1) and is in a form specified under section
914(6)(a) or (8)(a);

(b) any part of the document is required by the relevant Ordinance to contain, and contains—
(i) the usual residential address of a director of the company; or
(ii) the full number of the identity card or passport of any person; and

(c) the Registrar records the information contained in the document for the purposes of section 27(1).
(2) The Registrar must not make available for public inspection under section 45(1)—

(a) an address contained, as the usual residential address of a director of the company, in any part of the
document that is required by the relevant Ordinance to contain that usual residential address; or

(b) a number contained, as the full number of the identity card or passport of any person, in any part of the
document that is required by the relevant Ordinance to contain that full number.

(3) In this section—
relevant Ordinance(有關條例), in relation to a document or any part of a document, means the Ordinance under

which the document is delivered to the Registrar for registration.

Section: 55 Registrar may make protected address available for

inspection




Remarks:
Not yet in operation

(1) Despite section 54(2)(a), the Registrar may make a protected address available for public inspection in

accordance with section 56 if—
(a) communications sent by the Registrar to the director, and requiring a response within a specified period,

remain unanswered; or
(b) there is evidence that the service of documents by the Registrar at the relevant correspondence address of

the director is not effective to bring them to the notice of the director.
(2) The Registrar must not make a decision under subsection (1) unless the Registrar—

(a) has notified the director and the company that he or she proposes to make the protected address available
for public inspection under subsection (1); and

(b) has considered any representation made within the period specified under subsection (3)(b).
(3) A notice under subsection (2)(a)—

(a) must state the grounds for the proposal; and



Cap 622 - Companies Ordinance 24

(b) must specify a period within which representations may be made before the protected address is made
available for public inspection under subsection (1).

(4) A notice under subsection (2)(a) must be sent to the director—
(a) at the protected address; or
(b) if it appears to the Registrar that service at the protected address may not be effective to bring it to the

notice of the director, at the relevant correspondence address of the director.

Section: 56 Provision supplementary to section 55


Remarks:
Not yet in operation

(1) If the Registrar is to make a protected address available for public inspection under section 55(1), he or she must

proceed as if—
(a) a notice had been delivered to the Registrar for registration under section 645(4) stating that the

correspondence address of the director is changed to the protected address; or
(b) a return had been delivered to the Registrar for registration under section 791 stating that the

correspondence address of the director is changed to the protected address.
(2) The Registrar must give written notice of having done so—

(a) to the director; and
(b) to the company.

(3) A written notice must also state the decision date in relation to the protected address.
(4) A written notice under subsection (2)(a) must be sent to the director—

(a) at the protected address; or
(b) if it appears to the Registrar that service at the protected address may not be effective to bring it to the

notice of the director, at the relevant correspondence address of the director.
(5) On receipt of a written notice, the company must enter the protected address in its register of directors as the

correspondence address of the director.
(6) If, within 5 years after the decision date for a protected address, the director notifies the company of another

address as his or her usual residential address—
(a) the company must enter that other address in its register of directors as the usual residential address and the

correspondence address of the director; and
(b) the company must proceed with the notice or return under section 645(4) or 791 as if the correspondence

address of the director was also changed to that other address.
(7) During the period of 5 years after the decision date for a protected address—

(a) the company must not enter in its register of directors as the correspondence address of the director any
address other than—
(i) the protected address; or
(ii) if, after the protected address is made available for public inspection under section 55(1), an address is

notified by the director to the company as his or her usual residential address, the address so notified;
and

(b) the company must not state in the notice or return under section 645(4) or 791 that the correspondence
address of the director is changed to any address other than—
(i) the protected address; or
(ii) if, after the protected address is made available for public inspection under section 55(1), an address is

notified by the director to the company as his or her usual residential address, the address so notified.
(8) Subsections (5), (6)(a) and (7)(a) do not apply to—

(a) a non-Hong Kong company registered under section 777(1); or
(b) a company that was, at any time before the commencement date of Part 16, registered in the register kept

under section 333AA of the predecessor Ordinance.
(9) If a company contravenes subsection (5), (6) or (7), the company, and every responsible person of the company,

commit an offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine
of $700 for each day during which the offence continues.



Cap 622 - Companies Ordinance 25

(10) In this section—
decision date(決定日期), in relation to a protected address, means the date on which the Registrar decides to make the

protected address available for public inspection under section 55(1).

Section: 57 Restriction on use or disclosure of protected information


Remarks:
Not yet in operation

The Registrar must not use or disclose protected information except—

(a) as permitted by section 58; or
(b) in accordance with section 59.


Section: 58 Permitted use or disclosure of protected information by

Registrar




Remarks:
Not yet in operation

(1) The Registrar may use—

(a) a protected address for communicating with the director in question; or
(b) a protected identification number for communicating with the person in question.

(2) The Registrar may use protected information for the purpose of or in connection with the performance of the
Registrar’s functions.

(3) The Registrar may, on application made for the purposes of this subsection, disclose protected information to a
person specified by regulations made under subsection (5)(e). A disclosure may only be made in accordance
with regulations made under subsection (5).

(4) An application for the purposes of subsection (3) must—
(a) contain the information required by regulations made under subsection (5)(a);
(b) be accompanied by the documents required by regulations made under subsection (5)(b); and
(c) be accompanied by a fee prescribed by regulations made under subsection (5)(c).

(5) The Financial Secretary may make regulations—
(a) providing for the information to be contained in an application made for the purposes of subsection (3),

including any information specified by the Registrar for such an application;
(b) providing for the documents to accompany such an application, including any document specified by the

Registrar for such an application;
(c) prescribing the fees payable for the purposes of subsection (3) to accompany such an application;
(d) providing for the powers of the Registrar to require additional documents and information to be provided to

the Registrar for the purposes of determining such an application;
(e) specifying the persons to whom protected information may be disclosed; and
(f) providing for the conditions in accordance with which protected information may be disclosed to such

persons, including the extent to which such information may be disclosed to them.

Section: 59 Disclosure under order of Court


Remarks:
Not yet in operation

(1) The Court may make an order for the disclosure by the Registrar of a protected address—

(a) if—
(i) there is evidence that the service of documents at the relevant correspondence address of the director is

not effective to bring them to the notice of the director; or
(ii) it is necessary or expedient for the protected address to be disclosed in connection with the



Cap 622 - Companies Ordinance 26

enforcement of an order or decree of a court; and
(b) if the Court is satisfied that it is appropriate to make the order.

(2) The Court may make an order for the disclosure by the Registrar of a protected identification number—
(a) if it is necessary or expedient for the number to be disclosed in connection with the enforcement of an order

or decree of a court; and
(b) if the Court is satisfied that it is appropriate to make the order.

(3) An order under subsection (1) or (2) may be made on the application of—
(a) a creditor of the company in respect of which the document containing the protected information is

delivered to the Registrar for registration under this Ordinance or the Companies (Winding Up and
Miscellaneous Provisions) Ordinance (Cap 32); or

(b) any other person appearing to the Court to have a sufficient interest.
(4) An order under subsection (1) or (2) must specify the persons to whom, and purposes for which, the disclosure is

authorized.

Part:
Division:
Subdivision:

2
7
3

Supplementary L.N. 163 of 2013 03/03/2014





Section: 60 Extent of prohibition L.N. 163 of 2013 03/03/2014


If a prohibition under this Division applies by reference to information deriving from a particular description of
document, the prohibition does not affect—

(a) the availability for public inspection of the information through other means; and
(b) the availability for public inspection of the information deriving from another description of document in

relation to which the prohibition does not apply.

Part:
Division:

2
8

Miscellaneous L.N. 163 of 2013 03/03/2014





Section: 61 Registrar may issue certificates in any manner L.N. 163 of 2013 03/03/2014


(1) The Registrar may issue a certificate under this Ordinance in any manner the Registrar thinks fit.
(2) Without limiting the powers of the Registrar under subsection (1), the Registrar may issue a certificate in the

form of an electronic record.

Section: 62 Registrar not responsible for verifying information L.N. 163 of 2013 03/03/2014


The Registrar is not responsible for verifying—
(a) the truth of the information contained in a document delivered to the Registrar; or
(b) the authority under which a document is delivered to the Registrar.


Section: 63 Immunity L.N. 163 of 2013 03/03/2014


(1) Neither the Registrar nor any public officer incurs any civil liability, and no civil action may lie against the
Registrar or any public officer, in respect of anything done, or omitted to be done, by him or her in good faith—
(a) in the performance, or purported performance, of functions under this Ordinance; or
(b) in the exercise, or purported exercise, of powers under this Ordinance.

(2) Where, for the purposes of this Ordinance, a protected person provides a service by means of which information
in electronic form is supplied to the public, or supplies information by means of magnetic tapes or any electronic
mode, the protected person is not personally liable for any loss or damage suffered by a user of the service or
information by reason of an error or omission appearing in the information if the error or omission—



Cap 622 - Companies Ordinance 27

(a) was made in good faith and in the ordinary course of the discharge of the protected person’s duties; or
(b) has occurred or arisen as a result of any defect or breakdown in the service or any equipment used for the

service or for supplying the information.
(3) Where, for the purposes of this Ordinance, a protected person provides a service or facility by means of which

documents may be delivered to the Registrar by electronic means, the protected person is not personally liable
for any loss or damage suffered by a user of the service or facility by reason of an error or omission appearing in
a document delivered to the Registrar by means of the service or facility if the error or omission—
(a) was made in good faith and in the ordinary course of the discharge of the protected person’s duties; or
(b) has occurred or arisen as a result of any defect or breakdown in the service or facility or in any equipment

used for the service or facility.
(4) The protection given to a protected person by subsections (2) and (3) in respect of an error or omission does not

affect any liability of the Government in tort for the error or omission.
(5) In this section—
protected person(受保障人) means a person authorized by the Registrar to supply the information or provide the

service or facility.

Section: 64 Discrepancy between document and certified translation L.N. 163 of 2013 03/03/2014


(1) This section applies if—
(a) a certified translation of a document is delivered by a company to the Registrar for the purposes of section

31(1)(b) to accompany the document in a language other than English or Chinese; and
(b) there is a discrepancy between the document in that language and the certified translation of the document.

(2) The company may not rely on that translation, in so far as it relates to the discrepancy, as against a third party.
(3) A third party may not rely on that translation, in so far as it relates to the discrepancy, as against the company

unless the third party—
(a) had no knowledge of the contents of the document in that language; and
(b) had actually relied on that translation in so far as it relates to the discrepancy.

(4) In this section—
third party(第三者) means a person other than the company.

Section: 65 Offence for destruction etc. of registers, books or

documents
L.N. 163 of 2013 03/03/2014



(1) A person commits an offence if the person dishonestly, with a view to gain for the person’s own self or
another, or with intent to cause loss to another, destroys, removes, alters, defaces or conceals—
(a) any register, book or document belonging to, or filed or deposited in, the office of the Registrar; or
(b) any electronic record, microfilm, image or other record of such register, book or document.

(2) A person who commits an offence under subsection (1) is liable on conviction on indictment to imprisonment
for 7 years.

(3) A person commits an offence if the person wilfully or maliciously destroys, removes, alters, defaces or conceals

(a) any register, book or document belonging to, or filed or deposited in, the office of the Registrar; or
(b) any electronic record, microfilm, image or other record of such register, book or document.

(4) A person who commits an offence under subsection (3) is liable—
(a) on conviction on indictment to a fine of $150000 and to imprisonment for 2 years; or
(b) on summary conviction to a fine at level 5 and to imprisonment for 6 months.


Part: 3 Company Formation and Related Matters, and Re-

registration of Company
L.N. 163 of 2013 03/03/2014



(*Format changes—E.R. 1 of 2013)
____________________________________________________________________________
Note:



Cap 622 - Companies Ordinance 28

* The format of Part 3 has been updated to the current legislative styles.

Part:
Division:

3
1

Company Formation L.N. 163 of 2013 03/03/2014





Part:
Division:
Subdivision:

3
1
1

General Requirements for Formation L.N. 163 of 2013 03/03/2014





Section: 66 Types of companies L.N. 163 of 2013 03/03/2014


Only the following companies may be formed under this Ordinance—
(a) a public company limited by shares;
(b) a private company limited by shares;
(c) a public unlimited company with a share capital;
(d) a private unlimited company with a share capital;
(e) a company limited by guarantee without a share capital.


Section: 67 Formation of company L.N. 163 of 2013 03/03/2014


(1) Any one or more persons may form a company by—
(a) signing the articles of the company intended to be formed; and
(b) delivering to the Registrar for registration—

(i) an incorporation form in the specified form; and
(ii) a copy of the articles.

(2) A company may only be formed for a lawful purpose.

Section: 68 Content of incorporation form L.N. 163 of 2013 03/03/2014


(1) An incorporation form must—
(a) in relation to the company intended to be formed, contain the particulars and statements specified in section

1 of Schedule 2;
(b) in relation to each founder member of the company, contain the particulars specified in section 2 of

Schedule 2;
(c) in relation to each person who is to be a director of the company on the company’s formation, contain—

(i) the particulars specified in section 3 of Schedule 2; and
(ii) the statement specified in section 4 of Schedule 2;

(d) in relation to each person who is to be the company secretary, or one of the joint company secretaries, of the
company on that formation, contain the particulars specified in section 5 of Schedule 2;

(e) contain the statements specified in section 7 of Schedule 2; and
(f) contain the statement of compliance specified in section 70(1).

(2) If the company intended to be formed is a company limited by shares or an unlimited company, the
incorporation form must also contain the statement specified in section 8 of Schedule 2.


Section: 69 Signing of incorporation form L.N. 163 of 2013 03/03/2014


An incorporation form must be signed by the founder member named in the form or, if 2 or more founder members
are named, by any one of those members.




Cap 622 - Companies Ordinance 29

Section: 70 Statement of compliance to be contained in incorporation
form

L.N. 163 of 2013 03/03/2014



(1) The statement specified for the purposes of section 68(1)(f) is a statement certifying that—
(a) all the requirements of this Ordinance in respect of the registration of the company intended to be formed

have been complied with; and
(b) the information, statements and particulars contained in the incorporation form are accurate and consistent

with those in the company’s articles.
(2) The Registrar may accept the statement of compliance as sufficient evidence that all the requirements of this

Ordinance in respect of the registration of the company have been complied with.

Part:
Division:
Subdivision:

3
1
2

Incorporation of Company L.N. 163 of 2013 03/03/2014





Section: 71 Issue of certificate of incorporation on registration L.N. 163 of 2013 03/03/2014


(1) On registering an incorporation form and a copy of the articles delivered under section 67(1)(b), the Registrar
must issue a certificate of incorporation certifying that the company—
(a) is incorporated under this Ordinance; and
(b) is a limited company or an unlimited company.

(2) A certificate of incorporation must be signed by the Registrar.

Section: 72 Conclusiveness of certificate of incorporation L.N. 163 of 2013 03/03/2014


A certificate of incorporation is conclusive evidence that—
(a) all the requirements of this Ordinance in respect of the registration of the company have been complied

with; and
(b) the company is registered under this Ordinance.


Section: 73 Effect of incorporation L.N. 163 of 2013 03/03/2014


(1) On and after the date of incorporation stated in the certificate of incorporation, the founder members, and any
other persons who may from time to time become the company’s members, are a body corporate with the name
stated in the certificate or, if a change of name has effect under section 107, 110, 770 or 772, with the new name.

(2) On and after the date of incorporation, the body corporate is capable of exercising all the functions of an
incorporated company, and has perpetual succession.

(3 On and after the date of incorporation, the founder members, and any other persons who may from time to time
become the company’s members, are liable to contribute to the assets of the company in the event of the
company being wound up as is mentioned in the Companies (Winding Up and Miscellaneous Provisions)
Ordinance (Cap 32).


Section: 74 Delivery of director’s written consent L.N. 163 of 2013 03/03/2014


(1) Each consent given for the purposes of section 4(b)(ii) of Schedule 2 in relation to a company intended to be
formed must be delivered in the specified form to the Registrar for registration not later than 15 days after the
date of incorporation of the company.

(2) If subsection (1) is contravened, the company, every responsible person of the company, and the founder
member who signs the incorporation form for the purposes of section 69, commit an offence, and each is liable
to a fine at level 4 and, in the case of a continuing offence, to a further fine of $700 for each day during which
the offence continues.

(3) In any proceedings against a founder member for an offence under this section, it is a defence to establish that



Cap 622 - Companies Ordinance 30

the founder member took all reasonable steps to secure compliance with subsection (1).

Part:
Division:

3
2

Company Articles L.N. 163 of 2013 03/03/2014





Part:
Division:
Subdivision:

3
2
1

General L.N. 163 of 2013 03/03/2014





Section: 75 Articles prescribing regulations for company L.N. 163 of 2013 03/03/2014


A company must have articles prescribing regulations for the company.

Section: 76 Language of articles L.N. 163 of 2013 03/03/2014


A company’s articles must be printed in English or Chinese.

Section: 77 Form of articles L.N. 163 of 2013 03/03/2014


A company’s articles must be divided into paragraphs and the paragraphs must be numbered consecutively.

Part:
Division:
Subdivision:

3
2
2

Model Articles L.N. 163 of 2013 03/03/2014





Section: 78 Financial Secretary may prescribe model articles L.N. 163 of 2013 03/03/2014


(1) The Financial Secretary may, by notice published in the Gazette, prescribe model articles for companies.
(2) Any amendment of model articles under this section does not affect a company incorporated before the

amendment takes effect.

Section: 79 Adoption of model articles L.N. 163 of 2013 03/03/2014


A company may adopt as its articles any or all of the provisions of the model articles prescribed for the type of
company to which it belongs.

Section: 80 Application of model articles to limited company L.N. 163 of 2013 03/03/2014


(1) On the incorporation of a limited company, the model articles that are prescribed for the type of company to
which the company belongs and that are for the time being in force, so far as applicable, form part of the
company’s articles in the same manner, and to the same extent, as if those model articles had been registered as
the company’s articles.

(2) Subsection (1) applies if the company’s registered articles do not prescribe any regulations for the company.
(3) If the company’s registered articles prescribe any regulations for the company, subsection (1) applies in so far

as the articles do not exclude or modify the model articles.




Cap 622 - Companies Ordinance 31

Part:
Division:
Subdivision:

3
2
3

Content and Effect of Articles L.N. 163 of 2013 03/03/2014





Section: 81 Company name L.N. 163 of 2013 03/03/2014


A company’s articles must state the name of the company.

Section: 82 Company’s objects L.N. 163 of 2013 03/03/2014


(1) If a licence is granted under section 103(2) to an association intended to be formed as a limited company or
under section 103(4) to a limited company, then during the period when the licence is in force, the articles of the
company must state the company’s objects.

(2) The articles of any other company may state the company’s objects.
(3) Subsections (1) and (2) do not affect any requirement relating to the articles of a company specified in any other

Ordinance.

Section: 83 Members’ liabilities L.N. 163 of 2013 03/03/2014


(1) The articles of a limited company must state that the liability of its members is limited.
(2) The articles of an unlimited company formed and registered under this Ordinance must state that the liability of

its members is unlimited.

Section: 84 Liabilities or contributions of members of limited company L.N. 163 of 2013 03/03/2014


(1) The articles of a company limited by shares must state that the liability of its members is limited to any amount
unpaid on the shares held by the members.

(2) The articles of a company limited by guarantee must state that each person who is a member of the company
undertakes that if the company is wound up while the person is a member of the company, or within one year
after the person ceases to be such a member, the person will contribute an amount required of the person, not
exceeding a specified amount, to the company’s assets—
(a) for the payment of the company’s debts and liabilities contracted before the person ceases to be such a

member;
(b) for the payment of the costs, charges and expenses of winding up the company; and
(c) for the adjustment, among the contributories, of their rights.

(3) Subsection (1) does not apply to the articles of an existing company that is deemed to be a company limited by
shares under section 4(3) of the predecessor Ordinance.


Section: 85 Capital and initial shareholdings L.N. 163 of 2013 03/03/2014


(1) The articles of a company with a share capital must state the information required under section 8 (except
subsection (1)(d)(iv), (v), (vi) and (vii)) of Schedule 2 to be contained in the company’s incorporation form.

(2) The articles of a company with a share capital may state the maximum number of shares that the company may
issue.


Section: 86 Effect of articles L.N. 163 of 2013 03/03/2014


(1) Subject to this Ordinance, a company’s articles, once registered under this Ordinance or a former Companies
Ordinance—
(a) have effect as a contract under seal—

(i) between the company and each member; and
(ii) between a member and each other member; and



Cap 622 - Companies Ordinance 32

(b) are to be regarded as containing covenants on the part of the company and of each member to observe all
the provisions of the articles.

(2) Without limiting subsection (1), the articles are enforceable—
(a) by the company against each member;
(b) by a member against the company; and
(c) by a member against each other member.

(3) Money payable by a member to the company under the articles—
(a) is a debt due from the member to the company; and
(b) is of the nature of a specialty debt.


Part:
Division:
Subdivision:

3
2
4

Alteration of Articles L.N. 163 of 2013 03/03/2014





Section: 87 Company may alter articles L.N. 163 of 2013 03/03/2014


(1) Subject to this Ordinance, a company may alter its articles.
(2) Except as provided in Division 8, a company must not alter in its articles any statement mentioned in section 83

or 84(1).
(3) Subject to section 180, a company with a share capital must not make any alteration to its articles that is

inconsistent with any rights attached to shares in a class of shares in the company.
(4) Subject to section 188, a company without a share capital must not make any alteration to its articles that is

inconsistent with any rights of a class of members of the company.
(5) A company limited by guarantee must not alter in its articles the information required under section 84(2) other

than to increase the specified amount.

Section: 88 Alteration by special resolution or ordinary resolution L.N. 163 of 2013 03/03/2014


(1) Subject to this Ordinance, this section applies to the alteration of a company’s articles.
(2) Subject to subsection (3) and any other provisions of this Ordinance, a company may only alter its articles by

special resolution.
(3) An alteration in articles to the maximum number of shares that the company may issue may be made by ordinary

resolution.
(4) Subject to this Ordinance, an alteration made in accordance with this section is as valid as if the alteration were

originally contained in the articles.
(5) Within 15 days after the date on which an alteration takes effect, the company must deliver to the Registrar for

registration—
(a) a notice of the alteration in the specified form; and
(b) a copy, certified by an officer of the company as correct, of the articles as altered.

(6) If a company contravenes subsection (5), the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 3 and, in the case of a continuing offence, to a further fine of $300
for each day during which the offence continues.


Section: 89 Alteration of company’s objects L.N. 163 of 2013 03/03/2014


(1) This section applies to an alteration of the objects of a company as stated in the company’s articles.
(2) The company may, by special resolution of which notice has been given to all the members of the company

(including members who are not entitled to such notice under the company’s articles), alter the objects by—
(a) abandoning or restricting any of the objects; or
(b) adopting any new object that could lawfully have been contained—

(i) in the case of a company formed and registered under this Ordinance, in the company’s articles when
the articles were registered; or



Cap 622 - Companies Ordinance 33

(ii) in the case of an existing company, in the company’ s memorandum of association when the
memorandum was registered.

(3) If a relevant company passes such a resolution, a notice of the resolution must also be given to all holders of the
relevant debentures of the company, and the notice must be the same as the notice mentioned in subsection (2).

(4) For the purposes of subsection (3), if there is no provision regulating the giving of notice to the holders of the
relevant debentures, the provisions of the company’s articles regulating the giving of notice to members are to
apply.

(5) If a relevant company passes a special resolution altering its objects, an application to cancel the alteration may
be made to the Court in accordance with section 91, and if an application is made, the alteration does not have
effect except in so far as it is confirmed by the Court.

(6) After passing a special resolution altering its objects—
(a) in the case of a relevant company, if no application is made under subsection (5), the company must, within

15 days after the end of the application period, deliver to the Registrar for registration the documents
specified in subsection (7);

(b) in the case of a relevant company, if an application is made under subsection (5), the company—
(i) must immediately give notice of that fact to the Registrar; and
(ii) within 15 days after the date of any Court order cancelling or confirming the alteration or, if an

extension of time is granted under subsection (8), within the extended period, must deliver to the
Registrar for registration an office copy of the order and, in the case of an order confirming the
alteration, the documents specified in subsection (7); or

(c) in the case of a company other than a relevant company, the company must, within 15 days after the date of
passing the resolution, deliver to the Registrar for registration the documents specified in subsection (7).

(7) The documents are—
(a) a notice of the alteration in the specified form; and
(b) a copy, certified by an officer of the company as correct, of the company’s articles as altered.

(8) The Court may at any time by order extend the period for delivery of any documents under subsection (6)(b).
(9) If a company contravenes subsection (6), the company, and every responsible person of the company, commit an

offence, and each is liable to a fine at level 3 and, in the case of a continuing offence, to a further fine of $300
for each day during which the offence continues.

(10) In this section—
relevant company(有關公司) means—

(a) a private company; or
(b) a company limited by guarantee that, immediately before the commencement date* of this Division, was a

private company as defined by section 2(1) of the predecessor Ordinance in force at that time;
relevant debentures(有關債權證) means any debentures, secured by a floating charge, that were issued or first issued

before 15 February 1963 or that form part of the same series as any debentures so issued.
___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 90 Alteration of certain articles by existing company L.N. 163 of 2013 03/03/2014


(1) Subject to subsection (2), this section applies to an alteration of any provision of the articles of an existing
company if the provision—
(a) was, immediately before the commencement date* of this Division, contained in the company’ s

memorandum of association (whether registered before, on or after 31 August 1984); and
(b) could lawfully have been contained in the company’ s articles instead of in the memorandum of

association when the memorandum was registered.
(2) This section does not apply if any provision of the articles of an existing company—

(a) was, immediately before the commencement date* of this Part, contained in the company’s memorandum
of association (whether registered before, on or after 31 August 1984); and

(b) provides for or prohibits the alteration of any provision mentioned in subsection (1).
(3) An existing company may by special resolution alter any provision mentioned in subsection (1).



Cap 622 - Companies Ordinance 34

(4) If a relevant company passes such a resolution, an application to cancel the alteration may be made to the Court
in accordance with section 91, and if an application is made, the alteration does not have effect except in so far
as it is confirmed by the Court.

(5) After passing a resolution under subsection (3)—
(a) in the case of a relevant company, if no application is made under subsection (4), the company must, within

15 days after the end of the application period, deliver to the Registrar for registration the documents
specified in subsection (6);

(b) in the case of a relevant company, if an application is made under subsection (4), the company—
(i) must immediately give notice of that fact to the Registrar; and
(ii) within 15 days after the date of any Court order cancelling or confirming the alteration or, if an

extension of time is granted under subsection (7), within the extended period, must deliver to the
Registrar for registration an office copy of the order and, in the case of an order confirming the
alteration, the documents specified in subsection (6); or

(c) in the case of a company other than a relevant company, the company must, within 15 days after the date of
passing the resolution, deliver to the Registrar for registration the documents specified in subsection (6).

(6) The documents are—
(a) a notice of the alteration in the specified form; and
(b) a copy, certified by an officer of the company as correct, of the company’s articles as altered.

(7) The Court may at any time by order extend the period for delivery of any documents under subsection (5)(b).
(8) If a company contravenes subsection (5), the company, and every responsible person of the company, commit an

offence, and each is liable to a fine at level 3 and, in the case of a continuing offence, to a further fine of $300
for each day during which the offence continues.

(9) This section does not authorize any variation or abrogation of the special rights of any class of members.
(10) In this section—
relevant company(有關公司) means—

(a) a private company; or
(b) a company limited by guarantee that, immediately before the commencement date* of this Division, was a

private company as defined by section 2(1) of the predecessor Ordinance in force at that time.
___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 91 Application to Court to cancel alteration L.N. 163 of 2013 03/03/2014


(1) An application under section 89(5) to cancel an alteration of the objects of a company may be made—
(a) by the holders of at least 5% in aggregate of the number of the issued shares in the company or any class of

the company’s issued share capital or, if the company is not limited by shares, by at least 5% of the
company’s members; or

(b) by the holders of at least 5% in value of the company’s debentures that are mentioned in the definition of
relevant debentures in section 89(10).

(2) An application under section 89(5) may be made on behalf of the persons mentioned in subsection (1)(a) or (b)
by any one or more of them appointed in writing by all of them for the purpose.

(3) An application under section 90(4) to cancel an alteration of a provision of the articles of an existing company
may be made by the holders of at least 5% in aggregate of the number of the issued shares in the company or any
class of the company’s issued share capital or, if the company is not limited by shares, by at least 5% of the
company’s members.

(4) An application under section 90(4) may be made on behalf of the persons mentioned in subsection (3) by any
one or more of them appointed in writing by all of them for the purpose.

(5) An application under section 89(5) or 90(4) may only be made within 28 days after the date of passing the
relevant special resolution.

(6) On an application under section 89(5) or 90(4), the Court—
(a) may cancel or confirm the alteration (either wholly or in part), on any terms and conditions it thinks fit;
(b) may adjourn the proceedings so that an arrangement may be made to its satisfaction for the purchase of the



Cap 622 - Companies Ordinance 35

interests of dissentient members; and
(c) may give any directions and make any order that it thinks expedient for facilitating or carrying into effect

any such arrangement.

Section: 92 Certain alterations not binding on members L.N. 163 of 2013 03/03/2014


(1) Despite any provision in a company’s articles, a person who is a member of the company is not bound by any
alteration of the articles that takes effect after the date on which the person became a member, if and so far as the
alteration—
(a) requires the person to take or subscribe for more shares than the number of shares held by the person on the

date on which the alteration takes effect;
(b) in any way increases the person’s liability as at that date to contribute to the company’s share capital; or
(c) in any way increases the person’s liability as at that date to pay money to the company.

(2) Subsection (1) does not apply if the person agrees in writing before, on or after the alteration taking effect to be
bound by the alteration.


Section: 93 Company must incorporate alteration into articles L.N. 163 of 2013 03/03/2014


(1) If an alteration is made to a company’s articles, the company must incorporate the alteration in every copy of
the articles issued on or after the date on which the alteration takes effect.

(2) If a company contravenes subsection (1), the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 3.


Section: 94 Alteration affecting status of private company L.N. 163 of 2013 03/03/2014


(1) If a private company alters its articles so that the articles no longer comply with section 11(1)(a), the company
ceases to be a private company on the date on which the alteration takes effect.

(2) In addition to the documents required under section 88(5), the company must, within 15 days after the date on
which the alteration takes effect, deliver to the Registrar for registration—
(a) a notice of the change of the company’s status in the specified form; and
(b) a copy (certified by an officer of the company to be true) of the company’s annual financial statements

that are—
(i) prepared in accordance with section 379; and
(ii) prepared for the financial year immediately before the financial year in which the alteration takes

effect.
(3) If a company contravenes subsection (2)(a), the company, and every responsible person of the company, commit

an offence, and each is liable to a fine at level 3 and, in the case of a continuing offence, to a further fine of $300
for each day during which the offence continues.

(4) If a company contravenes subsection (2)(b), the company, and every responsible person of the company, commit
an offence, and each is liable to a fine at level 5 and, in the case of a continuing offence, to a further fine of
$1000 for each day during which the offence continues.


Section: 95 Alteration affecting status of public company L.N. 163 of 2013 03/03/2014


(1) If a public company alters its articles so that the articles comply with section 11(1)(a), the company ceases to be
a public company on the date on which the alteration takes effect.

(2) In addition to the documents required under section 88(5), the company must, within 15 days after the date on
which the alteration takes effect, deliver to the Registrar for registration a notice of the change of the company’
s status in the specified form.

(3) If a company contravenes subsection (2), the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 3 and, in the case of a continuing offence, to a further fine of $300
for each day during which the offence continues.





Cap 622 - Companies Ordinance 36

Section: 96 Notifying Registrar of alteration by order of Court L.N. 163 of 2013 03/03/2014


(1) If any provision of a company’s articles, or the effect of any provision of a company’s articles, is altered by
an order of the Court, the company must, within 15 days after the date on which the alteration takes effect,
deliver to the Registrar for registration a notice of the alteration in the specified form.

(2) A notice of alteration must be accompanied by—
(a) an office copy of the order; and
(b) a copy of the articles as altered by the order.

(3) Subsection (2)(a) does not apply if the company is required to deliver an office copy of the order to the Registrar
under another provision of this Ordinance.

(4) If a company contravenes subsection (1) or (2), the company, and every responsible person of the company,
commit an offence, and each is liable to a fine at level 3 and, in the case of a continuing offence, to a further fine
of $300 for each day during which the offence continues.


Section: 97 Copies of articles to be provided to members L.N. 163 of 2013 03/03/2014


(1) A company must, on request of a member of the company, provide, without charge, the member with an up-to-
date copy of the company articles within 7 days after it receives the request.

(2) If a company contravenes subsection (1), the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 3.


Part:
Division:
Subdivision:

3
2
5

Miscellaneous L.N. 163 of 2013 03/03/2014





Section: 98 Conditions of memorandum of association of existing
company to be regarded as provisions of articles

L.N. 163 of 2013 03/03/2014



(1) A condition that immediately before the commencement date* of this Division was contained in the
memorandum of association of an existing company and was in force is, for all purposes, to be regarded as a
provision of the company’s articles.

(2) If a memorandum of association is registered on or after the commencement date* of this Division under the
provisions having a continuing effect under Schedule 11, a condition contained in that memorandum is, for all
purposes, to be regarded as a provision of the company’s articles registered under the predecessor Ordinance.

(3) If, before the commencement date* of this Division, a special resolution altering a condition of the memorandum
of association of an existing company was passed under section 8(1) or 25A(1) of the predecessor Ordinance and
the alteration takes effect on or after that date, then the altered condition is, for all purposes, to be regarded as a
provision of the company’s articles registered under the predecessor Ordinance.

(4) Despite subsections (1), (2) and (3), if a condition mentioned in subsection (1) or (2), or an altered condition
mentioned in subsection (3), states—
(a) the amount of share capital with which the existing company proposes to be registered or is registered; or
(b) the division of the share capital of the company into shares of a fixed amount,

the condition is, to the extent that it relates to the matter mentioned in paragraph (a) or (b), for all purposes, to be
regarded as deleted and not to be regarded as a provision of the company’s articles.

(5) In any Ordinance in force immediately before the commencement date* of this Division, or in any other
document made before that date—
(a) a reference to the memorandum of association of an existing company is a reference to the company’s

articles; and
(b) a reference to a condition of the memorandum of association of an existing company is a reference to a

provision of the company’s articles.
___________________________________________________________________
Note:



Cap 622 - Companies Ordinance 37

* Commencement date: 3 March 2014.

Section: 99 Articles of company limited by guarantee L.N. 163 of 2013 03/03/2014


(1) This section applies to—
(a) a company limited by guarantee registered under a former Companies Ordinance on or after 1 January 1912

that does not have a share capital; and
(b) a company registered as a company limited by guarantee under this Ordinance.

(2) A provision in the company’s articles, or in any resolution of the company, purporting to give a person a right
to participate in the company’s divisible profits otherwise than as a member is void.

(3) For the purposes of a provision of this Ordinance relating to the articles of a company limited by guarantee, a
provision in the company’s articles, or in any resolution of the company, purporting to divide the company’s
undertaking into shares or interests, is to be regarded as a provision for a share capital.


Part:
Division:

3
3

Company Name L.N. 163 of 2013 03/03/2014





Part:
Division:
Subdivision:

3
3
1

Restriction on Company Name L.N. 163 of 2013 03/03/2014





Section: 100 Company must not be registered by certain names L.N. 163 of 2013 03/03/2014


(1) A company must not be registered by—
(a) a name that is the same as a name appearing in the Index of Company Names;
(b) a name that is the same as a name of a body corporate incorporated or established under an Ordinance;
(c) a name the use of which by the company would, in the Registrar’s opinion, constitute a criminal offence;

or
(d) a name that, in the Registrar’s opinion, is offensive or otherwise contrary to the public interest.

(2) Except with the Registrar’s prior approval, a company must not be registered by—
(a) a name that, in the Registrar’s opinion, would be likely to give the impression that the company is

connected in any way with—
(i) the Central People’s Government;
(ii) the Government; or
(iii) any department or agency of the Central People’s Government or the Government;

(b) a name that contains any word or expression for the time being specified in an order under section 101; or
(c) a name that is the same as a name for which a direction has been given under—

(i) section 108, 109 or 771; or
(ii) section 22 or 22A of the predecessor Ordinance on or after 10 December 2010.


Section: 101 Financial Secretary may specify word or expression for

section 100(2)(b)
L.N. 163 of 2013 03/03/2014



The Financial Secretary may, by order published in the Gazette, specify any word or expression for the purposes of
section 100(2)(b).

Part:
Division:
Subdivision:

3
3
2

Limited Company Name with “Limited” as Last Word etc. L.N. 163 of 2013 03/03/2014







Cap 622 - Companies Ordinance 38

Section: 102 Limited company must not be registered without
“Limited” as last word of name etc.

L.N. 163 of 2013 03/03/2014



A limited company must not be registered by—
(a) if the company has an English name only, a name without “Limited” as the last word of the name;
(b) if the company has a Chinese name only, a name without “有限公司” as the last 4 characters of the

name; or
(c) if the company has both an English name and a Chinese name—

(i) an English name without “Limited” as the last word of the name; and
(ii) a Chinese name without “有限公司” as the last 4 characters of the name.


Section: 103 Registrar’s licence to dispense with “Limited” etc. L.N. 163 of 2013 03/03/2014


(1) The Registrar may exercise the power under subsection (2) in respect of an association intended to be formed as
a limited company, if it is proved to the Registrar’s satisfaction that—
(a) the company is to be formed for promoting commerce, art, science, religion or charity or any other useful

objects;
(b) the association intends to apply the company’s profits or other income in promoting its objects; and
(c) the association intends to prohibit the payment of dividends to the company’s members.

(2) The Registrar may, by licence, permit the association to be registered as a limited company by—
(a) if the company has an English name only, a name without “Limited” as the last word of the name;
(b) if the company has a Chinese name only, a name without “有限公司” as the last 4 characters of the

name; or
(c) if the company has both an English name and a Chinese name—

(i) an English name without “Limited” as the last word of the name; and
(ii) a Chinese name without “有限公司” as the last 4 characters of the name.

(3) The Registrar may exercise the power under subsection (4) in respect of a limited company, if it is proved to the
Registrar’s satisfaction that—
(a) the objects of the company are restricted to—

(i) promoting commerce, art, science, religion or charity or any other useful objects; and
(ii) objects incidental or conducive to the objects mentioned in subparagraph (i);

(b) the company is required by its articles to apply its profits or other income in promoting its objects; and
(c) the company is prohibited by its articles from paying dividends to its members.

(4) The Registrar may, by licence, permit the limited company to—
(a) if the company has an English name only, change the name to delete from it the word “Limited”;
(b) if the company has a Chinese name only, change the name to delete from it the characters “有限公司”;

or
(c) if the company has both an English name and a Chinese name—

(i) change the English name to delete from it the word “Limited”; and
(ii) change the Chinese name to delete from it the characters “有限公司”.

(5) A change of company name under a licence mentioned in subsection (4) may only be made by special
resolution, and section 107(2), (3), (4), (5) and (6) applies to such a change as it applies to a change of company
name under section 107.

(6) To avoid doubt, a company registered by a name under a licence granted under this section—
(a) has the privileges of a limited company; and
(b) subject to section 105(1), has the obligations of a limited company.


Section: 104 Terms and conditions of licence L.N. 163 of 2013 03/03/2014


(1) A licence under section 103 may be granted on any terms and conditions the Registrar thinks fit.
(2) The terms and conditions—



Cap 622 - Companies Ordinance 39

(a) are binding on the company; and
(b) are to be incorporated in the articles of the company if the Registrar so directs.


Section: 105 Effect of licence L.N. 163 of 2013 03/03/2014


(1) The company to which a licence under section 103 relates is exempt from—
(a) section 102;
(b) regulations made under section 659 in relation to the use of the word “Limited” as part of its English

name or use of the characters “有限公司” as part of its Chinese name; and
(c) section 662 in relation to the delivery of particulars relating to members to the Registrar.

(2) While a licence under section 103 remains in force, the company must not alter its articles except under a
direction given under this section or section 104(2)(b) or with the Registrar’s prior written approval.

(3) On granting an approval under subsection (2), the Registrar may vary the licence by making it subject to any
terms and conditions he or she thinks fit, in addition to or in place of the terms or conditions to which the licence
was subject immediately before the variation.

(4) The terms and conditions imposed under subsection (3)—
(a) are binding on the company; and
(b) are to be incorporated in the articles of the company if the Registrar so directs.


Section: 106 Revocation of licence L.N. 163 of 2013 03/03/2014


(1) The Registrar may at any time revoke a licence granted under section 103 on being satisfied that—
(a) the company has failed to comply with any of the terms or conditions to which the licence is subject; or
(b) any one or more of the requirements specified in section 103(1) or (3) (as the case may be) are no longer

met.
(2) Before revoking a licence, the Registrar—

(a) must notify the company in writing of the Registrar’s intention to do so; and
(b) must give the company an opportunity to be heard.

(3) If a licence is revoked, the Registrar must give the company a notice in writing of the revocation.
(4) On the revocation of a licence, the company ceases to be entitled to the exemptions mentioned in section 105(1).
(5) Within the period specified in the notice of revocation, the company must change its name by special resolution

to—
(a) if the company has an English name only, add “Limited” as the last word of the name;
(b) if the company has a Chinese name only, add “有限公司” as the last 4 characters of the name; and
(c) if the company has both an English name and a Chinese name—

(i) add “Limited” as the last word of the English name; and
(ii) add “有限公司” as the last 4 characters of the Chinese name.

(6) Section 107(2), (3), (4), (5) and (6) applies to a change of company name under subsection (5) as it applies to a
change of company name under section 107.

(7) If the company fails to comply with subsection (5), the Registrar must in the Companies Register—
(a) if the company has an English name only, add “Limited” as the last word of the name;
(b) if the company has a Chinese name only, add “有限公司” as the last 4 characters of the name; and
(c) if the company has both an English name and a Chinese name—

(i) add “Limited” as the last word of the English name; and
(ii) add “有限公司” as the last 4 characters of the Chinese name.


Part:
Division:
Subdivision:

3
3
3

Change of Company Name L.N. 163 of 2013 03/03/2014







Cap 622 - Companies Ordinance 40

Section: 107 Company may change name by special resolution L.N. 163 of 2013 03/03/2014


(1) A company may change a company name by special resolution.
(2) Within 15 days after the date of passing the special resolution, the company must deliver to the Registrar for

registration a notice in the specified form of the change of company name.
(3) After receipt of a notice under subsection (2), the Registrar must, unless the new name is a name by which the

company must not be registered under section 100—
(a) enter the new name in the Companies Register in place of the former name; and
(b) issue to the company a certificate of change of name.

(4) The change of the name has effect from the date on which the certificate of change of name is issued.
(5) A change of name under this section does not affect any rights or obligations of the company or render defective

any legal proceedings by or against it. Any legal proceedings that could have been commenced or continued by
or against it by its former name may be commenced or continued by or against it by its new name.

(6) If a company contravenes subsection (2), the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 3 and, in the case of a continuing offence, to a further fine of $300
for each day during which the offence continues.


Section: 108 Registrar may direct company to change same or similar

name etc.
L.N. 163 of 2013 03/03/2014



(1) The Registrar may by notice in writing direct a company to change, within the period specified in the notice, a
name by which the company is registered under this Ordinance or the predecessor Ordinance if—
(a) the name is, as at the time of the registration, the same as or in the Registrar’s opinion too like a name that

appeared or should have appeared in the index of names kept under section 22C of the predecessor
Ordinance or in the Index of Company Names;

(b) the name is, as at the time of the registration, the same as or in the Registrar’s opinion too like a name of a
body corporate incorporated or established under an Ordinance;

(c) it appears to the Registrar that misleading information has been given for the company’s registration by
the name;

(d) it appears to the Registrar that any undertaking or assurance given for the registration by the name has not
been fulfilled; or

(e) the name is a name by which, as at the time of the registration, the company must not be registered because
of section 100(2)(a) or (b).

(2) The Registrar may by notice in writing direct a company to change, within the period specified in the notice, a
name by which the company is registered under this Ordinance or any former Companies Ordinance if, after the
company is registered by the name—
(a) a court makes an order restraining the company from using the name or any part of the name; and
(b) an office copy of the order, and a notice in the specified form, are delivered to the Registrar for registration

by a person in whose favour the order is made.
(3) A direction may only be given—

(a) in the case of subsection (1)(a) or (b), within 12 months after the date of registration by the name;
(b) in the case of subsection (1)(c) or (d), within 5 years after the date of registration by the name; and
(c) in the case of subsection (1)(e), within 3 months after the date of registration by the name.

(4) The Registrar may, before the end of the period specified in a notice given under subsection (1) or (2), by notice
in writing extend the period.

(5) If a company fails to comply with a direction within the period specified in the notice or, if the period is
extended under subsection (4), within the extended period, the company, and every responsible person of the
company, commit an offence, and each is liable to a fine at level 6 and, in the case of a continuing offence, to a
further fine of $2000 for each day during which the offence continues.


Section: 109 Registrar may direct company to change misleading or

offensive name etc.
L.N. 163 of 2013 03/03/2014



(1) The Registrar may by notice in writing direct a company to change a name by which the company is registered



Cap 622 - Companies Ordinance 41

under this Ordinance or any former Companies Ordinance if—
(a) the Registrar is of the opinion that the name gives so misleading an indication of the nature of the

company’s activities as to be likely to cause harm to the public; or
(b) the name is a name by which, as at the time of the registration, the company must not be registered because

of section 100(1)(c) or (d).
(2) The company must comply with a direction within the period of 6 weeks after the date of the direction or, if the

period is extended under subsection (4), within the extended period.
(3) A company may, within 3 weeks after the date of a direction, appeal to the Administrative Appeals Board

against the direction.
(4) The Registrar may, before the end of the period of 6 weeks after the date of the direction, by notice in writing

extend the period.
(5) If a company contravenes subsection (2), the company, and every responsible person of the company, commit an

offence, and each is liable to a fine at level 6 and, in the case of a continuing offence, to a further fine of $2000
for each day during which the offence continues.


Section: 110 Registrar may change company name in case of failure to

comply with direction
L.N. 163 of 2013 03/03/2014



(1) This section applies if—
(a) the Registrar directs a company to change a name under section 108(1) or (2) or 109(1) or, on or after 10

December 2010 under section 22 or 22A of the predecessor Ordinance; and
(b) the company fails to comply with the direction—

(i) in the case of a direction under section 108(1) or (2), within the period specified in the notice or, if the
period is extended under section 108(4), within the extended period;

(ii) in the case of a direction under section 109(1), within the relevant period specified in section 109(2);
(iii) in the case of a direction under section 22(2), (3A), (3B) or (4) of the predecessor Ordinance, within

the period specified by the Registrar or, if the period is extended under section 22(5) of that Ordinance,
within the extended period; or

(iv) in the case of a direction under section 22A(1) or (1A) of the predecessor Ordinance, within the period
specified in section 22A(2) of that Ordinance or, if a period is specified by the court under section
22A(3) of that Ordinance for the direction, within the period specified by the court.

(2) Without limiting section 108(5) or 109(5), or section 22(6) or 22A(4) of the predecessor Ordinance (as the case
may be), the Registrar may change the name to—
(a) in the case of an English name, a name that consists of the words “Company Registration Number” as its

prefix, followed by the registration number of the company as stated in the certificate of incorporation;
(b) in the case of a Chinese name, a name that consists of the characters “公司註冊編號” as its prefix,

followed by the registration number of the company as stated in the certificate of incorporation; or
(c) in the case of a name consisting of both an English name and a Chinese name—

(i) an English name that consists of the words “Company Registration Number” as its prefix, followed
by the registration number of the company as stated in the certificate of incorporation; and

(ii) a Chinese name that consists of the characters “公司註冊編號” as its prefix, followed by the
registration number of the company as stated in the certificate of incorporation.

(3) The Registrar must enter the new name in the Companies Register in place of the former name.
(4) The change of name has effect from the date on which the new name is entered in the Companies Register.
(5) Within 30 days after the date of entering the new name in the Companies Register, the Registrar—

(a) must by notice in writing notify the company of—
(i) the fact that a name of the company has been changed;
(ii) the new name; and
(iii) the date on which the change takes effect under subsection (4); and

(b) must by notice in the Gazette notify that fact, the new name and that date.
(6) A change of name under this section does not affect any rights or obligations of the company or render defective

any legal proceedings by or against it. Any legal proceedings that could have been commenced or continued by
or against it by its former name may be commenced or continued by or against it by its new name.



Cap 622 - Companies Ordinance 42


Part:
Division:
Subdivision:

3
3
4

Supplementary Provision L.N. 163 of 2013 03/03/2014





Section: 111 Determining whether name is same as or similar to
another name

L.N. 163 of 2013 03/03/2014



(1) This section applies in determining—
(a) whether a name is the same as another name for the purposes of section 100(1)(a) or (b) or (2)(c) or

108(1)(a) or (b); or
(b) whether a name is too like another name for the purposes of section 108(1)(a) or (b).

(2) If the definite article is the first word of the name, the definite article must be disregarded.
(3) If any of the words, expressions or characters specified in subsection (4), or an abbreviation of any of them,

appears at the end of the name, the word, expression, character or abbreviation must be disregarded.
(4) The words, expressions or characters are—

(a) “company”;
(b) “and company”;
(c) “company limited”;
(d) “and company limited”;
(e) “limited”;
(f) “unlimited”;
(g) “public limited company”;
(h) “公司”;
(i) “有限公司”;
(j) “無限公司”;
(k) “公眾有限公司”.

(5) The following must be disregarded—
(a) type or case of letters;
(b) spaces between letters;
(c) accent marks;
(d) punctuation marks.

(6) The following expressions are to be regarded as the same—
(a) “and” and “&”;
(b) “Hong Kong”, “Hongkong” and “HK”;
(c) “Far East” and “FE”.

(7) A Chinese character is to be regarded as the same as another Chinese character if the Registrar is satisfied,
having regard to the usage of the 2 characters in Hong Kong, that the 2 characters can reasonably be used
interchangeably.


Part:
Division:

3
4

Membership L.N. 163 of 2013 03/03/2014





Section: 112 Members of company L.N. 163 of 2013 03/03/2014


(1) A founder member of a company is to be regarded as having agreed to become a member of the company.
(2) On the registration of a company, a founder member of the company must be entered, as a member, in the

company’s register of members.
(3) Any other person who agrees to become a member of a company and whose name is entered, as a member, in

the company’s register of members is a member of the company.



Cap 622 - Companies Ordinance 43


Section: 113 Members of holding company L.N. 163 of 2013 03/03/2014


(1) Subject to this section—
(a) a body corporate cannot be a member of a company of which the body corporate is a subsidiary; and
(b) any allotment or transfer of shares in a company to a body corporate that is a subsidiary of the company is

void.
(2) Subsection (1) does not apply if—

(a) the body corporate is a member of the company as a personal representative; or
(b) the body corporate is a member of the company as a trustee, and the holding company or any of its

subsidiaries is not beneficially interested under the trust.
(3) For the purposes of subsection (2)(b), a company or subsidiary is not beneficially interested under a trust if it is

interested under the trust only by way of security for the purpose of a transaction entered into by it in the
ordinary course of a business (including the lending of money).

(4) Subsection (1) does not prevent a body corporate that was, on 31 August 1984, already a member of a holding
company of the body corporate from continuing to be such a member.

(5) Subsection (1) does not prevent a company that on the date it becomes a subsidiary of another company is a
member of that other company from continuing to be such a member.

(6) Subsection (1) does not prevent a body corporate from becoming a member of a holding company of the body
corporate, or prevent an allotment to a body corporate of shares in a holding company of the body corporate, by
virtue of the exercise by the body corporate of any rights of conversion—
(a) attached to any shares in the holding company held by the body corporate on 31 August 1984; or
(b) under any debentures of the holding company held by the body corporate on 31 August 1984.

(7) If a body corporate is a member of a holding company of the body corporate, subsection (1) does not prevent the
body corporate from accepting or holding further shares in the holding company if those shares are allotted to
the body corporate as fully paid up as a consequence of a capitalization of reserves or profits by the holding
company.

(8) If a company makes an offer of shares to its members, the company—
(a) may sell, on behalf of any of its subsidiaries, any such shares that the subsidiary could, but for this section,

have taken by virtue of shares in the company that are already held by the subsidiary; and
(b) may pay to the subsidiary the proceeds of the sale.

(9) Even though a body corporate is a member of a holding company of the body corporate, it has no right to vote at

(a) meetings of the holding company; or
(b) meetings of any class of members of the holding company.

(10) Subsection (9) does not apply if the body corporate is such a member in the circumstances described in
subsection (2).

(11) In this section, a reference to a body corporate includes a nominee for the body corporate.
(12) In this section, a reference to shares, in relation to a holding company that is a company limited by guarantee or

an unlimited company, includes the interest of the company’s members, whatever the form of the interest and
whether or not the company has a share capital.


Section: 114 Notifying Registrar of increase in number of members of

company limited by guarantee
L.N. 163 of 2013 03/03/2014



(1) If a company limited by guarantee increases the number of its members beyond the registered number, the
company must, within 15 days after the increase is resolved by the company or takes place (whichever is the
earlier), deliver to the Registrar for registration a notice of the increase in the specified form.

(2) If a company contravenes subsection (1), the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 3 and, in the case of a continuing offence, to a further fine of $300
for each day during which the offence continues.

(3) In this section—
registered number(註冊人數) means—
(a) the number of members with which the company proposes to register, whether contained in the incorporation



Cap 622 - Companies Ordinance 44

form for the purposes of section 1(e) of Schedule 2 or stated in the articles under section 10(2) of the predecessor
Ordinance; or

(b) the increased number of the company’s members last notified to the Registrar under subsection (1).

Part:
Division:

3
5

Capacity and Powers of Company L.N. 163 of 2013 03/03/2014





Section: 115 Company’s capacity etc. L.N. 163 of 2013 03/03/2014


(1) A company has the capacity, rights, powers and privileges of a natural person of full age.
(2) Without limiting subsection (1), a company—

(a) may do any act that it is permitted or required to do by its articles or any Ordinance or rule of law; and
(b) has power to acquire, hold and dispose of land.

(3) In this section—
land(土地) includes any estate or interest in land, buildings, messuages and tenements of any nature or kind.

Section: 116 Company’s exercise of powers limited by articles L.N. 163 of 2013 03/03/2014


(1) If the objects of a company are stated in its articles, the company must not do any act that it is not authorized to
do by its articles.

(2) If any power of a company is expressly modified or excluded by its articles, the company must not exercise the
power contrary to that modification or exclusion.

(3 A member of a company may bring proceedings to restrain the company from doing any act in contravention of
subsection (1) or (2).

(4) Proceedings must not be brought under subsection (3) in respect of any act to be done in fulfilment of a legal
obligation arising from a previous act of the company.

(5) An act by a company (including a transfer of property to or by the company) is not invalid only because the
company does the act in contravention of subsection (1) or (2).


Section: 117 Transaction or act binds company despite limitation in

articles etc.
L.N. 163 of 2013 03/03/2014



(1) Subject to section 119, in favour of a person dealing with a company in good faith, the power of the company’s
directors to bind the company, or authorize others to do so, is to be regarded as free of any limitation under any
relevant document of the company.

(2) For the purposes of subsection (1)—
(a) a person deals with a company if the person is a party to any transaction or any other act to which the

company is a party;
(b) a person dealing with a company is presumed, unless the contrary is proved, to have acted in good faith;
(c) a person dealing with a company is not to be regarded as acting in bad faith by reason only of the person’s

knowing that an act is beyond the directors’ powers under any relevant document of the company; and
(d) a person dealing with a company is not required to inquire as to the limitations on the power of the

company’s directors to bind the company or authorize others to do so.
(3) This section does not affect any right of a member of the company to bring proceedings to restrain the doing of

an act that is beyond the directors’ powers.
(4) Proceedings must not be brought under subsection (3) in respect of any act to be done in fulfilment of a legal

obligation arising from a previous act of the company.
(5) This section does not affect any liability incurred by the directors, or any other person, by reason of the

directors’ exceeding their powers.
(6) In this section—
relevant document(有關文件), in relation to a company, means—

(a) the company’s articles;



Cap 622 - Companies Ordinance 45

(b) any resolutions of the company or of any class of members of the company; or
(c) any agreements between the members, or members of any class of members, of the company.


Section: 118 Transaction or act involving directors or their associates is

voidable
L.N. 163 of 2013 03/03/2014



(1) This section applies if—
(a) a company enters into a transaction; and
(b) the transaction binds the company because the power of the directors to bind the company, or authorize

others to do so, is to be regarded under section 117 as free of any limitation under any relevant document of
the company.

(2) The transaction is voidable at the instance of the company if the parties to the transaction include—
(a) a director of the company or of a holding company of the company; or
(b) an entity connected with such a director.

(3) The transaction ceases to be voidable if—
(a) restitution of any money or other asset that was the subject matter of the transaction is no longer possible;
(b) the company is indemnified for any loss or damage resulting from the transaction;
(c) a person who is not a party to the transaction has acquired rights in good faith and for value, and without

actual notice of the directors’ exceeding their powers, and those rights would be affected by the avoidance
of the transaction; or

(d) the transaction is affirmed by the company.
(4) Whether or not the transaction is avoided under subsection (2), any party to the transaction falling within

subsection (2)(a) or (b) is liable, and any director of the company who has authorized the transaction is liable, to

(a) account to the company for any gain that the party or director has directly or indirectly made from the

transaction; and
(b) indemnify the company against any loss or damage resulting from the transaction.

(5) A person who is not a director of the company is not liable under subsection (4) if the person shows that, at the
time of the transaction, the person did not know that the directors were exceeding their powers.

(6) Subject to subsection (7), this section does not affect the rights of any party to the transaction not falling within
subsection (2)(a) or (b).

(7) The Court may, on application by the company or a party covered by subsection (6), affirm, sever or set aside
the transaction on any terms it thinks just.

(8) This section does not exclude the operation of any other Ordinance or rule of law by which the transaction may
be called in question or any liability to the company may arise.

(9) In subsection (2)(b), the reference to an entity connected with a director has the meaning given by section 486.
(10) In this section—
transaction(交易) includes any act.

Section: 119 Section 117 not to apply to certain cases L.N. 163 of 2013 03/03/2014


(1) Section 117 does not apply to any act of an exempted company except in favour of a person who—
(a) does not know at the time of the act that the company is an exempted company; or
(b) gives full consideration for the act and does not know—

(i) that the act is not permitted by any relevant document of the company; or
(ii) that the act is beyond the powers of the directors.

(2) If an exempted company purports to transfer or grant an interest in property, the fact that—
(a) the act was not permitted by any relevant document of the company; or
(b) the directors exceeded any limitation on their powers under any relevant document of the company,
does not affect the title of a person who subsequently acquires the property or any interest in it for full
consideration without actual notice of any of the circumstances set out in paragraph (a) or (b).

(3) In any civil proceedings arising out of subsection (1) or (2), the burden of proving that—
(a) a person knew that the company was an exempted company;



Cap 622 - Companies Ordinance 46

(b) a person knew that the act was not permitted by any relevant document of the company; or
(c) a person knew that the act was beyond the powers of the directors,

lies on the person who asserts that fact.
(4) In this section—
exempted company(獲豁免公司) means a company—

(a) to which a licence under section 103 relates; and
(b) that is exempt from tax under section 88 of the Inland Revenue Ordinance (Cap 112);

relevant document(有關文件), in relation to a company, means—
(a) the company’s articles;
(b) any resolutions of the company or of any class of members of the company; or
(c) any agreements between the members, or members of any class of members, of the company.


Section: 120 No constructive notice of matters disclosed in articles etc. L.N. 163 of 2013 03/03/2014


A person is not to be regarded as having notice of any matter merely because the matter is disclosed in—
(a) the articles of a company kept by the Registrar; or
(b) a return or resolution kept by the Registrar.


Part:
Division:

3
6

Contracts of Company L.N. 163 of 2013 03/03/2014





Section: 121 Contracts made by or on behalf of company L.N. 163 of 2013 03/03/2014


(1) This section applies to—
(a) a contract that would be required by law to be in writing and under seal if made between natural persons;
(b) a contract that would be required by law to be in writing, and to be signed by the parties to the contract, if

made between natural persons; and
(c) a contract that, though made orally and not in writing, would by law be valid if made between natural

persons.
(2) A contract specified in subsection (1)(a) may be made by a company—

(a) in writing under the company’s common seal (if any); or
(b) in writing executed in accordance with section 127(3) and expressed (in whatever words) to be executed by

the company.
(3) A contract specified in subsection (1)(b) may be made on behalf of a company in writing signed by any person

acting with the company’s authority (whether express or implied).
(4) A contract specified in subsection (1)(c) may be made on behalf of a company orally by any person acting with

the company’s authority (whether express or implied).
(5) A contract made in accordance with this section—

(a) is effective in law; and
(b) binds the company and its successors and all other parties to the contract.

(6) A contract made in accordance with this section may be varied or discharged in the same manner in which it is
authorized by this section to be made.


Section: 122 Contracts made before company’s incorporation L.N. 163 of 2013 03/03/2014


(1) This section applies if a contract purports to have been made in the name or on behalf of a company before the
company was incorporated.

(2) Subject to any express agreement to the contrary—
(a) the contract has effect as a contract entered into by the person purporting to act for the company or as an

agent for the company; and
(b) the person is personally liable on the contract and is entitled to enforce the contract.

(3) After incorporation, the company may ratify the contract to the same extent as if—



Cap 622 - Companies Ordinance 47

(a) the company had already been incorporated when the contract was entered into; and
(b) the contract had been entered into on the company’s behalf by an agent acting without the company’s

authority.
(4) Despite subsection (2)(b), if the contract is ratified by the company, then on and after the ratification, the

liability of the person mentioned in that subsection is not greater than the liability that the person would have
incurred if the person had entered into the contract after the company’s incorporation as an agent acting
without the company’s authority.


Section: 123 Bills of exchange and promissory notes L.N. 163 of 2013 03/03/2014


If a bill of exchange or promissory note is made, accepted or endorsed in the name of, or by or on behalf or on account
of, a company by a person acting with the company’s authority, the bill or note is to be regarded as having been
made, accepted or endorsed on the company’s behalf.

Part:
Division:

3
7

Execution of Documents L.N. 163 of 2013 03/03/2014





Part:
Division:
Subdivision:

3
7
1

Company Seal L.N. 163 of 2013 03/03/2014





Section: 124 Company may have common seal etc. L.N. 163 of 2013 03/03/2014


(1) A company may have a common seal.
(2) A company’s common seal must be a metallic seal having the company’s name engraved on it in legible

form.
(3) If subsection (2) is contravened, the company, and every responsible person of the company, commit an offence,

and each is liable to a fine at level 3.
(4) If an officer of a company or a person on behalf of a company uses, or authorizes the use of, a seal that purports

to be the company’s common seal and that contravenes subsection (2), the officer or person commits an
offence and is liable to a fine at level 3.


Section: 125 Official seal for use abroad L.N. 163 of 2013 03/03/2014


(1) A company with a common seal may have an official seal for use outside Hong Kong.
(2) Such an official seal must be a replica of the company’s common seal, but have engraved on it in legible form

the name of every place where it is to be used.
(3) A company with an official seal for use in a place may, by writing under its common seal, authorize any person

appointed for the purpose to affix, in that place, the official seal to any deed or any other document to which the
company is a party.

(4) As between a company and any person dealing with an executing agent of the company, the authority of the
agent continues—
(a) if the authorization mentions a period during which the authority is to continue, until the end of the period;

or
(b) if the authorization does not mention such a period, until a notice of revocation or termination of the

agent’s authority has been given to the person.
(5) The person affixing an official seal must, on the deed or other document to which the seal is affixed, certify in

writing the date on which, and the place at which, the seal is so affixed.
(6) A deed or other document to which an official seal is affixed binds the company as if it had been executed under

the company’s common seal.
(7) In this section—



Cap 622 - Companies Ordinance 48

executing agent(簽立代理人), in relation to a company, means a person authorized by the company under subsection
(3).


Section: 126 Official seal for sealing share certificates etc. L.N. 163 of 2013 03/03/2014


(1) A company with a common seal may have an official seal—
(a) for sealing securities issued by the company; or
(b) for sealing documents creating or evidencing securities issued by the company.

(2) Such an official seal must be a replica of the company’s common seal, but have engraved on it in legible form
the word “securities” or the characters “證券” or both such word and characters.

(3) A company that was incorporated before 31 August 1984 and that has such an official seal may use the seal for
sealing any securities or documents mentioned in subsection (1), despite anything in—
(a) any instrument constituting or regulating the company; or
(b) any instrument, made before that date, relating to securities or documents sealed with the seal.


Part:
Division:
Subdivision:

3
7
2

Execution Requirements L.N. 163 of 2013 03/03/2014





Section: 127 Execution of documents by company L.N. 163 of 2013 03/03/2014


(1) A company may execute a document under its common seal.
(2) If a company executes a document under its common seal, the seal must be affixed in accordance with the

provisions of its articles.
(3) A company may also execute a document—

(a) in the case of a company with only one director, by having it signed by the director on the company’s
behalf; or

(b) in the case of a company with 2 or more directors, by having it signed on the company’s behalf by—
(i) the 2 directors or any 2 of the directors; or
(ii) any of the directors and the company secretary of the company.

(4) For the purposes of subsection (3), if a person is to sign a document on behalf of 2 or more companies, the
person must sign the document separately in each capacity.

(5) A document signed in accordance with subsection (3) and expressed (in whatever words) to be executed by the
company has effect as if the document had been executed under the company’s common seal.

(6) In favour of a person specified in subsection (7), a document is to be regarded as having been executed by a
company if the document purports to have been signed in accordance with subsection (3).

(7) The person is a purchaser in good faith for valuable consideration and includes—
(a) a lessee;
(b) a mortgagee; or
(c) any other person who for valuable consideration acquires the property.

(8) This section also applies to a document that is executed, or purports to be executed, by a company in the name of
or on behalf of another person whether or not that other person is also a company.


Section: 128 Execution of deeds by company L.N. 163 of 2013 03/03/2014


(1) A company may execute a document as a deed by—
(a) executing it in accordance with section 127;
(b) having it expressed (in whatever words) to be executed by the company as a deed; and
(c) delivering it as a deed.

(2) For the purposes of subsection (1)(c), a document is presumed, unless the contrary is proved, to be delivered as a
deed on its being executed in accordance with section 127.

(3) If there is any conflict or inconsistency between this section and the provisions of any other Ordinance, this



Cap 622 - Companies Ordinance 49

section prevails over those provisions to the extent of the conflict or inconsistency.

Section: 129 Execution of deeds or other documents by attorney for

company
L.N. 163 of 2013 03/03/2014



(1) A company may, either generally or in respect of any specific matter, by an instrument executed as a deed,
empower any person as its attorney to execute a deed or any other document on its behalf in Hong Kong or
elsewhere.

(2) A deed or any other document executed by an attorney on behalf of the company binds the company and has
effect as if it were executed by the company.

(3) This section does not affect the operation of any other Ordinance as to the execution of powers of attorney.

Part:
Division:

3
8

Re-registration of Unlimited Company as Company
Limited by Shares

L.N. 163 of 2013 03/03/2014





Section: 130 Unlimited company may apply for re-registration as
company limited by shares

L.N. 163 of 2013 03/03/2014



(1) A company registered as an unlimited company on or after 31 August 1984 may be re-registered as a company
limited by shares if the company—
(a) passes a special resolution specified in subsection (2); and
(b) delivers to the Registrar for registration an application in accordance with section 131.

(2) The special resolution—
(a) must resolve that the company is to be re-registered as a company limited by shares;
(b) must state the manner in which the liability of the members is to be limited on the re-registration;
(c) must provide for the alterations to the company’s articles that are necessary to bring the articles into

conformity with the requirements of this Ordinance in respect of the articles of a company to be formed
under this Ordinance as a company limited by shares;

(d) must contain a statement specified in subsection (3); and
(e) may state the maximum number of shares that the company may issue.

(3) The statement—
(a) must state the total number of shares in the company issued before the re-registration, and the total number

of shares that the company proposes to issue on the re-registration;
(b) must state the total amount of share capital subscribed by its members before the re-registration, and the

total amount of share capital to be subscribed by its members on the re-registration;
(c) must state the amount to be paid up or to be regarded as paid up, and the amount to remain unpaid or to be

regarded as remaining unpaid, on the total number of shares issued before the re-registration, and on the
total number of shares that the company proposes to issue on the re-registration;

(d) if the share capital is to be divided into different classes of shares on the re-registration, must also state the
classes and, for each class—
(i) the particulars specified in subsection (5);
(ii) the total number of shares in that class issued before the re-registration, and the total number of shares

in that class that the company proposes to issue on the re-registration;
(iii) the total amount of share capital in that class subscribed by its members before the re-registration, and

the total amount of share capital in that class to be subscribed by its members on the re-registration;
and

(iv) the amount to be paid up or to be regarded as paid up, and the amount to remain unpaid or to be
regarded as remaining unpaid, on the total number of shares in that class issued before the re-
registration, and on the total number of shares in that class that the company proposes to issue on the
re-registration; and

(e) must state, in respect of each member—
(i) the number of shares that the company issued to the member before the re-registration, and the number

of shares that the company proposes to issue to the member on the re-registration; and



Cap 622 - Companies Ordinance 50

(ii) the total amount of share capital subscribed by the member before the re-registration, and the total
amount of share capital to be subscribed by the member on the re-registration.

(4) If the shares proposed to be issued to a member on the re-registration belong to 2 or more classes, the
information required under subsection (3)(e) must be stated in respect of each class.

(5) The particulars for the purposes of subsection (3)(d) are—
(a) particulars of any voting rights attached to shares in the class, including rights that arise only in certain

circumstances;
(b) particulars of any rights attached to shares in the class, as respects dividends, to participate in a distribution;
(c) particulars of any rights attached to shares in the class, as respects capital, to participate in a distribution

(including on a winding up); and
(d) whether or not shares in the class are redeemable shares.


Section: 131 Application for re-registration L.N. 163 of 2013 03/03/2014


(1) An application under section 130(1)—
(a) must be in the specified form; and
(b) must be accompanied by a copy of the company’s articles as proposed to be altered by the special

resolution.
(2) Such an application may only be delivered to the Registrar on or after the date on which the Registrar receives a

copy of the special resolution delivered under section 622.

Section: 132 Issue of fresh certificate of incorporation L.N. 163 of 2013 03/03/2014


(1) On registering an application and a copy of the articles delivered under section 131(1), the Registrar must issue a
fresh certificate of incorporation certifying that the company is a company limited by shares.

(2) The certificate must be signed by the Registrar.
(3) On the issue of the certificate—

(a) the company becomes a company limited by shares; and
(b) the alterations to the company’s articles as provided for in the special resolution for re-registration under

section 130(2)(c) take effect despite anything in this Ordinance.
(4) A certificate of incorporation issued under subsection (1) is conclusive evidence that—

(a) all the requirements of this Ordinance in respect of re-registration of the company have been complied with;
and

(b) the company is re-registered as a company limited by shares under this Ordinance.

Section: 133 Winding up of company re-registered as company limited

by shares
L.N. 163 of 2013 03/03/2014



(1) This section applies if—
(a) a company is re-registered as a company limited by shares under this Division or section 19 of the

predecessor Ordinance; and
(b) the company is wound up.

(2) Despite section 170(1)(a) of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap 32), a
person who is not a member of the company but was a member at the time of the re-registration is liable to
contribute to the assets of the company in respect of debts and liabilities of the company contracted before the
re-registration if the winding up commences within 3 years beginning on the day of the re-registration.

(3) Despite section 170(1)(c) of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap 32), a
person who was a member or a past member of the company at the time of the re-registration is liable to
contribute to the assets of the company in respect of debts and liabilities of the company contracted before the
re-registration if every person who was a member of the company at that time is no longer a member of the
company.

(4) Subsection (3) applies even though the existing members of the company have satisfied the contribution required
to be made by them under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap 32).

(5) Despite section 170(1)(d) of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap 32),



Cap 622 - Companies Ordinance 51

there is no limit on the amount that a person is liable to contribute under subsection (2) or (3).

Part: 4 Share Capital L.N. 163 of 2013 03/03/2014


(*Format changes—E.R. 1 of 2013)
____________________________________________________________________________
Note:
* The format of Part 4 has been updated to the current legislative styles.

Part:
Division:

4
1

Nature of Shares L.N. 163 of 2013 03/03/2014





Section: 134 Nature and transferability of shares L.N. 163 of 2013 03/03/2014


(1) A share or other interest of a member in a company is personal property.
(2) A share or other interest of a member in a company is transferable in accordance with the company’s articles.

Section: 135 No nominal value L.N. 163 of 2013 03/03/2014


(1) Shares in a company have no nominal value.
(2) This section applies to shares issued before the commencement date* of this section as well as shares issued on

or after that date.
Note—
Division 2 of Part 4 of Schedule 11 contains transitional provisions relating to the abolition of nominal value.
___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 136 Numbering of shares L.N. 163 of 2013 03/03/2014


(1) Each share in a company must be distinguished by an appropriate number, except as provided by subsection (2)
or (3).

(2) If, at any time—
(a) all the issued shares in a company are fully paid up and rank equally for all purposes; or
(b) all the issued shares of a particular class in a company are fully paid up and rank equally for all purposes,
none of those shares is required to have a distinguishing number as long as it remains fully paid up and ranks
equally for all purposes with all shares of the same class for the time being issued and fully paid up.

(3) If new shares are issued by a company on the terms that, within a period not exceeding 12 months, they will rank
equally for all purposes with all the existing shares, or with all the existing shares of a particular class, in the
company, neither the new shares nor the corresponding existing shares are required to have distinguishing
numbers as long as all of them are fully paid up and rank equally for all purposes.

(4) If subsection (3) applies and the shares are not numbered, any share certificates for the new shares must be
appropriately worded or enfaced.


Section: 137 Share certificate to be proof of title in the absence of

contrary evidence
L.N. 163 of 2013 03/03/2014



In the absence of evidence to the contrary, a certificate issued by a company specifying any shares held by a member
in the company is proof of the member’s title to the shares.

Section: 138 Repeal of power to issue stock L.N. 163 of 2013 03/03/2014


A company does not have power to convert its shares into stock.



Cap 622 - Companies Ordinance 52

Note—
Sections 174 and 175 contain provisions relating to the reconversion of stock into shares.

Section: 139 Repeal of power to issue share warrants L.N. 163 of 2013 03/03/2014


(1) A company does not have power to issue a share warrant.
(2) The bearer of a share warrant issued before the commencement date* of this section is entitled, on surrendering

it for cancellation, to have the bearer’s name entered in the register of members of the company.
(3) If the company enters the bearer’s name in the register of its members without the share warrant being

surrendered and cancelled, the company is liable for any loss suffered by a person as a result of the bearer’s
name being entered in the register.

(4) The company must enter the date of surrender of a share warrant in the register of its members.
(5) If a company’s articles so provide, the bearer of a share warrant may be regarded as a member of the company,

either to the full extent or for any purposes specified in the articles.
___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Part:
Division:

4
2

Allotment and Issue of Shares L.N. 163 of 2013 03/03/2014





Section: 140 Exercise by directors of power to allot shares or grant
rights

L.N. 163 of 2013 03/03/2014



(1) Except in accordance with section 141, the directors of a company must not exercise any power—
(a) to allot shares in the company; or
(b) to grant rights to subscribe for, or to convert any security into, shares in the company.

(2) Subsection (1) does not apply to—
(a) an allotment of shares, or grant of rights, under an offer made to the members of the company in proportion

to their shareholdings;
(b) an allotment of shares, or grant of rights, on a bonus issue of shares to the members of the company in

proportion to their shareholdings;
(c) an allotment to a founder member of a company of shares that the member, by signing the company’s

articles, has agreed to take; or
(d) an allotment of shares made in accordance with a grant of a right to subscribe for, or to convert any security

into, shares if the right was granted in accordance with an approval under section 141.
(3) For the purposes of subsection (2)(a), the offer is not required to be made to any member whose address is in a

place where the offer is not permitted under the law of that place.
(4) A director commits an offence if the director knowingly contravenes, or authorizes or permits a contravention of,

this section.
(5) A director who commits an offence under subsection (4) is liable to a fine at level 5 and to imprisonment for 6

months.
(6) Nothing in this section or section 141 affects the validity of an allotment or other transaction.

Section: 141 Allotment of shares or grant of rights with company

approval
L.N. 163 of 2013 03/03/2014



(1) The directors of a company may exercise a power—
(a) to allot shares in the company; or
(b) to grant rights to subscribe for, or to convert any security into, shares in the company,

if the company gives approval in advance by resolution of the company.
(2) Approval may be given for a particular exercise of the power or for its exercise generally, and may be

unconditional or subject to conditions.



Cap 622 - Companies Ordinance 53

(3) Subject to subsections (4) and (5), an approval expires—
(a) if the company is required to hold an annual general meeting, on the earlier of—

(i) the conclusion of the annual general meeting held next after the approval was given;
(ii) the expiry of the period within which the next annual general meeting after the approval was given is

required to be held;
(b) if the company is not required to hold an annual general meeting because of section 612(1), on the date on

which the requirements of that section are satisfied; or
(c) if the company is not required to hold an annual general meeting for any other reason, on the date specified

in the approval, which must not be more than 12 months after the approval was given.
(4) An approval may be revoked or varied at any time by resolution of the company.
(5) The directors may allot shares or grant rights after an approval has expired if—

(a) the shares are allotted, or the rights are granted, under an offer, agreement or option made or granted by the
company before the approval expired; and

(b) the approval allowed the company to make or grant an offer, agreement or option that would or might
require shares to be allotted, or rights to be granted, after the approval had expired.


Section: 142 Return of allotment L.N. 163 of 2013 03/03/2014


(1) Within one month after an allotment of shares, a limited company must deliver to the Registrar for registration a
return of the allotment that complies with subsection (2).

(2) A return—
(a) must be in the specified form;
(b) must include a statement of capital as at the date of the allotment that complies with section 201;
(c) must state—

(i) the number of shares allotted;
(ii) the name and address of each allottee; and
(iii) if the company’s issued share capital is increased as a result of the allotment, the amount of the

increase;
(d) for any shares allotted for consideration (whether wholly or partly cash consideration or non-cash

consideration)—
(i) must state the amount paid or regarded as paid on each share and the amount (if any) remaining unpaid

or regarded as remaining unpaid on each share;
(ii) in the case of an allotment wholly or partly for non-cash consideration under an arrangement made

under Division 2 of Part 13, must contain particulars of the order of the Court sanctioning the
arrangement; and

(iii) in any other case of an allotment wholly or partly for non-cash consideration, must contain particulars
of the contract for sale, or for services or other consideration in respect of which the shares were
allotted; and

(e) for any shares allotted credited as fully paid up (whether on or without a capitalization)—
(i) must state the amount regarded as paid on each share; and
(ii) must contain particulars of the resolution authorizing the capitalization or allotment.

(3) If a limited company contravenes subsection (1), the company, and every responsible person of the company,
commit an offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine
of $700 for each day during which the offence continues.

(4) If a limited company fails to deliver a return that complies with subsection (2) within one month after an
allotment of shares, the Court may, on application by the company or a responsible person of the company,
extend the period for delivery of the return by a period determined by the Court.

(5) The Court may extend a period under subsection (4) only if it is satisfied—
(a) that failure to deliver the return was accidental or due to inadvertence; or
(b) that it is just and equitable to extend the period.

(6) If the Court extends the period for delivery of a return, any liability already incurred by the company or a
responsible person of the company for an offence under subsection (3) is extinguished and subsection (1) has
effect as if the reference to one month were a reference to the extended period.





Cap 622 - Companies Ordinance 54

Section: 143 Registration of allotment L.N. 163 of 2013 03/03/2014


(1) A company must register an allotment of shares as soon as practicable and in any event within 2 months after the
date of the allotment, by entering in the register of its members the information referred to in section 627(2) and
(3).

(2) If a company fails to register an allotment of shares within 2 months after the date of the allotment, the company,
and every responsible person of the company, commit an offence, and each is liable to a fine at level 4 and, in
the case of a continuing offence, to a further fine of $700 for each day during which the offence continues.


Section: 144 Issue of share certificate on allotment L.N. 163 of 2013 03/03/2014


(1) Within 2 months after an allotment of shares, a company must complete the certificates for the shares and have
the certificates ready for delivery.

(2) Subsection (1) does not apply if the conditions of issue of the shares provide otherwise.
(3) If a company contravenes this section, the company, and every responsible person of the company, commit an

offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine of $700
for each day during which the offence continues.


Section: 145 Order of Court for delivery of share certificate L.N. 163 of 2013 03/03/2014


(1) If a company contravenes section 144 in relation to an allotment of shares, a person entitled to the certificates for
the shares may serve a notice on the company requiring it to deliver the certificates to the person within 10 days.

(2) If a company on which a notice has been served under subsection (1) does not deliver the certificates within 10
days after service of the notice, the person may apply to the Court for an order under subsection (3).

(3) On an application under subsection (2), the Court may make an order directing the company and any officer of
the company to deliver the certificates to the person within the period specified in the order.

(4) The order may provide that all costs of and incidental to the application are to be borne by the company or by an
officer of the company responsible for the contravention.


Section: 146 Validation by Court of issue or allotment L.N. 163 of 2013 03/03/2014


(1) This section applies if a company purports to issue or allot shares and—
(a) the issue or allotment is or may be invalid for any reason; or
(b) the terms of the issue or allotment are inconsistent with or not authorized by—

(i) this Ordinance or any other Ordinance; or
(ii) the company’s articles.

(2) The company, a creditor of the company or a holder or mortgagee of any of the shares may apply to the Court
for an order validating, or confirming the terms of, the issue or allotment.

(3) The Court may make an order under subsection (2) if the Court is satisfied that it is just and equitable to do so.
(4) On delivery of an office copy of the order to the Registrar, the order has effect from the time of the purported

issue or allotment.

Part:
Division:

4
3

Commissions and Expenses L.N. 163 of 2013 03/03/2014





Section: 147 General prohibition of commissions, discounts and
allowances

L.N. 163 of 2013 03/03/2014



(1) Except as permitted by section 148, a company must not apply any of its shares or share capital, either directly
or indirectly, in payment of any commission, discount or allowance to a person in consideration of the person—
(a) subscribing or agreeing to subscribe (whether absolutely or conditionally) for shares in the company; or
(b) procuring or agreeing to procure subscriptions (whether absolute or conditional) for shares in the company.

(2) It is immaterial how the shares or share capital are applied, whether by being added to the purchase money of



Cap 622 - Companies Ordinance 55

property acquired by the company or to the contract price of work to be executed for the company, or being paid
out of the nominal purchase money or contract price, or otherwise.

(3) Nothing in this section affects the payment of brokerage by a company.

Section: 148 Permitted commissions L.N. 163 of 2013 03/03/2014


(1) If the conditions in subsection (2) are satisfied, a company may pay a commission to a person in consideration of
the person—
(a) subscribing or agreeing to subscribe (whether absolutely or conditionally) for shares in the company; or
(b) procuring or agreeing to procure subscriptions (whether absolute or conditional) for shares in the company.

(2) The conditions are that—
(a) the payment of the commission is authorized by the company’s articles;
(b) the commission paid or agreed to be paid does not exceed the lesser of—

(i) 10% of the price at which the shares are issued;
(ii) the amount or rate authorized by the articles; and

(c) if the shares are not offered to the public for subscription, the company, before making the payment—
(i) delivers to the Registrar for registration a notice in the specified form disclosing the amount or rate of

the commission and the number of shares (if any) that persons have agreed for a commission to
subscribe for absolutely; and

(ii) discloses the amount or rate of the commission and the number of shares (if any) that persons have
agreed for a commission to subscribe for absolutely in any circular or notice issued by the company
inviting subscriptions for the shares.

(3) A vendor to, promoter of, or other person who receives payment in money or shares from, a company may apply
any part of the money or shares so received in payment of any commission the payment of which directly by the
company would be permitted by this section.

(4) If a company contravenes the condition referred to in subsection (2)(c)(i), the company, and every responsible
person of the company, commit an offence, and each is liable to a fine at level 4.


Section: 149 Capital may be applied in writing off certain expenses and

commission
L.N. 163 of 2013 03/03/2014



A company may apply its share capital in writing off—
(a) the preliminary expenses of the company;
(b) any commission paid under section 148 or under section 46 of the predecessor Ordinance; or
(c) any other expenses of any issue of shares in the company.


Part:
Division:

4
4

Transfer and Transmission of Shares L.N. 163 of 2013 03/03/2014





Part:
Division:
Subdivision:

4
4
1

Transfer of Shares L.N. 163 of 2013 03/03/2014





Section: 150 Requirement for instrument of transfer L.N. 163 of 2013 03/03/2014


(1) A company must not register a transfer of shares in the company unless a proper instrument of transfer has been
delivered to the company.

(2) Subsection (1) does not affect any power of a company to register as a member a person to whom the right to
shares has been transmitted by operation of law.





Cap 622 - Companies Ordinance 56

Section: 151 Registration of transfer or refusal of registration L.N. 163 of 2013 03/03/2014


(1) The transferee or transferor of shares in a company may lodge the transfer with the company.
(2) Within 2 months after the transfer is lodged, the company must either—

(a) register the transfer; or
(b) send the transferee and the transferor notice of refusal to register the transfer.

(3) If a company refuses registration, the transferee or transferor may request a statement of the reasons for the
refusal.

(4) If a request is made under subsection (3), the company must, within 28 days after receiving the request—
(a) send the person who made the request a statement of the reasons; or
(b) register the transfer.

(5) If a company contravenes subsection (2) or (4), the company, and every responsible person of the company,
commit an offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine
of $700 for each day during which the offence continues.


Section: 152 Order of Court for registration L.N. 163 of 2013 03/03/2014


(1) If a company refuses to register a transfer, the transferee or the transferor may apply to the Court for an order
under this section.

(2) On an application under subsection (1), the Court may order the company to register the transfer, if the Court is
satisfied that the application is well-founded.


Section: 153 Transfer by personal representative L.N. 163 of 2013 03/03/2014


A transfer of a share or other interest of a deceased member of a company by his or her personal representative is as
valid as if the personal representative had been the registered holder of that share or interest at the time of execution of
the instrument of transfer.

Section: 154 Certification of transfer L.N. 163 of 2013 03/03/2014


(1) The certification by a company of an instrument of transfer of shares in the company—
(a) is a representation by the company to any person acting on the faith of the certification that documents have

been produced to the company that evidence title to the shares in the transferor named in the instrument;
and

(b) is not a representation that the transferor has any title to the shares.
(2) If a person acts on the faith of a false certification by a company made negligently, the company is under the

same liability to the person as if the certification had been made fraudulently.
(3) For the purposes of this section, an instrument of transfer is certified by a company if it bears—

(a) the words “certificate lodged”, or words to the same effect, in English or Chinese; and
(b) under or adjacent to those words, the signature or initials of a person having the actual or apparent authority

to certify transfers on behalf of the company.
(4) Unless the contrary is proved, a signature or initials appearing on an instrument of transfer as referred to in

subsection (3)(b) must be regarded—
(a) as the signature or initials of the person whose signature or initials they purport to be; and
(b) as having been placed on the instrument by that person or by another person who has the actual or apparent

authority to use the signature or initials for the purpose of certifying transfers on behalf of the company.

Section: 155 Issue of share certificate on transfer L.N. 163 of 2013 03/03/2014


(1) Within the period specified in subsection (2), a company must complete the certificates for any of its shares that
are transferred and have the certificates ready for delivery.

(2) The period is—
(a) for a private company, 2 months after the day on which the transfer is lodged with the company;



Cap 622 - Companies Ordinance 57

(b) for any other company, 10 business days after the day on which the transfer is lodged with the company.
(3) Subsection (1) does not apply to a transfer if—

(a) the conditions of issue of the shares provide otherwise;
(b) stamp duty has not been paid in respect of the transfer;
(c) the transfer is invalid; or
(d) the company, being entitled to do so, refuses to register the transfer.

(4) If a company contravenes this section, the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine of $700
for each day during which the offence continues.

(5) In this section—
business day(營業日) means a day on which a recognized stock market is open for the business of dealing in

securities.

Section: 156 Order of Court for delivery of share certificate L.N. 163 of 2013 03/03/2014


(1) If a company contravenes section 155 in relation to a transfer of shares, a person entitled to the certificates for
the shares may serve a notice on the company requiring it to deliver the certificates to the person within 10 days.

(2) If a company on which a notice has been served under subsection (1) does not deliver the certificates within 10
days after service of the notice, the person may apply to the Court for an order under subsection (3).

(3) On an application under subsection (2), the Court may make an order directing the company and any officer of
the company to deliver the certificates to the person within the period specified in the order.

(4) The order may provide that all costs of and incidental to the application are to be borne by the company or by an
officer of the company responsible for the contravention.


Section: 157 Compensation regarding forged share transfers L.N. 163 of 2013 03/03/2014


(1) A company may—
(a) pay compensation to a person for loss arising from a transfer of shares in the company under a forged

transfer or a transfer under a forged power of attorney;
(b) provide, by insurance, reservation of capital or accumulation of income, a fund to meet claims for

compensation;
(c) borrow on the security of its property for the purpose of paying compensation; and
(d) impose any reasonable restrictions on the transfer of its shares or with respect to powers of attorney for the

transfer of its shares that the company considers necessary to guard against losses arising from forgery.
(2) A company that pays compensation to a person under this section has the same rights and remedies against the

person liable for the loss as the person compensated would have had.
(3) If the shares in a company have, by amalgamation or otherwise, become shares in another company, the other

company has the same powers under this section as the first company would have had if it had continued.

Part:
Division:
Subdivision:

4
4
2

Transmission of Shares by Operation of Law L.N. 163 of 2013 03/03/2014





Section: 158 Registration or refusal of registration L.N. 163 of 2013 03/03/2014


(1) This section applies if the right to shares is transmitted to a person by operation of law and the person notifies
the company in writing that the person wishes to be registered as a member of the company in respect of the
shares.

(2) Within 2 months after receiving the notification, the company must either—
(a) register the person as a member of the company in respect of the shares; or
(b) send the person notice of refusal of registration.

(3) If a company refuses registration, the person may request a statement of the reasons for the refusal.
(4) If a person makes a request under subsection (3), the company must, within 28 days after receiving the request—



Cap 622 - Companies Ordinance 58

(a) send the person a statement of the reasons; or
(b) register the person as a member of the company in respect of the shares.

(5) If a company contravenes subsection (2) or (4), the company, and every responsible person of the company,
commit an offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine
of $700 for each day during which the offence continues.


Section: 159 Order of Court for registration L.N. 163 of 2013 03/03/2014


(1) If a company refuses registration under section 158, the person to whom the right to the shares was transmitted
may apply to the Court for an order under this section.

(2) On an application under subsection (1), the Court may order the company to register the person as a member of
the company in respect of the shares, if the Court is satisfied that the application is well-founded.


Section: 160 Pre-emption rights in relation to transmission by law L.N. 163 of 2013 03/03/2014


(1) This section applies if a company’s articles give a member or class of members of the company a right of pre-
emption or right to purchase shares in the company on the occurrence of an event that constitutes a transmission
of the right to the shares by operation of law.

(2) If this section applies, the registration as a member of the company of the person to whom the right to the shares
is transmitted is subject to the right of pre-emption or right to purchase shares contained in the articles and that
right may be enforced against the person.


Part:
Division:
Subdivision:

4
4
3

General L.N. 163 of 2013 03/03/2014





Section: 161 Evidence of grant of probate etc. L.N. 163 of 2013 03/03/2014


For the purposes of a transfer of shares or transmission of the right to shares, a company must accept as sufficient
evidence of the grant of probate of the will or letters of administration of a deceased person the production to the
company of a document that is by law sufficient evidence of that grant.

Part:
Division:

4
5

Replacement of Listed Companies’ Lost Share Certificates L.N. 163 of 2013 03/03/2014





Section: 162 Interpretation L.N. 163 of 2013 03/03/2014


In this Division—
eligible person (合資格人士) , in relation to shares in a listed company, means—

(a) a registered holder of the shares; or
(b) a person who claims to be entitled to have the person’s name entered in the register of members of the

company in respect of the shares;
genuine purchaser (真正購買者) , in relation to shares, means—

(a) a person (other than a person to whom a new certificate for the shares is issued under this Division) who
purchases the shares in good faith for value and without notice of any defect in the title of the seller; or

(b) a person who becomes entitled to the shares at any time after the purchase of them by a person referred to in
paragraph (a);

new certificate (新股份證明書) means a share certificate that replaces a share certificate that has been lost;
original certificate (原有股份證明書) means a share certificate that has been lost;
registered holder (登記持有人) , in relation to shares in a listed company, means a person whose name is entered in

the register of members of the company in respect of the shares;



Cap 622 - Companies Ordinance 59

website (網站) , in relation to a company (other than a recognized exchange company), means the website on which
the company is required, by the listing rules applicable to the recognized stock market concerned, to publish
announcements, notices or other documents.


Section: 163 Application for new certificate L.N. 163 of 2013 03/03/2014


(1) If a share certificate for shares in a listed company has been lost, an eligible person may apply to the company
for a new certificate.

(2) The application—
(a) must be in the specified form; and
(b) must be accompanied by a statutory declaration by the eligible person stating the following—

(i) that the original certificate has been lost;
(ii) when the original certificate was last in the person’s possession and how the person ceased to have

possession of it;
(iii) whether the person has executed any transfer in respect of the shares, in blank or otherwise;
(iv) that no other person is entitled to have their name entered in the register of members of the company in

respect of the shares; and
(v) any other matters that are necessary to verify the grounds on which the application is made.


Section: 164 Publication requirements L.N. 163 of 2013 03/03/2014


(1) A listed company that intends to issue a new certificate on an application under section 163 must publish a
notice in the specified form in accordance with this section.

(2) The notice must be published—
(a) on the company’s website; and
(b) in the Gazette if—

(i) the eligible person making the application is not the registered holder of the shares or does not have the
registered holder’s consent to make the application; or

(ii) the latest value of the shares exceeds $200000.
(3) The notice must be published in the Gazette under subsection (2)(b) within one month after it is first published

on the company’s website under subsection (2)(a).
(4) Before publishing a notice under this section, the company must—

(a) deliver a copy of the notice to the recognized exchange company that operates the stock market on which
the shares concerned are listed; and

(b) obtain a certificate from an authorized officer of that exchange company that the copy is being exhibited in
accordance with subsection (5).

(5) A recognized exchange company must exhibit a copy of a notice received under subsection (4)(a) in a
conspicuous place on the premises on which the stock market operates or make the notice available on its
official website for a period of at least—
(a) one month, for a notice that is not required to be published under subsection (2)(b); or
(b) 3 months, for a notice that is required to be published under subsection (2)(b).

(6) For the purposes of subsection (5), a failure to make a copy of a notice available on an exchange company’s
official website throughout a period mentioned in that subsection is to be disregarded if—
(a) the notice is made available on the website for part of that period; and
(b) the failure is wholly attributable to circumstances that it would not be reasonable to have expected that

exchange company to prevent or avoid.
(7) If the application was made by an eligible person who is not the registered holder of the shares and does not

have the registered holder’s consent to make the application, the listed company—
(a) must serve a copy of the notice under this section on the registered holder by sending it by registered post to

the registered holder’s last address appearing in the register of members of the company; and
(b) must not publish the notice under this section until at least 3 months after the day on which the copy was

served.
(8) In this section—



Cap 622 - Companies Ordinance 60

latest value(最新價值) of shares means the value of the shares calculated at the last recorded price paid for shares of
the same class in the company at the recognized stock market prior to the making of the application for the new
certificate.


Section: 165 Issue of new certificate L.N. 163 of 2013 03/03/2014


(1) A listed company may issue a new certificate on an application under section 163 if—
(a) the company has published a notice under section 164 and—

(i) if the notice is published under section 164(2)(a), the notice has been made available on the
company’s website throughout a period of at least one month; or

(ii) if the notice is published under section 164(2)(b), the notice has been made available on the
company’s website throughout a period of at least 3 months and published in the Gazette in
accordance with section 164(3);

(b) the company has not received notice of any other claim in respect of the shares; and
(c) in the case of an application by an eligible person who is not the registered holder of the shares—

(i) an instrument of transfer in respect of the shares has been delivered to the company under section 150;
or

(ii) if the application was made without the registered holder’s consent, the company has caused an
instrument of transfer to be executed on behalf of the registered holder by a person appointed by the
company and executed by the applicant on the applicant’s own behalf.

(2) An instrument of transfer referred to in subsection (1)(c)(ii) is to be regarded as an instrument of transfer duly
delivered to the company under section 150.

(3) A listed company that issues a new certificate must without delay—
(a) cancel the original certificate; and
(b) record the issue of the new certificate and cancellation of the original certificate in the register of its

members.
(4) For the purposes of subsection (1)(a), a failure to make a notice available on a company’s website throughout a

period mentioned in that subsection is to be disregarded if—
(a) the notice is made available on the website for part of that period; and
(b) the failure is wholly attributable to circumstances that it would not be reasonable to have expected the

company to prevent or avoid.

Section: 166 Public notice of issue of new certificate L.N. 163 of 2013 03/03/2014


(1) A listed company that issues a new certificate must—
(a) publish a notice in the specified form in accordance with this section; and
(b) deliver a copy of the notice to the recognized exchange company that operates the stock market on which

the shares concerned are listed within 14 days after the date of issue.
(2) The notice must be published by making it available on the listed company’s website throughout a period of at

least 7 days beginning on a date falling within 14 days after the date of issue.
(3) If the listed company was required by section 164(2)(b) to publish a notice in the Gazette of its intention to issue

the new certificate, the notice under this section must also be published in the Gazette within 14 days after the
date of issue.

(4) For the purposes of subsection (2), a failure to make a notice available on a listed company’s website
throughout a period mentioned in that subsection is to be disregarded if—
(a) the notice is made available on the website for part of that period; and
(b) the failure is wholly attributable to circumstances that it would not be reasonable to have expected the

company to prevent or avoid.
(5) If a listed company contravenes this section, the company, and every responsible person of the company,

commit an offence, and each is liable to a fine at level 3 and, in the case of a continuing offence, to a further fine
of $300 for each day during which the offence continues.





Cap 622 - Companies Ordinance 61

Section: 167 Orders of Court for rectification of the register L.N. 163 of 2013 03/03/2014


(1) Subject to this section, if a listed company issues a new certificate in respect of shares, nothing in this Division
affects the power of the Court to make an order under section 633 in favour of a person claiming to be entitled to
the shares as against—
(a) the person to whom the new certificate is issued; or
(b) a person whose name is subsequently entered in the register of members of the company in respect of the

shares.
(2) The Court must not make an order under section 633 as against a person referred to in subsection (1)(b) if that

person is a genuine purchaser of the shares.
(3) If the Court makes an order under section 633 as against the person to whom the new certificate is issued or a

person whose name is subsequently entered in the register of members of the company in respect of the shares—
(a) the Court must not order the payment of damages by the company; and
(b) the company is not otherwise liable for any damage caused by the issue of the new certificate or

cancellation of the original certificate in accordance with this Division.
Note—
Section 633 gives the Court power to make an order for rectification of the register of members of a company.

Section: 168 Liability if rectification cannot be ordered L.N. 163 of 2013 03/03/2014


(1) This section applies if an order cannot be made under section 633 because of section 167(2).
(2) The company is not liable for any damage suffered by the claimant because of the issue of the new certificate or

cancellation of the original certificate, unless the company has acted deceitfully.
(3) If the genuine purchaser purchased the shares from the person to whom the new certificate is issued, the person

to whom the new certificate is issued is liable to the claimant for the value of the shares as at the date of
purchase.

(4) If the genuine purchaser purchased the shares from a person whose name was subsequently entered in the
register of members of the company in respect of the shares, the person to whom the new certificate is issued
and any person whose name was subsequently entered in the register in respect of the shares (other than a
genuine purchaser) are jointly and severally liable to the claimant for the value of the shares as at the date the
shares were purchased by the genuine purchaser.

(5) In this section—
claimant(申索人) means the person in whose favour an order could have been made under section 633 but for section

167(2).

Section: 169 Applicant to pay expenses L.N. 163 of 2013 03/03/2014


(1) An applicant for a new certificate must pay all expenses relating to the application.
(2) A listed company may refuse to deal, or to deal further, with an application until it is satisfied that the applicant

has made reasonable provision for payment of the expenses relating to the application.

Part:
Division:

4
6

Alteration of Share Capital L.N. 163 of 2013 03/03/2014





Section: 170 Permitted alteration of share capital L.N. 163 of 2013 03/03/2014


(1) A limited company may alter its share capital in any one or more of the ways set out in subsection (2).
(2) The company may—

(a) increase its share capital by allotting and issuing new shares in accordance with this Part;
(b) increase its share capital without allotting and issuing new shares, if the funds or other assets for the

increase are provided by the members of the company;
(c) capitalize its profits, with or without allotting and issuing new shares;
(d) allot and issue bonus shares with or without increasing its share capital;



Cap 622 - Companies Ordinance 62

(e) convert all or any of its shares into a larger or smaller number of shares;
(f) cancel shares—

(i) that, at the date the resolution for cancellation is passed, have not been taken or agreed to be taken by
any person; or

(ii) that have been forfeited.
(3) A limited company may alter its share capital as referred to in subsection (2)(e) or (f) only by resolution of the

company.
Note—
Sections 140 and 141 contain provisions requiring a resolution of the company for an allotment of shares. Those sections may be relevant

to an alteration of share capital referred to in subsection (2)(a), (c) or (d).
(4) A resolution referred to in subsection (3) may authorize the company to exercise the power—

(a) on more than one occasion;
(b) at a specified time or in specified circumstances.

(5) Any amount remaining unpaid on shares being converted under subsection (2)(e) is to be divided equally among
the replacement shares.

(6) If shares are cancelled under subsection (2)(f), the company must reduce its share capital by the amount of the
shares cancelled.

(7) For the purposes of Part 5, a cancellation of shares under this section is not a reduction of share capital.
(8) A limited company’s articles may exclude or restrict the exercise of a power conferred by this section.

Section: 171 Notice of alteration of share capital L.N. 163 of 2013 03/03/2014


(1) Within one month after altering its share capital under section 170, a company must deliver a notice to the
Registrar for registration in relation to the alteration of share capital.

(2) The notice—
(a) must be in the specified form;
(b) if the company’s issued share capital is increased by the alteration, must state the amount of the increase;

and
(c) must include a statement of capital as at the date of the alteration that complies with section 201.

(3) A company is not required to deliver a notice under this section in relation to an alteration of share capital
involving an allotment of shares.

Note—
For an allotment of shares, section 142 requires a company to deliver a return of the allotment to the Registrar for registration.
(4) If a company contravenes subsection (1), the company, and every responsible person of the company, commit an

offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine of $700
for each day during which the offence continues.


Section: 172 Redenomination of share capital L.N. 163 of 2013 03/03/2014


(1) A limited company may, by resolution of the company, convert its share capital or any class of shares from one
currency to another currency. This is known as a redenomination.

(2) A resolution under this section may authorize a limited company to redenominate its share capital—
(a) on more than one occasion;
(b) at a specified time or in specified circumstances.

(3) A redenomination does not affect any rights or obligations of members under the company’s articles, or any
restrictions affecting members under the company’s articles.

(4) In particular, it does not affect any entitlement to dividends (including entitlement to dividends in a particular
currency), voting rights or liability in respect of amounts remaining unpaid on shares (including liability in a
particular currency).

(5) For the purposes of this section, the company’s articles include the terms on which any shares in the company
are allotted or held.

(6) A limited company’s articles may exclude or restrict the exercise of a power conferred by this section.




Cap 622 - Companies Ordinance 63

Section: 173 Notice of redenomination L.N. 163 of 2013 03/03/2014


(1) Within one month after passing a resolution under section 172, a company must deliver a notice in the specified
form to the Registrar for registration in relation to the redenomination.

(2) The notice must include a statement of capital as at the date of the redenomination that complies with section
201.

(3) If a company contravenes this section, the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine of $700
for each day during which the offence continues.


Section: 174 Reconversion of stock into shares L.N. 163 of 2013 03/03/2014


(1) A company that has converted paid up shares into stock (before the repeal by this Ordinance of the power to do
so) may, by resolution of the company, reconvert that stock into paid up shares.

Note—
Section 138 repeals the power of a company to convert its shares into stock.
(2) A resolution under this section may authorize a company to exercise the power to reconvert stock—

(a) on more than one occasion;
(b) at a specified time or in specified circumstances.


Section: 175 Notice of reconversion L.N. 163 of 2013 03/03/2014


(1) Within one month after passing a resolution under section 174, a company must deliver a notice in the specified
form to the Registrar for registration in relation to the reconversion of stock.

(2) The notice must include a statement of capital as at the date of the reconversion that complies with section 201.
(3) If a company contravenes this section, the company, and every responsible person of the company, commit an

offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine of $700
for each day during which the offence continues.


Part:
Division:

4
7

Classes of Shares and Class Rights L.N. 163 of 2013 03/03/2014





Part:
Division:
Subdivision:

4
7
1

Companies having a Share Capital L.N. 163 of 2013 03/03/2014





Section: 176 Application of Subdivision L.N. 163 of 2013 03/03/2014


This Subdivision applies to a company that has a share capital.

Section: 177 Rights attached to shares L.N. 163 of 2013 03/03/2014


In this Ordinance, a reference to the rights attached to a share in a class of shares in a company is a reference to the
rights of the holder of that share as a member of the company.

Section: 178 Classes of shares L.N. 163 of 2013 03/03/2014


(1) For the purposes of this Ordinance, shares are in one class if the rights attached to them are in all respects
uniform.

(2) The rights attached to shares are not to be regarded as different from those attached to other shares only because
they do not carry the same rights to dividends in the 12 months immediately following their allotment.





Cap 622 - Companies Ordinance 64

Section: 179 Description of shares of different classes L.N. 163 of 2013 03/03/2014


(1) A share certificate issued by a company that has different classes of shares must contain in a prominent position
a statement—
(a) stating that the company’s share capital is divided into different classes of shares; and
(b) specifying the voting rights attached to shares in each class.

(2) If a company has a class of shares the holders of which are not entitled to vote at general meetings of the
company—
(a) the descriptive title of shares in the class must include the words “non voting” or the Chinese characters

“無表決權”; and
(b) the company must ensure that those words appear legibly on any share certificate issued by the company.

(3) Subsection (2) does not apply to shares that are described as preference shares or preferred shares.
(4) If a company contravenes this section, the company, and every responsible person of the company, commit an

offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine of $700
for each day during which the offence continues.


Section: 180 Varying class rights L.N. 163 of 2013 03/03/2014


(1) Rights attached to shares in a class of shares in a company may be varied only—
(a) in accordance with provisions in the company’s articles for the variation of those rights; or
(b) if there are no such provisions, with the consent of holders of shares in that class given in accordance with

this section.
(2) Subsection (1) is without prejudice to any other restrictions on the variation of the rights.
Example—
A company could make an agreement with the holders of shares in a class that imposes restrictions on the variation of class rights.
(3) The consent required for the purposes of this section is—

(a) written consent of holders representing at least 75% of the total voting rights of holders of shares in the
class; or

(b) a special resolution passed at a separate general meeting of holders of shares in the class sanctioning the
variation.

(4) A variation takes effect—
(a) if no application is made under section 182 for it to be disallowed, at the end of the period in which

applications may be made under that section; or
(b) if an application is made within that period, at the time the application is withdrawn or finally determined

(unless the variation is disallowed).
(5) Any amendment of a provision in a company’s articles for the variation of the rights attached to shares in a

class, or the insertion of any such provision into the articles, is itself to be regarded as a variation of those rights.
(6) Nothing in this section affects the Court’s powers under sections 673, 675 and 725.

Section: 181 Notifying class members of variation L.N. 163 of 2013 03/03/2014


(1) If the rights attached to shares in any class of shares in a company are varied, the company must give written
notice of the variation to each holder of shares in that class within 14 days after the date on which the variation is
made.

(2) If a company contravenes this section, the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine of $700
for each day during which the offence continues.


Section: 182 Disallowance or confirmation of variation by Court L.N. 163 of 2013 03/03/2014


(1) If the rights attached to shares in any class of shares in a company are varied, holders representing at least 10%
of the total voting rights of holders of shares in the class may apply to the Court to have the variation disallowed.

(2) An application must be made within 28 days after the date on which the variation is made.



Cap 622 - Companies Ordinance 65

(3) An application may be made on behalf of the members entitled to apply by any one or more of them appointed
in writing by all of them.

(4) The following persons are entitled to be heard on an application—
(a) the applicant;
(b) any other person who appears to the Court to be interested in the application.

(5) The Court may, by order, disallow the variation if it is satisfied that the variation would unfairly prejudice the
members represented by the applicant.

(6) If the Court is not so satisfied, it must, by order, confirm the variation.
(7) Nothing in this section affects—

(a) the right of a member to petition the Court under section 724; or
(b) the Court’s powers under section 725.


Section: 183 Delivery of order of Court to Registrar L.N. 163 of 2013 03/03/2014


(1) If the Court makes an order under section 182 in relation to a company, the company must deliver an office copy
of the order to the Registrar for registration within 15 days after it is made.

(2) If a company contravenes this section, the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine of $700
for each day during which the offence continues.


Section: 184 Notifying Registrar of variation L.N. 163 of 2013 03/03/2014


(1) If the rights attached to shares in any class of shares in a company are varied, the company must deliver to the
Registrar for registration, within one month after the date on which the variation takes effect—
(a) a copy of the resolution or other document that authorized the variation; and
(b) a notice in the specified form including a statement of capital, as at the date on which the variation takes

effect, that complies with section 201.
(2) Subsection (1)(a) does not apply if the company is required to deliver a copy of the resolution or other document

to the Registrar under another provision of this Ordinance.
(3) If a company contravenes this section, the company, and every responsible person of the company, commit an

offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine of $700
for each day during which the offence continues.


Part:
Division:
Subdivision:

4
7
2

Companies without a Share Capital L.N. 163 of 2013 03/03/2014





Section: 185 Application of Subdivision L.N. 163 of 2013 03/03/2014


This subdivision applies to a company that does not have a share capital.

Section: 186 Rights of members L.N. 163 of 2013 03/03/2014


In this Ordinance, a reference to the rights of a class of members of a company that does not have a share capital is a
reference to the rights of the members in that class in their capacity as members of the company.

Section: 187 Classes of members L.N. 163 of 2013 03/03/2014


For the purposes of this Ordinance, members of a company that does not have a share capital are in one class if the
rights of the members are in all respects uniform.




Cap 622 - Companies Ordinance 66

Section: 188 Varying class rights L.N. 163 of 2013 03/03/2014


(1) Rights of a class of members of a company that does not have a share capital may be varied only—
(a) in accordance with provisions in the company’s articles for the variation of those rights; or
(b) if there are no such provisions, with the consent of the members of that class given in accordance with this

section.
(2) Subsection (1) is without prejudice to any other restrictions on the variation of the rights.
Example—
A company could make an agreement with the members of a class that imposes restrictions on the variation of class rights.
(3) The consent required for the purposes of this section is—

(a) written consent of at least 75% of the members in the class; or
(b) a special resolution passed at a separate general meeting of the members in the class sanctioning the

variation.
(4) A variation takes effect—

(a) if no application is made under section 190 for it to be disallowed, at the end of the period in which
applications may be made under that section; or

(b) if an application is made within that period, at the time the application is withdrawn or finally determined
(unless the variation is disallowed).

(5) Any amendment of a provision in a company’s articles for the variation of the rights of a class of members, or
the insertion of any such provision into the articles, is itself to be regarded as a variation of those rights.

(6) Nothing in this section affects the Court’s powers under sections 673, 675 and 725.

Section: 189 Notifying class members of variation L.N. 163 of 2013 03/03/2014


(1) If the rights of any class of members of a company that does not have a share capital are varied, the company
must give written notice of the variation to each member in that class within 14 days after the date on which the
variation is made.

(2) If a company contravenes this section, the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine of $700
for each day during which the offence continues.


Section: 190 Disallowance or confirmation of variation by Court L.N. 163 of 2013 03/03/2014


(1) If the rights of any class of members of a company that does not have a share capital are varied, members
representing at least 10% of the members in the class may apply to the Court to have the variation disallowed.

(2) An application must be made within 28 days after the date on which the variation is made.
(3) An application may be made on behalf of the members entitled to apply by any one or more of them appointed

in writing by all of them.
(4) The following persons are entitled to be heard on an application—

(a) the applicant;
(b) any other person who appears to the Court to be interested in the application.

(5) The Court may, by order, disallow the variation if it is satisfied that the variation would unfairly prejudice the
members represented by the applicant.

(6) If the Court is not so satisfied, it must, by order, confirm the variation.
(7) Nothing in this section affects—

(a) the right of a member to petition the Court under section 724; or
(b) the Court’s powers under section 725.


Section: 191 Delivery of order of Court to Registrar L.N. 163 of 2013 03/03/2014


(1) If the Court makes an order under section 190 in relation to a company, the company must deliver an office copy
of the order to the Registrar for registration within 15 days after it is made.

(2) If a company contravenes this section, the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine of $700



Cap 622 - Companies Ordinance 67

for each day during which the offence continues.

Section: 192 Notifying Registrar of variation L.N. 163 of 2013 03/03/2014


(1) If the rights of any class of members of a company that does not have a share capital are varied, the company
must deliver to the Registrar for registration, within one month after the date on which the variation takes effect

(a) a copy of the resolution or other document that authorized the variation; and
(b) a notice in the specified form.

(2) Subsection (1)(a) does not apply if the company is required to deliver a copy of the resolution or other document
to the Registrar under another provision of this Ordinance.

(3) If a company contravenes this section, the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine of $700
for each day during which the offence continues.


Part:
Division:
Subdivision:

4
7
3

General L.N. 163 of 2013 03/03/2014





Section: 193 Variation includes abrogation L.N. 163 of 2013 03/03/2014


In this Division and (unless the context otherwise requires) in any provision in a company’s articles for the variation
of class rights, a reference to a variation of those rights includes an abrogation of those rights.

Part:
Division:

4
8

Supplementary and Miscellaneous L.N. 163 of 2013 03/03/2014





Part:
Division:
Subdivision:

4
8
1

Relief from Share Capital Requirements L.N. 163 of 2013 03/03/2014





Section: 194 Interpretation L.N. 163 of 2013 03/03/2014


(1) In this Division—
arrangement (安排) means any agreement, scheme or arrangement;
company (公司) , except in reference to an issuing company, includes any body corporate;
equity share capital (權益股本) means a company’s issued share capital excluding any part of that capital that,

neither as respects dividends nor as respects capital, carries any right to participate beyond a specified amount in
a distribution;

equity shares (權益股份) means shares comprised in a company’s equity share capital;
issuing company (發行公司) means a company that issues shares;
non-equity shares (非權益股份) means shares in a company other than equity shares;
transfer (轉讓) of shares includes transfer of a right to be included in the company’s register of members in respect

of the shares.
(2) In this Division—

(a) a reference to the acquisition by a company of shares includes the acquisition of shares by a nominee of the
company;

(b) a reference to the issue or transfer of shares to a company includes the issue or transfer of shares to a
nominee of the company;

(c) a reference to the transfer of shares by a company includes the transfer of shares by a nominee of the



Cap 622 - Companies Ordinance 68

company.

Section: 195 Group reconstruction relief L.N. 163 of 2013 03/03/2014


(1) This section applies if an issuing company—
(a) is a wholly owned subsidiary of another company (the holding company); and
(b) issues shares—

(i) to the holding company; or
(ii) to another wholly owned subsidiary of the holding company,

in consideration for the transfer to the issuing company of non-cash assets of a company (the transferor
company) that is a member of the group of companies that comprises the holding company and all its
wholly owned subsidiaries.

(2) Any excess of the value of the assets transferred over their net base value may be disregarded when recording as
share capital of the issuing company the amount of consideration for the issue by the issuing company of its
shares. Consequently, the minimum amount of consideration required to be recorded as share capital of the
issuing company in respect of the shares issued for the transfer is the net base value of the assets transferred.

(3) The net base value of the assets transferred is the amount by which the base value of the assets transferred
exceeds the base value of any liabilities of the transferor company assumed by the issuing company as
consideration for the assets transferred.

(4) For the purposes of this section—
(a) the base value of assets transferred is the lesser of—

(i) the cost of those assets to the transferor company;
(ii) the amount at which those assets are stated in the transferor company’ s accounting records

immediately before the transfer;
(b) the base value of liabilities assumed is the amount at which they are stated in the transferor company’s

accounting records immediately before the transfer.

Section: 196 Merger relief L.N. 163 of 2013 03/03/2014


(1) This section applies if an issuing company has secured at least a 90% equity holding in another company under
an arrangement providing for the issue of equity shares in the issuing company on terms that the consideration
for the shares issued is to be provided—
(a) by the issue or transfer to the issuing company of equity shares in the other company; or
(b) by the cancellation of any equity shares in the other company not held by the issuing company.

(2) Any excess of the value of the equity shares acquired or cancelled under the arrangement over the subscribed
capital of the other company attributable to those shares may be disregarded when recording as share capital of
the issuing company the amount of consideration for the issue by the issuing company of its shares.
Consequently, the minimum amount of consideration required to be recorded as share capital of the issuing
company in respect of the shares issued under the arrangement is the subscribed capital of the other company
attributable to the equity shares acquired or cancelled.

(3) If the arrangement also provides for the issue of any shares in the issuing company on terms that the
consideration for those shares is to be provided—
(a) by the issue or transfer to the issuing company of nonequity shares in the other company; or
(b) by the cancellation of any non-equity shares in the other company not held by the issuing company,

any excess of the value of the non-equity shares acquired or cancelled under the arrangement over the subscribed
capital of the other company attributable to those shares may be disregarded when recording as share capital of
the issuing company the amount of consideration for the issue by the issuing company of its shares.

(4) This section does not apply in a case falling within section 195.

Section: 197 Merger relief: meaning of 90% equity holding L.N. 163 of 2013 03/03/2014


(1) This section has effect in determining, for the purposes of section 196, whether a company (company A) has
secured at least a 90% equity holding in another company (company B) under an arrangement mentioned in
section 196(1).



Cap 622 - Companies Ordinance 69

(2) Company A has secured at least a 90% equity holding in company B if, in consequence of an acquisition or
cancellation of equity shares in company B under that arrangement, company A holds in aggregate 90% or more
of the equity shares in company B (whether or not all or any of the equity shares in company B held by company
A were acquired under that arrangement).

(3) If the equity shares in company B are divided into different classes of shares, company A is not regarded as
having secured at least a 90% equity holding in company B unless the requirements of subsection (2) are met in
relation to each of those classes of shares taken separately.

(4) For the purposes of this section, the following shares are regarded as held by company A—
(a) shares held by a company that is company A’s holding company or subsidiary;
(b) shares held by a subsidiary of company A’s holding company; and
(c) shares held by nominees of company A or of a company referred to in paragraph (a) or (b).


Section: 198 Relief may be reflected in company’s statement of financial

position
L.N. 163 of 2013 03/03/2014



An amount corresponding to the amount that, because of this Subdivision, is not required to be recorded as a
company’ s share capital may also be disregarded in determining the amount at which any shares or other
consideration provided for the shares issued is to be included in the company’s statement of financial position.

Section: 199 Regulations L.N. 163 of 2013 03/03/2014


(1) The Financial Secretary may make regulations for restricting or otherwise modifying the relief provided by this
Subdivision.

(2) Regulations made under this section are subject to the approval of the Legislative Council.

Part:
Division:
Subdivision:

4
8
2

Miscellaneous L.N. 163 of 2013 03/03/2014





Section: 200 Provision for different amounts to be paid on shares L.N. 163 of 2013 03/03/2014


If authorized by its articles to do so, a company may—
(a) make arrangements on the issue of shares for a difference between the shareholders in the amounts and

times of payment of calls on their shares;
(b) accept from any member the whole or part of the amount remaining unpaid on any shares held by the

member, although no part of that amount has been called up; and
(c) pay a dividend in proportion to the amount paid up on each share where a larger amount is paid up on some

shares than on others.

Section: 201 Statement of capital L.N. 163 of 2013 03/03/2014


(1) This section applies if a provision of this Part or Part 5 requires a statement of capital to be included in a return
or notice delivered to the Registrar for registration.

(2) A statement of capital must state—
(a) the total number of issued shares in the company;
(b) the amount paid up or regarded as paid up and the amount (if any) remaining unpaid or regarded as

remaining unpaid on the total number of issued shares in the company;
(c) the total amount of the company’s issued share capital; and
(d) for each class of shares—

(i) the particulars specified in subsection (3);
(ii) the total number of issued shares in the class;
(iii) the amount paid up or regarded as paid up and the amount (if any) remaining unpaid or regarded as



Cap 622 - Companies Ordinance 70

remaining unpaid on the total number of issued shares in the class; and
(iv) the total amount of issued share capital of the class.

(3) The particulars are—
(a) particulars of any voting rights attached to shares in the class, including rights that arise only in certain

circumstances;
(b) particulars of any rights attached to shares in the class, as respects dividends, to participate in a distribution;
(c) particulars of any rights attached to shares in the class, as respects capital, to participate in a distribution

(including on a winding up); and
(d) whether or not shares in the class are redeemable shares.


Section: 202 Notice of paid up capital L.N. 163 of 2013 03/03/2014


(1) An official document of a company that states the company’s issued capital must also state no less prominently
the company’s paid up capital.

(2) If a company issues, circulates or distributes an official document in Hong Kong that does not comply with
subsection (1), the company, and every responsible person of the company, commit an offence, and each is
liable to a fine at level 3.

(3) In this section—
official document(正式文件) of a company, means a notice, circular, advertisement or other official publication of the

company.

Part: 5 Transactions in relation to Share Capital L.N. 163 of 2013 03/03/2014


(*Format changes—E.R. 1 of 2013)
____________________________________________________________________________
Note:
* The format of Part 5 has been updated to the current legislative styles.

Part:
Division:

5
1

Preliminary L.N. 163 of 2013 03/03/2014





Section: 203 Interpretation L.N. 163 of 2013 03/03/2014


(1) In this Part—
Commission (監察機關) means—

(a) subject to paragraphs (b) and (c), the Securities and Futures Commission referred to in section 3(1) of the
Securities and Futures Ordinance (Cap 571);

(b) if any relevant transfer order made under section 25 of that Ordinance is in force, the recognized exchange
company concerned or both the Securities and Futures Commission and the recognized exchange company
concerned, in accordance with the provisions of that order; or

(c) if any relevant transfer order made under section 68 of that Ordinance is in force, the recognized exchange
controller concerned or both the Securities and Futures Commission and the recognized exchange controller
concerned, in accordance with the provisions of that order;

contingent buy-back contract (待確定回購合約) means a contract entered into by a company relating to any of its
shares—
(a) that is not a contract to buy back those shares; but
(b) under which the company may (subject to any conditions) become entitled or obliged to buy back those

shares;
distributable profits (可分派利潤), in relation to the making of a payment by a company, means those profits out of

which the company could lawfully make a distribution equal in value to the payment;
recognized exchange controller (認可控制人) has the meaning given by section 1 of Part 1 of Schedule 1 to the

Securities and Futures Ordinance (Cap 571);



Cap 622 - Companies Ordinance 71

specified Chinese language newspaper (指明中文報章) means a Chinese language newspaper that is specified under
subsection (2);

specified English language newspaper (指明英文報章) means an English language newspaper that is specified under
subsection (2).

(2) The Chief Secretary for Administration may specify Chinese language newspapers and English language
newspapers for the purposes of this Part and must publish a list of the specified newspapers in the Gazette.


Part:
Division:

5
2

Solvency Test L.N. 163 of 2013 03/03/2014





Section: 204 Application of Division L.N. 163 of 2013 03/03/2014


This Division has effect for the following transactions—
(a) a reduction of share capital by special resolution supported by a solvency statement under Subdivision 2 of

Division 3;
(b) a payment out of capital in respect of a share redemption or buy-back under Division 4;
(c) the giving of financial assistance by a company under Subdivision 4 of Division 5.


Section: 205 Solvency test L.N. 163 of 2013 03/03/2014


A company satisfies the solvency test in relation to a transaction if—
(a) immediately after the transaction there will be no ground on which the company could be found to be

unable to pay its debts; and
(b) either—

(i) if it is intended to commence the winding up of the company within 12 months after the date of the
transaction, the company will be able to pay its debts in full within 12 months after the commencement
of the winding up; or

(ii) in any other case, the company will be able to pay its debts as they become due during the period of 12
months immediately following the date of the transaction.


Section: 206 Solvency statement L.N. 163 of 2013 03/03/2014


(1) A solvency statement in relation to a transaction is a statement that each of the directors making it has formed
the opinion that the company satisfies the solvency test in relation to the transaction.

(2) In forming an opinion for the purpose of making a solvency statement, a director must—
(a) inquire into the company’s state of affairs and prospects; and
(b) take into account all the liabilities of the company (including contingent and prospective liabilities).

(3) A solvency statement—
(a) must be in the specified form;
(b) must state—

(i) the date on which it is made; and
(ii) the name of each director making it; and

(c) must be signed by each director making it.
(4) Subsection (3)(a) does not apply to a solvency statement made for the purposes of the giving of financial

assistance by a company under Subdivision 4 of Division 5.

Section: 207 Offences regarding solvency statement L.N. 163 of 2013 03/03/2014


A director who makes a solvency statement without having reasonable grounds for the opinion expressed in it
commits an offence and is liable—

(a) on conviction on indictment to a fine of $150000 and to imprisonment for 2 years; or
(b) on summary conviction to a fine at level 6 and to imprisonment for 6 months.



Cap 622 - Companies Ordinance 72


Section: 208 Power to modify solvency test by regulation L.N. 163 of 2013 03/03/2014


(1) The Chief Executive in Council may make regulations—
(a) modifying the solvency test or its application to any transaction or class of transactions; or
(b) modifying the matters that a director is required to take into account in forming an opinion for the purpose

of making a solvency statement.
(2) Regulations made under this section are subject to the approval of the Legislative Council.

Part:
Division:

5
3

Reduction of Share Capital L.N. 163 of 2013 03/03/2014





Part:
Division:
Subdivision:

5
3
1

General Provisions L.N. 163 of 2013 03/03/2014





Section: 209 Application of Division L.N. 163 of 2013 03/03/2014


This Division applies to—
(a) a company limited by shares; and
(b) a company limited by guarantee having a share capital that was formed as, or became, such a company

under a former Companies Ordinance before 13 February 2004.

Section: 210 Permitted reductions of share capital L.N. 163 of 2013 03/03/2014


(1) A company may, in accordance with the procedure specified in section 211, reduce its share capital under this
Division in any way.

Examples—
1. A company may extinguish or reduce the liability on any of its shares in respect of share capital not paid up.
2. A company may, either with or without extinguishing or reducing liability on any of its shares—

(a) cancel any paid-up share capital that is lost or unrepresented by available assets; or
(b) repay any paid-up share capital in excess of the company’s wants.

(2) However, a company must not reduce its share capital if, as a result of the reduction, there would no longer be
any member of the company holding shares other than redeemable shares.

(3) This Division is subject to any provision of a company’s articles that prohibits or restricts the reduction of the
company’s share capital.


Section: 211 Procedure for a company to reduce its share capital L.N. 163 of 2013 03/03/2014


The procedure for a company to reduce its share capital under this Division is—
(a) by special resolution supported by a solvency statement under Subdivision 2; or
(b) by special resolution confirmed by the Court under Subdivision 3.


Section: 212 Offence if share capital is reduced in contravention of

Division
L.N. 163 of 2013 03/03/2014



(1) If a company reduces its share capital in contravention of this Division, the company, and every responsible
person of the company, commit an offence and each is liable—
(a) on conviction on indictment to a fine of $1250000 and to imprisonment for 5 years; or
(b) on summary conviction to a fine of $150000 and to imprisonment for 12 months.

(2) An offence is not committed under this section in relation to a reduction of share capital by a company only
because one or more directors of the company commit an offence under section 207 in making a solvency



Cap 622 - Companies Ordinance 73

statement for the purposes of the reduction of share capital.
(3) An offence is not committed under this section if the reduction of share capital occurs as a result of a share

redemption or buy-back in accordance with Division 4 or as otherwise provided in this Ordinance.

Section: 213 Liability of members following reduction of share capital L.N. 163 of 2013 03/03/2014


(1) If a company’s share capital is reduced under this Division, a past or present member of the company is not
liable in respect of a share to a call or contribution exceeding in amount the difference (if any) between—
(a) the issue price of the share; and
(b) the aggregate of the amount paid up on the share (if any) and the amount reduced on the share.

(2) Subsection (1) is subject to section 232.
(3) Nothing in this section affects the rights of the contributories among themselves.

Section: 214 Reserves arising from reductions of share capital L.N. 163 of 2013 03/03/2014


(1) If a company reduces its share capital in accordance with this Division, a reserve arising from the reduction is to
be regarded for the purposes of Part 6 as realized profit.

(2) Subsection (1) is subject to anything to the contrary in—
(a) an order of, or undertaking given to, the Court;
(b) the resolution for, or any other resolution relevant to, the reduction of share capital; or
(c) the company’s articles.


Part:
Division:
Subdivision:

5
3
2

Reduction of Share Capital by Special Resolution
Supported by Solvency Statement

L.N. 163 of 2013 03/03/2014





Section: 215 Special resolution for reduction of share capital L.N. 163 of 2013 03/03/2014


(1) A company may reduce its share capital by special resolution in accordance with this Subdivision.
(2) The special resolution and the reduction of share capital take effect when the return under section 224 or 225 in

relation to the reduction is registered by the Registrar.

Section: 216 Solvency statement for reduction of share capital L.N. 163 of 2013 03/03/2014


(1) All directors of the company must make a solvency statement that complies with Division 2 in relation to the
reduction of share capital.

(2) The special resolution for reduction of share capital must be passed within 15 days after the date of the solvency
statement.

(3) If the special resolution is proposed as a written resolution, a copy of the solvency statement must be sent to
every member of the company at or before the time when the proposed resolution is sent to them.

(4) If the special resolution is proposed at a meeting, a copy of the solvency statement must be made available for
inspection by members at the meeting.

(5) The special resolution is not effective if subsection (3) or (4) (as applicable) is not complied with.

Section: 217 Special resolution: exercise of voting rights L.N. 163 of 2013 03/03/2014


(1) If the special resolution for reduction of share capital is proposed as a written resolution, a member of the
company holding shares to which the resolution relates is not an eligible member for the purposes of Subdivision
2 of Division 1 of Part 12 (written resolution) in respect of those shares.

(2) If the special resolution is proposed at a meeting, the resolution is not effective if—
(a) any member of the company holding shares to which the resolution relates exercises the voting rights

carried by any of those shares; and
(b) the resolution would not have been passed if the member had not done so.



Cap 622 - Companies Ordinance 74

(3) For the purposes of subsection (2)—
(a) a member holding shares to which the resolution relates is to be regarded as exercising the voting rights

carried by those shares not only if the member votes in respect of them on a poll on the question whether
the resolution should be passed but also if the member votes on the resolution otherwise than on a poll;

(b) any member of the company may demand a poll on that question; and
(c) a vote or a demand for a poll by a person as proxy for a member is the same as a vote or a demand by the

member.
(4) The special resolution is not effective if a demand for a poll referred to in subsection (3)(b) is refused.
(5) This section does not apply in the case of a reduction of share capital that applies equally to all issued shares in

the company.

Section: 218 Public notice of reduction of share capital L.N. 163 of 2013 03/03/2014


(1) If a special resolution for reduction of share capital is passed, the company must, on or before the date specified
in subsection (2), publish a notice in the Gazette—
(a) stating that the company has approved a reduction of share capital;
(b) specifying the amount of share capital to be reduced and the date of the special resolution;
(c) stating where the special resolution and solvency statement are available for inspection; and
(d) stating that a member of the company who did not consent to or vote in favour of the special resolution or a

creditor of the company may, within 5 weeks after the date of the special resolution, apply to the Court
under section 220 for cancellation of the special resolution.

(2) The date is—
(a) a date that falls on the last working day of the week after the week in which the special resolution is passed;

or
(b) if the period between the date in paragraph (a) and the date on which the special resolution is passed is less

than 4 business days (both dates exclusive), a date that falls on the last working day of the week next
following.

Examples—
1. The special resolution is passed on 2 February of a year (Thursday). Apart from Saturdays and Sundays, all other dates in February

of that year are business days. The date that falls on the last working day of the week after the week in which the special resolution
is passed is 10 February (Friday) of that year. There are 5 business days between 2 February and 10 February. Therefore, the
relevant notice must be published in the Gazette on or before 10 February (Friday) of that year.

2. The special resolution is passed on 30 March of a year (Friday). Both 4 April (Wednesday) and 6 April (Friday) of that year are
general holidays. 2 April (Monday), 3 April (Tuesday), 5 April (Thursday) and 13 April (Friday) of that year are business days. The
date that falls on the last working day of the week after the week in which the special resolution is passed is 5 April (Thursday).
There are only 2 business days between 30 March and 5 April. Therefore, the relevant notice must be published in the Gazette on or
before the last working day of the week next following, which is 13 April (Friday) of that year.

(3) Before the end of the week after the week in which the special resolution for reduction of share capital is passed,
the company must also—
(a) publish a notice to the same effect as the notice under subsection (1) in at least one specified Chinese

language newspaper and at least one specified English language newspaper; or
(b) give written notice to that effect to each of its creditors.

(4) If the company contravenes subsection (1) or (3), the company, and every responsible person of the company,
commit an offence, and each is liable to a fine at level 3.

(5) The company must deliver to the Registrar for registration a copy of the solvency statement no later than the day
on which the company—
(a) publishes the notice under subsection (1); or
(b) if earlier, first publishes the notice or gives notice to creditors under subsection (3).

(6) If the company contravenes subsection (5), the company, and every responsible person of the company, commit
an offence, and each is liable to a fine at level 5 and, in the case of a continuing offence, to a further fine of
$1000 for each day during which the offence continues.

(7) For the purposes of subsection (2)—
business day(辦公日) means a day that is not—

(a) a general holiday;
(b) a Saturday; or
(c) a black rainstorm warning day or gale warning day as defined by section 71(2) of the Interpretation and



Cap 622 - Companies Ordinance 75

General Clauses Ordinance (Cap 1);
working day(工作日) means a day that is not—

(a) a general holiday; or
(b) a Saturday.


Section: 219 Inspection of special resolution and solvency statement L.N. 163 of 2013 03/03/2014


(1) The company must ensure that the special resolution for reduction of share capital and the solvency statement
made in relation to it are kept at its registered office or at a place prescribed by regulations made under section
657 for the period—
(a) beginning on the day on which the company—

(i) publishes the notice under section 218(1); or
(ii) if earlier, first publishes the notice or gives notice to creditors under section 218(3); and

(b) ending 5 weeks after the date of the special resolution.
(2) The company must permit a member or creditor of the company to inspect the special resolution and solvency

statement without charge during business hours in that period.
(3) If the company contravenes subsection (1) or (2), the company, and every responsible person of the company,

commit an offence, and each is liable to a fine at level 5 and, in the case of a continuing offence, to a further fine
of $1000 for each day during which the offence continues.

(4) If the company contravenes subsection (2), the Court may by order require the company to permit an immediate
inspection.


Section: 220 Application to Court by members or creditors L.N. 163 of 2013 03/03/2014


(1) Subject to subsection (2), a member or creditor of the company may apply to the Court, within 5 weeks after the
date of the special resolution for reduction of share capital, for cancellation of the resolution.

(2) A member who consented to or voted in favour of the special resolution is not entitled to apply.
(3) An application may be made on behalf of the persons entitled to apply by any one or more of them appointed in

writing by all of them.
(4) If an application is made under this section—

(a) the applicant must, as soon as possible, serve the application on the company; and
(b) the company must give the Registrar notice in the specified form of the application within 7 days after the

day on which the application is served on the company.
(5) If the company contravenes subsection (4)(b), the company, and every responsible person of the company,

commit an offence, and each is liable to a fine at level 3 and, in the case of a continuing offence, to a further fine
of $300 for each day during which the offence continues.


Section: 221 Power of Court to adjourn proceedings L.N. 163 of 2013 03/03/2014


(1) The Court may adjourn proceedings on an application under section 220 so that an arrangement may be made to
its satisfaction for the protection of the interests of dissentient members or dissentient creditors.

(2) The Court may give any directions and make any orders it thinks expedient for facilitating or carrying into effect
any such arrangement.


Section: 222 Power of Court to confirm or cancel special resolution L.N. 163 of 2013 03/03/2014


(1) On an application under section 220, the Court must make an order confirming or cancelling the special
resolution for reduction of share capital, and may do so on any terms and conditions it thinks fit.

(2) If the Court confirms the special resolution, it may by order alter or extend any date or period of time specified

(a) in the special resolution; or
(b) in any provision of this Division applying to the special resolution or the reduction of share capital.

(3) If the Court thinks fit, the order may—
(a) provide for the company to buy back the shares of any of its members and for the reduction accordingly of



Cap 622 - Companies Ordinance 76

the company’s share capital;
(b) provide for the protection of the interests of members or creditors of the company;
(c) make any alteration to the company’s articles that may be required as a consequence;
(d) require the company not to make any, or any specified, alteration to its articles.

(4) If the order of the Court requires the company not to make any, or any specified, alteration to its articles, the
company does not have power to make any such alteration without leave of the Court.

(5) The powers of the Court under this section do not limit its powers under section 221.

Section: 223 Company to deliver copy of order of Court to Registrar L.N. 163 of 2013 03/03/2014


(1) Within 15 days after the making of an order by the Court under section 222, or within any longer period ordered
by the Court, the company must deliver an office copy of the order to the Registrar for registration.

(2) If the company contravenes subsection (1), the company, and every responsible person of the company, commit
an offence, and each is liable to a fine at level 3 and, in the case of a continuing offence, to a further fine of $300
for each day during which the offence continues.


Section: 224 Registration of return if no application to Court L.N. 163 of 2013 03/03/2014


(1) If—
(a) no application is made under section 220 in respect of the special resolution for reduction of share capital;

and
(b) the company delivers a return that complies with subsection (2) to the Registrar no earlier than 5 weeks and

no later than 7 weeks after the date of the special resolution,
the Registrar must register the return.
Note—
Under section 215(2), the special resolution and the reduction of share capital take effect when the return is registered by the Registrar.
(2) The return—

(a) must be in the specified form;
(b) must contain particulars of the reduction of share capital; and
(c) must include a statement of capital, as at the time immediately after the reduction of share capital, that

complies with section 201.

Section: 225 Registration of return if application to Court L.N. 163 of 2013 03/03/2014


(1) If—
(a) an application is made under section 220 in respect of the special resolution for reduction of share capital;
(b) either—

(i) the Court makes an order under section 222 confirming the special resolution; or
(ii) the proceedings on the application are ended without determination by the Court (for example, by the

withdrawal of the application); and
(c) the company delivers to the Registrar a return that complies with subsection (2)—

(i) within 15 days after the making of the order, or within any longer period ordered by the Court; or
(ii) within 15 days after the proceedings are ended without determination by the Court or, if there are more

than one such proceedings, the last of them are so ended,
the Registrar must register the return.
Note—
Under section 215(2), the special resolution and the reduction of share capital take effect when the return is registered by the Registrar.
(2) The return—

(a) must be in the specified form;
(b) must contain particulars of the reduction of share capital; and
(c) must include a statement of capital, as at the time immediately after the reduction of share capital, that

complies with section 201.




Cap 622 - Companies Ordinance 77

Part:
Division:
Subdivision:

5
3
3

Reduction of Share Capital Confirmed by Court L.N. 163 of 2013 03/03/2014





Section: 226 Special resolution and application to Court for
confirmation of reduction of share capital

L.N. 163 of 2013 03/03/2014



(1) A company may pass a special resolution for reduction of share capital under this Subdivision and apply by
petition to the Court for an order confirming the reduction.

(2) Unless the Court directs otherwise, section 227 (creditors entitled to object to reduction of share capital) applies
if the proposed reduction of share capital involves either—
(a) the diminution of liability in respect of unpaid share capital; or
(b) the payment to a shareholder of any paid-up share capital.

(3) The Court may direct that section 227 is not to apply to any class or classes of creditors if the Court thinks it
proper to do so, having regard to any special circumstances of the case.

(4) The Court may direct that section 227 is to apply in any other case.

Section: 227 Creditors entitled to object to reduction of share capital L.N. 163 of 2013 03/03/2014


(1) If this section applies (see section 226(2) and (4)), a creditor of the company is entitled to object to the reduction
of share capital if the creditor is entitled, at the date fixed by the Court, to any debt or claim that would be
admissible in proof against the company if the company were to commence being wound up on that date.

(2) The Court must settle a list of creditors entitled to object.
(3) For the purposes of subsection (2), the Court—

(a) must ascertain, as far as possible without requiring an application from any creditor, the names of those
creditors and the nature and amount of their debts or claims; and

(b) may publish a notice fixing a period within which, or a date by which, creditors not on the list are to claim
to be entered on the list or are to be excluded from the right of objecting.

(4) If a creditor on the list whose debt or claim is not discharged or has not determined does not consent to the
reduction, the Court may, if it thinks fit, dispense with the consent of the creditor on the company securing
payment of the debt or claim.

(5) For the purposes of subsection (4), the debt or claim must be secured by appropriating (as the Court directs) the
following amount—
(a) if the company admits the full amount of the debt or claim or, though not admitting it, is willing to provide

for it, the full amount of the debt or claim; or
(b) if the company does not admit, and is not willing to provide for, the full amount of the debt or claim, or if

the amount is contingent or not ascertained, an amount fixed by the Court after an inquiry and adjudication
as if the company were being wound up by the Court.


Section: 228 Offence in connection with creditors list L.N. 163 of 2013 03/03/2014


(1) An officer of a company—
(a) must not intentionally or recklessly—

(i) conceal the name of a creditor entitled to object to the reduction of share capital; or
(ii) misrepresent the nature or amount of the debt or claim of a creditor; or

(b) must not be knowingly concerned in any such concealment or misrepresentation.
(2) A person who contravenes subsection (1) commits an offence and is liable—

(a) on conviction on indictment to a fine of $150000 and to imprisonment for 2 years; or
(b) on summary conviction to a fine at level 6 and to imprisonment for 6 months.


Section: 229 Order of Court confirming reduction of share capital L.N. 163 of 2013 03/03/2014


(1) On an application by petition under section 226, the Court may make an order confirming the reduction of share



Cap 622 - Companies Ordinance 78

capital on any terms and conditions it thinks fit.
(2) The Court must not confirm the reduction of share capital unless it is satisfied, with respect to every creditor of

the company who is entitled to object to the reduction of share capital under section 227, that—
(a) the creditor’s consent has been obtained; or
(b) the creditor’s debt or claim has been discharged, has determined or has been secured.


Section: 230 Registration of order, minute and return L.N. 163 of 2013 03/03/2014


(1) If—
(a) the Court makes an order under section 229 confirming the reduction of share capital; and
(b) within 15 days after the making of the order, or within any longer period ordered by the Court, the company

delivers to the Registrar—
(i) an office copy of the order;
(ii) a minute that complies with subsection (2) and that is approved by the Court; and
(iii) a return that complies with subsection (3),

the Registrar must register the order, minute and return.
(2) The minute must state, with respect to the company’s share capital as altered by the order—

(a) the amount of the share capital;
(b) the total number of issued shares in the company;
(c) the amount of each share; and
(d) the amount paid up and the amount (if any) remaining unpaid on each share.

(3) The return—
(a) must be in the specified form;
(b) must contain particulars of the reduction of share capital (by reference to the order or minute, or otherwise);

and
(c) must include a statement of capital, as at the time immediately after the reduction of share capital, that

complies with section 201.
(4) The special resolution, as confirmed by the order, takes effect on registration of the order, minute and return by

the Registrar.
(5) Notice of the registration must be published in the manner directed by the Court.

Section: 231 Certification of registration L.N. 163 of 2013 03/03/2014


(1) The Registrar must certify the registration of an order, minute and return under section 230.
(2) The certificate must be signed by the Registrar.
(3) The certificate is conclusive evidence—

(a) that the requirements of this Ordinance for the reduction of share capital have been complied with; and
(b) that the company’s share capital is as stated in the minute.


Section: 232 Liability to creditors omitted from list of creditors L.N. 163 of 2013 03/03/2014


(1) This section applies to a reduction of share capital confirmed by the Court under section 229 if—
(a) a creditor entitled to object to the reduction of share capital was not entered on the list of creditors because

the creditor was not aware—
(i) of the proceedings for reduction of share capital; or
(ii) of their nature or effect with respect to the creditor’s debt or claim; and

(b) after the reduction of share capital the company is unable to pay the debt or claim.
(2) A person who was a member of the company on the date of registration of the order confirming the special

resolution for the reduction is liable to contribute for the payment of the debt or claim an amount not exceeding
the amount that the person would have been liable to contribute if the company had commenced to be wound up
on the day before that date.

(3) If the company is wound up, the Court, on application by the creditor and proof of the creditor’s lack of
awareness referred to in subsection (1)(a), may, if it thinks fit—



Cap 622 - Companies Ordinance 79

(a) settle a list of persons liable to contribute under this section; and
(b) make and enforce calls and orders on them as if they were ordinary contributories in a winding up.

(4) Nothing in this section affects the rights of the contributories among themselves.

Part:
Division:

5
4

Share Redemptions and Buy-backs L.N. 163 of 2013 03/03/2014





Part:
Division:
Subdivision:

5
4
1

Preliminary L.N. 163 of 2013 03/03/2014





Section: 233 Application of Division L.N. 163 of 2013 03/03/2014


This Division applies to—
(a) a company limited by shares; and
(b) a company limited by guarantee having a share capital that was formed as, or became, such a company

under a former Companies Ordinance before 13 February 2004.

Part:
Division:
Subdivision:

5
4
2

Redeemable Shares L.N. 163 of 2013 03/03/2014





Section: 234 Issue of redeemable shares L.N. 163 of 2013 03/03/2014


(1) Subject to subsections (2) and (3), a company may issue redeemable shares.
(2) A company’s articles may prohibit or restrict the issue of redeemable shares.
(3) A company must not issue redeemable shares at a time when there are no issued shares in the company other

than redeemable shares.

Section: 235 Terms, conditions and manner of redemption L.N. 163 of 2013 03/03/2014


(1) The directors of a company may determine the terms, conditions and manner of redemption of shares if they are
authorized to do so—
(a) by the company’s articles; or
(b) by resolution of the company.

(2) A resolution under subsection (1)(b) may be an ordinary resolution even if it amends the company’s articles.
(3) If the directors are authorized under subsection (1) to determine the terms, conditions and manner of redemption

of shares—
(a) they must do so before the shares are allotted; and
(b) any obligation of the company to state in a statement of capital the rights attached to the shares extends to

the terms, conditions and manner of redemption.
(4) If the directors are not authorized under subsection (1), the terms, conditions and manner of redemption of

shares must be stated in the company’s articles.

Part:
Division:
Subdivision:

5
4
3

Share Buy-backs L.N. 163 of 2013 03/03/2014







Cap 622 - Companies Ordinance 80

Section: 236 General power of company to buy back its own shares L.N. 163 of 2013 03/03/2014


(1) Subject to subsections (2) and (3) and Subdivision 6, a company may buy back its own shares in accordance
with—
(a) for a listed company, Subdivision 4;
(b) for an unlisted company, Subdivision 5.

(2) A company’s articles may prohibit or restrict a buy-back by the company of its own shares.
(3) A company must not buy back its own shares if, as a result of the buy-back, there would no longer be any

member of the company holding shares other than redeemable shares.
(4) A buy-back that contravenes subsection (3) is void.

Section: 237 Retention and inspection of share buy-back contracts L.N. 163 of 2013 03/03/2014


(1) This section applies to—
(a) a listed company that enters into a contract for the buy-back of its own shares that is authorized under

section 240; and
(b) an unlisted company that—

(i) under an authorization under section 244, enters into a contract for the buy-back of its own shares;
(ii) under an authorization under section 247, agrees to a variation of a contract for the buy-back of its own

shares;
(iii) under an authorization under section 251, agrees to release its rights under a contract for the buyback

of its own shares; or
(iv) under an authorization under section 254, agrees to a variation of an agreement to release its rights

under a contract for the buy-back of its own shares.
(2) The company must keep at its registered office or at a place prescribed by regulations made under section 657—

(a) a copy of the contract or agreement if it is in writing; and
(b) if not, a memorandum of its terms.

(3) The copy or memorandum must be kept from the conclusion of the contract or agreement until the end of the
period of 10 years beginning on the day on which the buy-back of all the shares under the contract is completed
or the day on which the contract otherwise terminates.

(4) Subject to subsection (5), the company must make the copy or memorandum available during business hours for
inspection without charge by—
(a) a member of the company; and
(b) any other person, in the case of a listed company.

(5) The company may, by resolution, impose reasonable restrictions on the making available of the copy or
memorandum for inspection, as long as not less than 2 hours per day are allowed for inspection.

(6) If a company contravenes subsection (2) or (3), or if an inspection required under subsection (4) is refused, the
company, and every responsible person of the company, commit an offence, and each is liable to a fine at level 5
and, in the case of a continuing offence, to a further fine of $1000 for each day during which the offence
continues.

(7) In the case of a refusal of an inspection required under subsection (4), the Court may by order require the
company to permit an immediate inspection.

(8) In this section—
contract(合約) includes a contingent buy-back contract.

Part:
Division:
Subdivision:

5
4
4

Share Buy-backs: Listed Companies L.N. 163 of 2013 03/03/2014





Section: 238 Share buy-back under general offer L.N. 163 of 2013 03/03/2014


(1) A listed company may buy back its own shares under a general offer that is authorized in advance by resolution



Cap 622 - Companies Ordinance 81

of the company.
(2) The company must include with the notice of the proposed resolution—

(a) a copy of the document containing the proposed general offer; and
(b) a statement, signed by the directors of the company, containing information that would enable a reasonable

person to form a valid and justifiable opinion as to the merits of the offer.
(3) If, under the proposed general offer, a member of the company may be compelled to dispose of the member’s

shares under Division 5 of Part 13 (compulsory acquisition after general offer for share buy-back)—
(a) the company must appoint an independent investment adviser to advise members who may be affected by

the compulsory disposal on the merits of the offer; and
(b) the resolution authorizing the offer must be a special resolution on which no non-tendering member votes.

(4) A person is eligible for appointment as an investment adviser under subsection (3)(a) only if—
(a) the person is a corporation licensed to carry on, or an authorized financial institution registered for carrying

on, a business in advising on securities or advising on corporate finance under Part V of the Securities and
Futures Ordinance (Cap 571); and

(b) the person is neither—
(i) a member, officer, shadow director or employee of the company making the general offer or of an

associated company of that company; nor
(ii) an associated company of the company making the general offer.

(5) For the purposes of a special resolution referred to in subsection (3)(b)—
(a) a non-tendering member is to be regarded as voting not only if the non-tendering member votes on a poll on

the question whether the resolution should be passed but also if the non-tendering member votes on the
resolution otherwise than on a poll;

(b) any member of the company may demand a poll on that question; and
(c) a vote or a demand for a poll by a person as proxy for a member is the same as a vote or a demand by the

member.
(6) In this section—
general offer(公開要約) has the meaning given by section 707;
non-tendering member(不售股成員) has the meaning given by section 705.

Section: 239 Share buy-back on recognized stock market or approved

stock exchange
L.N. 163 of 2013 03/03/2014



(1) A listed company may buy back its own shares on a recognized stock market or on an approved stock exchange
if the buy-back is authorized in advance by resolution of the company.

(2) The company must include a memorandum of the terms of the proposed buy-back with the notice of the
proposed resolution.

(3) A resolution authorizing a buy-back under this section is valid for the period expiring on the date of the next
annual general meeting of the company, and that period may be extended by the company at that annual general
meeting until the date of the following annual general meeting.

(4) In this section—
approved stock exchange(核准證券交易所) means a stock exchange approved for the purposes of this section by

notice published in the Gazette by—
(a) the Commission; and
(b) the recognized exchange company that operates the recognized stock market on which the shares concerned

are listed.

Section: 240 Share buy-back otherwise than under section 238 or 239 L.N. 163 of 2013 03/03/2014


(1) A listed company may buy back its own shares otherwise than under section 238 or 239 if the contract for buy-
back of the shares is authorized in advance by special resolution.

(2) A contract may take the form of a contingent buy-back contract.
(3) The company must include with the notice of the proposed special resolution—

(a) a copy of the proposed contract or, if it is not in writing, a memorandum of its terms; and



Cap 622 - Companies Ordinance 82

(b) a statement, signed by the directors of the company, after having made due and diligent inquiry of the
members of the company holding the shares to which the proposed contract relates, containing information
that would enable a reasonable person to form a valid and justifiable opinion as to the merits of the contract.

(4) A special resolution under this section is not effective if—
(a) any member of the company holding shares to which the resolution relates exercises the voting rights

carried by any of those shares; and
(b) the resolution would not have been passed if the member had not done so.

(5) For the purposes of subsection (4)—
(a) a member holding shares to which the resolution relates is to be regarded as exercising the voting rights

carried by those shares not only if the member votes in respect of them on a poll on the question whether
the resolution should be passed but also if the member votes on the resolution otherwise than on a poll;

(b) any member of the company may demand a poll on that question; and
(c) a vote or a demand for a poll by a person as proxy for a member is the same as a vote or a demand by the

member.
(6) A special resolution under this section is not effective if a demand for a poll referred to in subsection (5)(b) is

refused.

Section: 241 Exemptions L.N. 163 of 2013 03/03/2014


(1) The Commission may exempt any listed company from any of the provisions of section 238, 239 or 240, subject
to any conditions it thinks fit.

(2) The Commission may—
(a) suspend or withdraw an exemption granted under subsection (1) on the ground that the conditions subject to

which the exemption was granted have not been complied with or on any other ground the Commission
thinks fit; or

(b) vary any condition imposed under subsection (1).

Section: 242 No assignment of right to buy back own shares L.N. 163 of 2013 03/03/2014


The following rights of a listed company are not capable of being assigned—
(a) rights under a general offer authorized under section 238;
(b) rights under a buy-back on a recognized stock market or on an approved stock exchange authorized under

section 239;
(c) rights under a contract authorized under section 240.


Section: 243 Release of right to buy back own shares L.N. 163 of 2013 03/03/2014


(1) An agreement by a listed company to release its rights under a contract authorized under section 240 or under a
general offer authorized under section 238 is void unless the terms of the release agreement are authorized in
advance by special resolution.

(2) Section 240(3), (4), (5) and (6) applies to the authorization for a proposed release agreement as it applies to the
authorization for a proposed contract under section 240.


Part:
Division:
Subdivision:

5
4
5

Share Buy-backs: Unlisted Companies L.N. 163 of 2013 03/03/2014





Section: 244 Share buy-back under contract L.N. 163 of 2013 03/03/2014


(1) An unlisted company may buy back its own shares under a contract that is authorized in advance by special
resolution.

(2) A contract may take the form of a contingent buy-back contract.
(3) The authorization for a contract may be varied, revoked or from time to time renewed by special resolution.



Cap 622 - Companies Ordinance 83

(4) A special resolution conferring, varying, revoking or renewing the authorization for a contract is subject to
sections 245 and 246.


Section: 245 Resolution authorizing contract: disclosure of contract

details
L.N. 163 of 2013 03/03/2014



(1) This section applies in relation to a special resolution to confer, vary, revoke or renew the authorization for a
contract under section 244.

(2) A copy of the proposed contract (if it is in writing) or a memorandum setting out its terms (if it is not) must be
made available to members—
(a) in the case of a written resolution, by being sent to every member of the company at or before the time

when the proposed resolution is sent to them; or
(b) in the case of a resolution proposed at a meeting, by being made available for inspection by members of the

company—
(i) at the company’s registered office or at a place prescribed by regulations made under section 657, for

a period of not less than 15 days ending on the date of the meeting; and
(ii) at the meeting.

(3) A memorandum referred to in subsection (2) must include the names of members holding shares to which the
proposed contract relates.

(4) A copy of a proposed contract made available under subsection (2) must have annexed to it a memorandum
specifying any of those names that do not appear in the proposed contract.

(5) The special resolution is not effective if the requirements of this section are not complied with.

Section: 246 Resolution authorizing contract: exercise of voting rights L.N. 163 of 2013 03/03/2014


(1) This section applies to a special resolution to confer, vary, revoke or renew the authorization for a contract under
section 244.

(2) If the special resolution is proposed as a written resolution, a member holding shares to which the resolution
relates is not an eligible member for the purposes of Subdivision 2 of Division 1 of Part 12 (written resolution)
in respect of those shares.

(3) If the special resolution is proposed at a meeting, the resolution is not effective if—
(a) any member of the company holding shares to which the resolution relates exercises the voting rights

carried by any of those shares; and
(b) the resolution would not have been passed if the member had not done so.

(4) For the purposes of subsection (3)—
(a) a member holding shares to which the resolution relates is to be regarded as exercising the voting rights

carried by those shares not only if the member votes in respect of them on a poll on the question whether
the resolution should be passed but also if the member votes on the resolution otherwise than on a poll;

(b) any member of the company may demand a poll on that question; and
(c) a vote or a demand for a poll by a person as proxy for a member is the same as a vote or a demand by the

member.
(5) The special resolution is not effective if a demand for a poll referred to in subsection (4)(b) is refused.

Section: 247 Variation of authorized contract L.N. 163 of 2013 03/03/2014


(1) An unlisted company may agree to a variation of a contract authorized under section 244 if the variation
agreement is authorized in advance by special resolution.

(2) The authorization for a variation agreement may be varied, revoked or from time to time renewed by special
resolution.

(3) A special resolution conferring, varying, revoking or renewing the authorization for a variation agreement is
subject to sections 248 and 249.





Cap 622 - Companies Ordinance 84

Section: 248 Resolution authorizing variation: disclosure of details of
variation

L.N. 163 of 2013 03/03/2014



(1) This section applies in relation to a special resolution to confer, vary, revoke or renew the authorization for a
variation agreement under section 247.

(2) A copy of the proposed variation agreement (if it is in writing) or a memorandum giving details of the proposed
variation agreement (if it is not) must be made available to members—
(a) in the case of a written resolution, by being sent to every member of the company at or before the time

when the proposed resolution is sent to them; or
(b) in the case of a resolution proposed at a meeting, by being made available for inspection by members of the

company—
(i) at the company’s registered office or at a place prescribed by regulations made under section 657, for

a period of not less than 15 days ending on the date of the meeting; and
(ii) at the meeting.

(3) There must also be made available to members in accordance with subsection (2) a copy of the original contract
or memorandum, together with any variations previously made.

(4) A memorandum referred to in subsection (2) must include the names of members holding shares to which the
proposed variation agreement relates.

(5) A copy of a proposed variation agreement made available under subsection (2) must have annexed to it a
memorandum specifying any of those names that do not appear in the proposed variation agreement.

(6) The special resolution is not effective if the requirements of this section are not complied with.

Section: 249 Resolution authorizing variation: exercise of voting rights L.N. 163 of 2013 03/03/2014


(1) This section applies to a special resolution to confer, vary, revoke or renew the authorization for a variation
agreement under section 247.

(2) If the special resolution is proposed as a written resolution, a member holding shares to which the resolution
relates is not an eligible member for the purposes of Subdivision 2 of Division 1 of Part 12 (written resolution)
in respect of those shares.

(3) If the special resolution is proposed at a meeting, the resolution is not effective if—
(a) any member of the company holding shares to which the resolution relates exercises the voting rights

carried by any of those shares; and
(b) the resolution would not have been passed if the member had not done so.

(4) For the purposes of subsection (3)—
(a) a member holding shares to which the resolution relates is to be regarded as exercising the voting rights

carried by those shares not only if the member votes in respect of them on a poll on the question whether
the resolution should be passed but also if the member votes on the resolution otherwise than on a poll;

(b) any member of the company may demand a poll on that question; and
(c) a vote or a demand for a poll by a person as proxy for a member is the same as a vote or a demand by the

member.
(5) The special resolution is not effective if a demand for a poll referred to in subsection (4)(b) is refused.

Section: 250 No assignment of right to buy back own shares L.N. 163 of 2013 03/03/2014


The rights of an unlisted company under a contract authorized under section 244 (as varied from time to time under
section 247) are not capable of being assigned.

Section: 251 Release of right to buy back own shares L.N. 163 of 2013 03/03/2014


(1) An agreement by an unlisted company to release its rights under a contract authorized under section 244 (as
varied from time to time under section 247) is void unless the terms of the release agreement are authorized in
advance by special resolution.

(2) The authorization for a release agreement may be varied, revoked or from time to time renewed by special
resolution.



Cap 622 - Companies Ordinance 85

(3) A special resolution conferring, varying, revoking or renewing the authorization for a release agreement is
subject to sections 252 and 253.


Section: 252 Resolution authorizing release: disclosure of details of

release
L.N. 163 of 2013 03/03/2014



(1) This section applies in relation to a special resolution to confer, vary, revoke or renew the authorization for a
release agreement under section 251.

(2) A copy of the proposed release agreement (if it is in writing) or a memorandum giving details of the proposed
release agreement (if it is not) must be made available to members—
(a) in the case of a written resolution, by being sent to every member of the company at or before the time

when the proposed resolution is sent to them; or
(b) in the case of a resolution proposed at a meeting, by being made available for inspection by members of the

company—
(i) at the company’s registered office or at a place prescribed by regulations made under section 657, for

a period of not less than 15 days ending on the date of the meeting; and
(ii) at the meeting.

(3) There must also be made available to members in accordance with subsection (2) a copy of the original contract
or memorandum, together with any variations previously made.

(4) A memorandum referred to in subsection (2) must include the names of members holding shares to which the
proposed release agreement relates.

(5) A copy of a proposed release agreement made available under subsection (2) must have annexed to it a
memorandum specifying any of those names that do not appear in the proposed release agreement.

(6) The special resolution is not effective if the requirements of this section are not complied with.

Section: 253 Resolution authorizing release: exercise of voting rights L.N. 163 of 2013 03/03/2014


(1) This section applies to a special resolution to confer, vary, revoke or renew the authorization for a release
agreement under section 251.

(2) If the special resolution is proposed as a written resolution, a member holding shares to which the resolution
relates is not an eligible member for the purposes of Subdivision 2 of Division 1 of Part 12 (written resolution)
in respect of those shares.

(3) If the special resolution is proposed at a meeting, the resolution is not effective if—
(a) any member of the company holding shares to which the resolution relates exercises the voting rights

carried by any of those shares; and
(b) the resolution would not have been passed if the member had not done so.

(4) For the purposes of subsection (3)—
(a) a member holding shares to which the resolution relates is to be regarded as exercising the voting rights

carried by those shares not only if the member votes in respect of them on a poll on the question whether
the resolution should be passed but also if the member votes on the resolution otherwise than on a poll;

(b) any member of the company may demand a poll on that question; and
(c) a vote or a demand for a poll by a person as proxy for a member is the same as a vote or a demand by the

member.
(5) The special resolution is not effective if a demand for a poll referred to in subsection (4)(b) is refused.

Section: 254 Variation of release of right to buy back own shares L.N. 163 of 2013 03/03/2014


(1) An unlisted company may agree to a variation of a release agreement authorized under section 251 if the
variation agreement is authorized in advance by special resolution.

(2) The authorization for a variation agreement may be varied, revoked or from time to time renewed by special
resolution.

(3) A special resolution conferring, varying, revoking or renewing the authorization for a variation agreement is
subject to sections 255 and 256.





Cap 622 - Companies Ordinance 86

Section: 255 Resolution authorizing variation of release: disclosure of
details of variation

L.N. 163 of 2013 03/03/2014



(1) This section applies in relation to a special resolution to confer, vary, revoke or renew the authorization for a
variation agreement under section 254.

(2) A copy of the proposed variation agreement (if it is in writing) or a memorandum giving details of the proposed
variation agreement (if it is not) must be made available to members—
(a) in the case of a written resolution, by being sent to every member of the company at or before the time

when the proposed resolution is sent to them; or
(b) in the case of a resolution proposed at a meeting, by being made available for inspection by members of the

company—
(i) at the company’s registered office or at a place prescribed by regulations made under section 657, for

a period of not less than 15 days ending on the date of the meeting; and
(ii) at the meeting.

(3) There must also be made available to members in accordance with subsection (2) a copy of the original release
agreement or memorandum, together with any variations previously made.

(4) A memorandum referred to in subsection (2) must include the names of members holding shares to which the
proposed variation agreement relates.

(5) A copy of a proposed variation agreement made available under subsection (2) must have annexed to it a
memorandum specifying any of those names that do not appear in the proposed variation agreement.

(6) The special resolution is not effective if the requirements of this section are not complied with.

Section: 256 Resolution authorizing variation of release: exercise of

voting rights
L.N. 163 of 2013 03/03/2014



(1) This section applies to a special resolution to confer, vary, revoke or renew the authorization for a variation
agreement under section 254.

(2) If the special resolution is proposed as a written resolution, a member holding shares to which the resolution
relates is not an eligible member for the purposes of Subdivision 2 of Division 1 of Part 12 (written resolution)
in respect of those shares.

(3) If the special resolution is proposed at a meeting, the resolution is not effective if—
(a) any member of the company holding shares to which the resolution relates exercises the voting rights

carried by any of those shares; and
(b) the resolution would not have been passed if the member had not done so.

(4) For the purposes of subsection (3)—
(a) a member holding shares to which the resolution relates is to be regarded as exercising the voting rights

carried by those shares not only if the member votes in respect of them on a poll on the question whether
the resolution should be passed but also if the member votes on the resolution otherwise than on a poll;

(b) any member of the company may demand a poll on that question; and
(c) a vote or a demand for a poll by a person as proxy for a member is the same as a vote or a demand by the

member.
(5) The special resolution is not effective if a demand for a poll referred to in subsection (4)(b) is refused.

Part:
Division:
Subdivision:

5
4
6

Payment for Share Redemptions and Buy-backs L.N. 163 of 2013 03/03/2014





Section: 257 Payment for redemption or buy-back L.N. 163 of 2013 03/03/2014


(1) If a company redeems or buys back its own shares, the shares must be paid for on redemption or buy-back.
(2) Subject to subsections (3) and (4), a company may make a payment in respect of a redemption or buy-back of its

own shares—
(a) out of the company’s distributable profits;



Cap 622 - Companies Ordinance 87

(b) out of the proceeds of a fresh issue of shares made for the purpose of the redemption or buy-back; or
(c) out of capital in accordance with this Subdivision.

(3) A listed company must not make a payment out of capital in respect of a buy-back of its own shares on a
recognized stock market or on an approved stock exchange under section 239.

(4) Subject to subsection (3), a payment referred to in subsection (5) may be made by a company only—
(a) out of the company’s distributable profits; or
(b) out of capital in accordance with this Subdivision.

(5) Subsection (4) applies to a payment by a company in consideration of any of the following—
(a) the company acquiring any right with respect to the buy-back of its own shares under Subdivision 4 or 5;
(b) the variation of a contract authorized under Subdivision 5; or
(c) the release, or variation of the release, of any of the company’s obligations with respect to the buy-back of

any of its own shares under Subdivision 4 or 5.

Section: 258 Special resolution for payment out of capital L.N. 163 of 2013 03/03/2014


(1) Subject to section 257(3), a company may make a payment out of capital in respect of the redemption or buy-
back of its own shares by special resolution in accordance with this Subdivision.

(2) Subject to section 263, the payment out of capital and the redemption or buy-back must be made no earlier than
5 weeks and no later than 7 weeks after the date of the special resolution.


Section: 259 Solvency statement for payment out of capital L.N. 163 of 2013 03/03/2014


(1) All directors of the company must make a solvency statement that complies with Division 2 in relation to the
payment out of capital.

(2) The special resolution for payment out of capital must be passed within 15 days after the date of the solvency
statement.

(3) If the special resolution is proposed as a written resolution, a copy of the solvency statement must be sent to
every member of the company at or before the time when the proposed resolution is sent to them.

(4) If the special resolution is proposed at a meeting, a copy of the solvency statement must be made available for
inspection by members at the meeting.

(5) The special resolution is not effective if subsection (3) or (4) (as applicable) is not complied with.

Section: 260 Special resolution: exercise of voting rights L.N. 163 of 2013 03/03/2014


(1) If the special resolution for payment out of capital is proposed as a written resolution, a member of the company
holding shares to which the resolution relates is not an eligible member for the purposes of Subdivision 2 of
Division 1 of Part 12 (written resolution) in respect of those shares.

(2) If the special resolution for payment out of capital is proposed at a meeting, the resolution is not effective if—
(a) any member of the company holding shares to which the resolution relates exercises the voting rights

carried by any of those shares; and
(b) the resolution would not have been passed if the member had not done so.

(3) For the purposes of subsection (2)—
(a) a member holding shares to which the resolution relates is to be regarded as exercising the voting rights

carried by those shares not only if the member votes in respect of them on a poll on the question whether
the resolution should be passed but also if the member votes on the resolution otherwise than on a poll;

(b) any member of the company may demand a poll on that question; and
(c) a vote or a demand for a poll by a person as proxy for a member is the same as a vote or a demand by the

member.
(4) The special resolution is not effective if a demand for a poll referred to in subsection (3)(b) is refused.
(5) This section does not apply to a buy-back by a listed company under a general offer in accordance with section

238.




Cap 622 - Companies Ordinance 88

Section: 261 Public notice of payment out of capital L.N. 163 of 2013 03/03/2014


(1) If a special resolution for payment out of capital is passed, the company must, on or before the date specified in
subsection (2), publish a notice in the Gazette—
(a) stating that the company has approved a payment out of capital;
(b) specifying the amount of the payment out of capital and the date of the special resolution;
(c) stating where the special resolution and solvency statement are available for inspection; and
(d) stating that a member of the company who did not consent to or vote in favour of the special resolution or a

creditor of the company may, within 5 weeks after the date of the special resolution, apply to the Court
under section 263 for cancellation of the special resolution.

(2) The date is—
(a) a date that falls on the last working day of the week after the week in which the special resolution is passed;

or
(b) if the period between the date in paragraph (a) and the date on which the special resolution is passed is less

than 4 business days (both dates exclusive), a date that falls on the last working day of the week next
following.

Examples—
1. The special resolution is passed on 2 February of a year (Thursday). Apart from Saturdays and Sundays, all other dates in February

of that year are business days. The date that falls on the last working day of the week after the week in which the special resolution
is passed is 10 February (Friday) of that year. There are 5 business days between 2 February and 10 February. Therefore, the
relevant notice must be published in the Gazette on or before 10 February (Friday) of that year.

2. The special resolution is passed on 30 March of a year (Friday). Both 4 April (Wednesday) and 6 April (Friday) of that year are
general holidays. 2 April (Monday), 3 April (Tuesday), 5 April (Thursday) and 13 April (Friday) of that year are business days. The
date that falls on the last working day of the week after the week in which the special resolution is passed is 5 April (Thursday).
There are only 2 business days between 30 March and 5 April. Therefore, the relevant notice must be published in the Gazette on or
before the last working day of the week next following, which is 13 April (Friday) of that year.

(3) Before the end of the week after the week in which the special resolution for payment out of capital is passed,
the company must also—
(a) publish a notice to the same effect as the notice under subsection (1) in at least one specified Chinese

language newspaper and at least one specified English language newspaper; or
(b) give written notice to that effect to each of its creditors.

(4) If the company contravenes subsection (1) or (3), the company, and every responsible person of the company,
commit an offence, and each is liable to a fine at level 3.

(5) The company must deliver to the Registrar for registration a copy of the solvency statement no later than the day
on which the company—
(a) publishes the notice under subsection (1); or
(b) if earlier, first publishes the notice or gives notice to creditors under subsection (3).

(6) If the company contravenes subsection (5), the company, and every responsible person of the company, commit
an offence, and each is liable to a fine at level 5 and, in the case of a continuing offence, to a further fine of
$1000 for each day during which the offence continues.

(7) For the purposes of subsection (2)—
business day (辦公日) means a day that is not—

(a) a general holiday;
(b) a Saturday; or
(c) a black rainstorm warning day or gale warning day as defined by section 71(2) of the Interpretation and

General Clauses Ordinance (Cap 1);
working day (工作日) means a day that is not—

(a) a general holiday; or
(b) a Saturday.


Section: 262 Inspection of special resolution and solvency statement L.N. 163 of 2013 03/03/2014


(1) The company must ensure that the special resolution for payment out of capital and the solvency statement made
in relation to it are kept at its registered office or at a place prescribed by regulations made under section 657 for
the period—



Cap 622 - Companies Ordinance 89

(a) beginning on the day on which the company—
(i) publishes the notice under section 261(1); or
(ii) if earlier, first publishes the notice or gives notice to creditors under section 261(3); and

(b) ending 5 weeks after the date of the special resolution.
(2) The company must permit a member or creditor of the company to inspect the special resolution and solvency

statement without charge during business hours in that period.
(3) If the company contravenes subsection (1) or (2), the company, and every responsible person of the company,

commit an offence, and each is liable to a fine at level 5 and, in the case of a continuing offence, to a further fine
of $1000 for each day during which the offence continues.

(4) If the company contravenes subsection (2), the Court may by order require the company to permit an immediate
inspection.


Section: 263 Application to Court by members or creditors L.N. 163 of 2013 03/03/2014


(1) Subject to subsection (2), a member or creditor of the company may apply to the Court, within 5 weeks after the
date of the special resolution for payment out of capital, for cancellation of the resolution.

(2) A member who consented to or voted in favour of the special resolution is not entitled to apply.
(3) An application may be made on behalf of the persons entitled to apply by any one or more of them appointed in

writing by all of them.
(4) If an application is made under this section—

(a) the applicant must, as soon as possible, serve the application on the company; and
(b) the company must give the Registrar notice in the specified form of the application within 7 days after the

day on which the application is served on the company.
(5) If the company contravenes subsection (4)(b), the company, and every responsible person of the company,

commit an offence, and each is liable to a fine at level 3 and, in the case of a continuing offence, to a further fine
of $300 for each day during which the offence continues.


Section: 264 Power of Court to adjourn proceedings L.N. 163 of 2013 03/03/2014


(1) The Court may adjourn proceedings on an application under section 263 so that an arrangement may be made to
its satisfaction for the protection of the interests of dissentient members or dissentient creditors.

(2) The Court may give any directions and make any orders it thinks expedient for facilitating or carrying into effect
any such arrangement.


Section: 265 Power of Court to confirm or cancel special resolution L.N. 163 of 2013 03/03/2014


(1) On an application under section 263, the Court must make an order confirming or cancelling the special
resolution for payment out of capital, and may do so on any terms and conditions it thinks fit.

(2) If the Court confirms the special resolution, it may by order alter or extend any date or period of time specified

(a) in the special resolution; or
(b) in any provision of this Division applying to the special resolution, the payment out of capital or the

redemption or buy-back.
(3) If the Court thinks fit, the order may—

(a) provide for the company to buy back the shares of any of its members and for the reduction accordingly of
the company’s share capital;

(b) provide for the protection of the interests of members or creditors of the company;
(c) make any alteration to the company’s articles that may be required as a consequence;
(d) require the company not to make any, or any specified, alteration to its articles.

(4) If the order of the Court requires the company not to make any, or any specified, alteration to its articles, the
company does not have power to make any such alteration without leave of the Court.

(5) The powers of the Court under this section do not limit its powers under section 264.




Cap 622 - Companies Ordinance 90

Section: 266 Company to deliver copy of order of Court to Registrar L.N. 163 of 2013 03/03/2014


(1) Within 15 days after the making of an order by the Court under section 265, or within any longer period ordered
by the Court, the company must deliver an office copy of the order to the Registrar for registration.

(2) If the company contravenes subsection (1), the company, and every responsible person of the company, commit
an offence, and each is liable to a fine at level 3 and, in the case of a continuing offence, to a further fine of $300
for each day during which the offence continues.


Part:
Division:
Subdivision:

5
4
7

General Provisions L.N. 163 of 2013 03/03/2014





Section: 267 General prohibition on acquisition of own shares L.N. 163 of 2013 03/03/2014


(1) Except as provided by this Ordinance, a company must not acquire its own shares, whether by redemption, buy-
back, subscription or otherwise.

(2) If a company contravenes subsection (1), an offence is committed by—
(a) the company;
(b) every responsible person of the company; and
(c) every non-tendering member of the company (as defined by section 705) who knowingly permits the

contravention.
(3) A person who commits an offence under subsection (2) is liable—

(a) on conviction on indictment to a fine of $1250000 and to imprisonment for 5 years; or
(b) on summary conviction to a fine of $150000 and to imprisonment for 12 months.

(4) Subject to section 236(4) and Division 2 of Part 14 (remedies for unfair prejudice to members’ interests), a
redemption or buy-back of shares by a company under this Division is not void only because of a failure to
comply with this Division.


Section: 268 No redemption or buy-back of unpaid or partly-paid

shares
L.N. 163 of 2013 03/03/2014



A company must not redeem or buy back its own shares unless they are fully paid.

Section: 269 Effect of redemption or buy-back L.N. 163 of 2013 03/03/2014


(1) Shares redeemed or bought back under this Division are to be regarded as cancelled on redemption or buy-back.
(2) On redemption or buy-back of its own shares, a company must—

(a) reduce the amount of its share capital if the shares were redeemed or bought back out of capital;
(b) reduce the amount of its profits if the shares were redeemed or bought back out of profits; or
(c) reduce the amount of its share capital and profits proportionately if the shares were redeemed or bought

back out of both capital and profits,
by the total amount of the price paid by the company for the shares.

Section: 270 Return of share redemption or buy-back L.N. 163 of 2013 03/03/2014


(1) A company that redeems or buys back any shares under this Division must, within 15 days after the date on
which the shares are delivered to the company, deliver a return to the Registrar for registration.

(2) The return—
(a) must be in the specified form;
(b) must state, for the shares of each class redeemed or bought back—

(i) the number of shares; and
(ii) the date on which they were delivered to the company;



Cap 622 - Companies Ordinance 91

(c) must include a statement of capital, as at the time immediately after the redemption or buy-back, that
complies with section 201;

(d) in the case of a listed company, must also state, for the shares of each class redeemed or bought back—
(i) the maximum and minimum prices paid in respect of the shares; and
(ii) the aggregate amount paid by the company for the shares; and

(e) in the case of a redemption or buy-back financed by a payment out of capital, must also state particulars of
the payment including the date and amount of the payment.

(3) Details of shares delivered to the company on different dates and under different contracts may be included in a
single return. If this is done, the amount required to be stated under subsection (2)(d)(ii) is the aggregate amount
paid by the company for all the shares to which the return relates.

(4) If the company contravenes subsection (1), the company, and every responsible person of the company, commit
an offence, and each is liable to a fine at level 6 and, in the case of a continuing offence, to a further fine of
$2000 for each day during which the offence continues.


Section: 271 Effect of company’s failure to redeem or buy back L.N. 163 of 2013 03/03/2014


(1) This section applies if, under this Division, a company—
(a) issues redeemable shares; or
(b) agrees to buy back any of its own shares.

(2) The company is not liable in damages for any failure on its part to redeem or buy back any of the shares.
(3) Subsection (2) is without prejudice to any right of the holder of the shares other than the right to sue the

company for damages for the failure.
(4) A court must not grant an order for specific performance of the terms of the redemption or buy-back if the

company shows that it is unable to make a payment in respect of the redemption or buy-back out of distributable
profits.


Section: 272 Effect on winding up of company’s failure to redeem or

buy back
L.N. 163 of 2013 03/03/2014



(1) This section applies if—
(a) a company—

(i) issues redeemable shares under this Division; or
(ii) agrees to buy back any of its own shares under this Division;

(b) the company is wound up; and
(c) at the commencement of the winding up any of those shares have not been redeemed or bought back.

(2) The terms of the redemption or buy-back may be enforced against the company.
(3) Subsection (2) does not apply if—

(a) the terms of the redemption or buy-back provided for the redemption or buy-back to take place at a date
later than that of the commencement of the winding up; or

(b) during the period—
(i) beginning on the day on which the redemption or buy-back was to have taken place; and
(ii) ending on the commencement of the winding up,

the company could not at any time have lawfully made a payment in respect of the redemption or buy-back
out of distributable profits.

(4) Shares are to be regarded as cancelled when they are redeemed or bought back under subsection (2).
(5) The following must be paid in priority to any amount that the company is liable under subsection (2) to pay in

respect of any shares—
(a) all other debts and liabilities of the company (other than any due to members in their capacity as such); and
(b) if other shares carry rights (whether as to capital or income) that are preferred to the rights as to capital

attaching to those shares, any amount due in satisfaction of those preferred rights.
(6) Subject to subsection (5), any amount payable under subsection (2) must be paid in priority to any amounts due

to members in satisfaction of their rights (whether as to capital or income) as members.
(7) If, under section 264A of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap 32), a

creditor of a company is entitled to payment of any interest only after payment of all other debts of the company,



Cap 622 - Companies Ordinance 92

the company’s debts and liabilities for the purposes of subsection (5) include the liability to pay that interest.

Section: 273 Power to modify by regulation L.N. 163 of 2013 03/03/2014


(1) The Chief Executive in Council may make regulations modifying any of the provisions of this Division with
respect to—
(a) the authorization required for a company to buy back its own shares;
(b) the authorization required for the release by a company of its rights under a contract for the buyback of its

own shares, including a contingent buyback contract; and
(c) the information to be included in a return by a company to the Registrar in relation to a share redemption or

buy-back.
(2) Regulations made under this section are subject to the approval of the Legislative Council.

Part:
Division:

5
5

Financial Assistance for Acquisition of Own Shares L.N. 163 of 2013 03/03/2014





Part:
Division:
Subdivision:

5
5
1

Preliminary L.N. 163 of 2013 03/03/2014





Section: 274 Interpretation L.N. 163 of 2013 03/03/2014


(1) In this Division—
financial assistance (資助) means—

(a) financial assistance given by way of gift;
(b) financial assistance given—

(i) by way of guarantee, security or indemnity (other than an indemnity in respect of the indemnifier’s
own neglect or default); or

(ii) by way of release or waiver;
(c) financial assistance given—

(i) by way of a loan or any other agreement under which any of the obligations of the person giving the
assistance are to be fulfilled at a time when in accordance with the agreement any obligation of another
party to the agreement remains unfulfilled; or

(ii) by way of the novation of, or the assignment of rights arising under, a loan or other agreement referred
to in subparagraph (i); or

(d) any other financial assistance given by a company if—
(i) the net assets of the company are reduced to a material extent by the giving of the assistance; or
(ii) the company has no net assets;

liabilities (負債) includes any amount retained as reasonably necessary for the purpose of providing for any liability or
loss that is—
(a) likely to be incurred; or
(b) certain to be incurred but uncertain as to the amount or as to the date on which it will arise;

net assets (淨資產) of a company that gives any financial assistance under this Division, means the amount by which
the aggregate of the company’s assets exceeds the aggregate of its liabilities (taking the amount of both assets
and liabilities to be as stated in the company’s accounting records immediately before the financial assistance
is given).

(2) In this Division—
(a) a reference to a person incurring a liability includes the person changing their financial position by making

an agreement or arrangement (whether enforceable or unenforceable, and whether made on the person’s
own account or with any other person) or by any other means; and



Cap 622 - Companies Ordinance 93

(b) a reference to a company giving financial assistance for the purpose of reducing or discharging a liability
incurred by a person for the purpose of the acquisition of shares includes the company giving financial
assistance for the purpose of wholly or partly restoring the person’s financial position to what it was
before the acquisition took place.


Part:
Division:
Subdivision:

5
5
2

General Prohibition on Financial Assistance for
Acquisition of Own Shares

L.N. 163 of 2013 03/03/2014





Section: 275 Prohibition on financial assistance for acquisition of shares
or for reducing or discharging liability for acquisition

L.N. 163 of 2013 03/03/2014



(1) If a person is acquiring or proposing to acquire shares in a company, the company or any of its subsidiaries must
not give financial assistance directly or indirectly for the purpose of the acquisition before or at the same time as
the acquisition takes place, except as provided by this Division.

(2) If—
(a) a person has acquired shares in a company; and
(b) any person has incurred a liability for the purpose of the acquisition,

the company or any of its subsidiaries must not give financial assistance directly or indirectly for the purpose of
reducing or discharging the liability, except as provided by this Division.

(3) This section does not apply to the giving of financial assistance by a company for the purpose of the acquisition
of a share in its holding company or for the purpose of reducing or discharging a liability incurred for such an
acquisition if the holding company is a company incorporated outside Hong Kong.

(4) If a company contravenes subsection (1) or (2), the company, and every responsible person of the company,
commit an offence, and each is liable to a fine of $150000 and to imprisonment for 12 months.


Section: 276 Failure to comply with Division does not affect validity of

financial assistance, etc.
L.N. 163 of 2013 03/03/2014



If a company gives financial assistance in contravention of this Division, the validity of the financial assistance and of
any contract or transaction connected with it is not affected only because of the contravention.

Part:
Division:
Subdivision:

5
5
3

Exceptions from Prohibition L.N. 163 of 2013 03/03/2014





Section: 277 General exceptions L.N. 163 of 2013 03/03/2014


This Division does not prohibit any of the following transactions—
(a) the distribution of a company’s assets—

(i) by way of dividend lawfully made; or
(ii) in the course of winding up the company;

(b) the allotment of bonus shares;
(c) the reduction of a company’s share capital in accordance with Division 3;
(d) the redemption or buy-back of a company’s own shares in accordance with Division 4;
(e) anything done in accordance with a court order under Division 2 of Part 13 (arrangements and

compromises);
(f) anything done under an arrangement made under section 237 of the Companies (Winding Up and

Miscellaneous Provisions) Ordinance (Cap 32) (power of liquidator to accept shares, etc., as consideration
for sale of property of company);

(g) anything done under an arrangement made between a company and its creditors that is binding on the
creditors because of section 254 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance



Cap 622 - Companies Ordinance 94

(Cap 32) (arrangement, when binding on creditors).

Section: 278 Principal purpose exception L.N. 163 of 2013 03/03/2014


This Division does not prohibit a company from giving financial assistance for the purpose of the acquisition of a
share in the company or its holding company or for the purpose of reducing or discharging a liability incurred for such
an acquisition if—

(a) either—
(i) the company’s principal purpose in giving the assistance is not to give it for the purpose of the

acquisition of a share in the company or its holding company or for the purpose of reducing or
discharging a liability incurred for such an acquisition; or

(ii) the giving of the assistance for the purpose of the acquisition of a share in the company or its holding
company or for the purpose of reducing or discharging a liability incurred for such an acquisition is
only an incidental part of some larger purpose of the company; and

(b) the assistance is given in good faith in the interests of the company.

Section: 279 Exception for money lending businesses L.N. 163 of 2013 03/03/2014


Subject to section 282, this Division does not prohibit the lending of money by a company in the ordinary course of
business if the lending of money is part of the ordinary business of the company.

Section: 280 Exception for employee share schemes L.N. 163 of 2013 03/03/2014


(1) Subject to section 282, this Division does not prohibit—
(a) the giving by a company, in good faith in the interests of the company, of financial assistance for the

purposes of an employee share scheme; or
(b) the giving of financial assistance by a company for the purposes of, or in connection with, anything done by

the company or another company in the same group of companies for the purposes of enabling or
facilitating transactions in shares in the company or its holding company between, and involving the
acquisition of beneficial ownership of those shares by—
(i) persons employed or formerly employed in good faith by that company or another company in the

same group of companies; or
(ii) spouses, widows, widowers, or minor children of persons referred to in subparagraph (i).

(2) In this section—
children(子女) includes step-children, illegitimate children and children adopted in any manner recognized by the law

of Hong Kong;
employee share scheme(僱員參股計劃) means a scheme for encouraging or facilitating the holding of shares in a

company by or for the benefit of—
(a) persons employed or formerly employed in good faith by that company or another company in the same

group of companies; or
(b) spouses, widows, widowers, or minor children of persons referred to in paragraph (a);

minor children(未成年子女) means children who are under 18 years of age.

Section: 281 Exception for loans to employees L.N. 163 of 2013 03/03/2014


(1) Subject to section 282, this Division does not prohibit the making by a company of loans to its eligible
employees for the purpose of enabling them to acquire fully paid shares in the company or its holding company
to be held by them by way of beneficial ownership.

(2) In this section—
child(子女) includes a step-child, an illegitimate child and a child adopted in any manner recognized by the law of

Hong Kong;
eligible employees(合資格的僱員), in relation to a company, means persons employed in good faith by the company,

other than—



Cap 622 - Companies Ordinance 95

(a) a director of the company;
(b) a director’s spouse;
(c) a director’s child who is under 18 years of age;
(d) a trustee of a trust (other than an employee share scheme as defined by section 280(2) or a pension scheme)


(i) the beneficiaries of which include a person referred to in paragraph (a), (b) or (c); or
(ii) the terms of which confer a power on the trustees that may be exercised for the benefit of a person

referred to in paragraph (a), (b) or (c); or
(e) a partner of a person referred to in paragraph (a), (b) or (c) or of a trustee referred to in paragraph (d).


Section: 282 Special restriction for listed companies L.N. 163 of 2013 03/03/2014


Section 279, 280 or 281 applies to a listed company only if—
(a) the company has net assets that are not reduced by the giving of the financial assistance; or
(b) to the extent that those assets are reduced, the assistance is provided by a payment out of distributable

profits.

Part:
Division:
Subdivision:

5
5
4

Authorization for Giving Financial Assistance L.N. 163 of 2013 03/03/2014





Section: 283 Financial assistance not exceeding 5% of shareholders
funds

L.N. 163 of 2013 03/03/2014



(1) A company may give financial assistance for the purpose of the acquisition of a share in the company or its
holding company or for the purpose of reducing or discharging a liability incurred for such an acquisition if—
(a) the directors resolve, before the assistance is given, that—

(i) the company should give the assistance;
(ii) giving the assistance is in the best interests of the company; and
(iii) the terms and conditions under which the assistance is to be given are fair and reasonable to the

company;
(b) on the same day that the directors pass the resolution, the directors who vote in favour of it make a solvency

statement that complies with Division 2 in relation to the giving of the assistance;
(c) the aggregate amount of the assistance and any other financial assistance given under this section that has

not been repaid does not exceed 5% of the paid up share capital and reserves of the company (as disclosed
in the most recent audited financial statements of the company); and

(d) the assistance is given not more than 12 months after the day on which the solvency statement is made
under paragraph (b).

(2) The resolution of the directors under subsection (1)(a) must set out in full the grounds for their conclusions as to
the matters referred to in subsection (1)(a)(i), (ii) and (iii).

(3) A reference in subsection (1)(c) to any other financial assistance given under this section that has not been repaid
includes the amount of any financial assistance given in the form of a guarantee or security for which the
company remains liable at the time the financial assistance in question is given.

(4) Within 15 days after giving financial assistance under this section, the company must send to each member of
the company a copy of the solvency statement made under subsection (1)(b) and a notice containing the
following information—
(a) the class and number of shares in respect of which the assistance was given;
(b) the consideration paid or payable for those shares;
(c) the name of the person receiving the assistance and, if a different person, the name of the beneficial owner

of those shares;
(d) the nature, the terms and the amount of the assistance.

(5) If the company contravenes subsection (4), the company, and every responsible person of the company, commit
an offence, and each is liable to a fine at level 3 and, in the case of a continuing offence, to a further fine of $300



Cap 622 - Companies Ordinance 96

for each day during which the offence continues.

Section: 284 Financial assistance with approval of all members L.N. 163 of 2013 03/03/2014


(1) A company may give financial assistance for the purpose of the acquisition of a share in the company or its
holding company or for the purpose of reducing or discharging a liability incurred for such an acquisition if—
(a) the directors resolve, before the assistance is given, that—

(i) the company should give the assistance;
(ii) giving the assistance is in the best interests of the company; and
(iii) the terms and conditions under which the assistance is to be given are fair and reasonable to the

company;
(b) on the same day that the directors pass the resolution, the directors who vote in favour of it make a solvency

statement that complies with Division 2 in relation to the giving of the assistance;
(c) the giving of the assistance is approved by written resolution of all members of the company before the

assistance is given; and
(d) the assistance is given not more than 12 months after the day on which the solvency statement is made

under paragraph (b).
(2) The resolution of the directors under subsection (1)(a) must set out in full the grounds for their conclusions as to

the matters referred to in subsection (1)(a)(i), (ii) and (iii).

Section: 285 Financial assistance by ordinary resolution L.N. 163 of 2013 03/03/2014


(1) A company may give financial assistance for the purpose of the acquisition of a share in the company or its
holding company or for the purpose of reducing or discharging a liability incurred for such an acquisition if—
(a) the directors resolve, before the assistance is given, that—

(i) the company should give the assistance;
(ii) giving the assistance is in the best interests of the company and is of benefit to those members of the

company not receiving the assistance; and
(iii) the terms and conditions under which the assistance is to be given are fair and reasonable to the

company and to those members not receiving the assistance;
(b) on the same day that the directors pass the resolution, the directors who vote in favour of it make a solvency

statement that complies with Division 2 in relation to the giving of the assistance;
(c) the company sends to each member of the company a copy of the solvency statement made under paragraph
(b) and a notice containing the following information—

(i) the nature and terms of the assistance and the name of the person to whom it will be given;
(ii) if it will be given to a nominee for another person, the name of that other person;
(iii) the text of the resolution of the directors;
(iv) any further information and explanation that would be necessary for a reasonable member to

understand the nature of the assistance and the implications of giving it for the company and the
members;

(d) the giving of the assistance is approved by resolution of the company before the assistance is given; and
(e) the assistance is given—

(i) not less than 28 days after the day on which the resolution is passed under paragraph (d); and
(ii) not more than 12 months after the day on which the solvency statement is made under paragraph (b).

(2) The notice and copy of the solvency statement must be sent to each member under subsection (1)(c) at least 14
days before the day on which the resolution under subsection (1)(d) is proposed and may accompany notice of
the meeting at which the resolution will be proposed.

(3) Despite subsection (1)(e)(i), if an application is made to the Court under section 286 in relation to the giving of
financial assistance under this section, the financial assistance must not be given until the application is finally
determined, unless the Court orders otherwise.

(4) The resolution of the directors under subsection (1)(a) must set out in full the grounds for their conclusions as to
the matters referred to in subsection (1)(a)(i), (ii) and (iii).





Cap 622 - Companies Ordinance 97

Section: 286 Application to Court for restraining order L.N. 163 of 2013 03/03/2014


(1) Within 28 days after the day on which a resolution for the giving of financial assistance is passed under section
285(1)(d), an application to the Court for an order restraining the giving of financial assistance may be made—
(a) if the company is limited by shares, by members representing at least 5% of the total voting rights of

holders of shares in the company; or
(b) in any other case, by members representing at least 5% of the members of the company.

(2) Despite subsection (1), a member who consented to or voted in favour of the resolution is not entitled to apply.
(3) An application may be made on behalf of the members entitled to apply by any one or more of them appointed

in writing by all of them.
(4) An application under this section may be made only on the ground that—

(a) the giving of the assistance is neither—
(i) in the best interests of the company; nor
(ii) of benefit to those members of the company not receiving the assistance; or

(b) the terms and conditions under which the assistance is to be given are not fair and reasonable to—
(i) the company; and
(ii) those members not receiving the assistance.

(5) If an application is made under this section—
(a) the applicant must, as soon as possible, serve the application on the company; and
(b) the company must give the Registrar notice in the specified form of the application within 7 days after the

day on which the application is served on the company.
(6) If the company contravenes subsection (5)(b), the company, and every responsible person of the company,

commit an offence, and each is liable to a fine at level 3 and, in the case of a continuing offence, to a further fine
of $300 for each day during which the offence continues.


Section: 287 Power of Court to adjourn application L.N. 163 of 2013 03/03/2014


(1) The Court may adjourn proceedings on an application under section 286 so that an arrangement may be made to
its satisfaction for the protection of the interests of dissentient members.

(2) The Court may give any directions and make any orders it thinks expedient for facilitating or carrying into effect
any such arrangement.


Section: 288 Power of Court to confirm or restrain giving of financial

assistance
L.N. 163 of 2013 03/03/2014



(1) On an application under section 286, the Court must make an order confirming or restraining the giving of
financial assistance, and may do so on any terms and conditions it thinks fit.

(2) If the Court confirms the giving of financial assistance, it may by order alter or extend any date or period of time
specified—
(a) in the directors’ resolution under section 285(1)(a) or the resolution of the company under section

285(1)(d); or
(b) in any provision of this Division applying to the giving of financial assistance.

(3) If the Court thinks fit, the order may—
(a) provide for the company to buy back the shares of any of its members and for the reduction accordingly of

the company’s share capital;
(b) make any alteration to the company’s articles that may be required as a consequence;
(c) require the company not to make any, or any specified, alteration to its articles.

(4) If the order of the Court requires the company not to make any, or any specified, alteration to its articles, the
company does not have power to make any such alteration without leave of the Court.

(5) The powers of the Court under this section do not limit its powers under section 287.




Cap 622 - Companies Ordinance 98

Section: 289 Company to deliver copy of order of Court to Registrar L.N. 163 of 2013 03/03/2014


(1) Within 15 days after the making of an order by the Court under section 288, or within any longer period ordered
by the Court, the company must deliver an office copy of the order to the Registrar for registration.

(2) If the company contravenes subsection (1), the company, and every responsible person of the company, commit
an offence, and each is liable to a fine at level 3 and, in the case of a continuing offence, to a further fine of $300
for each day during which the offence continues.


Part: 6 Distribution of Profits and Assets L.N. 163 of 2013 03/03/2014


(*Format changes—E.R. 1 of 2013)
____________________________________________________________________________
Note:
* The format of Part 6 has been updated to the current legislative styles.

Part:
Division:

6
1

Preliminary L.N. 163 of 2013 03/03/2014





Section: 290 Interpretation L.N. 163 of 2013 03/03/2014


(1) In this Part—
called up share capital (已催繳股本) , in relation to a company, means so much of its share capital as equals the

aggregate amount of the calls made on its shares (whether or not those calls have been paid), together with—
(a) any share capital paid up without being called; and
(b) any share capital to be paid on a specified future date under the articles, the terms of allotment of the

relevant shares, or any other arrangements for payment of those shares,
and uncalled share capital (未催繳股本) is to be read accordingly;

capitalization (資本化) , in relation to a company’s profits, means any of the following operations (whenever carried
out)—
(a) applying the profits in wholly or partly paying up unissued shares in the company to be allotted to members

of the company as fully or partly paid bonus shares;
(b) transferring the profits to share capital;

distribution (分派) means every description of distribution of a company’s assets to its members, whether in cash or
otherwise, except distribution by way of—
(a) an issue of shares as fully or partly paid bonus shares;
(b) a redemption or buy-back of any shares in the company out of capital (including the proceeds of any fresh

issue of shares), or out of unrealized profits, in accordance with Division 4 of Part 5;
(c) a reduction of share capital by extinguishing or reducing any member’s liability on any of the company’

s shares in respect of share capital not paid up, or by repaying paid up share capital;
(d) a distribution of assets to the members on the company’s winding up; or
(e) financial assistance given by the company to a member under section 283, 284 or 285;

financial assistance (資助) has the meaning given by section 274(1);
financial items (財務項目) means all of the following—

(a) profits, losses, assets and liabilities;
(b) provisions;
(c) share capital and reserves (including undistributable reserves);

net assets (淨資產), in relation to a company, means the aggregate of the company’s assets less the aggregate of its
liabilities;

undistributable reserves (不可分派的儲備) , in relation to a company, means—
(a) subject to subsection (2), the amount by which the company’s accumulated, unrealized profits, so far as

not previously utilized by capitalization, exceeds its accumulated, unrealized losses, so far as not previously



Cap 622 - Companies Ordinance 99

written off in a reduction or reorganization of capital; or
(b) any other reserve that the company is prohibited from distributing by an Ordinance (other than this Part) or

by its articles.
(2) In paragraph (a) of the definition of undistributable reserves in subsection (1), a reference to capitalization

excludes a transfer of profits of the company to its capital redemption reserve on or after 1 September 1991.
(3) In this Part—

(a) a reference to profits of any particular description is a reference to profits of that description made at any
time; and

(b) a reference to losses of any particular description is a reference to losses of that description made at any
time.

(4) For the purposes of this Part, any financial statements are referential financial statements if the distribution in
question is made pursuant to determinations made by reference to financial items as stated in the financial
statements under section 302.


Section: 291 Realized profits and losses L.N. 163 of 2013 03/03/2014


(1) In this Part, a reference to realized profits or realized losses of a company is a reference to those profits or losses
of the company that are regarded as realized profits or realized losses for the purpose of any financial statements
prepared by the directors in accordance with principles generally accepted, at the time when the financial
statements are prepared, with respect to the determination for accounting purposes of realized profits or realized
losses.

(2) Subsection (1) does not affect any specific provision (whether in an Ordinance or otherwise) under which profits
or losses of any description are regarded as realized.

(3) If, after making all reasonable enquiries, a company’s directors are unable to determine whether or not a
particular profit or loss made before 1 September 1991 is realized, they may treat the profit as realized, and the
loss as unrealized, for the purposes of this Part.


Section: 292 Certain amount to be regarded as realized profit or loss L.N. 163 of 2013 03/03/2014


(1) For the purposes of this Part, a provision other than an amount specified in subsection (2) is to be regarded as a
realized loss.

(2) The amount is one written off or retained by way of providing for a diminution in value of a fixed asset
appearing on a revaluation of—
(a) all of the company’s fixed assets; or
(b) all of the company’s fixed assets other than goodwill.

(3) For the purposes of subsection (2), any consideration by the directors of the value at a particular time of a fixed
asset is to be regarded as a revaluation of the asset if—
(a) in the case of a listed company, the conditions specified in subsection (4)(a) and (b) are satisfied; or
(b) in the case of any other company—

(i) where the referential financial statements are the financial statements specified in section 304, the
conditions specified in subsection (4)(a) and (b) are satisfied; or

(ii) where the referential financial statements are the financial statements specified in section 305 or 306,
the condition specified in subsection (4)(a) is satisfied.

(4) The conditions are—
(a) that the directors are satisfied that the aggregate value at that time of the company’s fixed assets is not less

than the aggregate amount at which they are for the time being stated in the financial statements; and
(b) that it is stated in a note to the referential financial statements that—

(i) the directors have considered the value of the company’s fixed assets without actually revaluing
them;

(ii) the directors are satisfied that the aggregate value at the time of consideration of those assets is or was
not less than the aggregate amount at which they are or were for the time being stated in the financial
statements; and

(iii) accordingly, by virtue of this subsection, amounts are stated in the referential financial statements on



Cap 622 - Companies Ordinance 100

the basis that a revaluation of the company’s fixed assets is to be regarded as having taken place at
that time.

(5) For the purposes of this Part, if—
(a) on the revaluation of a fixed asset, an unrealized profit is shown to have been made; and
(b) on or after the revaluation, a sum is written off or retained for depreciation of the fixed asset over a period,

the amount by which the sum exceeds the projected sum in relation to the depreciation of that asset over the
period is to be regarded as a realized profit made over the period.

(6) In determining whether a company has made a profit or loss on an asset for the purposes of subsection (5), the
value given to the asset in the earliest available record of its value made on or after its acquisition by the
company is to be regarded as the cost of the asset if—
(a) there is no record of the original cost of the asset; or
(b) a record of the original cost of the asset cannot be obtained without unreasonable expense or delay.

(7) In subsection (5)—
projected sum(預計款項), in relation to a depreciation of a fixed asset, means a sum that would have been written off

or retained for depreciation if the revaluation of the asset had not been made.
(8) For the purposes of this section, an asset of a company is to be regarded as a fixed asset if it is intended for use

in the company’s activities, or otherwise to be held for the purpose of the company’s activities, on a
continuing basis.


Section: 293 Certain amount relating to insurance company with long

term business to be regarded as realized profit or loss
L.N. 163 of 2013 03/03/2014



(1) This section applies to a company that is an insurer and carries on long term business.
(2) For the purposes of this Part—

(a) an amount properly transferred to the statement of comprehensive income of the company from a surplus in
the fund maintained by it in respect of the long term business is to be regarded as a realized profit; and

(b) a deficit in that fund is to be regarded as a realized loss.
(3) Subject to subsection (2), any profit or loss arising in the company’s long term business is to be disregarded for

the purposes of this Part.
(4) In this section—

(a) a reference to a surplus in a fund maintained by a company is a reference to an excess of the assets
representing the fund over the company’s liabilities attributable to its long term business, as shown by an
actuarial investigation; and

(b) a reference to a deficit in such a fund is a reference to an excess of those liabilities over those assets, as
shown by an actuarial investigation.

(5) In this section—
actuarial investigation(精算調查) means an investigation—

(a) made under section 18 of the Insurance Companies Ordinance (Cap 41); or
(b) made pursuant to a requirement imposed under section 32 of that Ordinance;

insurer(保險人) has the meaning given by section 2(1) and (2) of the Insurance Companies Ordinance (Cap 41);
long term business(長期業務) has the meaning given by section 2(1) of the Insurance Companies Ordinance (Cap

41).

Section: 294 Distribution in kind: certain amount to be regarded as

realized profit
L.N. 163 of 2013 03/03/2014



If a company makes a distribution consisting of or including a non-cash asset, and any part of the amount at which the
asset is stated in the referential financial statements represents an unrealized profit, that part of that amount is to be
regarded as a realized profit for the purpose of determining, before or after the distribution, the lawfulness of the
distribution in accordance with this Part.




Cap 622 - Companies Ordinance 101

Section: 295 Application of Part L.N. 163 of 2013 03/03/2014


(1) This Part applies in relation to a distribution made on or after the commencement date* of this Part, except a
distribution specified in subsection (2).

(2) The excepted distribution is a distribution the amount of which would, had this Part applied in relation to the
distribution, be determined under section 302 by reference to the financial items as stated in any financial
statements for a financial year or period beginning before the commencement date* of this Part.

___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 296 Saving for other restraints on distribution L.N. 163 of 2013 03/03/2014


This Part does not affect any Ordinance or rule of law, or any provision of a company’s articles, restricting the sums
out of which, or the cases in which, a distribution may be made.


Part:
Division:

6
2

Prohibitions and Restrictions L.N. 163 of 2013 03/03/2014





Section: 297 Prohibition on certain distributions L.N. 163 of 2013 03/03/2014


(1) A company may only make a distribution out of profits available for distribution.
(2) For the purposes of this section, a company’s profits available for distribution are its accumulated, realized

profits, so far as not previously utilized by distribution or capitalization, less its accumulated, realized losses, so
far as not previously written off in a reduction or reorganization of capital.


Section: 298 Listed company may only make certain distributions L.N. 163 of 2013 03/03/2014


(1) A listed company may only make a distribution—
(a) if the amount of its net assets is not less than the aggregate of its called up share capital and undistributable

reserves; and
(b) if, and to the extent that, the distribution does not reduce the amount of those assets to an amount less than

that aggregate.
(2) A listed company must not include any uncalled share capital as an asset for the purpose of determining the

amount of its net assets under this section.

Section: 299 Restriction on application of unrealized profits L.N. 163 of 2013 03/03/2014


A company must not apply an unrealized profit in paying up debentures or in paying up any amount unpaid on its
issued shares.

Section: 300 Financial Secretary may modify or exempt provisions in

relation to investment company
L.N. 163 of 2013 03/03/2014



(1) On application by an investment company, the Financial Secretary may—
(a) modify, in relation to the company, any of the prohibitions or restrictions in section 297, 298 or 299; or
(b) exempt the company from any of such prohibitions or restrictions.

(2) The Financial Secretary may make a modification or exemption under subsection (1) subject to any terms and
conditions that the Financial Secretary thinks fit.

(3) In this section—
investment company(投資公司) means a listed company whose principal business consists of investing its funds in

securities, land or other assets with the aim of—



Cap 622 - Companies Ordinance 102

(a) spreading investment risk; and
(b) giving its members the benefit of the results of the management of the assets.


Section: 301 Consequences of unlawful distribution L.N. 163 of 2013 03/03/2014


(1) This section applies if—
(a) a company makes a distribution, or part of a distribution, to one of its members in contravention of—

(i) section 297, 298 or 299; or
(ii) a prohibition or restriction in that section as modified under section 300; and

(b) at the time of the distribution, the member knows or has reasonable grounds for believing that the
distribution, or that part of the distribution (as the case may be) is made in contravention of that section or
modified prohibition or restriction.

(2) If the distribution is made in cash, the member is liable to repay the distribution, or that part of the distribution
(as the case may be) to the company.

(3) If the distribution is made otherwise than in cash, the member is liable to pay to the company a sum equal to the
value of the distribution or that part of the distribution (as the case may be) at the time of the distribution.

(4) This section does not affect any obligation otherwise imposed on a member of a company to repay a distribution
unlawfully made to the member.

(5) This section does not apply in relation to—
(a) any payment made by a company in respect of the redemption or buy-back by the company of shares in

itself; or
(b) any financial assistance given by a company in contravention of section 275.


Part:
Division:

6
3

Provisions Supplementary to Division 2 L.N. 163 of 2013 03/03/2014





Section: 302 Justification of distribution by reference to financial
statements

L.N. 163 of 2013 03/03/2014



The amount of a distribution that may be made without contravening section 297, 298 or 299, or a prohibition or
restriction in that section as modified under section 300, is to be determined by reference to the financial items as
stated in the financial statements specified in Division 4.

Section: 303 Successive distributions L.N. 163 of 2013 03/03/2014


(1) This section applies if—
(a) a company proposes to make a distribution pursuant to determinations made by reference to financial items

as stated in any financial statements; and
(b) the company—

(i) has made one or more prior distributions pursuant to determinations made by reference to financial
items as stated in the financial statements; or

(ii) since the financial statements were prepared, has given financial assistance specified in subsection or
has made a payment specified in subsection (4).

(2) Section 302 applies for the purpose of determining the amount of the proposed distribution that may be made
without contravening section 297, 298 or 299, or a prohibition or restriction in that section as modified under
section 300, as if the amount of the proposed distribution were increased by the amount of the prior distributions,
financial assistance and other payments.

(3) The financial assistance is—
(a) financial assistance that is given by the company out of its distributable profits; or
(b) financial assistance—

(i) that is given by the company in contravention of Division 5 of Part 5; and
(ii) the giving of which reduces the company’s net assets or increases its net liabilities.



Cap 622 - Companies Ordinance 103

(4) The payment is—
(a) a payment made by the company in respect of the buy-back by the company of shares in itself (except a

payment lawfully made otherwise than out of distributable profits); or
(b) a payment made by the company of any description specified in section 257(5) (except a payment lawfully

made otherwise than out of distributable profits).
(5) In this section—
liabilities(負債) has the meaning given by section 274(1);
net assets(淨資產), in relation to a company that gives any financial assistance, means the amount by which the

aggregate of the company’s assets exceeds the aggregate of its liabilities (taking the amount of both assets and
liabilities to be as stated in the company’s accounting records immediately before the financial assistance is
given);

net liabilities(淨負債), in relation to a company that gives any financial assistance, means the amount by which the
aggregate of the company’s liabilities exceeds the aggregate of its assets (taking the amount of both assets and
liabilities to be as stated in the company’s accounting records immediately before the financial assistance is
given).


Part:
Division:

6
4

Specified Financial Statements L.N. 163 of 2013 03/03/2014





Section: 304 Last annual financial statements specified for purposes of
section 302

L.N. 163 of 2013 03/03/2014



(1) Subject to sections 305 and 306, the financial statements specified for the purposes of section 302 are the
financial statements prepared by the directors for the previous financial year, in relation to which subsections
(2), (3), (4), (5) and (6) are complied with.

(2) The financial statements must—
(a) have been laid before the company in general meeting under section 429(1); or
(b) have been sent to every member under section 430(3).

(3) The financial statements must—
(a) have been properly prepared in accordance with Subdivision 3 of Division 4 of Part 9; or
(b) have been properly prepared in accordance with Subdivision 3 of Division 4 of Part 9, except only in

relation to the matters that are not material for the purpose specified in subsection (8).
(4) The company’s auditor must have prepared a report on the financial statements under section 405.
(5) If, in the auditor’s report, the auditor has not given an unqualified opinion to the effect that the financial

statements have been properly prepared in compliance with this Ordinance, the auditor must have given a
written statement as to whether, in the auditor’s opinion, the matter in respect of which the report is qualified is
material for the purpose specified in subsection (8).

(6) A written statement under subsection (5)—
(a) may be made at the time of the report or subsequently; and
(b) must be laid before the company in general meeting or sent to every member to whom the auditor’s report

is sent under section 430(3).
(7) A written statement under subsection (5) is sufficient for the purpose of a distribution to which it relates and that

has been proposed. If such a written statement relates to distributions of any particular description, the statement
is also sufficient for the purpose of a distribution included in those distributions, even though the distribution has
not been proposed at the time of the statement.

(8) The purpose specified for subsections (3) and (5) is the purpose of determining, by reference to the financial
items as stated in the financial statements, whether the distribution would be made in contravention of section
297, 298 or 299, or a prohibition or restriction in that section as modified under section 300.





Cap 622 - Companies Ordinance 104

Section: 305 Interim financial statements specified for purposes of
section 302

L.N. 163 of 2013 03/03/2014



(1) This section applies where the distribution would be made in contravention of section 297, 298 or 299, or a
prohibition or restriction in that section as modified under section 300, if the amount of distribution that may be
made were determined by reference to the financial items as stated in the financial statements specified in
section 304.

(2) The financial statements specified for the purposes of section 302 are the company’s financial statements—
(a) in the case of a listed company—

(i) that is necessary to enable a reasonable judgement to be made as to the amounts of the financial items;
and

(ii) in relation to which subsections (3), (5) and (6) are complied with; or
(b) in the case of any other company, that is necessary to enable a reasonable judgement to be made as to the

amounts of the financial items.
(3) Subject to subsection (4), the financial statements must—

(a) have been properly prepared in accordance with Subdivision 3 of Division 4 of Part 9; or
(b) have been properly prepared in accordance with Subdivision 3 of Division 4 of Part 9, except only in

relation to the matters that are not material for the purpose of determining, by reference to the financial
items as stated in the financial statements, whether the distribution would be made in contravention of
section 297, 298 or 299, or a prohibition or restriction in that section as modified under section 300.

(4) The requirement under subsection (3) for any financial statements to be properly prepared in accordance with
Subdivision 3 of Division 4 of Part 9 has effect subject to any modification that is necessary for applying that
requirement to the financial statements prepared otherwise than for a financial year.

(5) A statement of financial position that forms part of the financial statements—
(a) must be approved by the directors;
(b) must be signed by 2 directors on the directors’ behalf; and
(c) must state the name of the directors who signed the statement on the directors’ behalf.

(6) A copy of the financial statements must have been delivered to the Registrar for registration.

Section: 306 Initial financial statements specified for purposes of section

302
L.N. 163 of 2013 03/03/2014



(1) If the distribution is proposed to be declared before any financial statements are laid before the company in
general meeting under section 429(1) or sent to every member under section 430(3), the financial statements
specified for the purposes of section 302 are the company’s financial statements—
(a) in the case of a listed company—

(i) that are necessary to enable a reasonable judgement to be made as to the amounts of the financial
items; and

(ii) in relation to which subsections (2), (4), (5), (6) and (7) are complied with; or
(b) in the case of any other company, that are necessary to enable a reasonable judgement to be made as to the

amounts of the financial items.
(2) Subject to subsection (3), the financial statements must—

(a) have been properly prepared in accordance with Subdivision 3 of Division 4 of Part 9; or
(b) have been properly prepared in accordance with Subdivision 3 of Division 4 of Part 9, except only in

relation to the matters that are not material for the purpose specified in subsection (8).
(3) The requirement under subsection (2) for any financial statements to be properly prepared in accordance with

Subdivision 3 of Division 4 of Part 9 has effect subject to any modification that is necessary for applying that
requirement to any financial statements prepared otherwise than for a financial year.

(4) A statement of financial position that forms part of the financial statements—
(a) must be approved by the directors;
(b) must be signed by 2 directors on the directors’ behalf; and
(c) must state the name of the directors who signed the statement on the directors’ behalf.

(5) The company’s auditor must have prepared a report on the financial statements stating whether, in the



Cap 622 - Companies Ordinance 105

auditor’s opinion, the financial statements satisfy subsection (2)(a).
(6) If, in the auditor’s report, the auditor has not given an unqualified opinion to the effect that the financial

statements satisfy subsection (2)(a), the auditor must have given a written statement as to whether, in the
auditor’s opinion, the matter in respect of which the report is qualified is material for the purpose specified in
subsection (8).

(7) A copy of the financial statements, of the auditor’s report of the financial statements, and of any written
statement under subsection (6), must have been delivered to the Registrar for registration.

(8) The purpose specified for subsections (2) and (6) is the purpose of determining, by reference to the financial
items as stated in the financial statements, whether the distribution would be made in contravention of section
297, 298 or 299, or a prohibition or restriction in that section as modified under section 300.


Part: 7 Debentures L.N. 163 of 2013 03/03/2014


(*Format changes—E.R. 1 of 2013)
____________________________________________________________________________
Note:
* The format of Part 7 has been updated to the current legislative styles.

Part:
Division:

7
1

Preliminary L.N. 163 of 2013 03/03/2014





Section: 307 Interpretation L.N. 163 of 2013 03/03/2014


In this Part—
branch register (登記支冊) means a branch register kept under section 312;
debenture (債權證) , in relation to a company—

(a) includes bonds and any other debt securities of the company, whether or not constituting a charge on the
assets of the company; and

(b) except in sections 308, 311(2)(a), 312 and 331(1)(a) and Divisions 3 and 4, includes debenture stock;
register of debenture holders (債權證持有人登記冊) means a register kept under section 308.

Part:
Division:

7
2

Register of Debenture Holders L.N. 163 of 2013 03/03/2014





Section: 308 Register of debenture holders L.N. 163 of 2013 03/03/2014


(1) If a company issues a series of debentures, or any debenture stock, that are not transferable by delivery, the
company must keep in the English or Chinese language a register of the holders of the debentures or debenture
stock.

(2) A company must enter in the register of debenture holders—
(a) the name and address of each holder of debentures or debenture stock;
(b) the amount of debentures or debenture stock held by each holder;
(c) the date on which each person is entered in the register as a holder of debentures or debenture stock; and
(d) the date on which any person ceases to be a holder of debentures or debenture stock.

(3) If a company contravenes subsection (1) or (2), the company, and every responsible person of the company,
commit an offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine
of $700 for each day during which the offence continues.


Section: 309 Place where register must be kept L.N. 163 of 2013 03/03/2014


(1) A company must keep its register of debenture holders at—



Cap 622 - Companies Ordinance 106

(a) the company’s registered office; or
(b) a place prescribed by regulations made under section 657.

(2) A company must notify the Registrar of the place at which the register of debenture holders is kept. The notice
must be in the specified form and delivered to the Registrar for registration within 15 days after the register is
first kept at that place.

(3) A company must notify the Registrar of any change (other than a change of the address of the company’s
registered office) in the place at which the register of debenture holders is kept. The notice must be in the
specified form and delivered to the Registrar for registration within 15 days after the change.

(4) Subsection (2) does not require a company to notify the Registrar of the place at which the register of debenture
holders is kept—
(a) if, in the case of a register that came into existence on or after the commencement date* of this Division, it

has at all times been kept at the company’s registered office; or
(b) if—

(i) immediately before that commencement date*, the company kept a register for the purposes of section
74A of the predecessor Ordinance; and

(ii) on and after that commencement date*, that register is kept as a register of debenture holders for the
purposes of section 308(1) at the place at which it was kept immediately before that commencement
date*.

(5) If a company contravenes subsection (1), (2) or (3), the company, and every responsible person of the company,
commit an offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine
of $700 for each day during which the offence continues.

___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 310 Right to inspect and request copy L.N. 163 of 2013 03/03/2014


(1) A member of a company is entitled, on request made in the prescribed manner and without charge, to inspect the
register of debenture holders of the company in accordance with regulations made under section 657.

(2) A person who is registered in the register as a debenture holder of the company is entitled, on request made in
the prescribed manner and without charge, to inspect the register in accordance with regulations made under
section 657.

(3) Any other person is entitled, on request made in the prescribed manner and on payment of a prescribed fee, to
inspect the register in accordance with regulations made under section 657.

(4) A person is entitled, on request and on payment of a prescribed fee, to be provided with a copy of the register of
debenture holders of a company, or any part of it, in accordance with regulations made under section 657.

(5) A debenture holder of a company or the trustee for all debenture holders of a company is entitled, on request and
on payment of a prescribed fee, to be provided with a copy of any trust deed or any other document securing the
issue of the debentures in accordance with regulations made under section 657.

(6) In this section—
prescribed(訂明) means prescribed by regulations made under section 657.

Section: 311 Power to close register of debenture holders L.N. 163 of 2013 03/03/2014


(1) A company may, on giving notice in accordance with subsection (2), close its register of debenture holders, or
any part of it, for any period or periods not exceeding in the whole 30 days in each year.

(2) A notice for the purposes of subsection (1)—
(a) in the case of a company having any of the debentures or debenture stock mentioned in section 308(1) listed

on a recognized stock market, must be given—
(i) in accordance with the listing rules applicable to the stock market; or
(ii) by advertisement in a newspaper circulating generally in Hong Kong; and

(b) in the case of any other company, must be given by advertisement in a newspaper circulating generally in
Hong Kong.

(3) The period of 30 days mentioned in subsection (1) may be extended in respect of any year by a resolution passed



Cap 622 - Companies Ordinance 107

in that year by a majority in value of the debenture holders present in person or, if proxies are permitted, by
proxy at a meeting summoned for the purpose or otherwise in accordance with the trust deed or any other
document securing the issue of the debentures.

(4) The period of 30 days mentioned in subsection (1) must not be extended for a further period or periods
exceeding 30 days in the whole in any year.

(5) A company must, on demand, provide any person seeking to inspect a register or part of a register that is closed
under this section with a certificate signed by the company secretary of the company stating the period for
which, and by whose authority, it is closed.

(6) If a company contravenes subsection (5), the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 3.


Section: 312 Branch register of debenture holders L.N. 163 of 2013 03/03/2014


(1) If a company issues in a place outside Hong Kong a series of debentures, or any debenture stock, that are not
transferable by delivery, the company may, if it is authorized to do so by its articles, cause to be kept there a
branch register of the holders of the debentures or debenture stock who are resident there.

(2) A company that begins to keep a branch register must deliver to the Registrar for registration a notice in the
specified form within 15 days after doing so, stating the address where the branch register is kept.

(3) A company that keeps a branch register must deliver to the Registrar for registration a notice in the specified
form of any change in the address where the branch register is kept, within 15 days after the change.

(4) If a company contravenes subsection (2) or (3), the company, and every responsible person of the company,
commit an offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine
of $700 for each day during which the offence continues.


Section: 313 Keeping of branch register L.N. 163 of 2013 03/03/2014


(1) A branch register must be kept in the same manner in which the company’s register of debenture holders (the
principal register) is by this Ordinance required to be kept.

(2) A company that keeps a branch register may close it in the same manner in which the principal register may be
closed under section 311 except that the advertisement mentioned in that section must be inserted in a newspaper
circulating generally in the place in which the branch register is kept.

(3) A company that keeps a branch register—
(a) must cause a duplicate of it to be kept at the place at which the company’s principal register is kept; and
(b) must, within 15 days after an entry is made in the branch register—

(i) transmit a copy of the entry to its registered office; and
(ii) update the duplicate of the branch register.

(4) A duplicate of a branch register is to be regarded for all the purposes of this Ordinance as part of the principal
register.

(5) Subject to the provisions of this Ordinance, a company may by its articles make any provision that it thinks fit
respecting the keeping of branch registers.

(6) If a company contravenes subsection (3), the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine of $700
for each day during which the offence continues.


Section: 314 Transactions in debentures registered in branch register L.N. 163 of 2013 03/03/2014


(1) The debentures registered in a branch register of a company must be distinguished from those registered in the
company’s register of debenture holders.

(2) No transaction with respect to any debentures registered in a branch register may, during the continuance of that
registration, be registered in any other register.


Section: 315 Discontinuance of branch register L.N. 163 of 2013 03/03/2014


(1) A company may discontinue a branch register.



Cap 622 - Companies Ordinance 108

(2) If a company discontinues a branch register, all the entries in that register must be transferred to—
(a) some other branch register kept in the same place outside Hong Kong by the company; or
(b) the company’s register of debenture holders.

(3) If a company discontinues a branch register, it must, within 15 days after the discontinuance, deliver to the
Registrar for registration a notice in the specified form informing the Registrar of—
(a) the discontinuance; and
(b) the register to which the entries have been transferred.

(4) If a company contravenes subsection (3), the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine of $700
for each day during which the offence continues.


Part:
Division:

7
3

Allotment of Debentures or Debenture Stock L.N. 163 of 2013 03/03/2014





Section: 316 Return of allotment L.N. 163 of 2013 03/03/2014


(1) Within one month after an allotment of debentures or debenture stock, a company must deliver to the Registrar
for registration a return of the allotment that complies with subsection (2).

(2) A return—
(a) must be in the specified form; and
(b) must state—

(i) the amount of debentures or debenture stock allotted;
(ii) the name and address of each allottee;
(iii) the date of allotment of debentures or debenture stock; and
(iv) the date of redemption of debentures or debenture stock.

(3) If a company contravenes subsection (1), the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine of $700
for each day during which the offence continues.

(4) If a company fails to deliver a return that complies with subsection (2) within one month after an allotment of
debentures or debenture stock, the Court may, on application by the company or a responsible person of the
company, extend the period for delivery of the return by a period determined by the Court.

(5) The Court may extend a period under subsection (4) only if it is satisfied—
(a) that failure to deliver the return was accidental or due to inadvertence; or
(b) that it is just and equitable to extend the period.

(6) If the Court extends the period for delivery of a return, any liability already incurred by the company or a
responsible person of the company for an offence under subsection (3) is extinguished and subsection (1) has
effect as if the reference to one month were a reference to the extended period.


Section: 317 Registration of allotment L.N. 163 of 2013 03/03/2014


(1) A company must register an allotment of debentures or debenture stock as soon as practicable and in any event
within 2 months after the date of the allotment, by entering in its register of debenture holders the information
mentioned in section 308(2).

(2) If a company fails to register an allotment of debentures or debenture stock within 2 months after the date of the
allotment, the company, and every responsible person of the company, commit an offence, and each is liable to a
fine at level 4 and, in the case of a continuing offence, to a further fine of $700 for each day during which the
offence continues.


Section: 318 Issue of debenture or certificate for debenture stock on

allotment
L.N. 163 of 2013 03/03/2014



(1) Within 2 months after an allotment of debentures or debenture stock, a company must—
(a) in the case of an allotment of debentures, complete the debentures and have them ready for delivery; or



Cap 622 - Companies Ordinance 109

(b) in the case of an allotment of debenture stock, complete the certificates for the debenture stock and have
them ready for delivery.

(2) Subsection (1) does not apply if the conditions of allotment of the debentures or debenture stock provide
otherwise.

(3) If a company contravenes subsection (1), the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine of $700
for each day during which the offence continues.


Section: 319 Court order for delivery of debenture or certificate for

debenture stock
L.N. 163 of 2013 03/03/2014



(1) If a company contravenes section 318 in relation to an allotment of debentures or debenture stock, a person
entitled to the debentures or certificates for the debenture stock may serve a notice on the company requiring it
to deliver the debentures or certificates to the person within 10 days.

(2) If a company on which a notice has been served under subsection (1) does not deliver the debentures or
certificates within 10 days after service of the notice, the person may apply to the Court for an order under
subsection (3).

(3) On an application under subsection (2), the Court may make an order directing the company and any officer of
the company to deliver the debentures or certificates to the person within the period specified in the order.

(4) The order may provide that all costs of and incidental to the application are to be borne by the company or by an
officer of the company responsible for the contravention.


Part:
Division:

7
4

Transfer of Debentures or Debenture Stock L.N. 163 of 2013 03/03/2014





Section: 320 Requirement for instrument of transfer L.N. 163 of 2013 03/03/2014


(1) A company must not register a transfer of debentures or debenture stock of the company unless a proper
instrument of transfer has been delivered to the company.

(2) Subsection (1) does not affect any power of a company to register as a debenture holder a person to whom the
right to debentures or debenture stock has been transmitted by operation of law.


Section: 321 Registration of transfer or refusal of registration L.N. 163 of 2013 03/03/2014


(1) The transferee or transferor of debentures or debenture stock of a company may lodge the transfer with the
company.

(2) Within 2 months after the transfer is lodged, the company must either—
(a) register the transfer; or
(b) send the transferee and the transferor notice of refusal to register the transfer.

(3) If a company contravenes subsection (2), the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine of $700
for each day during which the offence continues.


Section: 322 Certification of transfer L.N. 163 of 2013 03/03/2014


(1) The certification by a company of an instrument of transfer of any debentures or debenture stock of the company

(a) is a representation by the company to any person acting on the faith of the certification that documents have

been produced to the company that evidence title to the debentures or debenture stock in the transferor
named in the instrument; and

(b) is not a representation that the transferor has any title to the debentures or debenture stock.
(2) If a person acts on the faith of a false certification by a company made negligently, the company is under the

same liability to the person as if the certification had been made fraudulently.



Cap 622 - Companies Ordinance 110

(3) For the purposes of this section, an instrument of transfer is certified by a company if it bears—
(a) the words “certificate lodged”, or words to the same effect, in English or Chinese; and
(b) under or adjacent to those words, the signature or initials of a person having the actual or apparent authority

to certify transfers on behalf of the company.
(4) Unless the contrary is proved, a signature or initials appearing on an instrument of transfer as mentioned in

subsection (3)(b) must be regarded—
(a) as the signature or initials of the person whose signature or initials they purport to be; and
(b) as having been placed on the instrument by that person or by another person who has the actual or apparent

authority to use the signature or initials for the purpose of certifying transfers on behalf of the company.

Section: 323 Issue of debenture or certificate for debenture stock on

transfer
L.N. 163 of 2013 03/03/2014



(1) Within the period specified in subsection (2), a company must—
(a) in the case of a transfer of debentures, complete the debentures and have them ready for delivery; or
(b) in the case of a transfer of debenture stock, complete the certificates for the debenture stock and have them

ready for delivery.
(2) The period is—

(a) for a private company, 2 months after the day on which the transfer is lodged with the company;
(b) for any other company, 10 business days after the day on which the transfer is lodged with the company.

(3) Subsection (1) does not apply to a transfer if—
(a) the conditions of issue of the debentures or debenture stock provide otherwise;
(b) stamp duty has not been paid in respect of the transfer;
(c) the transfer is invalid; or
(d) the company, being entitled to do so, refuses to register the transfer.

(4) If a company contravenes subsection (1), the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine of $700
for each day during which the offence continues.

(5) In this section—
business day(營業日) means a day on which a recognized stock market is open for the business of dealing in

securities.

Section: 324 Court order for delivery of debenture or certificate for

debenture stock
L.N. 163 of 2013 03/03/2014



(1) If a company contravenes section 323 in relation to a transfer of debentures or debenture stock, a person entitled
to the debentures or certificates for the debenture stock may serve a notice on the company requiring it to deliver
the debentures or certificates to the person within 10 days.

(2) If a company on which a notice has been served under subsection (1) does not deliver the debentures or
certificates within 10 days after service of the notice, the person may apply to the Court for an order under
subsection (3).

(3) On an application under subsection (2), the Court may make an order directing the company and any officer of
the company to deliver the debentures or certificates to the person within the period specified in the order.

(4) The order may provide that all costs of and incidental to the application are to be borne by the company or by an
officer of the company responsible for the contravention.


Part:
Division:

7
5

Miscellaneous Provisions L.N. 163 of 2013 03/03/2014





Section: 325 Evidence of grant of probate etc. L.N. 163 of 2013 03/03/2014


For the purposes of a transfer of debentures or transmission of the right to debentures, a company must accept as



Cap 622 - Companies Ordinance 111

sufficient evidence of the grant of probate of the will or letters of administration of a deceased person the production
to the company of a document that is by law sufficient evidence of that grant.

Section: 326 Form of register of holders of debentures kept under

instrument made by company
L.N. 163 of 2013 03/03/2014



(1) This section applies to a register of holders of debentures that is required to be kept under an instrument made by
a company.

(2) If a provision of the instrument requires the register to be kept in a legible form, the provision is to be construed
as requiring the register to be kept either—
(a) in a legible form; or
(b) in a non-legible form capable of being reproduced in a legible form.


Section: 327 Perpetual debentures L.N. 163 of 2013 03/03/2014


(1) Despite any rule of equity to the contrary, a condition contained in any debentures, or in a deed securing the
issue of any debentures, is not invalid only because the debentures are, by the condition, made—
(a) irredeemable;
(b) redeemable only on the happening of a contingency (however remote); or
(c) redeemable only on the expiration of a period of time (however long).

(2) Subsection (1) applies to debentures whenever issued and to deeds whenever executed.

Section: 328 Power to reissue redeemed debentures L.N. 163 of 2013 03/03/2014


(1) This section applies if a company has, whether before, on or after the commencement date* of this section,
redeemed any debentures previously issued.

(2) A company has, and is to be regarded as always having had, the power to reissue redeemed debentures, either by
reissuing the same debentures or by issuing new debentures in their place, unless—
(a) a provision to the contrary (express or implied) is contained in the company’s articles or any contract

made by the company; or
(b) the company has, by passing a resolution to that effect or by any other act, manifested its intention that the

debentures are to be cancelled.
(3) On a reissue of any redeemed debentures, a person entitled to the debentures has, and is to be regarded as always

having had, the same priorities as if the debentures had never been redeemed.
(4) A reissue of redeemed debentures, whether before, on or after the commencement date* of this section—

(a) is to be regarded as an issue of new debentures for the purposes of stamp duty; and
(b) is not to be regarded as an issue of new debentures for the purposes of any provision limiting the amount or

number of debentures to be issued.
(5) A person lending money on the security of any debentures reissued under this section that appear to be stamped

may give the debentures in evidence in any proceedings for enforcing the person’s security.
(6) If a person gives the debentures in evidence in any proceedings for enforcing the person’s security under

subsection (5), the stamp duty and penalty payable under the Stamp Duty Ordinance (Cap 117) in respect of the
reissue of the debentures are to be paid by the company.

(7) Subsections (5) and (6) do not apply if the person had notice or, but for the person’s negligence, might have
discovered that the debentures were not stamped.

(8) If any debentures redeemed before 1 July 1933 are reissued on or after that date, the reissue does not prejudice,
and is to be regarded as never having prejudiced, any right or priority that a person would have had under or by
virtue of any mortgage or charge created before that date.

___________________________________________________________________
Note:
* Commencement date: 3 March 2014.




Cap 622 - Companies Ordinance 112

Section: 329 Deposit of debentures to secure advances L.N. 163 of 2013 03/03/2014


If a company has, whether before, on or after the commencement date* of this section, deposited any of its debentures
to secure advances from time to time on current account or otherwise, the debentures are not to be regarded as having
been redeemed only because the account of the company has ceased to be in debit while the debentures remained so
deposited.
___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 330 Specific performance of contracts to subscribe for

debentures
L.N. 163 of 2013 03/03/2014



A contract with a company to take up and pay for any debentures of the company may be enforced by an order for
specific performance.

Section: 331 Court may order meeting of debenture holders L.N. 163 of 2013 03/03/2014


(1) This section applies to any person who holds—
(a) any debentures that form part of a series issued by a company and rank equally with the other debentures of

that series; or
(b) any debenture stock of a company.

(2) If a person to whom this section applies, either alone or jointly with any other such person, holds at least the
specified percentage of the value of the company’s debentures, the person may apply to the Court for a
meeting of the company’s debenture holders to be held to give directions to the trustee for the debenture
holders.

(3) Subsection (2) may be excluded by the debentures, or the trust deeds or other documents securing the issue of
the debentures.

(4) In this section—
specified percentage(指明百分比) means—

(a) 10%; or
(b) the higher percentage that may be provided for in the debentures, or the trust deeds or other documents

securing the issue of the debentures.

Section: 332 Liability of trustees for debenture holders L.N. 163 of 2013 03/03/2014


(1) A provision contained in—
(a) a trust deed securing an issue of debentures; or
(b) a contract with the holders of debentures secured by a trust deed,

is void to the extent that it would exempt a trustee of the trust deed from, or indemnify the trustee against,
liability for breach of trust for the trustee’s failure to show the degree of care and diligence required of the
trustee as a trustee, having regard to the provisions of the trust deed conferring on the trustee any powers,
authorities or discretions.

(2) Subsection (1) does not—
(a) invalidate a release otherwise validly given in respect of anything done, or omitted to be done, by a trustee

before the giving of the release;
(b) invalidate any provision enabling such a release to be given—

(i) on being agreed to by a majority of at least 75% in value of the debenture holders present and voting in
person or, if proxies are permitted, by proxy at a meeting summoned for the purpose; and

(ii) either with respect to specific acts or omissions or on the trustee dying or ceasing to act;
(c) invalidate any provision in force on 31 August 1984 so long as any person who is then entitled to the

benefit of the provision, or who is afterwards given the benefit of the provision under subsection (3),
remains a trustee of the trust deed; or

(d) deprive any person of any exemption or right to be indemnified in respect of anything done, or omitted to



Cap 622 - Companies Ordinance 113

be done, by the person while any provision mentioned in paragraph (c) was in force.
(3) While a trustee of a trust deed remains entitled to the benefit of a provision saved by subsection (2)(c) or (d), the

benefit may be given, in accordance with subsection (4), to—
(a) all present and future trustees of the trust deed; or
(b) any named trustees or proposed trustees of the trust deed.

(4) The benefit is to be given by a resolution passed by a majority of at least 75% in value of the debenture holders
present in person or, if proxies are permitted, by proxy at a meeting summoned for the purpose—
(a) in accordance with the provisions of the trust deed; or
(b) if the trust deed makes no provision for summoning meetings, in a manner approved by the Court.


Part: 8 Registration of Charges L.N. 163 of 2013 03/03/2014


(*Format changes—E.R. 1 of 2013)
____________________________________________________________________________
Note:
* The format of Part 8 has been updated to the current legislative styles.

Part:
Division:

8
1

Preliminary L.N. 163 of 2013 03/03/2014





Section: 333 Interpretation L.N. 163 of 2013 03/03/2014


(1) In this Part—
charge (押記) includes mortgage;
manager (經理人) excludes a special manager of the estate or business of a company or registered non-Hong Kong

company appointed under section 216 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance
(Cap 32).

(2) For the purposes of this Part—
(a) if a ship or aircraft of a registered non-Hong Kong company is registered in Hong Kong, it is to be regarded

as property in Hong Kong of the company even though it is physically located outside Hong Kong; and
(b) if a ship or aircraft of a registered non-Hong Kong company is registered in a place outside Hong Kong, it is

to be regarded as property outside Hong Kong of the company even though it is physically located in Hong
Kong.

(3) In Divisions 2 and 4, a reference to a person interested in a charge excludes the company or registered non-Hong
Kong company creating the charge.

(4) For the purposes of Divisions 2 and 3, a copy of an instrument in relation to a charge delivered for registration is
a certified copy if it is certified as a true copy—
(a) by—

(i) a director or company secretary of the company or registered non-Hong Kong company delivering the
copy for registration; or

(ii) a person authorized by that company or registered non-Hong Kong company for the purpose; or
(b) by—

(i) any other person interested in the charge; or
(ii) in the case of—

(A) an interested person who is a natural person, a person authorized by the interested person for the
purpose; or

(B) an interested person that is a body corporate, a person authorized by the interested person for the
purpose, or a director or company secretary of the interested person.

(5) In Division 6, a reference to the charged property of a registered non-Hong Kong company is a reference to—
(a) the property in Hong Kong of the company and subject to a charge created by the company, except property

that was not in Hong Kong when the charge was created; or
(b) the property in Hong Kong of the company and subject to a charge that subsisted when the property was



Cap 622 - Companies Ordinance 114

acquired by the company, except property that was not in Hong Kong when it was so acquired.

Part:
Division:

8
2

Obligation to Register Specified Charges after Creation L.N. 163 of 2013 03/03/2014





Section: 334 Specified charge L.N. 163 of 2013 03/03/2014


(1) In this Division, a reference to a specified charge is a reference to any of the following charges created on or
after the commencement date* of this section—
(a) a charge on uncalled share capital of the company;
(b) a charge created or evidenced by an instrument that, if executed by a natural person, would require

registration as a bill of sale;
(c) a charge on land (wherever situate) or any interest in land, except a charge for any rent or other periodical

sum issuing out of land;
(d) a charge on book debts of the company;
(e) a charge on calls made but not paid;
(f) a charge on instalments due, but not paid, on the issue price of shares;
(g) a charge on a ship or any share in a ship;
(h) a charge on an aircraft or any share in an aircraft;
(i) a charge on—

(i) goodwill;
(ii) a patent or a licence under a patent;
(iii) a trademark; or
(iv) a copyright or a licence under a copyright;

(j) a floating charge on the company’s undertaking or property.
(2) For the purposes of subsection (1)(c), the holding of debentures entitling the holder to a charge on land is not to

be regarded as an interest in the land.
(3) For the purposes of subsection (1)(d)—

(a) the deposit by way of security of a negotiable instrument given to secure the payment of book debts is not
to be regarded as a charge on those book debts; and

(b) if a company maintains a deposit of money with another person (whether the money is deposited by the
company or by any other person for the company’s benefit), a charge on the company’s right to
repayment of the money is not to be regarded as a charge on book debts of the company.

(4) For the purposes of subsection (1)(d) and (j), if a company charters a ship from a shipowner, the shipowner’s
lien on the subfreights for amounts due under the charter is not to be regarded as a charge on book debts of the
company or as a floating charge on the company’s undertaking or property.

___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 335 Company must register specified charge created by it L.N. 163 of 2013 03/03/2014


(1) A company must deliver a statement of the particulars of every specified charge created by the company,
together with a certified copy of the instrument (if any) creating or evidencing the charge, to the Registrar for
registration within the registration period specified in subsection (5)(a).

(2) Where—
(a) a specified charge created by a company—

(i) is given in a debenture forming part of a series by reference to any other instrument containing the
charge (whether or not also contained in the debenture); or

(ii) is contained in a debenture forming part of a series (but not given in the debenture by reference to any
other instrument); and

(b) every holder of the debentures of the series is entitled equally to the benefit of the charge,
the company is to be regarded as having complied with subsection (1) in relation to the specified charge if the



Cap 622 - Companies Ordinance 115

company delivers a statement of the particulars of the charge, together with a certified copy of an instrument
specified in subsection (4), to the Registrar for registration within the registration period specified in subsection
(5)(b).

(3) A person interested in a specified charge—
(a) may deliver a statement of the particulars of the charge, together with a certified copy of the instrument (if

any) creating or evidencing the charge, to the Registrar for registration within the registration period
specified in subsection (5)(a); or

(b) may, in the case of subsection (2), deliver a statement of the particulars of the charge, together with a
certified copy of an instrument specified in subsection (4), to the Registrar for registration within the
registration period specified in subsection (5)(b).

(4) The instrument is—
(a) for the purposes of subsection (2)(a)(i), the instrument by reference to which the specified charge is given;

or
(b) for the purposes of subsection (2)(a)(ii), any one debenture of the series.

(5) The registration period is—
(a) for the purposes of subsection (1) or (3)(a)—

(i) one month after the date on which the specified charge is created; or
(ii) where the specified charge is created outside Hong Kong and comprising property situate outside

Hong Kong, one month after the date on which a certified copy of the instrument creating or
evidencing that charge could, if despatched with due diligence, have been received in Hong Kong in
due course of post; and

(b) for the purposes of subsection (2) or (3)(b)—
(i) one month after the execution of the instrument by reference to which the specified charge is given or

if there is no such instrument, one month after the execution of the first debenture of the series; or
(ii) where the specified charge is created outside Hong Kong and comprising property situate outside

Hong Kong, one month after the date on which a certified copy of the specified instrument could, if
despatched with due diligence, have been received in Hong Kong in due course of post.

(6) A statement of the particulars of a specified charge—
(a) must be in the specified form; and
(b) must be accompanied by the prescribed fee.

(7) If a person interested in a specified charge pays to the Registrar any prescribed fee for the registration of a
statement of the particulars of the charge, the fee is recoverable from the company creating the charge.

(8) If a specified charge is created in Hong Kong and comprises property situate outside Hong Kong, a certified
copy of the instrument creating or purporting to create the charge may be delivered to the Registrar for
registration under subsection (1), (2) or (3) even though further proceedings may be necessary to make that
charge valid or effectual according to the law of the place in which the property is situate.


Section: 336 Registered non-Hong Kong company must register

specified charge created by it
L.N. 163 of 2013 03/03/2014



(1) A registered non-Hong Kong company must deliver a statement of the particulars of every specified charge
created by the company on property in Hong Kong of the company, together with a certified copy of the
instrument (if any) creating or evidencing the charge, to the Registrar for registration within the registration
period specified in subsection (6)(a).

(2) Where—
(a) a specified charge created by a registered non-Hong Kong company on property in Hong Kong of the

company—
(i) is given in a debenture forming part of a series by reference to any other instrument containing the

charge (whether or not also contained in the debenture); or
(ii) is contained in a debenture forming part of a series (but not given in the debenture by reference to any

other instrument); and
(b) every holder of the debentures of the series is entitled equally to the benefit of the charge,

the company is to be regarded as having complied with subsection (1) in relation to the specified charge if the
company delivers a statement of the particulars of the charge, together with a certified copy of an instrument



Cap 622 - Companies Ordinance 116

specified in subsection (4), to the Registrar for registration within the registration period specified in subsection
(6)(b).

(3) A person interested in a specified charge—
(a) may deliver a statement of the particulars of the charge, together with a certified copy of the instrument (if

any) creating or evidencing the charge, to the Registrar for registration within the registration period
specified in subsection (6)(a); or

(b) may, in the case of subsection (2), deliver a statement of the particulars of the charge, together with a
certified copy of an instrument specified in subsection (4), to the Registrar for registration within the
registration period specified in subsection (6)(b).

(4) The instrument is—
(a) for the purposes of subsection (2)(a)(i), the instrument by reference to which the specified charge is given;

or
(b) for the purposes of subsection (2)(a)(ii), any one debenture of the series.

(5) Subsections (1) and (2) do not apply to a charge on property if the property was not in Hong Kong when the
charge was created by the registered non-Hong Kong company.

(6) The registration period is—
(a) for the purposes of subsection (1) or (3)(a), one month after the date on which the specified charge is

created; and
(b) for the purposes of subsection (2) or (3)(b)—

(i) one month after the execution of the instrument by reference to which the specified charge is given; or
(ii) if there is no such instrument, one month after the execution of the first debenture of the series.

(7) A statement of the particulars of a specified charge—
(a) must be in the specified form; and
(b) must be accompanied by the prescribed fee.

(8) If a person interested in a specified charge pays to the Registrar any prescribed fee for the registration of a
statement of the particulars of the charge, the fee is recoverable from the registered non-Hong Kong company
creating the charge.


Section: 337 Consequences of contravention of section 335 or 336 L.N. 163 of 2013 03/03/2014


(1) This section applies if—
(a) a company contravenes section 335(1) in relation to a specified charge, and a person interested in the charge

has not registered the charge under section 335(3); or
(b) a registered non-Hong Kong company contravenes section 336(1) in relation to a specified charge, and a

person interested in the charge has not registered the charge under section 336(3).
(2) Subject to section 346, the company or registered non-Hong Kong company, and every responsible person of the

company or registered non-Hong Kong company, commit an offence.
(3) A person who commits an offence under subsection (2) is liable to a fine at level 5 and, in the case of a

continuing offence, to a further fine of $1000 for each day during which the offence continues.
(4) Subject to section 346, the specified charge is void against any liquidator and creditor of the company or

registered non-Hong Kong company so far as any security on its undertaking or property is conferred by the
charge.

(5) Subsection (4) does not prejudice any contract or obligation for repayment of the money secured by the specified
charge.

(6) At the lender’s option, the money secured by a specified charge becomes immediately payable when the
charge becomes void under subsection (4).


Part:
Division:

8
3

Obligation to Register Existing Charges L.N. 163 of 2013 03/03/2014







Cap 622 - Companies Ordinance 117

Section: 338 Company must register charge existing on property
acquired

L.N. 163 of 2013 03/03/2014



(1) This section applies if—
(a) a company acquires property subject to a charge; and
(b) the charge is of a kind that a statement of its particulars would have been required by section 335(1) to be

delivered for registration had it been created by the company after the acquisition.
(2) The company must deliver a statement of the particulars of the charge, together with a certified copy of the

instrument (if any) creating or evidencing the charge, to the Registrar for registration within the registration
period specified in subsection (3).

(3) The registration period is—
(a) one month after the date on which the acquisition is completed; or
(b) where the property is situate, and the charge was created, outside Hong Kong, one month after the date on

which a certified copy of the instrument creating or evidencing the charge could, if despatched with due
diligence, have been received in Hong Kong in due course of post.

(4) A statement of the particulars of a charge—
(a) must be in the specified form; and
(b) must be accompanied by the prescribed fee.

(5) Subject to section 346, if a company contravenes subsection (2), the company, and every responsible person of
the company, commit an offence.

(6) A person who commits an offence under subsection (5) is liable to a fine at level 5 and, in the case of a
continuing offence, to a further fine of $1000 for each day during which the offence continues.


Section: 339 Registered non-Hong Kong company must register charge

existing on property acquired
L.N. 163 of 2013 03/03/2014



(1) This section applies if—
(a) a registered non-Hong Kong company acquires property in Hong Kong subject to a charge; and
(b) the charge is of a kind that a statement of its particulars would have been required by section 336(1) to be

delivered for registration had it been created by the registered non-Hong Kong company after the
acquisition.

(2) Subsection (1)(a) does not apply to a charge on property if the property was not in Hong Kong when the
property was acquired by the registered non-Hong Kong company.

(3) The registered non-Hong Kong company must deliver a statement of the particulars of the charge, together with
a certified copy of the instrument (if any) creating or evidencing the charge, to the Registrar for registration
within the registration period specified in subsection (4).

(4) The registration period is one month after the date on which the acquisition is completed.
(5) A statement of the particulars of a charge—

(a) must be in the specified form; and
(b) must be accompanied by the prescribed fee.

(6) Subject to section 346, if a registered non-Hong Kong company contravenes subsection (3), the company, and
every responsible person of the company, commit an offence.

(7) A person who commits an offence under subsection (6) is liable to a fine at level 5 and, in the case of a
continuing offence, to a further fine of $1000 for each day during which the offence continues.


Section: 340 Registered non-Hong Kong company must register charge

existing on property on date of company’s registration
under Part 16

L.N. 163 of 2013 03/03/2014



(1) This section applies if—
(a) a registered non-Hong Kong company has, on the date of its registration under Part 16, property in Hong

Kong subject to—
(i) a charge created by the company; or
(ii) a charge that subsisted when the property was acquired; and



Cap 622 - Companies Ordinance 118

(b) the charge is of a kind that a statement of its particulars would have been required by section 336(1) or
339(3) to be delivered for registration had the charge been created by the company, or had the property been
acquired by the company, after the company has been registered under Part 16.

(2) The registered non-Hong Kong company must deliver a statement of the particulars of the charge, together with
a certified copy of the instrument (if any) creating or evidencing the charge, to the Registrar for registration
within the registration period specified in subsection (5).

(3) If, in the case of subsection (1)(a)(i)—
(a) the charge—

(i) is given in a debenture forming part of a series by reference to any other instrument containing the
charge (whether or not also contained in the debenture); or

(ii) is contained in a debenture forming part of a series (but not given in the debenture by reference to any
other instrument); and

(b) every holder of the debentures of the series is entitled equally to the benefit of the charge,
the registered non-Hong Kong company is to be regarded as having complied with subsection (2) in relation to

the charge if that company delivers a statement of the particulars of the charge, together with a certified copy of
an instrument specified in subsection (4), to the Registrar for registration within the registration period specified
in subsection (5).

(4) The instrument is—
(a) for the purposes of subsection (3)(a)(i), the instrument by reference to which the charge is given; or
(b) for the purposes of subsection (3)(a)(ii), any one debenture of the series.

(5) The registration period is one month after the date on which the registered non-Hong Kong company is
registered under Part 16.

(6) A statement of the particulars of a charge—
(a) must be in the specified form; and
(b) must be accompanied by the prescribed fee.

(7) Subject to section 346, if a registered non-Hong Kong company contravenes subsection (2), the company, and
every responsible person of the company, commit an offence.

(8) A person who commits an offence under subsection (7) is liable to a fine at level 5 and, in the case of a
continuing offence, to a further fine of $1000 for each day during which the offence continues.


Part:
Division:

8
4

Obligation to Register Other Particulars of Debentures L.N. 163 of 2013 03/03/2014





Section: 341 Company or registered non-Hong Kong company must
register particulars of issue of debentures

L.N. 163 of 2013 03/03/2014



(1) This section applies if—
(a) a debenture forming part of a series—

(i) contains a charge created by a company or registered non-Hong Kong company; or
(ii) gives a charge created by a company or registered non-Hong Kong company, by reference to any other

instrument containing the charge;
(b) every holder of the debentures of the series is entitled equally to the benefit of the charge; and
(c) a statement of the particulars of the charge is required to be delivered for registration under section 335(2),

336(2) or 340(3).
(2) The company or registered non-Hong Kong company must deliver a statement of the particulars of every issue

of the debentures of the series to the Registrar for registration within the registration period specified in
subsection (4).

(3) A person interested in the charge may deliver a statement of the particulars of an issue of debentures to the
Registrar for registration within the registration period specified in subsection (4).

(4) The registration period is—
(a) if a statement of the particulars of the charge is delivered for registration under section 335(2) or 336(2)—

(i) in the case of an issue of debentures made at the time of the creation of the charge, the registration
period specified in relation to the registration of the charge in section 335(5)(b) or 336(6)(b); or



Cap 622 - Companies Ordinance 119

(ii) in the case of any subsequent issue of debentures, one month after the date of the issue; or
(b) if a statement of the particulars of the charge is delivered for registration under section 340(3)—

(i) in the case of an issue of debentures made on or before the registration under Part 16, the registration
period specified in relation to the registration of the charge in section 340(5); or

(ii) in the case of any subsequent issue of debentures, one month after the date of the issue.
(5) A statement of the particulars of an issue of debentures must be in the specified form.
(6) Without limiting section 23, a statement of the particulars of an issue of debentures must contain the date and the

amount of the issue.
(7) Subject to section 346, if subsection (2) is contravened, and a person interested in the charge has not delivered a

statement of the particulars of the issue of debentures for registration under subsection (3), the company or
registered non-Hong Kong company, and every responsible person of the company or registered non-Hong
Kong company, commit an offence.

(8) A person who commits an offence under subsection (7) is liable to a fine at level 5 and, in the case of a
continuing offence, to a further fine of $1000 for each day during which the offence continues.

(9) A contravention of subsection (2) does not affect the validity of the debentures issued.
(10) In this section, a reference to the time of the creation of a charge is a reference to the time of execution of—

(a) the instrument by reference to which the charge is given; or
(b) if there is no such instrument, the first debenture of the series.


Section: 342 Company or registered non-Hong Kong company must

register particulars of commission etc. in relation to
debentures

L.N. 163 of 2013 03/03/2014



(1) This section applies if—
(a) any commission, allowance or discount has been paid or made, directly or indirectly, by a company or

registered non-Hong Kong company to any person in consideration of the person—
(i) subscribing or agreeing to subscribe, absolutely or conditionally, for any debenture of the company or

registered non-Hong Kong company; or
(ii) procuring or agreeing to procure absolute or conditional subscriptions for any debenture of the

company or registered non-Hong Kong company;
(b) the debenture—

(i) creates or evidences a charge; or
(ii) forms part of a series of debentures, and either contains a charge or gives a charge by reference to any

other instrument containing a charge;
(c) the charge is created by the company or registered non-Hong Kong company; and
(d) a statement of the particulars of the charge is required to be delivered for registration under—

(i) section 335(1);
(ii) section 336(1); or
(iii) section 340(2).

(2) The company or registered non-Hong Kong company must deliver a statement of the particulars of the
commission, allowance or discount to the Registrar for registration within the registration period specified in
subsection (6)(a).

(3) Where—
(a) in the case of subsection (1)(d)(i), a statement of the particulars of the charge is delivered for registration

under section 335(2); or
(b) in the case of subsection (1)(d)(ii), a statement of the particulars of the charge is delivered for registration

under section 336(2),
the company or registered non-Hong Kong company is to be regarded as having complied with subsection (2) if

it delivers a statement of the particulars of the commission, allowance or discount to the Registrar for
registration within the registration period specified in subsection (6)(b).

(4) Where, in the case of subsection (1)(d)(iii), a statement of the particulars of the charge is delivered for
registration under section 340(3), the registered non-Hong Kong company is to be regarded as having complied
with subsection (2) if it delivers a statement of the particulars of the commission, allowance or discount to the
Registrar for registration within the registration period specified in subsection (6)(c).



Cap 622 - Companies Ordinance 120

(5) A person interested in the charge—
(a) may deliver a statement of the particulars of the commission, allowance or discount to the Registrar for

registration within the registration period specified in subsection (6)(a); or
(b) may, in the case of subsection (3), deliver a statement of the particulars of the commission, allowance or

discount to the Registrar for registration within the registration period specified in subsection (6)(b).
(6) The registration period is—

(a) for the purposes of subsection (2) or (5)(a)—
(i) in the case of subsection (1)(d)(i), the registration period specified in relation to the registration of the

charge in section 335(5)(a);
(ii) in the case of subsection (1)(d)(ii), the registration period specified in relation to the registration of the

charge in section 336(6)(a); or
(iii) in the case of subsection (1)(d)(iii), the registration period specified in relation to the registration of the

charge in section 340(5);
(b) for the purposes of subsection (3) or (5)(b)—

(i) in the case of an issue of debentures made at the time of the creation of the charge, the registration
period specified in relation to the registration of that charge in section 335(5)(b) or 336(6)(b); or

(ii) in the case of any subsequent issue of debentures, one month after the date of the issue; or
(c) for the purposes of subsection (4)—

(i) in the case of an issue of debentures made on or before the registration under Part 16, the registration
period specified in relation to the registration of that charge in section 340(5); or

(ii) in the case of any subsequent issue of debentures, one month after the date of the issue.
(7) A statement of the particulars of any commission, allowance or discount must be in the specified form.
(8) For the purposes of this section, the deposit of any debenture as security for any debt of a company or registered

non-Hong Kong company is not to be regarded as an issue of debentures at a discount.
(9) In this section, a reference to the time of the creation of a charge is a reference to the time of execution of—

(a) the instrument by reference to which the charge is given; or
(b) if there is no such instrument, the first debenture of the series.


Section: 343 Consequences of contravention of section 342 L.N. 163 of 2013 03/03/2014


(1) Subject to section 346, if section 342(2) is contravened, and a person interested in the charge has not delivered a
statement of the particulars of the commission, allowance or discount (as the case may be) for registration under
section 342(5), the company or registered non-Hong Kong company, and every responsible person of the
company or registered non-Hong Kong company, commit an offence.

(2) A person who commits an offence under subsection (1) is liable to a fine at level 5 and, in the case of a
continuing offence, to a further fine of $1000 for each day during which the offence continues.

(3) A contravention of section 342(2) does not affect the validity of the debentures issued.

Part:
Division:

8
5

Provisions Supplementary to Divisions 2, 3 and 4 L.N. 163 of 2013 03/03/2014





Section: 344 Certificate of registration L.N. 163 of 2013 03/03/2014


(1) This section applies if a statement of the particulars of a charge, and the requisite accompanying instrument, are
delivered by a company or registered non-Hong Kong company, or by a person interested in the charge, to the
Registrar for registration under Division 2 or 3.

(2) After registering the statement and the requisite accompanying instrument, the Registrar must issue a certificate
to the company or registered non-Hong Kong company, or to the interested person, certifying registration of the
charge under Division 2 or 3.

(3) A certificate of registration must be signed by the Registrar.
(4) A certificate of registration is conclusive evidence that the requirements of this Part as to registration have been

satisfied.




Cap 622 - Companies Ordinance 121

Section: 345 Notification to Registrar of payment of debt, release, etc. L.N. 163 of 2013 03/03/2014


(1) This section applies if—
(a) the debt secured by a registered charge has been paid or satisfied in whole or in part; or
(b) the whole or any part of the property or undertaking subject to a registered charge—

(i) has been released from the charge; or
(ii) has ceased to form part of the company’s or registered non-Hong Kong company’s property or

undertaking.
(2) The company or registered non-Hong Kong company, or the mortgagee or person entitled to the charge, may

notify the Registrar of the payment, satisfaction, release or cessation.
(3) A notification—

(a) must be in the specified form;
(b) must be accompanied by the prescribed fee; and
(c) must be accompanied by a certified copy of any instrument required by the Registrar for the purpose of

evidencing the payment, satisfaction, release or cessation.
(4) If the Registrar is satisfied from the instrument accompanying a notification that the payment, satisfaction,

release or cessation did take place, the Registrar must process the notification, and the accompanying instrument,
in the same way as if they were delivered to the Registrar for registration.

(5) For the purposes of this section, a copy of an instrument is a certified copy if it is certified as a true copy by—
(a) the mortgagee or the person entitled to the charge; or
(b) in the case of—

(i) a mortgagee or entitled person who is a natural person, a person authorized by the mortgagee or
entitled person for the purpose; or

(ii) a mortgagee or entitled person that is a body corporate—
(A) a person authorized by the mortgagee or entitled person for the purpose; or
(B) a director or company secretary of the mortgagee or entitled person.

(6) For the purposes of this section, a charge is a registered charge—
(a) if—

(i) a statement of the particulars of the charge, and the requisite accompanying instrument, have been
delivered to the Registrar for registration under Division 2 or 3; and

(ii) the Registrar has recorded the information contained in the statement, and in that instrument, for the
purposes of section 27(1); or

(b) if—
(i) immediately before the commencement date* of this Division, the charge was registered under Part III

of the predecessor Ordinance; or
(ii) on or after the commencement date* of this Division, the charge has been registered under Part III of

the predecessor Ordinance having a continuing effect under Schedule 11.
___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 346 Extension of time for registration L.N. 163 of 2013 03/03/2014


(1) The Court may, on application by the company or registered non-Hong Kong company or by a person interested
in the charge, order that—
(a) the registration period specified in section 335(5), 336(6), 338(3), 339(4), 340(5), 341(4) or 342(6) be

extended;
(b) the time required for registration by section 80 or 82 of the predecessor Ordinance, or that section as

extended by section 91 of that Ordinance, having a continuing effect under Schedule 11 be extended; or
(c) the time required for registration by section 91(5) of the predecessor Ordinance having a continuing effect

under Schedule 11 be extended.
(2) The Court may make an order under subsection (1) on any terms and conditions that the Court thinks just and

expedient.



Cap 622 - Companies Ordinance 122

(3) The Court must not make an order unless the Court is satisfied that—
(a) the failure specified in subsection (5)—

(i) was accidental;
(ii) was due to inadvertence or to some other sufficient cause; or
(iii) is not of a nature to prejudice the position of creditors or members of the company or registered non-

Hong Kong company; or
(b) it is just and equitable to grant the relief on other grounds.

(4) If—
(a) the Court makes an order under subsection (1) in relation to a charge or debenture; and
(b) the failure specified in subsection (5) is rectified within the extended period or time,

any liability already incurred for an offence under the offence provision specified in subsection (6) in relation to
the registration of the charge or debenture is extinguished.

(5) The failure is—
(a) in the case of subsection (1)(a), a failure to deliver a statement as required under Division 2, 3 or 4, or any

accompanying instrument, within that registration period;
(b) in the case of subsection (1)(b), a failure to deliver—

(i) the particulars as required under section 80 or 82 of the predecessor Ordinance having a continuing
effect under section 63(2), 64(2), 65(2) or 66(2) of Schedule 11 within that time; or

(ii) a statement as required under section 80 or 82 of the predecessor Ordinance having a continuing effect
under section 63(4)(a), 64(4)(a), 65(4) or 66(4) of Schedule 11, or any accompanying instrument,
within that time; or

(c) in the case of subsection (1)(c), a failure to deliver—
(i) the particulars as required under section 91(5) of the predecessor Ordinance having a continuing effect

under section 67(2) of Schedule 11 within that time; or
(ii) a statement as required under section 91(5) of the predecessor Ordinance having a continuing effect

under section 67(4) of Schedule 11, or any accompanying instrument, within that time.
(6) The offence provision is—

(a) in the case of subsection (1)(a), section 337(2), 338(5), 339(6), 340(7), 341(7) or 343(1);
(b) in the case of subsection (1)(b), section 81 or 82 of the predecessor Ordinance having a continuing effect

under Schedule 11; or
(c) in the case of subsection (1)(c), section 91(6) of the predecessor Ordinance having a continuing effect under

Schedule 11.

Section: 347 Rectification of registered particulars L.N. 163 of 2013 03/03/2014


(1) The Court may, on application by the company or registered non-Hong Kong company or by a person interested
in the charge, order that—
(a) an omission or misstatement of any particular in any of the following be rectified—

(i) a statement of the particulars of a charge, or any accompanying instrument, delivered for registration
under—
(A) Division 2 or 3;
(B) section 80 or 82 of the predecessor Ordinance, or that section by virtue of section 91 of that

Ordinance, having a continuing effect under section 63(4)(a), 64(4)(a), 65(4) or 66(4) of
Schedule 11; or

(C) section 91(5) of the predecessor Ordinance having a continuing effect under section 67(4) of
Schedule 11;

(ii) a statement of the particulars of an issue of debentures, or a statement of the particulars of commission,
allowance or discount, delivered for registration under—
(A) Division 4;
(B) section 80 or 82 of the predecessor Ordinance, or that section by virtue of section 91 of that

Ordinance, having a continuing effect under section 63(4)(a), 64(4)(a), 65(4) or 66(4) of
Schedule 11; or

(C) section 91(5) of the predecessor Ordinance having a continuing effect under section 67(4) of



Cap 622 - Companies Ordinance 123

Schedule 11;
(iii) a notification, or any accompanying instrument, under section 345;
(iv) a memorandum under section 85 of the predecessor Ordinance; or

(b) an omission or misstatement of any of the following be rectified—
(i) any particular with respect to a charge delivered for registration before the commencement date* of

this section under section 80, 82 or 91(5) of the predecessor Ordinance;
(ii) any particular with respect to a charge delivered for registration under section 80, 82 or 91(5) of the

predecessor Ordinance having a continuing effect under section 63(2), 64(2), 65(2), 66(2) or 67(2) of
Schedule 11.

(2) The Court may make an order under subsection (1) on any terms and conditions that the Court thinks just and
expedient.

(3) The Court must not make an order unless the Court is satisfied that—
(a) the omission or misstatement—

(i) was accidental;
(ii) was due to inadvertence or to some other sufficient cause; or
(iii) is not of a nature to prejudice the position of creditors or members of the company or registered non-

Hong Kong company; or
(b) it is just and equitable to grant the relief on other grounds.

(4) The Court may make an order to rectify an omission or misstatement of any particular in any accompanying
instrument mentioned in subsection (1)(a)(i) or (iii) to the extent as permitted by common law rules and
equitable principles.

___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Part:
Division:

8
6

Notice to Registrar of Enforcement of Security L.N. 163 of 2013 03/03/2014





Section: 348 Notice of appointment of receiver or manager L.N. 163 of 2013 03/03/2014


(1) If a person obtains an order for the appointment of a receiver or manager of the property of a company or the
charged property of a registered non-Hong Kong company, or appoints such a receiver or manager under the
powers contained in an instrument, the person must, within 7 days after the date of the order or of the
appointment under those powers, deliver a statement of that fact to the Registrar for registration.

(2) A statement under subsection (1) must include—
(a) the name and address of the person appointed as receiver or manager; and
(b) the number of that person’s identity card, or if that person does not have an identity card, the number and

issuing country of any passport held by that person.
(3) A statement under subsection (1)—

(a) must be in the specified form; and
(b) must be accompanied by the prescribed fee.

(4) If a person contravenes subsection (1), the person commits an offence and is liable to a fine at level 3 and, in the
case of a continuing offence, to a further fine of $300 for each day during which the offence continues.


Section: 349 Notice of mortgagee entering into possession of property L.N. 163 of 2013 03/03/2014


(1) If a person enters into possession of the property of a company, or the charged property of a registered non-
Hong Kong company, as mortgagee, the person must, within 7 days after the date of entering into possession,
deliver a statement of that fact to the Registrar for registration.

(2) A statement under subsection (1) must include—
(a) if the person is a natural person—

(i) the person’s name and address; and
(ii) the number of the person’s identity card, or if the person does not have an identity card, the number



Cap 622 - Companies Ordinance 124

and issuing country of any passport held by the person; or
(b) if the person is a body corporate, its name and the address of its registered or principal office.

(3) A statement under subsection (1)—
(a) must be in the specified form; and
(b) must be accompanied by the prescribed fee.

(4) If a person contravenes subsection (1), the person commits an offence and is liable to a fine at level 3 and, in the
case of a continuing offence, to a further fine of $300 for each day during which the offence continues.


Section: 350 Notice of cessation of appointment of receiver or manager

or mortgagee going out of possession of property, etc.
L.N. 163 of 2013 03/03/2014



(1) This section applies to—
(a) a person—

(i) whose particulars are required to be included in a statement delivered to the Registrar under section
348(1); or

(ii) whose particulars were, before the commencement date* of section 348, required to be included in a
notice delivered to the Registrar under section 87(1) of the predecessor Ordinance; and

(b) a person—
(i) whose particulars are required to be included in a statement delivered to the Registrar under section

349(1); or
(ii) whose particulars were, before the commencement date* of section 349, required to be included in a

notice delivered to the Registrar under section 87(2) of the predecessor Ordinance.
(2) If the person mentioned in subsection (1)(a) ceases to act as receiver or manager, the person must, within 7 days

after the date of the cessation, deliver a statement of the cessation to the Registrar for registration.
(3) If the person mentioned in subsection (1)(b) goes out of possession of the property or charged property, the

person must, within 7 days after going out of possession, deliver a statement of that fact to the Registrar for
registration.

(4) If there is any change to the particulars of the person included in the statement or notice, the person must, within
15 days after the date of the change, deliver a statement of that change to the Registrar for registration.

(5) Subsection (4) does not apply if—
(a) in the case of a person mentioned in subsection (1)(a)—

(i) the person has ceased to act as receiver or manager; and
(ii) the person has delivered a statement of the cessation to the Registrar under subsection (2) or has,

before the commencement date* of section 348, given notice of the cessation under section 87(4) of
the predecessor Ordinance; or

(b) in the case of a person mentioned in subsection (1)(b)—
(i) the person has gone out of possession of the property or charged property; and
(ii) the person has delivered a statement of that fact to the Registrar under subsection (3) or has, before the

commencement date* of section 349, given notice of that fact under section 87(4) of the predecessor
Ordinance.

(6) A statement under subsection (2), (3) or (4) must be in the specified form.
(7) If a person contravenes subsection (2), (3) or (4), the person commits an offence and is liable to a fine at level 3

and, in the case of a continuing offence, to a further fine of $300 for each day during which the offence
continues.

___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Part:
Division:

8
7

Company’s and Registered Non-Hong Kong Company’s
Records and Register of Charges

L.N. 163 of 2013 03/03/2014







Cap 622 - Companies Ordinance 125

Section: 351 Obligation to keep copies of instruments creating charges L.N. 163 of 2013 03/03/2014


(1) A company must keep at its registered office, or at a place prescribed by regulations made under section 657—
(a) a copy of every instrument creating a charge required to be registered by the company under this Part; and
(b) a copy of every instrument creating a charge required to be registered by the company under Part III of the

predecessor Ordinance.
(2) A registered non-Hong Kong company must keep at its principal place of business in Hong Kong, or at a place

prescribed by regulations made under section 356—
(a) a copy of every instrument creating a charge required to be registered by the company under this Part; and
(b) a copy of every instrument creating a charge required to be registered by the company under Part III of the

predecessor Ordinance.
(3) Where—

(a) a series of debentures is issued by a company or registered non-Hong Kong company;
(b) the debentures contain a charge required to be registered by the company or registered non-Hong Kong

company under this Part or under Part III of the predecessor Ordinance; and
(c) the terms of the debentures are the same,

the company or registered non-Hong Kong company is to be regarded as having complied with subsection (1) or
(2) in relation to the debentures if it keeps a copy of one of the debentures in accordance with that subsection.

(4) A company or registered non-Hong Kong company—
(a) must, within 15 days after a copy of an instrument mentioned in subsection (1) or (2) is first kept at a place,

notify the Registrar of the place; and
(b) must, within 15 days after there is a change in the place where a copy of such an instrument is kept, notify

the Registrar of the change.
(5) A notification under subsection (4)(a) or (b) must be in the specified form.
(6) Subsection (4)(a) does not require a company or registered non-Hong Kong company to notify the Registrar of

the place at which a copy of an instrument is kept—
(a) if, in the case of a copy that came into existence on or after the commencement date* of this section, it has

at all times been kept at the company’s registered office, or the registered non-Hong Kong company’s
principal place of business in Hong Kong; or

(b) if—
(i) immediately before that commencement date*, the company or registered non-Hong Kong company

kept a copy of the instrument for the purposes of section 88 of the predecessor Ordinance; and
(ii) on and after that commencement date*, that copy is kept for the purposes of subsection (1) or (2) at the

place at which it was kept immediately before that commencement date*.
(7) If subsection (1), (2) or (4) is contravened, the company or registered non-Hong Kong company, and every

responsible person of the company or registered non-Hong Kong company, commit an offence, and each is
liable to a fine at level 4 and, in the case of a continuing offence, to a further fine of $700 for each day during
which the offence continues.

___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 352 Obligation of company to keep register of charges L.N. 163 of 2013 03/03/2014


(1) A company must keep a register of charges—
(a) at the company’s registered office; or
(b) at a place prescribed by regulations made under section 657.

(2) A company—
(a) must enter in its register of charges—

(i) every charge specifically affecting property of the company; and
(ii) every floating charge on the whole or part of the company’s property or undertaking; and

(b) must enter in its register of charges the following particulars in respect of every charge specified in
paragraph (a)(i) and (ii)—



Cap 622 - Companies Ordinance 126

(i) the amount secured by the charge;
(ii) a description of the property charged;
(iii) except in the case of securities to bearer, the names of the persons entitled to the charge.

(3) If a company contravenes subsection (1) or (2), the company, and every responsible person of the company,
commit an offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine
of $700 for each day during which the offence continues.

(4) If an officer of the company knowingly and wilfully authorizes or permits the omission of an entry required to
be made under subsection (2), the officer commits an offence and is liable to a fine at level 5.


Section: 353 Obligation of registered non-Hong Kong company to keep

register of charges
L.N. 163 of 2013 03/03/2014



(1) A registered non-Hong Kong company must keep a register of charges—
(a) at the company’s principal place of business in Hong Kong; or
(b) at a place prescribed by regulations made under section 356.

(2) A registered non-Hong Kong company—
(a) must enter in its register of charges—

(i) every charge created by the company on property in Hong Kong of the company; and
(ii) every charge on property in Hong Kong that is acquired by the company; and

(b) must enter in its register of charges the following particulars in respect of every charge specified in
paragraph (a)(i) and (ii)—
(i) the amount secured by the charge;
(ii) a description of the property charged;
(iii) except in the case of securities to bearer, the names of the persons entitled to the charge.

(3) Subsection (2) does not apply to a charge on property if the property was not in Hong Kong when the charge
was created by, or the property was acquired by, the registered non-Hong Kong company.

(4) If a registered non-Hong Kong company contravenes subsection (1) or (2), the company, and every responsible
person of the company, commit an offence, and each is liable to a fine at level 4 and, in the case of a continuing
offence, to a further fine of $700 for each day during which the offence continues.

(5) If an officer of the registered non-Hong Kong company knowingly and wilfully authorizes or permits the
omission of an entry required to be made under subsection (2), the officer commits an offence and is liable to a
fine at level 5.


Section: 354 Notification of place where register of charges is kept L.N. 163 of 2013 03/03/2014


(1) A company or registered non-Hong Kong company must notify the Registrar of the place at which the register of
charges is kept. The notice must be in the specified form and delivered to the Registrar for registration within 15
days after the register is first kept at that place.

(2) A company or registered non-Hong Kong company must notify the Registrar of any change (other than a change
of the address of the company’s registered office or registered non-Hong Kong company’s principal place of
business in Hong Kong) in the place at which the register of charges is kept. The notice must be in the specified
form and delivered to the Registrar for registration within 15 days after the change.

(3) Subsection (1) does not require a company or registered non-Hong Kong company to notify the Registrar of the
place at which the register of charges is kept—
(a) if, in the case of a register that came into existence on or after the commencement date* of this section, it

has at all times been kept at—
(i) the company’s registered office; or
(ii) the registered non-Hong Kong company’s principal place of business in Hong Kong; or

(b) if—
(i) immediately before that commencement date*, the company or registered non-Hong Kong company

kept a register for the purposes of section 89 of the predecessor Ordinance; and
(ii) on and after that commencement date*, that register is kept as a register of charges for the purposes of

section 352(1) or 353(1) at the place at which it was kept immediately before that commencement



Cap 622 - Companies Ordinance 127

date*.
(4) If subsection (1) or (2) is contravened, the company or registered non-Hong Kong company, and every

responsible person of the company or registered non-Hong Kong company, commit an offence, and each is
liable to a fine at level 4 and, in the case of a continuing offence, to a further fine of $700 for each day during
which the offence continues.

___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 355 Right to inspect L.N. 163 of 2013 03/03/2014


(1) A member or creditor of a company is entitled, on request made in the prescribed manner and without charge, to
inspect, in accordance with regulations made under section 657—
(a) the copies kept by the company under section 351(1); and
(b) the register of charges kept by the company under section 352(1).

(2) A member or creditor of a registered non-Hong Kong company is entitled, on request made in the prescribed
manner and without charge, to inspect, in accordance with regulations made under section 356—
(a) the copies kept by the company under section 351(2); and
(b) the register of charges kept by the company under section 353(1).

(3) Any other person is entitled, on request made in the prescribed manner and on payment of a prescribed fee, to
inspect, in accordance with regulations made under section 356 or 657—
(a) the copies kept by a company or registered non-Hong Kong company under section 351(1)(a) or (2)(a); and
(b) the register of charges kept by a company or registered non-Hong Kong company under section 352(1) or

353(1).
(4) In this section—
prescribed(訂明) means prescribed by regulations made under section 356 or 657.

Section: 356 Financial Secretary may make regulations for purposes of

this Division
L.N. 163 of 2013 03/03/2014



(1) The Financial Secretary may make regulations—
(a) prescribing a place at which—

(i) copies of instruments creating charges are to be kept by a registered non-Hong Kong company under
section 351; or

(ii) a register of charges is to be kept by a registered non-Hong Kong company under section 353;
(b) providing for the obligations of a registered non-Hong Kong company to make the copies and the register

available for inspection under section 355;
(c) prescribing the fees for the purposes of section 355(3); and
(d) prescribing any other thing that is required or permitted to be prescribed under this Division in respect of

those copies and that register.
(2) Regulations made under subsection (1)(a) may—

(a) prescribe a place other than the registered non-Hong Kong company’s principal place of business in Hong
Kong;

(b) prescribe a place—
(i) by reference to the place at which the registered non-Hong Kong company keeps any other records; or
(ii) in any other way;

(c) provide that section 351 or 353 is not complied with by keeping the copies, or the register of charges, at a
place prescribed in the regulations unless conditions prescribed in the regulations are met; and

(d) prescribe more than one place for the purpose specified in subsection (1)(a)(i) or (ii).
(3) Regulations made under subsection (1)(b) may—

(a) make provision as to the time, duration and manner of inspection;
(b) precribe the manner in which a request for inspection is to be made; and
(c) define what may be required of the registered non-Hong Kong company as regards the nature, extent and

manner of extracting or presenting any information for the purposes of inspection.



Cap 622 - Companies Ordinance 128

(4) Regulations made under subsection (1) may provide that—
(a) if a registered non-Hong Kong company contravenes any of the regulations, an offence is committed by—

(i) the company; and
(ii) every responsible person of the company;

(b) a person who commits an offence mentioned in paragraph (a) is liable to a fine not exceeding level 5 and, in
the case of a continuing offence, to a further fine not exceeding $1000 for each day during which the
offence continues;

(c) the Court may, in prescribed circumstances—
(i) by order compel an immediate inspection of the copies and the register of charges; and
(ii) make any order as to the time, duration and manner of inspection; and

(d) if the copies, or the register of charges, are kept at the office of a person other than the registered non-Hong
Kong company concerned, an order mentioned in paragraph (c) may be made against that other person and
that other person’s officers and other employees.

(5) Nothing in any provision of this Ordinance or in the regulations made under this section is to be construed as
preventing a registered non-Hong Kong company—
(a) from providing more extensive facilities than are required by the regulations; or
(b) if a fee may be charged, from charging a lesser fee than that prescribed or none at all.


Part: 9 Accounts and Audit L.N. 163 of 2013 03/03/2014


(*Format changes—E.R. 1 of 2013)
____________________________________________________________________________
Note:
* The format of Part 9 has been updated to the current legislative styles.

Part:
Division:

9
1

Preliminary L.N. 163 of 2013 03/03/2014





Section: 357 Interpretation L.N. 163 of 2013 03/03/2014


(1) In this Part—
annual consolidated financial statements (周年綜合財務報表) means the consolidated statements required to be

prepared under section 379(2);
annual financial statements (周年財務報表) means the statements required to be prepared under section 379(1);
auditor’s report (核數師報告) means the report required to be prepared under section 405;
directors’ report (董事報告) means—

(a) the report required to be prepared under section 388(1); or
(b) the consolidated report required to be prepared under section 388(2);

financial statements (財務報表) means annual financial statements or annual consolidated financial statements;
Regulation (《規例》) means the regulations made under sections 451 and 452;
summary financial report (財務摘要報告) means a financial report prepared under section 439.
(2) In this Part, a reference to the reporting documents for a financial year is a reference to all of the following—

(a) the financial statements for the financial year;
(b) the directors’ report for the financial year;
(c) the auditor’s report on those financial statements.

(3) For the purposes of this Part, a body corporate is a wholly owned subsidiary of another body corporate if it has
only the following as members—
(a) that other body corporate;
(b) a wholly owned subsidiary of that other body corporate;
(c) a nominee of that other body corporate or such a wholly owned subsidiary.





Cap 622 - Companies Ordinance 129

Section: 358 Application in relation to financial year beginning on or
after commencement date of relevant provision etc.

L.N. 163 of 2013 03/03/2014



(1) Each of the following sections applies in relation to a financial year beginning on or after the commencement
date* of that section—
(a) section 359;
(b) section 379;
(c) section 388;
(d) section 389;
(e) section 429;
(f) section 430;
(g) section 439.

(2) Each of the following sections applies in relation to accounting records for a financial year beginning on or after
the commencement date* of that section—
(a) section 373;
(b) section 374;
(c) section 376;
(d) section 377.

(3) Each of the following sections applies in relation to financial statements for a financial year beginning on or
after the commencement date* of that section—
(a) section 380;
(b) section 381;
(c) section 382;
(d) section 383;
(e) section 436;
(f) section 449.

(4) Section 387 applies in relation to a statement of financial position for a financial year beginning on or after the
commencement date* of that section.

(5) Each of the following sections applies in relation to a directors’ report for a financial year beginning on or after
the commencement date* of that section—
(a) section 390;
(b) section 391.

(6) Each of the following sections applies in relation to an appointment of an auditor for a financial year beginning
on or after the commencement date* of that section—
(a) section 394;
(b) section 395;
(c) section 396;
(d) section 398;
(e) section 399.

(7) Each of the following sections applies in relation to a person appointed as auditor for a financial year beginning
on or after the commencement date* of that section—
(a) section 402;
(b) section 403;
(c) section 404.

(8) Section 411 applies in relation to a general meeting of which notice is given on or after the commencement
date* of that section.

(9) Each of the following sections applies in relation to a person who is appointed, or is deemed to be reappointed,
as auditor for a financial year beginning on or after the commencement date* of that section—
(a) section 412;
(b) section 416;
(c) section 417;
(d) section 418;
(e) section 419.

(10) Section 415 applies to a provision made on or after the commencement date* of that section.



Cap 622 - Companies Ordinance 130

(11) Section 435 applies in relation to—
(a) any financial statements and directors’ report for a financial year beginning on or after the commencement

date* of that section; and
(b) any auditor’s report on those financial statements.

(12) Section 440 applies in relation to a summary financial report for a financial year beginning on or after the
commencement date* of that section.

(13) Schedule 4 applies in relation to financial statements for a financial year beginning on or after the
commencement date* of that Schedule.

___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Part:
Division:

9
2

Reporting Exemption L.N. 163 of 2013 03/03/2014





Section: 359 Company falling within reporting exemption L.N. 163 of 2013 03/03/2014


(1) For the purposes of this Part, a company falls within the reporting exemption for a financial year—
(a) if—

(i) it is qualified as a small private company or small guarantee company for the financial year; and
(ii) it is not a company specified in subsection (4) at any time during the financial year;

(b) if—
(i) it is a private company at all times, and is not a company specified in subsection (4) at any time, during

the financial year;
(ii) it does not have any subsidiary and is not a subsidiary of another company; and
(iii) all members of the company agree in writing that the company is to fall within the reporting exemption

for the financial year only; or
(c) if—

(i) it is a private company at all times, and is not a company specified in subsection (4) at any time, during
the financial year;

(ii) it is qualified as an eligible private company for the financial year; and
(iii) the conditions specified in section 360(1) are satisfied.

(2) For the purposes of this Part, a company also falls within the reporting exemption for a financial year if—
(a) it is a private company at all times, and is not a company specified in subsection (4) at any time, during the

financial year;
(b) it is the holding company of a group of companies, of which no member is a company specified in

subsection (4) at any time during the financial year; and
(c) the group of companies—

(i) is qualified as a group of small private companies for the financial year; or
(ii) is qualified as a group of eligible private companies for the financial year and the conditions specified

in section 360(2) are satisfied.
(3) For the purposes of this Part, a company also falls within the reporting exemption for a financial year if—

(a) it is a company limited by guarantee at all times, and is not a company specified in subsection (4) at any
time, during the financial year;

(b) it is the holding company of a group of companies, of which no member is a company specified in
subsection (4) at any time during the financial year; and

(c) the group of companies is qualified as a group of small guarantee companies for the financial year.
(4) The company specified for the purposes of subsections (1), (2) and (3) is—

(a) one that carries on any banking business and holds a valid banking licence granted under the Banking
Ordinance (Cap 155);

(b) one that is a corporation licensed under Part V of the Securities and Futures Ordinance (Cap 571) to carry
on a business in any regulated activity within the meaning of that Ordinance; or



Cap 622 - Companies Ordinance 131

(c) one that—
(i) carries on any insurance business otherwise than solely as an agent; or
(ii) accepts, by way of trade or business (other than banking business), loans of money at interest or

repayable at a premium, otherwise than on terms involving the issue of debentures or other securities.

Section: 360 Conditions specified for section 359(1)(c)(iii) and (2)(c)(ii) L.N. 163 of 2013 03/03/2014


(1) The conditions specified for the purposes of section 359(1)(c)(iii) are—
(a) subject to subsection (3), a resolution is passed at a general meeting by the members holding at least 75% of

the voting rights in the company to the effect that the company is to fall within the reporting exemption for
the financial year; and

(b) the members holding the remaining voting rights do not vote against the resolution.
(2) The conditions specified for the purposes of section 359(2)(c)(ii) are—

(a) if the group of companies is not qualified as a group of small private companies for the financial year by
reason only that the condition specified in section 1(7) of Schedule 3 is not satisfied in the relevant financial
year or financial years—
(i) subject to subsection (3), a resolution is passed at a general meeting by the members holding at least

75% of the voting rights in each company in the group that is not qualified as a small private company
to the effect that the company is to fall within the reporting exemption for the financial year; and

(ii) the members holding the remaining voting rights do not vote against the resolution;
Note—
A group of companies is qualified as a group of small private companies if it falls within section 364(1), (2) or (3).
(b) if the group of companies is not qualified as a group of small private companies for the financial year by

reason only that any 2 of the conditions specified in section 1(8) of Schedule 3 are not satisfied in the
relevant financial year or financial years—
(i) subject to subsection (3), a resolution is passed at the general meeting by the members holding at least

75% of the voting rights in the holding company to the effect that the holding company is to fall within
the reporting exemption for the financial year; and

(ii) the members holding the remaining voting rights do not vote against the resolution; or
(c) if the group of companies is not qualified as a group of small private companies for the financial year by

reason that both the condition specified in section 1(7) of Schedule 3 and any 2 of the conditions specified
in section 1(8) of that Schedule are not satisfied in the relevant financial year or financial years—
(i) subject to subsection (3), a resolution is passed at a general meeting by the members holding at least

75% of the voting rights in each company in the group that is not qualified as a small private company,
and in the holding company, to the effect that the company is to fall within the reporting exemption for
the financial year; and

(ii) the members holding the remaining voting rights do not vote against the resolution.
(3) If—

(a) a resolution is passed for the purposes of subsection (1)(a) or (2)(a)(i), (b)(i) or (c)(i) to the effect that a
company is to fall within the reporting exemption for a financial year;

(b) by notice in writing to the company, a member objects to the company falling within the reporting
exemption for the financial year; and

(c) the notice is given at least 6 months before the end of the financial year to which the objection relates,
the resolution is regarded as not being passed in relation to the financial year to which the objection relates.
(4) Within 14 days after receiving a notice under subsection (3)(b), a company must notify its members of the

objection.
(5) Special notice is required for a resolution mentioned in subsection (1)(a) or (2)(a)(i), (b)(i) or (c)(i).
Note—
See also section 578 which sets out the requirements regarding special notice.

Section: 361 Small private company L.N. 163 of 2013 03/03/2014


(1) For the purposes of this Part, if a company is a private company formed and registered under this Ordinance, and
any 2 of the conditions specified in section 1(1) of Schedule 3 are satisfied in its first financial year, the



Cap 622 - Companies Ordinance 132

company is qualified as a small private company for that first financial year, and every subsequent financial
year, until it is disqualified under subsection (4).

(2) For the purposes of this Part, if a company is an existing private company, and any 2 of the conditions specified
in section 1(1) of Schedule 3 are satisfied—
(a) in its first financial year after the coming into operation of this section; or
(b) in the financial year of the company for the purposes of the predecessor Ordinance that immediately

precedes that first financial year,
the company is qualified as a small private company for that first financial year, and every subsequent financial

year, until it is disqualified under subsection (4).
(3) For the purposes of this Part, if—

(a) a company is a private company; and
(b) after its first financial year after the coming into operation of this section, any 2 of the conditions specified

in section 1(1) of Schedule 3 are satisfied for 2 consecutive financial years,
the company is also qualified as a small private company for the financial year immediately following those 2

financial years, and every subsequent financial year, until it is disqualified under subsection (4).
(4) For the purposes of this Part, if, after a company is qualified as a small private company under subsection (1),

(2) or (3), any 2 of the conditions specified in section 1(2) of Schedule 3 are not satisfied for 2 consecutive
financial years, the company is disqualified as a small private company for the financial year immediately
following those 2 financial years, and every subsequent financial year, until it is qualified again under subsection
(3).


Section: 362 Eligible private company L.N. 163 of 2013 03/03/2014


(1) For the purposes of this Part, if a company is a private company formed and registered under this Ordinance, and
any 2 of the conditions specified in section 1(3) of Schedule 3 are satisfied in its first financial year, the
company is qualified as an eligible private company for that first financial year, and every subsequent financial
year, until it is disqualified under subsection (4).

(2) For the purposes of this Part, if a company is an existing private company, and any 2 of the conditions specified
in section 1(3) of Schedule 3 are satisfied—
(a) in its first financial year after the coming into operation of this section; or
(b) in the financial year of the company for the purposes of the predecessor Ordinance that immediately

precedes that first financial year,
the company is qualified as an eligible private company for that first financial year, and every subsequent

financial year, until it is disqualified under subsection (4).
(3) For the purposes of this Part, if—

(a) a company is a private company; and
(b) after its first financial year after the coming into operation of this section, any 2 of the conditions specified

in section 1(3) of Schedule 3 are satisfied for 2 consecutive financial years,
the company is also qualified as an eligible private company for the financial year immediately following those

2 financial years, and every subsequent financial year, until it is disqualified under subsection (4).
(4) For the purposes of this Part, if, after a company is qualified as an eligible private company under subsection (1),

(2) or (3), any 2 of the conditions specified in section 1(4) of Schedule 3 are not satisfied for 2 consecutive
financial years, the company is disqualified as an eligible private company for the financial year immediately
following those 2 financial years, and every subsequent financial year, until it is qualified again under subsection
(3).


Section: 363 Small guarantee company L.N. 163 of 2013 03/03/2014


(1) For the purposes of this Part, if a company is a company limited by guarantee formed and registered under this
Ordinance, and the condition specified in section 1(5) of Schedule 3 is satisfied in its first financial year, the
company is qualified as a small guarantee company for that first financial year, and every subsequent financial
year, until it is disqualified under subsection (4).

(2) For the purposes of this Part, if a company is an existing company limited by guarantee, and the condition
specified in section 1(5) of Schedule 3 is satisfied—



Cap 622 - Companies Ordinance 133

(a) in its first financial year after the coming into operation of this section; or
(b) in the financial year of the company for the purposes of the predecessor Ordinance that immediately

precedes that first financial year,
the company is qualified as a small guarantee company for that first financial year, and every subsequent

financial year, until it is disqualified under subsection (4).
(3) For the purposes of this Part, if—

(a) a company is a company limited by guarantee; and
(b) after its first financial year after the coming into operation of this section, the condition specified in section

1(5) of Schedule 3 is satisfied for 2 consecutive financial years,
the company is also qualified as a small guarantee company for the financial year immediately following those 2

financial years, and every subsequent financial year, until it is disqualified under subsection (4).
(4) For the purposes of this Part, if, after a company is qualified as a small guarantee company under subsection (1),

(2) or (3), the condition specified in section 1(6) of Schedule 3 is not satisfied for 2 consecutive financial years,
the company is disqualified as a small guarantee company for the financial year immediately following those 2
financial years, and every subsequent financial year, until it is qualified again under subsection (3).


Section: 364 Group of small private companies L.N. 163 of 2013 03/03/2014


(1) For the purposes of this Part, if—
(a) the holding company of a group of companies is formed and registered under this Ordinance; and
(b) the condition specified in section 1(7) of Schedule 3, and any 2 of the conditions specified in section 1(8) of

that Schedule, are satisfied in the holding company’s first financial year,
the group is qualified as a group of small private companies for that first financial year, and every subsequent

financial year, until it is disqualified under subsection (4) or (5).
(2) For the purposes of this Part, if—

(a) the holding company of a group of companies is an existing company; and
(b) the condition specified in section 1(7) of Schedule 3, and any 2 of the conditions specified in section 1(8) of

that Schedule, are satisfied—
(i) in the holding company’s first financial year after the coming into operation of this section; or
(ii) in the holding company’ s financial year for the purposes of the predecessor Ordinance that

immediately precedes that first financial year,
the group is qualified as a group of small private companies for that first financial year, and every subsequent

financial year, until it is disqualified under subsection (4) or (5).
(3) For the purposes of this Part, if, after the first financial year of the holding company of a group of companies

after the coming into operation of this section, the condition specified in section 1(7) of Schedule 3, and any 2 of
the conditions specified in section 1(8) of that Schedule, are satisfied for 2 consecutive financial years of the
holding company, the group is also qualified as a group of small private companies for the financial year
immediately following those 2 financial years, and every subsequent financial year, until it is disqualified under
subsection (4) or (5).

(4) For the purposes of this Part, if, after a group of companies is qualified as a group of small private companies
under subsection (1), (2) or (3), another company becomes a new member of the group in a financial year of the
holding company such that either the condition specified in section 1(7) of Schedule 3 is not satisfied, or any 2
of the conditions specified in section 1(9) of that Schedule are not satisfied, for the financial year, the group is
disqualified as a group of small private companies for the financial year, and every subsequent financial year,
until it is qualified again under subsection (3).

(5) For the purposes of this Part, if, after a group of companies is qualified as a group of small private companies
under subsection (1), (2) or (3), either the condition specified in section 1(7) of Schedule 3 is not satisfied, or
any 2 of the conditions specified in section 1(9) of that Schedule are not satisfied, for 2 consecutive financial
years of the holding company, the group is also disqualified as a group of small private companies for the
financial year immediately following those 2 financial years, and every subsequent financial year, until it is
qualified again under subsection (3).





Cap 622 - Companies Ordinance 134

Section: 365 Group of eligible private companies L.N. 163 of 2013 03/03/2014


(1) For the purposes of this Part, if—
(a) the holding company of a group of companies is formed and registered under this Ordinance; and
(b) the condition specified in section 1(10) of Schedule 3, and any 2 of the conditions specified in section 1(11)

of that Schedule, are satisfied in the holding company’s first financial year,
the group is qualified as a group of eligible private companies for that first financial year, and every subsequent

financial year, until it is disqualified under subsection (4) or (5).
(2) For the purposes of this Part, if—

(a) the holding company of a group of companies is an existing company; and
(b) the condition specified in section 1(10) of Schedule 3, and any 2 of the conditions specified in section 1(11)

of that Schedule, are satisfied—
(i) in the holding company’s first financial year after the coming into operation of this section; or
(ii) in the holding company’ s financial year for the purposes of the predecessor Ordinance that

immediately precedes that first financial year,
the group is qualified as a group of eligible private companies for that first financial year, and every subsequent

financial year, until it is disqualified under subsection (4) or (5).
(3) For the purposes of this Part, if, after the first financial year of the holding company of a group of companies

after the coming into operation of this section, the condition specified in section 1(10) of Schedule 3, and any 2
of the conditions specified in section 1(11) of that Schedule, are satisfied for 2 consecutive financial years of the
holding company, the group is also qualified as a group of eligible private companies for the financial year
immediately following those 2 financial years, and every subsequent financial year, until it is disqualified under
subsection (4) or (5).

(4) For the purposes of this Part, if, after a group of companies is qualified as a group of eligible private companies
under subsection (1), (2) or (3), another company becomes a new member of the group in a financial year of the
holding company such that either the condition specified in section 1(10) of Schedule 3 is not satisfied, or any 2
of the conditions specified in section 1(12) of that Schedule are not satisfied, for the financial year, the group is
disqualified as a group of eligible private companies for the financial year, and every subsequent financial year,
until it is qualified again under subsection (3).

(5) For the purposes of this Part, if, after a group of companies is qualified as a group of eligible private companies
under subsection (1), (2) or (3), either the condition specified in section 1(10) of Schedule 3 is not satisfied, or
any 2 of the conditions specified in section 1(12) of that Schedule are not satisfied, for 2 consecutive financial
years of the holding company, the group is also disqualified as a group of eligible private companies for the
financial year immediately following those 2 financial years, and every subsequent financial year, until it is
qualified again under subsection (3).


Section: 366 Group of small guarantee companies L.N. 163 of 2013 03/03/2014


(1) For the purposes of this Part, if—
(a) the holding company of a group of companies is formed and registered under this Ordinance; and
(b) the conditions specified in section 1(13) of Schedule 3 are satisfied in the holding company’s first

financial year,
the group is qualified as a group of small guarantee companies for that first financial year, and every subsequent

financial year, until it is disqualified under subsection (4) or (5).
(2) For the purposes of this Part, if—

(a) the holding company of a group of companies is an existing company; and
(b) the conditions specified in section 1(13) of Schedule 3 are satisfied—

(i) in the holding company’s first financial year after the coming into operation of this section; or
(ii) in the holding company’ s financial year for the purposes of the predecessor Ordinance that

immediately precedes that first financial year,
the group is qualified as a group of small guarantee companies for that first financial year, and every subsequent

financial year, until it is disqualified under subsection (4) or (5).
(3) For the purposes of this Part, if, after the first financial year of the holding company of a group of companies



Cap 622 - Companies Ordinance 135

after the coming into operation of this section, the conditions specified in section 1(13) of Schedule 3 are
satisfied for 2 consecutive financial years of the holding company, the group is also qualified as a group of small
guarantee companies for the financial year immediately following those 2 financial years, and every subsequent
financial year, until it is disqualified under subsection (4) or (5).

(4) For the purposes of this Part, if, after a group of companies is qualified as a group of small guarantee companies
under subsection (1), (2) or (3), another company becomes a new member of the group in a financial year of the
holding company such that the conditions specified in section 1(14) of Schedule 3 are not satisfied for the
financial year, the group is disqualified as a group of small guarantee companies for the financial year, and every
subsequent financial year, until it is qualified again under subsection (3).

(5) For the purposes of this Part, if, after a group of companies is qualified as a group of small guarantee companies
under subsection (1), (2) or (3), the conditions specified in section 1(14) of Schedule 3 are not satisfied for 2
consecutive financial years of the holding company, the group is also disqualified as a group of small guarantee
companies for the financial year immediately following those 2 financial years, and every subsequent financial
year, until it is qualified again under subsection (3).


Part:
Division:

9
3

A Company’s Financial Year L.N. 163 of 2013 03/03/2014





Section: 367 Financial year L.N. 163 of 2013 03/03/2014


(1) A company’s first financial year after the coming into operation of this section begins on the first day of its
first accounting reference period and ends on the last day of that period.

(2) Every subsequent financial year of a company begins on the date immediately following the end of the previous
financial year and ends on the last day of the accounting reference period immediately following the one by
reference to which the previous financial year is determined.

(3) If an undertaking is not a company, a reference in this Ordinance to its financial year is a reference to a period in
respect of which a profit and loss account of the undertaking is required, by its constitution or by the law under
which it is established, to be made up, whether or not the period is a year.

(4) A company’s directors must secure that the financial year of each of its subsidiary undertakings coincides with
the company’s financial year unless, in the directors’ opinion, there are good reasons against those financial
years coinciding with each other.

(5) In this section—
undertaking(企業) means—

(a) a body corporate;
(b) a partnership; or
(c) an unincorporated association carrying on a trade or business, whether for profit or not.


Section: 368 Accounting reference period L.N. 163 of 2013 03/03/2014


(1) For an existing company formed and registered before the commencement date* of Division 1 of Part 3, the first
accounting reference period begins on the date immediately following its primary accounting reference date and
ends on the first anniversary of its primary accounting reference date.

(2) For—
(a) a company formed and registered under this Ordinance; and
(b) a company formed and registered under a provision of the predecessor Ordinance having a continuing effect

under Schedule 11 or by virtue of section 23 of the Interpretation and General Clauses Ordinance (Cap 1),
the first accounting reference period begins on the date of its incorporation and ends on its primary accounting

reference date.
(3) Every subsequent accounting reference period of a company is the period of 12 months beginning immediately

after the end of the previous accounting reference period and ending on its accounting reference date, unless the
accounting reference period is shortened or extended, as stated in a directors’ resolution under section 371(3).

___________________________________________________________________
Note:



Cap 622 - Companies Ordinance 136

* Commencement date: 3 March 2014.

Section: 369 Primary accounting reference date L.N. 163 of 2013 03/03/2014


(1) For an existing company formed and registered before the commencement date* of Division 1 of Part 3, the
primary accounting reference date is—
(a) the date up to which the company’s accounts are made if, on or after the commencement date* of this

section, the company’s accounts—
(i) have been laid before the company in general meeting under section 122 of the predecessor Ordinance

having a continuing effect under Schedule 11; or
(ii) have been provided to the members under section 111(6) of the predecessor Ordinance having a

continuing effect under Schedule 11; or
(b) if, on or after the commencement date* of this section, such company’s accounts have not been laid or

provided as mentioned in paragraph (a)(i) or (ii)—
(i) in the case where such accounts have been prepared on or before the date by which the company is

required by section 111(1) of the predecessor Ordinance having a continuing effect under Schedule 11
to hold a general meeting, the date up to which those accounts are made;

(ii) in the case where subparagraph (i) does not apply, but accounts made up to a date falling more than
one day before the commencement date* of this section have been prepared on or before the date by
which the company is required by that section 111(1) to hold a general meeting, the first anniversary of
the date up to which those accounts are made; or

(iii) in any other case, the date by which the company is required by that section 111(1) to hold a general
meeting.

(2) Subsection (1)(a) and (b)(i) does not apply if those accounts are made up to a date falling more than one day
before the commencement date* of this section.

(3) Subsection (1)(a)(i) does not apply unless the general meeting is held—
(a) in the case of the company’s first general meeting, within 18 months of the company’s incorporation; or
(b) in any other case, within 15 months, and in the year, after the company’s last annual general meeting.

(4) Subsection (1)(b)(ii) does not apply if those accounts are made up to a date falling more than one day before the
beginning of the period of 12 months before the commencement date* of this section.

(5) For a company formed and registered under this Ordinance or under a provision of the predecessor Ordinance
having a continuing effect under Schedule 11 or by virtue of section 23 of the Interpretation and General Clauses
Ordinance (Cap 1), the primary accounting reference date is—
(a) a date specified by the directors before the relevant date for the purposes of this paragraph; or
(b) in the absence of such a specified date, the relevant date.

(6) A date specified for the purposes of subsection (5)(a) must fall within 18 months after the date of the company’
s incorporation.

(7) In this section—
relevant anniversary(有關周年日 ), in relation to a company’ s incorporation, means the anniversary of the

company’s incorporation that first occurs after this section comes into operation;
relevant date(有關日期) means the last day of the month in which the relevant anniversary of the company’s

incorporation falls.
___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 370 Accounting reference date L.N. 163 of 2013 03/03/2014


Subject to section 371, a company’s accounting reference date is the anniversary of its primary accounting reference
date.




Cap 622 - Companies Ordinance 137

Section: 371 Alteration of accounting reference date L.N. 163 of 2013 03/03/2014


(1) The directors of a company may specify a new accounting reference date in relation to—
(a) the company’s current accounting reference period and every subsequent accounting reference period; or
(b) the company’s previous accounting reference period and every subsequent accounting reference period.

(2) If the directors of a public company or a company limited by guarantee specify a new accounting reference date
under subsection (1), the company must, within 15 days after the date of the directors’ resolution specifying
the new accounting reference date, deliver a notice, in the specified form, of that new date to the Registrar for
registration.

(3) A directors’ resolution by which a new accounting reference date is specified, and a notice of that new date
delivered to the Registrar, must state—
(a) whether the current or previous accounting reference period concerned is to be shortened, so as to end on

the first occasion on which the new accounting reference date falls or fell after the beginning of that period;
or

(b) whether the current or previous accounting reference period concerned is to be extended, so as to end on the
second occasion on which the new accounting reference date falls or fell after the beginning of that period.

(4) The directors of a company must not specify a new accounting reference date in relation to the previous
accounting reference period if—
(a) the period for laying before the company in general meeting under section 429 a copy of the reporting

documents for the financial year determined by reference to that accounting reference period has expired; or
(b) the period for sending a copy of the reporting documents for the financial year to the members under

section 430(3) has expired.
(5) The directors of a company must not specify a new accounting reference date in relation to an accounting

reference period so as to extend the period to longer than 18 months.
(6) The directors of a company must not specify a new accounting reference date in relation to the current or

previous accounting reference period so as to extend that period if—
(a) those directors have specified a new accounting reference date in relation to an earlier accounting reference

period so as to extend that earlier period; and
(b) the earlier accounting reference period ended within 5 years before the new accounting reference date is

specified.
(7) Subsection (6) does not apply if—

(a) the new accounting reference date to be specified by the directors coincides with the accounting reference
date of a holding company of the company; or

(b) the specification is approved by a members’ resolution.
(8) If a company contravenes subsection (2), the company, and every responsible person of the company, commit an

offence, and each is liable to a fine at level 3 and, in the case of a continuing offence, to a further fine of $300
for each day during which the offence continues.

(9) In this section—
previous accounting reference period(對上的會計參照期), in relation to a company, means the accounting reference

period of the company immediately preceding the company’s current accounting reference period.

Part:
Division:

9
4

Preparation of Financial Statements and Directors’
Reports

L.N. 163 of 2013 03/03/2014





Part:
Division:
Subdivision:

9
4
1

Preliminary L.N. 163 of 2013 03/03/2014





Section: 372 Interpretation L.N. 163 of 2013 03/03/2014


In this Division—



Cap 622 - Companies Ordinance 138

in electronic form (電子形式) means in the form of an electronic record;
in hard copy form (印本形式) means in a paper form or similar form capable of being read.

Part:
Division:
Subdivision:

9
4
2

Accounting Records L.N. 163 of 2013 03/03/2014





Section: 373 Company must keep accounting records L.N. 163 of 2013 03/03/2014


(1) A company must keep accounting records that comply with subsections (2) and (3).
(2) The accounting records must be sufficient—

(a) to show and explain the company’s transactions;
(b) to disclose with reasonable accuracy, at any time, the company’ s financial position and financial

performance; and
(c) to enable the directors to ensure that the financial statements comply with this Ordinance.

(3) In particular, the accounting records must contain—
(a) daily entries of all sums of money received and expended by the company, and the matters in respect of

which the receipt and expenditure takes place; and
(b) a record of the company’s assets and liabilities.

(4) If subsection (1) does not apply in relation to a subsidiary undertaking of a company, the company must take all
reasonable steps to secure that the subsidiary undertaking keeps accounting records that are sufficient to enable
the company’s directors to ensure that any financial statements required to be prepared under Subdivision 3 of
Division 4 comply with this Ordinance.

(5) A director of a company who fails to take all reasonable steps to secure compliance with subsection (1) or (4)
commits an offence and is liable to a fine of $300000.

(6) A director of a company who wilfully fails to take all reasonable steps to secure compliance with subsection (1)
or (4) commits an offence and is liable to a fine of $300000 and to imprisonment for 12 months.

(7) If a person is charged with an offence under subsection (5), it is a defence to establish that the person had
reasonable grounds to believe, and did believe, that a competent and reliable person—
(a) was charged with the duty of ensuring that subsection (1) or (4) (as the case may be) was complied with;

and
(b) was in a position to discharge that duty.


Section: 374 Where accounting records to be kept L.N. 163 of 2013 03/03/2014


(1) A company’s accounting records—
(a) must be kept at its registered office or any other place that the directors think fit; and
(b) must be open to inspection by the directors at all times without charge.

(2) If a company’s accounting records are kept at a place outside Hong Kong, the accounts and returns with
respect to the business dealt with in those records—
(a) must be sent to, and kept at, a place in Hong Kong; and
(b) must be open to inspection by the directors at all times without charge.

(3) Those accounts and returns—
(a) must disclose with reasonable accuracy the financial position of the business in question at intervals of not

more than 6 months; and
(b) must be sufficient to enable the directors to ensure that any financial statements required to be prepared

under Subdivision 3 of Division 4 comply with this Ordinance.
(4) A director of a company who fails to take all reasonable steps to secure compliance with subsection (1), (2) or

(3) commits an offence and is liable to a fine of $300000.
(5) A director of a company who wilfully fails to take all reasonable steps to secure compliance with subsection (1),

(2) or (3) commits an offence and is liable to a fine of $300000 and to imprisonment for 12 months.
(6) If a person is charged with an offence under subsection (4), it is a defence to establish that the person had



Cap 622 - Companies Ordinance 139

reasonable grounds to believe, and did believe, that a competent and reliable person—
(a) was charged with the duty of ensuring that subsection (1), (2) or (3) (as the case may be) was complied

with; and
(b) was in a position to discharge that duty.


Section: 375 Director may obtain copies of accounting records during

inspection
L.N. 163 of 2013 03/03/2014



(1) A company must allow a director of the company to make a copy of its accounting records in the course of
inspection.

(2) A company must provide a director of the company with a copy of its accounting records without charge if so
requested by the director.

(3) For the purposes of subsection (2)—
(a) if the director requests a copy of the company’s accounting records in hard copy form, the company must

provide the copy in hard copy form; and
(b) if the director requests a copy of the company’s accounting records in electronic form, the company must

provide the copy in any electronic form that the company thinks fit.
(4) Subsections (2) and (3) do not require a company to provide a director of the company with a copy of its

accounting records in electronic form if it keeps its accounting records by recording the information in hard copy
form only.

(5) If any accounting records are kept by a company by recording the information in electronic form, a requirement
under this Subdivision for the accounting records to be open to inspection is to be regarded as a requirement—
(a) for a reproduction of the recording in hard copy form to be open to inspection; and
(b) for the recording to be open to inspection by electronic means at the request of a person entitled to inspect

the accounting records.
(6) A director of a company who fails to take all reasonable steps to secure compliance with subsection (1) or (2)

commits an offence and is liable to a fine at level 5 and, in the case of a continuing offence, to a further fine of
$1000 for each day during which the offence continues.

(7) If a person is charged with an offence under subsection (6), it is a defence to establish that the person had
reasonable grounds to believe, and did believe, that a competent and reliable person—
(a) was charged with the duty of ensuring that subsection (1) or (2) (as the case may be) was complied with;

and
(b) was in a position to discharge that duty.


Section: 376 Form of accounting records L.N. 163 of 2013 03/03/2014


(1) The information contained in a company’s accounting records must be adequately recorded such that they are
available for future reference.

(2) Subject to subsection (1), a company’s accounting records may be—
(a) kept in hard copy form or electronic form; and
(b) arranged in the manner that the directors think fit.

(3) If a company’s accounting records are kept in electronic form, the company must ensure that those records are
capable of being reproduced in hard copy form.

(4) If any accounting records are kept by a company otherwise than by making entries in a bound book, the
company—
(a) must take adequate precautions to guard against falsification; and
(b) must take adequate steps to facilitate the discovery of a falsification.

(5) If subsection (1) is contravened, the company, and every responsible person of the company, commit an offence,
and each is liable to a fine at level 3 and, in the case of a continuing offence, to a further fine of $300 for each
day during which the offence continues.

(6) If subsection (3) or (4) is contravened, the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 3.





Cap 622 - Companies Ordinance 140

Section: 377 How long accounting records to be preserved L.N. 163 of 2013 03/03/2014


(1) This section applies to any accounting records, or any accounts and returns, that are required by section 373(1)
or 374(2) to be kept.

(2) The company must preserve the records, or the accounts and returns, for 7 years after the end of the financial
year to which the last entry made or matter recorded in the records, or the accounts and returns, relates.

(3) A director of a company who fails to take all reasonable steps to secure compliance with subsection (2) commits
an offence and is liable to a fine of $300000.

(4) A director of a company who wilfully fails to take all reasonable steps to secure compliance with subsection (2)
commits an offence and is liable to a fine of $300000 and to imprisonment for 12 months.

(5) If a person is charged with an offence under subsection (3), it is a defence to establish that the person had
reasonable grounds to believe, and did believe, that a competent and reliable person—
(a) was charged with the duty of ensuring that subsection (2) was complied with; and
(b) was in a position to discharge that duty.


Section: 378 Court may order accounting records to be inspected on

director’s behalf
L.N. 163 of 2013 03/03/2014



(1) On application by a director of a company, the Court may by order authorize a person to inspect the company’s
accounting records on the director’s behalf.

(2) Unless the Court otherwise directs, a person so authorized may make copies of the accounting records.
(3) The Court may make any or all of the following orders—

(a) an order limiting the use that a person so authorized may make of the information obtained during the
inspection;

(b) an order limiting the right of a person so authorized to make copies in accordance with subsection (2);
(c) any other order that it thinks fit.


Part:
Division:
Subdivision:

9
4
3

Financial Statements L.N. 163 of 2013 03/03/2014





Section: 379 Directors must prepare financial statements L.N. 163 of 2013 03/03/2014


(1) A company’s directors must prepare for each financial year statements that comply with sections 380 and 383.
(2) Despite subsection (1), if the company is a holding company at the end of the financial year, the directors must

instead prepare for the financial year consolidated statements that comply with sections 380, 381 and 383.
(3) Subsection (2) does not apply—

(a) if the company is a wholly owned subsidiary of another body corporate in the financial year; or
(b) if—

(i) the company is a partially owned subsidiary of another body corporate in the financial year;
(ii) at least 6 months before the end of the financial year, the directors notify the members in writing of the

directors’ intention not to prepare consolidated statements for the financial year, and the notification
does not relate to any other financial year; and

(iii) as at a date falling 3 months before the end of the financial year, no member has responded to the
notification by giving the directors a written request for the preparation of consolidated statements for
the financial year.

(4) If, as respects any financial statements a copy of which is laid before a company in general meeting under
section 429, or sent to a member under section 430 or otherwise circulated, published or issued by the company,
a director of the company fails to take all reasonable steps to secure compliance with subsection (1) or (2), the
director commits an offence and is liable to a fine of $300000.

(5) If, as respects any financial statements a copy of which is laid before a company in general meeting under
section 429, or sent to a member under section 430 or otherwise circulated, published or issued by the company,



Cap 622 - Companies Ordinance 141

a director of the company wilfully fails to take all reasonable steps to secure compliance with subsection (1) or
(2), the director commits an offence and is liable to a fine of $300000 and to imprisonment for 12 months.

(6) If a person is charged with an offence under subsection (4), it is a defence to establish that the person had
reasonable grounds to believe, and did believe, that a competent and reliable person—
(a) was charged with the duty of ensuring that subsection (1) or (2) (as the case may be) was complied with;

and
(b) was in a position to discharge that duty.


Section: 380 General requirements for financial statements L.N. 163 of 2013 03/03/2014


(1) The annual financial statements for a financial year—
(a) must give a true and fair view of the financial position of the company as at the end of the financial year;

and
(b) must give a true and fair view of the financial performance of the company for the financial year.

(2) The annual consolidated financial statements for a financial year—
(a) must give a true and fair view of the financial position of the company, and all the subsidiary undertakings,

as a whole as at the end of the financial year; and
(b) must give a true and fair view of the financial performance of the company, and all the subsidiary

undertakings, as a whole for the financial year.
(3) The financial statements for a financial year must comply with—

(a) if the company falls within the reporting exemption for the financial year, Part 1 of Schedule 4; or
(b) if the company does not fall within the reporting exemption for the financial year, Parts 1 and 2 of Schedule

4.
(4) The financial statements for a financial year must also comply with—

(a) any other requirements of this Ordinance in relation to the financial statements; and
(b) the accounting standards applicable to the financial statements.

(5) If, in relation to any financial statements, compliance with subsections (3) and (4) would be insufficient to give a
true and fair view under subsection (1) or (2), the financial statements must contain all additional information
necessary for that purpose.

(6) If, in relation to any financial statements, compliance with subsection (3) or (4) would be inconsistent with a
requirement to give a true and fair view under subsection (1) or (2), the financial statements—
(a) must depart from subsection (3) or (4) (as the case may be) to the extent necessary for it to give a true and

fair view; and
(b) must contain the reasons for, and the particulars and effect of, the departure.

(7) Subsections (1), (2), (5) and (6) do not apply if the company falls within the reporting exemption for the
financial year.

(8) In this section—
(a) accounting standards(會計準則) means statements of standard accounting practice issued or specified by a

body prescribed by the Regulation; and
(b) a reference to accounting standards applicable to any financial statements is a reference to accounting

standards as are, in accordance with their terms, relevant to the company’s circumstances and to the
financial statements.

(9) This section has effect subject to section 382.

Section: 381 Subsidiary undertakings to be included in annual

consolidated financial statements
L.N. 163 of 2013 03/03/2014



(1) Subject to subsections (2) and (3), the annual consolidated financial statements for a financial year must include
all the subsidiary undertakings of the company.

(2) Where the company falls within the reporting exemption for the financial year, one or more subsidiary
undertakings may be excluded from the annual consolidated financial statements in compliance with the
accounting standards applicable to the statements.

(3) Where the company does not fall within the reporting exemption for the financial year—



Cap 622 - Companies Ordinance 142

(a) one subsidiary undertaking may be excluded from the annual consolidated financial statements if the
inclusion of the subsidiary undertaking is not material for the purpose of giving a true and fair view of the
financial position, and of the financial performance, mentioned in section 380(2)(a) and (b); and

(b) more than one subsidiary undertaking may be excluded from the annual consolidated financial statements if
the inclusion of those subsidiary undertakings taken together is not material for the purpose of giving a true
and fair view of the financial position, and of the financial performance, mentioned in section 380(2)(a) and
(b).

(4) This section has effect subject to section 382.

Section: 382 Provisions supplementary to sections 380 and 381 L.N. 163 of 2013 03/03/2014


(1) This section applies if at any time during a financial year of a private company—
(a) the company registers any transfer of shares in the company in contravention of the restrictions imposed by

the company’s articles;
(b) the membership of the company exceeds the number specified in section 11(1)(a)(ii); or
(c) the company makes an invitation to the public to subscribe for any shares or debentures of the company.

(2) The financial statements of the company for the financial year must comply with sections 380 and 381 as if the
company were a public company.

(3) The Court may, on the application of the company or a person interested in the matter, order that subsections (1)
and (2) do not apply.

(4) The Court may make the order on any terms and conditions that the Court thinks just and expedient.
(5) The Court must not make the order unless the Court is satisfied that—

(a) the occurrence of the event mentioned in subsection (1)(a), (b) or (c) was accidental;
(b) it was due to inadvertence or to some other sufficient cause that the event occurred; or
(c) it is just and equitable to grant the relief on other grounds.


Section: 383 Notes to financial statements to contain information on

directors’ emoluments etc.
L.N. 163 of 2013 03/03/2014



(1) The financial statements for a financial year must contain, in the notes to the statements, the information
prescribed by the Regulation for the purposes of this subsection about the following—
(a) the directors’ emoluments;
(b) the directors’ retirement benefits;
(c) payments made or benefit provided in respect of the termination of the service of directors, whether in the

capacity of directors or in any other capacity while directors;
(d) loans, quasi-loans and other dealings in favour of—

(i) directors of the company and of a holding company of the company;
(ii) bodies corporate controlled by such directors; and
(iii) entities connected with such directors;

(e) material interests of directors in transactions, arrangements or contracts entered into by the company or
another company in the same group of companies;

(f) consideration provided to or receivable by third parties for making available the services of a person as
director or in any other capacity while director.

(2) In subsection (1)—
(a) a reference to a director—

(i) in the case of subsection (1)(b), includes a former director;
(ii) in the case of subsection (1)(c) includes a former director and shadow director; and
(iii) in the case of subsection (1)(d) and (e), includes a shadow director;

(b) a reference to a body corporate controlled by a director has the meaning given by section 492; and
(c) a reference to an entity connected with a director has the meaning given by section 486.

(3) Despite subsection (1)(d), the financial statements for a financial year are not required to contain the information
prescribed by the Regulation for the purposes of that subsection if the company complies with the requirements
prescribed by the Regulation for the purposes of this subsection.



Cap 622 - Companies Ordinance 143

(4) The notes to any financial statements must also comply with other requirements prescribed by the Regulation.
(5) A person who is, or has been during the preceding 5 years, a director or shadow director of a company must give

notice to the company of any matter that—
(a) is prescribed by the Regulation;
(b) relates to the person; and
(c) is necessary for the purposes of subsection (1).

(6) A person who contravenes subsection (5) commits an offence and is liable to a fine at level 5.

Section: 384 Register of particulars not required to be contained in

notes to financial statements
L.N. 163 of 2013 03/03/2014



(1) A company must enter into a register the particulars that would, but for section 383(3), be required by section
383(1)(d) to be contained in the notes to the financial statements for a financial year.

(2) A company must keep the particulars in the register for at least 10 years after the date on which the particulars
are entered.

(3) If a company contravenes subsection (1) or (2), the company, and every responsible person of the company,
commit an offence, and each is liable to a fine at level 4.


Section: 385 Place where register mentioned in section 384 must be kept L.N. 163 of 2013 03/03/2014


(1) A company must keep the register mentioned in section 384 at—
(a) the company’s registered office; or
(b) a place prescribed by regulations made under section 657.

(2) A company must notify the Registrar of the place at which the register mentioned in section 384 is kept. The
notice must be in the specified form and be delivered to the Registrar for registration within 15 days after the
register is first kept at that place.

(3) A company must notify the Registrar of any change (other than a change of the address of the company’s
registered office) in the place at which the register mentioned in section 384 is kept. The notice must be in the
specified form and be delivered to the Registrar for registration within 15 days after the change.

(4) Subsection (2) does not require a company to notify the Registrar of the place at which the register mentioned in
section 384 is kept—
(a) if, in the case of a register that came into existence on or after the commencement date* of this section, it

has at all times been kept at the company’s registered office; or
(b) if—

(i) immediately before that commencement date*, the company kept a register for the purposes of section
161BB of the predecessor Ordinance; and

(ii) on and after that commencement date*, that register is kept as a register for the purposes of section 384
at the place at which that registrar was kept immediately before that commencement date*.

(5) If a company contravenes subsection (1), (2) or (3), the company, and every responsible person of the company,
commit an offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine
of $700 for each day during which the offence continues.

___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 386 Right to inspect and request copy L.N. 163 of 2013 03/03/2014


(1) A member of a company is entitled, on request made in the prescribed manner and without charge, to inspect the
register kept by the company under section 384 in accordance with regulations made under section 657.

(2) A member of a company is entitled, on request and on payment of a prescribed fee, to be provided with a copy
of the register kept by the company under section 384, or any part of it, in accordance with regulations made
under section 657.

(3) In this section—
prescribed(訂明) means prescribed by regulations made under section 657.



Cap 622 - Companies Ordinance 144


Section: 387 Statement of financial position to be approved and signed L.N. 163 of 2013 03/03/2014


(1) A statement of financial position that forms part of any financial statements—
(a) must be approved by the directors; and
(b) must be signed—

(i) by 2 directors on the directors’ behalf; or
(ii) in the case of a company having only one director, by the director.

(2) Every copy of a statement of financial position that forms part of any financial statements laid before a company
in general meeting under section 429, or sent to a member under section 430 or otherwise circulated, published
or issued by the company, must state the name of the person who signed the statement on the directors’ behalf.

(3) If, as respects any financial statements a copy of which is circulated, published or issued by the company,
subsection (1) is contravened, the company, and every responsible person of the company, commit an offence,
and each is liable to a fine at level 4.

(4) If subsection (2) is contravened, the company, and every responsible person of the company, commit an offence,
and each is liable to a fine at level 4.


Part:
Division:
Subdivision:

9
4
4

Directors’ Report L.N. 163 of 2013 03/03/2014





Section: 388 Directors must prepare directors’ report L.N. 163 of 2013 03/03/2014


(1) A company’s directors must prepare for each financial year a report that—
(a) complies with sections 390 and 543(2) and Schedule 5;
(b) contains the information prescribed by the Regulation; and
(c) complies with other requirements prescribed by the Regulation.

(2) Despite subsection (1), if the company is a holding company in a financial year, and the directors prepare annual
consolidated financial statements for the financial year, the directors must instead prepare for the financial year a
consolidated report that—
(a) complies with sections 390 and 543(2) and Schedule 5;
(b) contains the information prescribed by the Regulation; and
(c) complies with other requirements prescribed by the Regulation.

(3) Subsection (1) or (2) does not require the directors’ report for a financial year to comply with Schedule 5 if—
(a) the company falls within the reporting exemption for the financial year;
(b) the company is a wholly owned subsidiary of another body corporate in the financial year; or
(c) the company is a private company that does not fall within the reporting exemption for the financial year,

and a special resolution is passed by the members to the effect that the company is not to prepare a business
review required by that Schedule for the financial year.

(4) A resolution for the purposes of subsection (3)(c)—
(a) may be passed in relation to—

(i) a financial year; or
(ii) a financial year and every subsequent financial year;

(b) must be passed at least 6 months before the end of the financial year to which the directors’ report relates;
and

(c) may only be revoked by a special resolution.
(5) Subsections (1), (2) and (3) have effect subject to section 389.
(6) A director of a company who fails to take all reasonable steps to secure compliance with subsection (1) or (2)

commits an offence and is liable to a fine of $150000.
(7) A director of a company who wilfully fails to take all reasonable steps to secure compliance with subsection (1)

or (2) commits an offence and is liable to a fine of $150000 and to imprisonment for 6 months.
(8) If a person is charged with an offence under subsection (6), it is a defence to establish that the person had



Cap 622 - Companies Ordinance 145

reasonable grounds to believe, and did believe, that a competent and reliable person—
(a) was charged with the duty of ensuring that subsection (1) or (2) (as the case may be) was complied with;

and
(b) was in a position to discharge that duty.


Section: 389 Provisions supplementary to section 388 L.N. 163 of 2013 03/03/2014


(1) This section applies if at any time during a financial year of a private company—
(a) the company registers any transfer of shares in the company in contravention of the restrictions imposed by

the company’s articles;
(b) the membership of the company exceeds the number specified in section 11(1)(a)(ii); or
(c) the company makes an invitation to the public to subscribe for any shares or debentures of the company.

(2) The directors’ report for the financial year is required to comply with section 388 as if the company were a
public company.

(3) The Court may, on the application of the company or a person interested in the matter, order that subsections (1)
and (2) do not apply.

(4) The Court may make the order on any terms and conditions that the Court thinks just and expedient.
(5) The Court must not make the order unless the Court is satisfied that—

(a) the occurrence of the event mentioned in subsection (1)(a), (b) or (c) was accidental;
(b) it was due to inadvertence or to some other sufficient cause that the event occurred; or
(c) it is just and equitable to grant the relief on other grounds.


Section: 390 Contents of directors’ report: general L.N. 163 of 2013 03/03/2014


(1) A directors’ report for a financial year must contain—
(a) the name of every person who was a director of the company—

(i) during the financial year; or
(ii) during the period beginning with the end of the financial year and ending on the date of the report; and

(b) the principal activities of the company in the course of the financial year.
(2) A directors’ report must contain particulars of any other matter—

(a) that is material for the members’ appreciation of the state of the company’s affairs; and
(b) the disclosure of which will not, in the directors’ opinion, be harmful to the business of the company.

(3) This section has effect in relation to a directors’ report required to be prepared under section 388(2) as if a
reference to the company in subsection (1) or (2) were a reference to—
(a) the company; and
(b) the subsidiary undertakings included in the annual consolidated financial statements for the financial year.


Section: 391 Directors’ report to be approved and signed L.N. 163 of 2013 03/03/2014


(1) A directors’ report—
(a) must be approved by the directors; and
(b) must be signed on the directors’ behalf by a director or by the company secretary.

(2) Every copy of a directors’ report laid before a company in general meeting under section 429, or sent to a
member under section 430 or otherwise circulated, published or issued by the company, must state the name of
the person who signed the report on the directors’ behalf.

(3) If, as respects any directors’ report a copy of which is circulated, published or issued by the company,
subsection (1) is contravened, the company, and every responsible person of the company, commit an offence,
and each is liable to a fine at level 4.

(4) If subsection (2) is contravened, the company, and every responsible person of the company, commit an offence,
and each is liable to a fine at level 4.





Cap 622 - Companies Ordinance 146

Part:
Division:

9
5

Auditor and Auditor’s Report L.N. 163 of 2013 03/03/2014





Part:
Division:
Subdivision:

9
5
1

Preliminary L.N. 163 of 2013 03/03/2014





Section: 392 Interpretation L.N. 163 of 2013 03/03/2014


In this Division—
appointment period (委任期) , in relation to a financial year, means the period of 28 days beginning on whichever is

the earlier of the following—
(a) the date on which a copy of the reporting documents for the previous financial year is sent or provided to

every member of the company under section 430(3) or 612(1)(b) (as the case may be);
(b) the last date on which a copy of the reporting documents for the previous financial year must be sent or

provided to every member of the company under section 430(3) or 612(1)(b) (as the case may be);
cessation statement (停任陳述) means a statement given under section 422(1), (2) or (3) or 423(2)(a);
practice unit (執業單位) has the meaning given by section 2(1) of the Professional Accountants Ordinance (Cap 50);
statement of circumstance (情況陳述) means a statement given under section 424(a) or 425(1)(a).

Part:
Division:
Subdivision:

9
5
2

Appointment of Auditor L.N. 163 of 2013 03/03/2014





Section: 393 Eligibility for appointment L.N. 163 of 2013 03/03/2014


(1) Only a practice unit is eligible for appointment as auditor of a company under this Subdivision.
(2) The following are disqualified for appointment as auditor of a company under this Subdivision—

(a) a person who is an officer or employee of the company;
(b) a person who is a partner or employee of a person mentioned in paragraph (a);
(c) a person who—

(i) is, by virtue of paragraph (a) or (b), disqualified for appointment as auditor of any other undertaking
that is a subsidiary undertaking, or a parent undertaking, of the company or is a subsidiary undertaking
of that parent undertaking; or

(ii) would be so disqualified if the undertaking were a company.
(3) In this section, a reference to an officer or employee of a company excludes an auditor of the company.

Section: 394 Auditor must be appointed for each financial year L.N. 163 of 2013 03/03/2014


(1) An auditor must be appointed for each financial year of a company.
(2) An auditor may be appointed only under this Subdivision.

Section: 395 Appointment of first auditor by directors L.N. 163 of 2013 03/03/2014


(1) This section applies to—
(a) a company formed and registered under this Ordinance; and
(b) a company formed and registered under a provision of the predecessor Ordinance having a continuing effect

under Schedule 11 or by virtue of section 23 of the Interpretation and General Clauses Ordinance (Cap 1).
(2) If the company is required to hold an annual general meeting in accordance with section 610 in respect of its first

financial year, the directors may appoint the auditor of the company for that first financial year at any time



Cap 622 - Companies Ordinance 147

before the annual general meeting.
(3) If, by virtue of section 612(1) or (2), the company is not required to hold an annual general meeting in

accordance with section 610 in respect of its first financial year, the directors may appoint the auditor of the
company for that first financial year at any time before the appointment period in relation to the next financial
year.


Section: 396 Appointment of auditor by company members L.N. 163 of 2013 03/03/2014


(1) A company must appoint the auditor of the company for a financial year by a resolution passed at the annual
general meeting held in respect of the previous financial year.

(2) Subsection (1) does not apply to a company that, by virtue of section 612(2), is not required to hold an annual
general meeting in accordance with section 610 in respect of the previous financial year.

(3) A company must appoint the auditor of the company for a financial year by a resolution passed at a general
meeting if—
(a) by virtue of section 612(2), it is not required to hold an annual general meeting in accordance with section

610 in respect of the previous financial year; and
(b) no person is deemed to be reappointed as auditor of the company for the financial year under section 403.

(4) An appointment under subsection (3) must be made before the end of the appointment period in relation to the
financial year.

(5) If, at the annual general meeting held in respect of the previous financial year, a company has not appointed the
auditor of the company for a financial year, the company must make the appointment by a resolution passed at
another general meeting.

(6) A company to which section 395 applies may, by a resolution passed at a general meeting, appoint the auditor of
the company for its first financial year if the directors have not done so under that section.


Section: 397 Appointment to fill casual vacancy L.N. 163 of 2013 03/03/2014


(1) The directors may appoint a person to fill a casual vacancy in the office of auditor of the company.
(2) If the directors have not done so within one month after the casual vacancy occurs, the members may, by a

resolution passed at a general meeting, appoint a person to fill the casual vacancy.

Section: 398 Appointment of auditor by Court L.N. 163 of 2013 03/03/2014


(1) The Court may, on application by a member of a company, appoint the auditor of the company for a financial
year if—
(a) in the case of a company required to hold an annual general meeting in accordance with section 610 in

respect of the previous financial year—
(i) at the annual general meeting, no person has been appointed as auditor of the company for the

financial year; or
(ii) an annual general meeting has not been held in accordance with that section; or

(b) in the case of a company not required to hold an annual general meeting in accordance with section 610 in
respect of the previous financial year by virtue of section 612(2)—
(i) at the end of the appointment period in relation to the financial year, no person has been appointed as

auditor of the company for the financial year; and
(ii) no person is deemed to be reappointed as auditor of the company for the financial year under section

403.
(2) The Court may, on application by a member of a company to which section 395 applies, appoint the auditor of

the company for its first financial year if an appointment has not been made under sections 395(2) or (3) and
396(6).

(3) The Court may, on application by a member of a company, appoint a person to fill a casual vacancy in the office
of auditor of the company if an appointment has not been made under section 397.





Cap 622 - Companies Ordinance 148

Section: 399 Effect of appointing a firm as auditor L.N. 163 of 2013 03/03/2014


If a firm is appointed, by the firm name, as auditor of a company, the appointment is to be regarded as an appointment
of those persons who—

(a) are the partners in the firm from time to time during the currency of the appointment; and
(b) are eligible, and not disqualified, for appointment as auditor of the company under this Subdivision.


Section: 400 Special notice required for resolution for appointing

auditor in some cases
L.N. 163 of 2013 03/03/2014



(1) Special notice is required for—
(a) a resolution proposed for the purposes of section 396(1), (3) or (5) for appointing a person as auditor in

place of a specified incumbent; and
(b) a resolution proposed for the purposes of section 397(2).

Note—
See also section 578 which sets out the requirements regarding special notice.
(2) Special notice is also required for a resolution proposed for the purposes of section 396(1), (3) or (5) for

appointing a specified incumbent as auditor if that incumbent holds office by virtue of an appointment by the
directors to fill a casual vacancy under section 397(1).

(3) On receipt of a special notice, the company must send a copy of it—
(a) to the person proposed to be appointed as auditor; and
(b) in the case of—

(i) a proposed appointment under section 396(1), (3) or (5) of a person in place of a specified incumbent,
to that incumbent; or

(ii) a proposed appointment under section 396(1), (3) or (5) of a specified incumbent who holds office by
virtue of an appointment under section 397(1) or (2) to fill a casual vacancy caused by a resignation, to
the person who resigned.

(4) In this section—
specified incumbent(指明在任人) means—

(a) the person who is the last auditor of the company and whose term of office as auditor has expired; or
(b) the person whose term of office as auditor will expire—

(i) at the end of the general meeting; or
(ii) at the end of the appointment period in relation to the financial year concerned.


Section: 401 Copies of written resolution for appointment must be sent

to new and old auditors
L.N. 163 of 2013 03/03/2014



(1) This section applies if an appointment of an auditor specified in subsection (2) is proposed to be effected by a
written resolution of the members of a company.

(2) The appointment is—
(a) an appointment under section 396(1), (3) or (5) of a person in place of a specified incumbent; or
(b) an appointment under section 396(1), (3) or (5) of a specified incumbent who holds office by virtue of an

appointment under section 397(1) or (2) to fill a casual vacancy caused by a resignation.
(3) On receipt of a copy of the proposed resolution, the company must send a copy of it—

(a) to the person proposed to be appointed as auditor; and
(b) in the case of—

(i) subsection (2)(a), to the specified incumbent; or
(ii) subsection (2)(b), to the person who resigned.

(4) If a company contravenes subsection (3), the written resolution is ineffective.
(5) In this section—
specified incumbent(指明在任人) means—

(a) the person who is the last auditor of the company and whose term of office as auditor has expired; or
(b) the person whose term of office as auditor will expire at the end of the appointment period in relation to the



Cap 622 - Companies Ordinance 149

financial year concerned.

Section: 402 Terms of office of auditor L.N. 163 of 2013 03/03/2014


(1) A person appointed as auditor of a company holds office in accordance with the terms of the appointment.
(2) Despite subsection (1)—

(a) a person appointed as auditor of a company does not take office until the previous auditor’s appointment
is terminated; and

(b) a person appointed as auditor of a company for a financial year under section 395, 396, 397 or 398 holds
office until—
(i) if the company holds an annual general meeting in accordance with section 610 in respect of the

financial year, the end of the annual general meeting;
(ii) if, by virtue of section 612(1), the company does not hold an annual general meeting in accordance

with section 610 in respect of the financial year, the date of the written resolution passed for the
purposes of section 612(1); or

(iii) if, by virtue of section 612(2), the company does not hold an annual general meeting in accordance
with section 610 in respect of the financial year, the end of the appointment period in relation to the
next financial year.


Section: 403 Person deemed to be reappointed as auditor L.N. 163 of 2013 03/03/2014


(1) If—
(a) by virtue of section 612(2), a company is not required to hold an annual general meeting in accordance with

section 610 in respect of a financial year; and
(b) at the end of the appointment period in relation to the next financial year, no person has been appointed as

auditor of the company for that next financial year,
the person who is the auditor of the company as at the end of that appointment period is deemed to be

reappointed, at that time, as auditor of the company for that next financial year on the same terms of
appointment.

(2) Despite subsection (1), the person is not deemed to be reappointed as auditor of the company for the next
financial year if—
(a) the person was appointed as auditor under section 395 or 397(1);
(b) the company’s articles require an actual appointment;
(c) before the person is deemed to be reappointed under that subsection, the members have by a resolution

passed at a general meeting resolved that the person should not be reappointed as auditor for that next
financial year;

(d) the person declines the reappointment in a written notice sent to the company at least 14 days before the end
of the appointment period in relation to that next financial year; or

(e) members representing at least the requisite percentage of the voting rights of all the members who would be
entitled to vote on a resolution that the person should not be reappointed give the company a notice
complying with subsection (5).

(3) Special notice is required for a resolution proposed for the purposes of subsection (2)(c).
Note—
See also section 578 which sets out the requirements regarding special notice.
(4) On receipt of a special notice, the company must send a copy of it to the person proposed not to be reappointed.
(5) A notice for the purposes of subsection (2)(e)—

(a) must state that the person should not be reappointed;
(b) must be authenticated by the member or members giving it;
(c) must be delivered to the company in hard copy form or electronic form; and
(d) must be received by the company before the end of the accounting reference period immediately preceding

the time when the reappointment would have effect.
(6) This section does not affect the operation of Subdivision 6.
(7) In ascertaining the amount of any compensation or damages payable to a person on ceasing to hold office of

auditor for any reason, no account is to be taken of any loss of the opportunity of being deemed to be



Cap 622 - Companies Ordinance 150

reappointed as auditor under this section.
(8) In this section—
requisite percentage(所需百分比) means 5%, or a lower percentage specified for the purposes of this section in the

company’s articles.

Section: 404 Auditor’s remuneration L.N. 163 of 2013 03/03/2014


(1) The remuneration of an auditor of a company appointed by the members may be fixed—
(a) by a resolution passed at a general meeting; or
(b) in the manner specified in such a resolution.

(2) The remuneration of an auditor of a company appointed by the directors—
(a) may be fixed by the directors when making the appointment; or
(b) if it has not been fixed by the directors, may be fixed—

(i) by a resolution passed at a general meeting; or
(ii) in the manner specified in such a resolution.

(3) The remuneration of an auditor of a company appointed by the Court—
(a) may be fixed by the Court when making the appointment; or
(b) if it has not been fixed by the Court, may be fixed—

(i) by a resolution passed at a general meeting; or
(ii) in the manner specified in such a resolution.

(4) In this section—
remuneration(酬金), in relation to an auditor of a company, includes any sum paid by the company in respect of the

expenses of the auditor.

Part:
Division:
Subdivision:

9
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3

Auditor’s Report L.N. 163 of 2013 03/03/2014





Section: 405 Auditor’s duty to report L.N. 163 of 2013 03/03/2014


A company’s auditor must prepare a report for the members on any financial statements prepared by the directors, a
copy of which is laid before the company in general meeting under section 429, or is sent to a member under section
430 or otherwise circulated, published or issued by the company, during the auditor’s term of office.

Section: 406 Auditor’s opinion on financial statements, directors’

report, etc.
L.N. 163 of 2013 03/03/2014



(1) An auditor’s report must state, in the auditor’s opinion—
(a) whether the financial statements have been properly prepared in compliance with this Ordinance; and
(b) in particular, whether the financial statements—

(i) in the case of annual financial statements of a company that does not fall within the reporting
exemption for the financial year, give a true and fair view of the financial position and financial
performance of the company as required by section 380; or

(ii) in the case of annual consolidated financial statements of a company that does not fall within the
reporting exemption for the financial year, give a true and fair view of the financial position and
financial performance of the company and all the subsidiary undertakings as required by section 380.

(2) If a company’s auditor is of the opinion that the information in a directors’ report for a financial year is not
consistent with the financial statements for the financial year, the auditor—
(a) must state that opinion in the auditor’s report; and
(b) may bring that opinion to the members’ attention at a general meeting.





Cap 622 - Companies Ordinance 151

Section: 407 Auditor’s opinion on other matters L.N. 163 of 2013 03/03/2014


(1) In preparing an auditor’s report, the auditor must carry out an investigation that will enable the auditor to form
an opinion as to—
(a) whether adequate accounting records have been kept by the company; and
(b) whether the financial statements are in agreement with the accounting records.

(2) A company’s auditor must state the auditor’s opinion in the auditor’s report if the auditor is of the opinion
that—
(a) adequate accounting records have not been kept by the company; or
(b) the financial statements are not in agreement with the accounting records in any material respect.

(3) If a company’s auditor fails to obtain all the information or explanations that, to the best of the auditor’s
knowledge and belief, are necessary and material for the purpose of the audit, the auditor must state that fact in
the auditor’s report.

(4) If the financial statements do not comply with section 383(1), the auditor must include in the auditor’s report,
so far as the auditor is reasonably able to do so, a statement giving the particulars that are required to be, but
have not been, contained in the financial statements.


Section: 408 Offences relating to contents of auditor’s report L.N. 163 of 2013 03/03/2014


(1) Every person specified in subsection (2) commits an offence if the person knowingly or recklessly causes a
statement required to be contained in an auditor’s report under section 407(2)(b) or (3) to be omitted from the
report.

(2) The persons are—
(a) if the auditor who prepares the auditor’s report is a natural person—

(i) the auditor; and
(ii) every employee and agent of the auditor who is eligible for appointment as auditor of the company;

(b) if the auditor who prepares the auditor’s report is a firm, every partner, employee and agent of the auditor
who is eligible for appointment as auditor of the company; or

(c) if the auditor who prepares the auditor’s report is a body corporate, every officer, member, employee and
agent of the auditor who is eligible for appointment as auditor of the company.

(3) A person who commits an offence under subsection (1) is liable to a fine of $150000.

Section: 409 Auditor’s reports to be signed L.N. 163 of 2013 03/03/2014


(1) An auditor’s report must be signed—
(a) if the auditor is a natural person, by the auditor; or
(b) if the auditor is a firm or body corporate, by a natural person authorized to sign the auditor’s name on the

auditor’s behalf.
(2) An auditor’s report must state the auditor’s name.
(3) Every copy of an auditor’s report laid before a company in general meeting under section 429, or sent to a

member under section 430 or otherwise circulated, published or issued by the company, must state the auditor’
s name.

(4) If subsection (3) is contravened, the company, and every responsible person of the company, commit an offence,
and each is liable to a fine at level 4.


Part:
Division:
Subdivision:

9
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4

Auditor’s Rights and Privileges, etc. L.N. 163 of 2013 03/03/2014







Cap 622 - Companies Ordinance 152

Section: 410 Qualified privileges L.N. 163 of 2013 03/03/2014


(1) In the absence of malice, an auditor of a company is not liable to any action for defamation at the suit of any
person in respect of any statement made by the auditor in the course of performing duties as auditor of the
company.

(2) In the absence of malice, a person is not liable to any action for defamation at the suit of any person in respect of
the publication of any document—
(a) prepared by an auditor of a company in the course of performing duties as auditor of the company; and
(b) required by this Ordinance—

(i) to be delivered to the Registrar; or
(ii) to be sent to any member of the company or any other person.

(3) This section does not limit or affect any other right, privilege or immunity that an auditor of a company, or any
other person, has as defendant in an action for defamation.

(4) In this section, a reference to performing duties as auditor of a company includes—
(a) making a cessation statement, giving the statement to the company, and requesting the company to comply

with the requirement specified in section 422(5) in relation to the statement; and
(b) making a statement of circumstances, and giving the statement to the company.


Section: 411 Rights in relation to general meeting L.N. 163 of 2013 03/03/2014


(1) A person appointed as auditor of a company is entitled—
(a) to attend any of the company’s general meetings; and
(b) to be heard, at any of the company’s general meetings, on any part of the business of the meeting that

concerns the person as auditor of the company.
(2) A person’s entitlement under subsection (1)(a) or (b) is, if the person is a firm or body corporate, exercisable

by a natural person authorized by the person to act as the person’s representative at the meeting.

Section: 412 Rights in relation to information L.N. 163 of 2013 03/03/2014


(1) An auditor of a company has a right of access to the company’s accounting records.
(2) An auditor of a company may require a person that is a related entity of the company, or was a related entity of

the company at the time to which the information or explanation relates, to provide the auditor with any
information or explanation that the auditor reasonably requires for the performance of the duties as auditor of the
company.

(3) If an auditor has required a person to provide any information or explanation under subsection (2), the person
must provide the information or explanation as soon as practicable after being required.

(4) If a subsidiary undertaking of a company is not a company incorporated in Hong Kong, an auditor of the
company may require the company to obtain from any of the persons specified in subsection (5) any information
or explanation that the auditor reasonably requires for the performance of the duties as auditor of the company.

(5) The persons are—
(a) the subsidiary undertaking;
(b) a person who—

(i) is an officer or auditor of the subsidiary undertaking; or
(ii) was an officer or auditor of the subsidiary undertaking at the time to which the information or

explanation relates; and
(c) a person who—

(i) holds or is accountable for any of the subsidiary undertaking’s accounting records; or
(ii) held or was accountable for the subsidiary undertaking’s accounting records at the time to which the

information or explanation relates.
(6) If an auditor has required a company to obtain any information or explanation from a person under subsection

(4), the company must take all reasonable steps to obtain the information or explanation as soon as practicable
after being required.

(7) A statement made by a person in response to a requirement under subsection (2) or (4) may not be used in



Cap 622 - Companies Ordinance 153

evidence against the person in any criminal proceedings except proceedings for an offence under section 413.
(8) This section does not compel a person to disclose information in respect of which a claim to legal professional

privilege could be maintained in legal proceedings.
(9) In this section—
related entity(有關連實體), in relation to a company, means—

(a) an officer of the company;
(b) a subsidiary undertaking of the company that is a company incorporated in Hong Kong;
(c) an officer or auditor of such a subsidiary undertaking; or
(d) a person holding or accountable for any of the accounting records of the company or such a subsidiary

undertaking.

Section: 413 Offences relating to section 412 L.N. 163 of 2013 03/03/2014


(1) A person who contravenes section 412(3) commits an offence and is liable to a fine at level 4 and, in the case of
a continuing offence, to a further fine of $700 for each day during which the offence continues.

(2) If a person is charged with an offence under subsection (1), it is a defence to establish that it was not reasonably
practicable for the person to provide the information or explanation.

(3) A person commits an offence if—
(a) the person makes a statement to an auditor of a company that conveys or purports to convey any

information or explanation that the auditor requires, or is entitled to require, under section 412(2) or (4);
(b) the statement is misleading, false or deceptive in a material particular; and
(c) the person knows that, or is reckless as to whether or not, the statement is misleading, false or deceptive in a

material particular.
(4) A person who commits an offence under subsection (3) is liable—

(a) on conviction on indictment to a fine of $150000 and to imprisonment for 2 years; or
(b) on summary conviction to a fine at level 5 and to imprisonment for 6 months.

(5) If a company contravenes section 412(6), the company, and every responsible person of the company, commit
an offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine of $700
for each day during which the offence continues.

(6) If a person is charged with an offence under subsection (5) for failing to obtain any information or explanation
from a subsidiary undertaking or another person, it is a defence to establish that—
(a) it would be an offence under the law of a place outside Hong Kong for the subsidiary undertaking or that

other person to provide the information or explanation to the defendant; and
(b) the subsidiary undertaking or that other person did not provide the information or explanation to the

defendant on that ground.
(7) This section does not affect an auditor’s right to apply for an injunction to enforce any of the auditor’s rights

under section 412.

Section: 414 Auditor may provide information to incoming auditor

without contravening duties
L.N. 163 of 2013 03/03/2014



(1) A person who is or has been an auditor of a company does not contravene any duty owed by the person as such
auditor in law by reason only that the person gives workrelated information to another person—
(a) who is an auditor of the company;
(b) who has been appointed as auditor of the company but whose term of office has not yet begun; or
(c) to whom the company has offered the position as auditor but who has not yet been appointed.

(2) Subsection (1) does not apply unless the person who gives work-related information to another person—
(a) does so in good faith; and
(b) reasonably believes that the information is relevant to the performance of that other person’s duties as

auditor of the company.
(3) In this section—
work-related information(工作資料), in relation to a person who is or has been an auditor of a company, means

information of which the person became aware in the capacity of auditor.



Cap 622 - Companies Ordinance 154


Part:
Division:
Subdivision:

9
5
5

Auditor’s Liability L.N. 163 of 2013 03/03/2014





Section: 415 Avoidance of provisions protecting auditor from liability L.N. 163 of 2013 03/03/2014


(1) This section applies to a provision contained in a company’s articles, or in a contract entered into by a
company, or otherwise.

(2) If a provision purports to exempt an auditor of the company from any liability that would otherwise attach to the
auditor in connection with any negligence, default, breach of duty or breach of trust occurring in the course of
performance of the duties as auditor in relation to the company, the provision is void.

(3) If, by a provision, the company directly or indirectly provides an indemnity for an auditor of the company, or an
auditor of an associated company of the company, against any liability attaching to the auditor in connection
with any negligence, default, breach of duty or breach of trust occurring in the course of performance of the
duties as auditor in relation to the company or associated company (as the case may be), the provision is void.

(4) Subsection (3) does not prevent a company from taking out and keeping in force insurance for an auditor of the
company, or an auditor of an associated company of the company, against—
(a) any liability to any person attaching to the auditor in connection with any negligence, default, breach of

duty or breach of trust (except for fraud) occurring in the course of performance of the duties of auditor in
relation to the company or associated company (as the case may be); or

(b) any liability incurred by the auditor in defending any proceedings (whether civil or criminal) taken against
the auditor for any negligence, default, breach of duty or breach of trust (including fraud) occurring in the
course of performance of the duties of auditor in relation to the company or associated company (as the case
may be).

(5) Subsection (3) does not prevent a company from indemnifying an auditor of the company against any liability
incurred by the auditor—
(a) in defending any proceedings (whether civil or criminal) in which judgment is given in the auditor’s

favour or the auditor is acquitted; or
(b) in connection with an application under section 903 or 904 in which relief is granted to the auditor by the

Court.
(6) In this section, a reference to performance of the duties of auditor includes—

(a) making a cessation statement, giving the statement to the company, and requesting the company to comply
with the requirement specified in section 422(5) in relation to the statement; and

(b) making a statement of circumstances, and giving the statement to the company.

Part:
Division:
Subdivision:

9
5
6

Termination of Auditor’s Appointment L.N. 163 of 2013 03/03/2014





Section: 416 When appointment is terminated L.N. 163 of 2013 03/03/2014


(1) A person’s appointment as auditor of a company is terminated if—
(a) the term of office expires;
(b) the person resigns from office under section 417(1);
(c) the person ceases to be auditor under section 418;
(d) the person is removed from office under section 419(1); or
(e) a winding up order is made in respect of the company.

(2) Where a firm is appointed, by the firm name, as auditor of a company, the appointment is also terminated if
every person who is regarded as being appointed as auditor by virtue of section 399—
(a) ceases to be a partner in the firm before the term of office expires; or



Cap 622 - Companies Ordinance 155

(b) ceases to be eligible, or becomes disqualified, for appointment as auditor of the company under Subdivision
2 before the term of office expires.

(3) Where a body corporate is appointed as auditor of a company, the appointment is also terminated if the body
corporate is dissolved.

(4) If 2 or more persons are appointed as auditor of a company, and the appointment of any of the persons is
terminated, the termination does not affect the appointment of the other person.


Section: 417 Resignation of auditor L.N. 163 of 2013 03/03/2014


(1) A person may resign from the office of auditor by giving the company a notice in writing that is accompanied by
a statement required to be given under section 424.

(2) Such a person’s term of office expires—
(a) at the end of the day on which notice is given to the company under subsection (1); or
(b) if the notice specifies a time on a later day for the purpose, at that time.

(3) Within 15 days beginning on the date on which a company receives a notice of resignation, the company must
deliver a notification in the specified form of that fact to the Registrar for registration.

(4) If a company contravenes subsection (3), the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 5 and to imprisonment for 6 months and, in the case of a continuing
offence, to a further fine of $1000 for each day during which the offence continues.


Section: 418 Cessation of office L.N. 163 of 2013 03/03/2014


(1) If, while holding office as auditor of a company, a person ceases to be eligible, or becomes disqualified, for
appointment as auditor of the company under Subdivision 2, the person—
(a) immediately ceases to be auditor of the company; and
(b) must notify the company of the cessation in writing within 14 days from the date of the cessation.

(2) A person who contravenes subsection (1)(b) commits an offence and is liable to a fine at level 4.
(3) If a person is charged with an offence under subsection (2), it is a defence to establish that the person did not

know, and had no reason to believe, that the person had ceased to be eligible, or had become disqualified, for
appointment as auditor of the company under Subdivision 2.


Section: 419 Company may remove auditor L.N. 163 of 2013 03/03/2014


(1) A company may by an ordinary resolution passed at a general meeting remove a person from the office of
auditor despite—
(a) any agreement between the person and the company; or
(b) anything in the company’s articles.

(2) Special notice is required for an ordinary resolution proposed for the purposes of subsection (1).
Note—
See also section 578 which sets out the requirements regarding special notice.
(3) On receipt of a special notice, the company must send a copy of it to the person proposed to be removed.
(4) If an ordinary resolution for the removal is passed, the company must deliver a notice in the specified form of

that fact to the Registrar for registration within 15 days beginning on the date on which it is passed.
(5) If a company contravenes subsection (4), the company, and every responsible person of the company, commit an

offence, and each is liable to a fine at level 3 and, in the case of a continuing offence, to a further fine of $300
for each day during which the offence continues.


Section: 420 Removed auditor not deprived of compensation, damages,

etc.
L.N. 163 of 2013 03/03/2014



Section 419 does not deprive a person of compensation or damages payable to the person in respect of the person
ceasing—
(a) to hold office as auditor of a company; or
(b) to hold any appointment that is terminated with the termination of the person’s appointment as auditor.



Cap 622 - Companies Ordinance 156


Part:
Division:
Subdivision:

9
5
7

Outgoing Auditor’s Right to Requisition Meeting of
Company and Make Representation

L.N. 163 of 2013 03/03/2014





Section: 421 Resigning auditor may requisition meeting L.N. 163 of 2013 03/03/2014


(1) If a person gives under section 417(1) a notice of resignation that is accompanied by a statement of
circumstances given under section 424(a), the person may, by another notice given to the company with the
notice of resignation, require the directors to convene a general meeting of the company for receiving and
considering the explanation of the circumstances connected with the resignation that the person places before the
meeting.

(2) Within 21 days beginning on the date on which the company receives that other notice, the directors must
convene a general meeting for a date falling within 28 days after the date on which the notice convening the
meeting is given.

(3) If the directors of a company contravene subsection (2), every director who failed to take all reasonable steps to
secure that a general meeting was convened as required by that subsection commits an offence and is liable—
(a) on conviction on indictment to a fine of $150000 and to imprisonment for 2 years; or
(b) on summary conviction to a fine at level 5 and to imprisonment for 6 months.


Section: 422 Cessation statement in relation to, and attendance at,

general meeting
L.N. 163 of 2013 03/03/2014



(1) If a general meeting is convened under section 421(2), the person who resigns from the office of auditor—
(a) may give the company a statement by the person that sets out in reasonable length the circumstances

surrounding the resignation;
(b) may request the company to comply with the requirement specified in subsection (5) in relation to the

statement; and
(c) is entitled—

(i) to be given every notice of, and every other item of communication, relating to the general meeting,
that a member of the company is entitled to be given;

(ii) to attend the general meeting; and
(iii) to be heard at the general meeting on any part of the business of the meeting that concerns the person

as auditor or former auditor of the company.
(2) If special notice is given under section 400(1)(a) for a resolution for appointing a person as auditor in place of

another person, that other person—
(a) may give the company a statement by that other person that sets out in reasonable length the circumstances

surrounding the termination of the appointment as auditor;
(b) may request the company to comply with the requirement specified in subsection (5) in relation to the

statement; and
(c) is entitled—

(i) to be given every notice of, and every other item of communication, relating to the general meeting,
that a member of the company is entitled to be given;

(ii) to attend the general meeting; and
(iii) to be heard at the general meeting on any part of the business of the meeting that concerns the person

as auditor or former auditor of the company.
(3) If special notice is given under section 419(2) for an ordinary resolution for removing a person from the office of

auditor, the person—
(a) may give the company a statement by the person that sets out in reasonable length the circumstances

surrounding the proposed removal; and
(b) may request the company to comply with the requirement specified in subsection (5) in relation to the

statement.
(4) A person’s entitlement under subsection (1)(c)(ii) or (iii) or (2)(c)(ii) or (iii) is, if the person is a firm or body



Cap 622 - Companies Ordinance 157

corporate, exercisable by a natural person authorized by the person to act as the person’s representative at the
meeting.

(5) The requirement specified for the purposes of subsection (1)(b), (2)(b) or (3)(b) is—
(a) if the company receives the statement on a date that is more than 2 days before the last day on which notice

may be given under section 571(1) to call the general meeting, the requirement—
(i) to state, in every notice of the meeting given to the members, that the statement has been made; and
(ii) to send a copy of the statement to every member to whom a notice of the meeting is or has been given;

or
(b) if the company has not sent a copy of the statement to every member to whom a notice of the meeting is or

has been given, the requirement to ensure that the statement is read out at the meeting.
(6) Unless exempted by an order under subsection (7), the company must comply with a request made under

subsection (1)(b), (2)(b) or (3)(b).
(7) On application by the company or by anyone who claims to be aggrieved, the Court may order that the company

is exempted from complying with the request, if it is satisfied that the person who has given a statement and
made a request under subsection (1)(a) and (b), (2)(a) and (b) or (3)—
(a) has abused the right to do so; or
(b) has used such a right to secure needless publicity for defamatory matter.

(8) If a company contravenes subsection (6), the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 5.


Section: 423 Cessation statement in relation to written resolution L.N. 163 of 2013 03/03/2014


(1) This section applies if a company sends a copy of a written resolution to a person under section 401(3)(b)(i).
(2) The person may, within 14 days after receiving a copy of the written resolution from the company—

(a) give the company a statement by the person that sets out in reasonable length the circumstances surrounding
the termination of the appointment as auditor; and

(b) require the company to send a copy of the statement to every member at the same time when the written
resolution is circulated under section 550 or 552.

(3) Section 553 applies to the circulation of the written resolution as if the reference to 21 days in section 553(3)
were replaced by a reference to 28 days.

(4) Unless exempted by an order under subsection (5), the company must comply with a requirement made under
subsection (2)(b).

(5) On application by the company or by anyone who claims to be aggrieved, the Court may order that the company
is exempted from complying with the requirement, if it is satisfied that the person who has given a statement and
made a requirement under subsection (2)—
(a) has abused the right to do so; or
(b) has used such a right to secure needless publicity for defamatory matter.

(6) If a company contravenes subsection (4), the written resolution is ineffective.

Part:
Division:
Subdivision:

9
5
8

Outgoing Auditor’s Statement of Circumstances L.N. 163 of 2013 03/03/2014





Section: 424 Duty of resigning auditor to give statement L.N. 163 of 2013 03/03/2014


A person who resigns from office under section 417(1) must, on the resignation, give the company—
(a) if the person considers that there are circumstances connected with the resignation that should be brought to

the attention of the company’s members or creditors, a statement of those circumstances; or
(b) if the person considers that there are no such circumstances, a statement to that effect.





Cap 622 - Companies Ordinance 158

Section: 425 Duty of auditor who retires or is removed to give statement L.N. 163 of 2013 03/03/2014


(1) Subject to subsection (3), a person whose appointment as auditor is terminated under section 416(1)(a) or (d)
must, on the termination, give the company—
(a) if the person considers that there are circumstances connected with the termination that should be brought to

the attention of the company’s members or creditors, a statement of those circumstances; or
(b) if the person considers that there are no such circumstances, a statement to that effect.

(2) Such a person must send a statement mentioned in subsection (1) to the company so that it will be received by
the company—
(a) where the person’s term of office expires because the person is not deemed to be reappointed as auditor

under section 403(2)(d), at least 14 days before the end of the appointment period in relation to the next
financial year; or

(b) in any other case, within 14 days beginning on the date of termination.
(3) Subsection (1) does not apply if—

(a) the person’s appointment is terminated under section 416(1)(a); and
(b) the person—

(i) is appointed as auditor of the company for a term immediately following the term of office that
expires; or

(ii) is deemed by section 403 to be reappointed as auditor of the company for the next financial year.
(4) A person who contravenes subsection (1) or (2) commits an offence and is liable to a fine at level 3 and, in the

case of a continuing offence, to a further fine of $300 for each day during which the offence continues.
(5) If a person is charged with an offence under subsection (4), it is a defence to establish that the person took all

reasonable steps to secure compliance with subsection (1) or (2) (as the case may be).

Section: 426 Company’s and aggrieved person’s responses to statement

of circumstances
L.N. 163 of 2013 03/03/2014



(1) If a company is given a statement of circumstances, the company must, within 14 days beginning on the date on
which it receives the statement—
(a) send a copy of the statement to every member of the company; or
(b) apply to the Court for an order directing that copies of the statement are not to be sent under paragraph (a).

(2) If a company makes an application under subsection (1)(b), it must give notice of the application to the person
who has given the statement of circumstances to the company.

(3) A person who claims to be aggrieved by a statement of circumstances may, within 14 days beginning on the date
on which the company receives the statement, apply to the Court for an order directing that copies of the
statement are not to be sent under subsection (1)(a).

(4) If a person makes an application under subsection (3), the person must give notice of the application to—
(a) the company; and
(b) the person who has given the statement of circumstances to the company.

(5) If—
(a) a person gives a company a statement of circumstances; and
(b) within 21 days beginning on the date on which the company receives the statement, the person has not

received notice of an application under subsection (2) or (4),
the person must within the next 7 days deliver a copy of the statement to the Registrar for registration.
(6) If a company contravenes subsection (1), the company, and every responsible person of the company, commit an

offence, and each is liable—
(a) on conviction on indictment to a fine of $150000 and to imprisonment for 2 years; or
(b) on summary conviction to a fine at level 5 and to imprisonment for 6 months.

(7) If a person contravenes subsection (5), the person commits an offence and is liable to a fine at level 3 and, in the
case of a continuing offence, to a further fine of $300 for each day during which the offence continues.

(8) If a person is charged with an offence under subsection (7), it is a defence to establish that the person took all
reasonable steps to secure compliance with subsection (5).





Cap 622 - Companies Ordinance 159

Section: 427 Court may order statement of circumstances not to be sent L.N. 163 of 2013 03/03/2014


(1) This section applies if an application has been made under section 426(1)(b) or (3) in relation to a statement of
circumstances given by a person to a company.

(2) If the Court is satisfied that the person has abused the use of the statement of circumstances or is using the
statement to secure needless publicity for defamatory matter, the Court—
(a) must direct that copies of the statement are not to be sent under section 426(1)(a); and
(b) may order the person, though not a party to the application, to pay the applicant’s costs on the application

in whole or in part.
(3) If the Court gives directions under subsection (2)(a), the company must, within 15 days beginning on the date on

which the directions are given—
(a) send a notice setting out the effect of the directions to—

(i) every member of the company; and
(ii) unless already named as a party to the proceedings, the person who has given the statement of

circumstances to the company; and
(b) deliver a copy of the notice to the Registrar for registration.

(4) If the Court decides not to grant the application, the company must, within 15 days beginning on the date on
which the decision is made or on which the proceedings are discontinued for any reason—
(a) give notice of the decision to the person who has given the statement of circumstances to the company; and
(b) send a copy of the statement of circumstances to every member of the company and to that person.

(5) Within 7 days beginning on the date on which a person receives a notice under subsection (4)(a), the person
must deliver a copy of the statement of circumstances to the Registrar for registration.


Section: 428 Offences relating to section 427 L.N. 163 of 2013 03/03/2014


(1) If a company contravenes section 427(3) or (4), the company, and every responsible person of the company,
commit an offence, and each is liable—
(a) on conviction on indictment to a fine of $150000 and to imprisonment for 2 years; or
(b) on summary conviction to a fine at level 5 and to imprisonment for 6 months.

(2) A person who contravenes section 427(5) commits an offence and is liable to a fine at level 3 and, in the case of
a continuing offence, to a further fine of $300 for each day during which the offence continues.

(3) If a person is charged with an offence under subsection (2) for contravening section 427(5), it is a defence to
establish that the person took all reasonable steps to secure compliance with that section.


Part:
Division:

9
6

Laying and Publication of Financial Statements and
Reports

L.N. 163 of 2013 03/03/2014





Section: 429 Directors must lay financial statements etc. before
company in general meeting

L.N. 163 of 2013 03/03/2014



(1) A company’s directors must, in respect of each financial year, lay before the company in annual general
meeting, or in any other general meeting directed by the Court, a copy of the reporting documents for the
financial year within the period specified in section 431.

(2) Subsection (1) does not apply in relation to a financial year in respect of which an annual general meeting is not
required to be held under section 612.

(3) A director of a company who fails to take all reasonable steps to secure compliance with subsection (1) commits
an offence and is liable to a fine of $300000.

(4) A director of a company who wilfully fails to take all reasonable steps to secure compliance with subsection (1)
commits an offence and is liable to a fine of $300000 and to imprisonment for 12 months.

(5) If a person is charged with an offence under subsection (3)—
(a) it is a defence to establish that the person had reasonable grounds to believe, and did believe, that a

competent and reliable person—



Cap 622 - Companies Ordinance 160

(i) was charged with the duty of ensuring that subsection (1) was complied with; and
(ii) was in a position to discharge that duty; and

(b) it is not a defence to establish that the financial statements or report was not in fact prepared as required by
this Ordinance.


Section: 430 Company must send copies of financial statements etc. to

members before general meeting
L.N. 163 of 2013 03/03/2014



(1) If a company is required to hold an annual general meeting in accordance with section 610 in respect of a
financial year, the company must send a copy of the reporting documents for the financial year to every member
at least 21 days before the date of the meeting at which the copy is required by section 429 to be laid.

(2) For the purposes of subsection (1), even though a copy of the reporting documents for the financial year is sent
to a member less than 21 days before the date of the meeting at which the copy is required by section 429 to be
laid, the copy is to be regarded as having been sent to the member at least 21 days before that date if so agreed
by all members entitled to attend and vote at that meeting.

(3) If, by virtue of section 612(2), a company is not required to hold an annual general meeting in accordance with
section 610 in respect of a financial year, the company must send a copy of the reporting documents for the
financial year to every member within the period specified in section 431.

(4) For the purposes of section 833(3)(c), a notification is to be sent—
(a) in the case of subsection (1), at least 21 days before the date of the general meeting at which a copy of the

reporting documents is required by section 429 to be laid; or
(b) in the case of subsection (3), at least 21 days before the date on which a copy of the reporting documents is

sent to every member under that subsection.
(5) The period specified for the purposes of section 833(3)(d)(i) is—

(a) in the case of subsection (1), the period beginning at least 21 days before the date of the general meeting at
which a copy of the reporting documents is required by section 429 to be laid and ending on the date of that
meeting; or

(b) in the case of subsection (3), the period of 21 days after the date on which a notification under section
833(3)(c) is sent.

(6) If a copy or copies of the reporting documents are sent under this section over a period of days, the copy or
copies are to be regarded as having been sent on the last day of the period for the purpose of a reference in this
Ordinance to the day on which the copy or copies are sent under this section.


Section: 431 Period for laying and sending financial statements etc. L.N. 163 of 2013 03/03/2014


(1) Subject to subsection (2), the period specified for the purposes of sections 429(1) and 430(3) is—
(a) where the company is a private company described in subsection (3), or a company limited by guarantee, at

the end of the accounting reference period by reference to which the financial year is determined—
(i) subject to subparagraph (ii), the period of 9 months, or any longer period directed by the Court, after

the end of that accounting reference period; or
(ii) if that accounting reference period is the company’s first accounting reference period and is longer

than 12 months, whichever of the periods set out in subsection (4)(a) and (b) expires last; or
(b) where the company is neither a private company described in subsection (3), nor a company limited by

guarantee, at the end of that accounting reference period—
(i) subject to subparagraph (ii), the period of 6 months, or any longer period directed by the Court, after

the end of that accounting reference period; or
(ii) if that accounting reference period is the company’s first accounting reference period and is longer

than 12 months, whichever of the periods set out in subsection (5)(a) and (b) expires last.
(2) If, after a new accounting reference date is specified under section 371(1), the accounting reference period by

reference to which the financial year is determined is shortened, the period specified for the purposes of section
429(1) and 430(3) is whichever of the following expires last—
(a) the period specified in subsection (1);
(b) the period of 3 months after the date of the directors’ resolution.



Cap 622 - Companies Ordinance 161

(3) For the purposes of subsection (1)(a) or (b), the private company is one that is not a subsidiary of a public
company at any time during the financial year.

(4) The periods set out for the purposes of subsection (1)(a)(ii) are—
(a) the period of 9 months, or any longer period directed by the Court, after the first anniversary of the

company’s incorporation; and
(b) the period of 3 months after the end of the accounting reference period by reference to which the financial

year is determined.
(5) The periods set out for the purposes of subsection (1)(b)(ii) are—

(a) the period of 6 months, or any longer period directed by the Court, after the first anniversary of the
company’s incorporation; and

(b) the period of 3 months after the end of the accounting reference period by reference to which the financial
year is determined.


Section: 432 Exception to section 430 L.N. 163 of 2013 03/03/2014


(1) Section 430 does not require a company to send a copy of any document to a member whose address is unknown
to the company.

(2) Section 430 does not require a company to send a copy of any document—
(a) in the case of joint holders of shares none of whom is entitled to receive notices of the company’s general

meeting, to more than one of the holders; or
(b) in the case of joint holders of shares some of whom are so entitled and some not, to those who are not

entitled.
(3) Section 430 does not require a company to send a copy of any document to a member if the company has sent

the member a copy of the summary financial report for the financial year under section 441, or in compliance
with a request under section 444.

(4) If a company does not have a share capital, section 430 does not require the company to send a copy of any
document to a member who is not entitled to receive notice of general meeting of the company.


Section: 433 Offences relating to section 430 L.N. 163 of 2013 03/03/2014


(1) If a company contravenes section 430(1), the company, and every responsible person of the company, commit
an offence, and each is liable to a fine at level 5.

(2) If a company contravenes section 430(3), the company, and every responsible person of the company, commit
an offence, and each is liable to a fine of $300000.

(3) If a company wilfully contravenes section 430(3), the company, and every responsible person of the company,
commit an offence, and each is liable to a fine of $300000 and to imprisonment for 12 months.

(4) If a person is charged with an offence under subsection (1) or (2), it is not a defence to establish that the
financial statements or report was not in fact prepared as required by this Ordinance.


Section: 434 Company must send to non-voting members other

documents
L.N. 163 of 2013 03/03/2014



(1) A company must, at the same time when it sends a copy of the reporting documents under section 430, send to
every member who is not entitled to vote at a general meeting of the company—
(a) a copy of any document issued by the company and circulated by the company with a copy of the reporting

documents under section 430; and
(b) a copy of any other document intended for the purpose of providing information about the company’s

affairs that is so circulated.
(2) If a company contravenes subsection (1), the company, and every responsible person of the company, commit an

offence, and each is liable to a fine at level 5.




Cap 622 - Companies Ordinance 162

Section: 435 Company must send copies of financial statements etc. to
members and others on demand

L.N. 163 of 2013 03/03/2014



(1) Within 7 days after a demand is made by a member or a member’s personal representative, a company must
send to the member or personal representative—
(a) one copy of the latest financial statements;
(b) one copy of the latest directors’ report; or
(c) one copy of the auditor’s report on those latest financial statements.

(2) A copy of a document that a person is entitled to be sent under subsection (1) is in addition to any copy of the
document that the person is entitled to be sent under section 430.

(3) If a company contravenes subsection (1), the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 5 and, in the case of a continuing offence, to a further fine of $1000
for each day during which the offence continues.

(4) If a person is charged with an offence under subsection (3), it is a defence to establish that the member or
member’s personal representative (as the case may be) had previously made another demand for the document
concerned and had been provided with a copy of the document.


Section: 436 Requirement in connection with publication of financial

statements etc.
L.N. 163 of 2013 03/03/2014



(1) This section applies if a company—
(a) circulates, publishes or issues—

(i) any specified financial statements in relation to the company; or
(ii) any non-statutory accounts in relation to the company; or

(b) otherwise makes such financial statements or accounts available for public inspection in a manner
calculated to invite members of the public generally, or any class of them, to read the financial statements
or accounts.

(2) The specified financial statements must be accompanied by the auditor’s report on those statements.
(3) The non-statutory accounts must be accompanied by a statement indicating—

(a) that those accounts are not specified financial statements in relation to the company;
(b) whether the specified financial statements for the financial year with which those accounts purport to deal

have been delivered to the Registrar;
(c) whether an auditor’s report has been prepared on the specified financial statements for the financial year;

and
(d) whether the auditor’s report—

(i) was qualified or otherwise modified;
(ii) referred to any matter to which the auditor drew attention by way of emphasis without qualifying the

report; or
(iii) contained a statement under section 406(2) or 407(2) or (3).

(4) The non-statutory accounts must not be accompanied by any auditor’s report on the specified financial
statements.

(5) If subsection (2), (3) or (4) is contravened, the company, and every responsible person of the company, commit
an offence, and each is liable to a fine of $150000.

(6) In this section—
non-statutory accounts(非法定帳目), in relation to a company, means—

(a) any statement of financial position or statement of comprehensive income, otherwise than as part of any
financial statements prepared by the directors, relating to, or purporting to deal with, a financial year of the
company; or

(b) accounts in any form, otherwise than as part of any financial statements prepared by the directors,
purporting to be a statement of financial position or statement of comprehensive income for a group of
companies consisting of the company and its subsidiary undertakings relating to, or purporting to deal with,
a financial year of the company;

specified financial statements(指明財務報表), in relation to a company, means any financial statements prepared by



Cap 622 - Companies Ordinance 163

the directors—
(a) a copy of which is required by section 429(1) to be laid before the company in general meeting; or
(b) a copy of which is required by section 430(3) to be sent to every member or is otherwise circulated,

published or issued by the company.

Part:
Division:

9
7

Summary Financial Reports L.N. 163 of 2013 03/03/2014





Section: 437 Interpretation L.N. 163 of 2013 03/03/2014


In this Division—
potential member (潛在成員) , in relation to a company, means a person who is entitled, whether conditionally or

unconditionally, to become a member of the company.

Section: 438 Application of Division L.N. 163 of 2013 03/03/2014


This Division applies to a company in relation to a financial year if the company does not fall within the reporting
exemption for the financial year.

Section: 439 Directors may prepare financial report in summary form L.N. 163 of 2013 03/03/2014


(1) The directors of a company may prepare for a financial year a financial report, in summary form, derived from
the reporting documents for the financial year, a copy of which is required to be sent to every member of the
company under section 430.

(2) A financial report prepared under subsection (1)—
(a) must contain the information prescribed by the Regulation; and
(b) must comply with other requirements prescribed by the Regulation.

(3) If subsection (2) is contravened—
(a) a director who failed to take all reasonable steps to secure compliance with that subsection commits an

offence and is liable to a fine of $300000; and
(b) a director who wilfully failed to take all reasonable steps to secure compliance with that subsection commits

an offence and is liable to a fine of $300000 and to imprisonment for 12 months.
(4) If a person is charged with an offence under subsection (3)(a), it is a defence to establish that the person had

reasonable grounds to believe, and did believe, that a competent and reliable person—
(a) was charged with the duty of ensuring that subsection (2) was complied with; and
(b) was in a position to discharge that duty.


Section: 440 Summary financial report to be approved and signed L.N. 163 of 2013 03/03/2014


(1) A summary financial report—
(a) must be approved by the directors; and
(b) must be signed on the directors’ behalf by a director.

(2) Every copy of a summary financial report sent to a member under this Division or otherwise circulated,
published or issued by the company must state the name of the director who signed the report on the directors’
behalf.

(3) If, as respect any summary financial report a copy of which is circulated, published or issued by the company,
subsection (1) is contravened, the company, and every responsible person of the company, commit an offence,
and each is liable to a fine at level 4.

(4) If subsection (2) is contravened, the company, and every responsible person of the company, commit an offence,
and each is liable to a fine at level 4.





Cap 622 - Companies Ordinance 164

Section: 441 Company may send copy of summary financial report to
member

L.N. 163 of 2013 03/03/2014



(1) If a company is required to send a copy of the reporting documents for a financial year to a member under
section 430, the company may send a copy of the summary financial report for the financial year (if any) to the
member instead.

(2) If a company sends a copy of the summary financial report for a financial year to a member under subsection
(1), the copy must be sent during the period within which a copy of the reporting documents for the financial
year would be required to be sent to the member by the company under section 430.


Section: 442 Company may seek member’s intent on receiving

summary financial report
L.N. 163 of 2013 03/03/2014



(1) A company may notify every member or potential member to give the company a notice of intent under
subsection (3).

(2) A notification to a member or potential member—
(a) must be given in writing; and
(b) must be given in relation to a financial year.

(3) In response to a notification, a member or potential member may give the company a notice of intent to—
(a) request—

(i) either a copy of the reporting documents or a copy of the summary financial report; or
(ii) none of those copies; and

(b) in the case of paragraph (a)(i), request the copy to be sent by the company in hard copy form, in electronic
form, or by making it available on a website.

(4) A member or potential member may only make a request under subsection (3)(b) in response to a notification for
a copy of the reporting documents or a copy of the summary financial report to be sent in electronic form or by
making it available on a website if the company has given, in the notification, the member or potential member
an option to request the copy to be so sent.

(5) If a notice of intent is received by the company at least 28 days before the first date on which a copy of the
reporting documents for the financial year is sent to a member under section 430, the notice of intent has effect
in relation to that financial year, and every subsequent financial year, until it ceases to have effect by virtue of
subsection (7).

(6) If a notice of intent is received by the company less than 28 days before the first date on which a copy of the
reporting documents for the financial year is sent to a member under section 430—
(a) the notice of intent has effect in relation to every financial year subsequent to that financial year until it

ceases to have effect by virtue of subsection (7); and
(b) the member or potential member is to be regarded as—

(i) having requested a copy of the summary financial report for the financial year; and
(ii) having requested the summary financial report to be sent by the company in hard copy form.

(7) A notice of intent ceases to have effect if the person who gave the notice—
(a) is no longer a member of the company; or
(b) revokes the notice by giving the company a written notice of revocation.

(8) If a member or potential member does not give the company a notice of intent in response to a notification
before the first date on which a copy of the reporting documents for the financial year is sent to a member under
section 430, the member or potential member is to be regarded as—
(a) having requested a copy of the summary financial report for the financial year and every subsequent

financial year; and
(b) having requested the summary financial report to be sent by the company in hard copy form.

(9) Subsection (8) ceases to have effect in relation to a person if—
(a) the person is no longer a member of the company; or
(b) the person gives the company a written notice of cessation of statutory election.





Cap 622 - Companies Ordinance 165

Section: 443 Notice of revocation and notice of cessation of statutory
election

L.N. 163 of 2013 03/03/2014



(1) A notice of revocation given by a person for the purposes of section 442(7)(b)—
(a) must state the financial year to which it relates;
(b) must state that the notice of intent previously given by the person is revoked;
(c) must state that the person requests—

(i) either a copy of the reporting documents or a copy of the summary financial report; or
(ii) none of those copies; and

(d) in the case of paragraph (c)(i), must state that the person requests the copy to be sent by the company in
hard copy form, in electronic form, or by making it available on a website.

(2) The request stated in a notice of revocation under subsection (1)(c) must be different from the request stated in
the notice of intent revoked by the notice of revocation.

(3) A notice of cessation of statutory election given by a person for the purposes of section 442(9)(b)—
(a) must state the financial year to which it relates;
(b) must state that the person is no longer regarded as having made the requests mentioned in section 442(8);
(c) must state that the person requests—

(i) either a copy of the reporting documents or a copy of the summary financial report; or
(ii) none of those copies; and

(d) in the case of paragraph (c)(i), must state that the person requests the copy to be sent by the company in
hard copy form, in electronic form, or by making it available on a website.

(4) A person may only state in a notice of revocation under subsection (1)(d), or a notice of cessation of statutory
election under subsection (3)(d), that the person requests for a copy of the reporting documents or a copy of the
summary financial report to be sent in electronic form or by making it available on a website if the company has
given, in the notification under section 442(1) to which the notice relates, the person an option to request the
copy to be so sent.

(5) If a notice of revocation, or a notice of cessation of statutory election, is received by the company at least 28
days before the first date on which a copy of the reporting documents for the financial year to which the notice
relates is sent to a member under section 430, the notice has effect in relation to that financial year, and every
subsequent financial year.

(6) If a notice of revocation, or a notice of cessation of statutory election, is received by the company less than 28
days before the first date on which a copy of the reporting documents for the financial year to which the notice
relates is sent to a member under section 430, the notice has effect in relation to every financial year subsequent
to that financial year.


Section: 444 Company must comply with member’s request in notice of

intent etc.
L.N. 163 of 2013 03/03/2014



(1) If a person requests a copy of the reporting documents, or a copy of the summary financial report, in a relevant
notice, the company must comply with the request unless it is prohibited from doing so by section 446.

(2) The request must be complied with during the period within which a copy of the reporting documents for the
relevant financial year would be required to be sent to the person by the company under section 430.

(3) Subsection (1) does not require a company to comply with a potential member’s request unless the potential
member becomes a member of the company at least 28 days before the first date on which a copy of the
reporting documents for the financial year is sent to a member under section 430(1) or (3).

(4) In this section—
relevant financial year(有關財政年度) means the financial year in relation to which the relevant notice has effect

under section 442 or 443;
relevant notice(有關通知) means—

(a) a notice of intent given under section 442(3);
(b) a notice of revocation given for the purposes of section 442(7)(b); or
(c) a notice of cessation of statutory election given for the purposes of section 442(9)(b).





Cap 622 - Companies Ordinance 166

Section: 445 Additional copy of reports etc. to be sent by company L.N. 163 of 2013 03/03/2014


(1) If a company has sent a copy of the summary financial report for a financial year to a person under section 441,
or in compliance with a request under section 444, the company must, at the person’s request, send a copy of
the reporting documents for the financial year to the person at the time specified in subsection (3).

(2) If a company has sent a copy of the reporting documents for a financial year to a person under section 430, the
company must, at the person’s request, send a copy of the summary financial report for the financial year to the
person at the time specified in subsection (3) unless it is prohibited from doing so by section 446.

(3) The time specified for subsection (1) or (2) is—
(a) where a copy of the reporting documents for the financial year is to be laid before the company in general

meeting under section 429(1), and the company receives the person’s request more than 14 days before
the date of that meeting, any time falling at least 7 days before the date of that meeting; or

(b) in any other case, any time within 14 days after the date on which the company receives the person’s
request.

(4) Subsection (1) or (2) does not require a company to send a copy of the summary financial report or reporting
documents for a financial year to a person if—
(a) where a copy of the reporting documents for the financial year is laid before the company in general

meeting under section 429(1), the person’s request is made after the expiry of a period of 6 months after
the date of that meeting; or

(b) where a copy of the reporting documents for the financial year is sent to every member under section
430(3), the person’s request is made after the expiry of a period of 6 months after the date on which the
copy is sent.

(5) Subsection (2) does not require a company to send a copy of the summary financial report for a financial year to
a person unless—
(a) the company has prepared the summary financial report for the financial year; and
(b) when the company sent a copy of the reporting documents for the financial year to the person, the company

gave the person a right to request a copy of the summary financial report for the financial year.
(6) If a company contravenes subsection (1) or (2), the company, and every responsible person of the company,

commit an offence, and each is liable to a fine at level 5 and, in the case of a continuing offence, to a further fine
of $1000 for each day during which the offence continues.

(7) If a company is charged with an offence under subsection (6), it is a defence to establish that it took all
reasonable steps to secure compliance with subsection (1) or (2) (as the case may be).


Section: 446 Company must not send summary financial report under

some circumstances
L.N. 163 of 2013 03/03/2014



(1) A company must not send a copy of the summary financial report for the purposes of section 441(1) for a
financial year to a member if—
(a) the company’s articles require that a copy of the reporting documents for the financial year must be sent to

each member; or
(b) the company’s articles prohibit the company from sending a copy of the summary financial report for the

purposes of section 441(1) for the financial year to a member.
(2) A company must not send a copy of the summary financial report for a financial year to a member if—

(a) an auditor’s report has not been prepared on the financial statements for the financial year;
(b) the summary financial report has not been approved by the directors;
(c) the summary financial report has not been signed on the directors’ behalf; or
(d) the summary financial report does not comply with section 439(2).

(3) If a company contravenes subsection (1) or (2), the company, and every responsible person of the company,
commit an offence, and each is liable to a fine at level 5.





Cap 622 - Companies Ordinance 167

Part:
Division:

9
8

Miscellaneous L.N. 163 of 2013 03/03/2014





Section: 447 Exemption applicable to dormant company L.N. 163 of 2013 03/03/2014


(1) The following provisions do not apply to a company that is a dormant company under section 5(1)—
(a) section 367(4);
(b) Subdivisions 3 and 4 of Division 4;
(c) Subdivisions 2 and 3 of Division 5;
(d) sections 411 and 412;
(e) Subdivisions 6, 7 and 8 of Division 5;
(f) Divisions 6 and 7.

(2) If such a company enters into an accounting transaction—
(a) subsection (1) ceases to have effect on and after the date of the accounting transaction; and
(b) a member of the company who knew or ought to have known about the accounting transaction, and every

director of the company, are personally liable for any debt or liability of the company arising out of the
accounting transaction.

(3) In this section—
director(董事) includes a shadow director.

Section: 448 Liability for untrue or misleading statement in reports L.N. 163 of 2013 03/03/2014


(1) This section applies to—
(a) a directors’ report; and
(b) a summary financial report so far as it is derived from a directors’ report.

(2) A director of a company is liable to compensate the company for any loss suffered by the company as a result of

(a) any untrue or misleading statement in the report; or
(b) the omission from the report of anything required to be included in it.

(3) A director is not liable unless—
(a) in the case of subsection (2)(a), the director knew the statement to be untrue or misleading or was reckless

as to whether it was untrue or misleading; or
(b) in the case of subsection (2)(b), the director knew the omission to be a dishonest concealment of a material

fact.
(4) A person is not subject to any liability to another person other than the company resulting from reliance, by that

other person or any other person, on information contained in the report.
(5) For the purposes of subsection (4), a person is also subject to a liability to another person if that other person is

entitled against the person—
(a) to be granted any civil remedy; or
(b) to rescind or repudiate an agreement.

(6) This section does not affect liability for criminal offence.

Section: 449 Voluntary revision of financial statements etc. L.N. 163 of 2013 03/03/2014


(1) If—
(a) a copy of any financial statements prepared by the directors of a company has been sent under section 430

to a member; and
(b) it subsequently appears to the directors of the company that the financial statements did not comply with

this Ordinance,
the directors may cause the financial statements to be revised and make necessary consequential revisions to the

summary financial report or directors’ report concerned.
(2) Such revision of the financial statements is to be confined to—



Cap 622 - Companies Ordinance 168

(a) those aspects of the financial statements that did not comply with this Ordinance; and
(b) other necessary consequential revisions.

(3) If—
(a) the directors of a company decide to cause any financial statements to be revised under subsection (1); and
(b) a copy of the financial statements has been delivered to the Registrar in compliance with section 664(3)(b),

the company must, within 7 days after the decision, deliver to the Registrar for registration a warning statement,
in the specified form, that the financial statements will be so revised.

(4) If a company contravenes subsection (3), the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 5 and, in the case of a continuing offence, to a further fine of $1000
for each day during which the offence continues.


Section: 450 Financial Secretary may make regulation regarding

revision of financial statements etc.
L.N. 163 of 2013 03/03/2014



(1) The Financial Secretary may make regulations—
(a) providing for the application of this Ordinance in relation to the financial statements, summary financial

report or directors’ report that has been revised under section 449; and
(b) providing for requirements in relation to revised financial statements, summary financial report or

directors’ report.
(2) The regulations may—

(a) make different provisions according to whether the financial statements, summary financial report or
directors’ report has been revised by—
(i) supplementing the financial statements or report with another document that shows the revisions; or
(ii) replacing the financial statements or report;

(b) provide for the functions of the persons who prepare the auditor’s report in relation to the financial
statements, summary financial report or directors’ report that has been revised;

(c) where—
(i) the financial statements or directors’ report, or a copy of the statements or report, has, before the

revision, been laid before the company in general meeting under section 429, been sent to members
under section 430, or been delivered to the Registrar in compliance with section 664(3)(b); or

(ii) a copy of a summary financial report has, before the revision, been sent to a member under section
441, or in compliance with a request under section 444 or 445(2),

require the company or the directors of the company to take the steps specified in the regulations in relation
to the financial statements or report that has been revised; and

(d) provide for the application of this Ordinance to the financial statements, summary financial report or
directors’ report that has been revised, subject to such additions, exceptions and modifications as may be
specified in the regulations.

(3) The regulations may provide that any of the following is an offence—
(a) a failure to take all reasonable steps to secure compliance with, as respects the financial statements,

summary financial report or directors’ report that has been revised—
(i) a specified provision of the regulations; or
(ii) a specified provision of this Ordinance as having effect under the regulations;

(b) a contravention of—
(i) a specified provision of the regulations; or
(ii) a specified provision of this Ordinance as having effect under the regulations.

(4) The maximum fine that may be prescribed for an offence committed wilfully is $300000 and the maximum
imprisonment is 12 months. The maximum fine that may be prescribed for an offence not committed wilfully is
$300000. In addition, in the case of a continuing offence, a further fine not exceeding $2000 for each day during
which the offence continues may be prescribed.

(5) The regulations may provide for defences to any such offence.




Cap 622 - Companies Ordinance 169

Section: 451 Financial Secretary may make regulation regarding
disclosures of certain information

L.N. 163 of 2013 03/03/2014



The Financial Secretary may make regulations prescribing, for the purposes of section 383(3), a requirement that the
financial statements for the financial year are to contain a statement showing the information about the matter
mentioned in section 383(1)(d).

Section: 452 Financial Secretary may make other regulations L.N. 163 of 2013 03/03/2014


(1) The Financial Secretary may make regulations prescribing a body for the purposes of section 380(8)(a).
(2) The Financial Secretary may make regulations—

(a) prescribing information that is required to be contained in the notes to any financial statements under
section 383(1); and

(b) prescribing other requirements for notes to any financial statements.
(3) The Financial Secretary may make regulations—

(a) prescribing information that is required to be contained in a directors’ report under section 388(1) and (2);
and

(b) prescribing other requirements for a directors’ report.
(4) The Financial Secretary may make regulations—

(a) prescribing information that is required to be contained in a summary financial report under section 439(2);
and

(b) prescribing other requirements for a summary financial report.
(5) The Financial Secretary may make regulations—

(a) providing for the form and contents of—
(i) a notification under section 442(2);
(ii) a notice of intent under section 442(3); or
(iii) any document attached to such a notification or notice; and

(b) providing that any such document is to be postage prepaid.

Part: 10 Directors and Company Secretaries L.N. 163 of 2013 03/03/2014


(*Format changes—E.R. 1 of 2013)
____________________________________________________________________________
Note:
* The format of Part 10 has been updated to the current legislative styles.

Part:
Division:

10
1

Appointment, Removal and Resignation of Directors L.N. 163 of 2013 03/03/2014





Part:
Division:
Subdivision:

10
1
1

Requirement to have Directors L.N. 163 of 2013 03/03/2014





Section: 453 Public company and company limited by guarantee
required to have at least 2 directors

L.N. 163 of 2013 03/03/2014



(1) This section applies to—
(a) a public company; and
(b) a company limited by guarantee.

(2) The company must have at least 2 directors.
(3) With effect from the date of incorporation of the company, the first directors of the company are the persons



Cap 622 - Companies Ordinance 170

named as the directors in the incorporation form delivered to the Registrar under section 67(1).
(4) A person who is deemed to be a director of the company under section 153(2) of the pre-amended predecessor

Ordinance immediately before the commencement date* of this section continues to be deemed to be a director
of the company as if section 19(1) of Schedule 2 to the Companies (Amendment) Ordinance 2004 (30 of 2004)
had not been enacted, until a notice of appointment of a director is delivered to the Registrar in accordance with
section 645(1).

(5) If a power specified in subsection (6) is exercisable by a director under the company’s articles where the
number of directors is reduced below the number fixed as the necessary quorum of directors, the power is
exercisable also where the number of directors is reduced below the number required by subsection (2).

(6) The power specified for the purposes of subsection (5) is a power to act for the purpose of—
(a) increasing the number of directors; or
(b) calling a general meeting of the company,

but not for any other purpose.
(7) In subsection (4)—
pre-amended predecessor Ordinance(修訂前的《前身條例》) means the predecessor Ordinance that was in force

immediately before it was amended by section 19(1) of Schedule 2 to the Companies (Amendment) Ordinance
2004 (30 of 2004).

___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 454 Private company required to have at least one director L.N. 163 of 2013 03/03/2014


(1) A private company must have at least one director.
(2) With effect from the date of incorporation of a private company, the first directors of the company are the

persons named as the directors in the incorporation form delivered to the Registrar under section 67(1).
(3) A person who is deemed to be a director of a private company under section 153A(2) of the pre-amended

predecessor Ordinance immediately before the commencement date* of this section continues to be deemed to
be a director of the company as if section 20(1) of Schedule 2 to the Companies (Amendment) Ordinance 2004
(30 of 2004) had not been enacted, until a notice of appointment of a director is delivered to the Registrar in
accordance with section 645(1).

(4) In subsection (3)—
pre-amended predecessor Ordinance(修訂前的《前身條例》) means the predecessor Ordinance that was in force

immediately before it was amended by section 20(1) of Schedule 2 to the Companies (Amendment) Ordinance
2004 (30 of 2004).

___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 455 Nomination of reserve director of private company L.N. 163 of 2013 03/03/2014


(1) If a private company has only one member and that member is the sole director of the company, the company
may by a resolution passed at a general meeting, despite anything in its articles, nominate a person (other than a
body corporate) who has attained the age of 18 years as a reserve director of the company to act in the place of
the sole director in the event of the sole director’s death.

(2) The nomination of a person as a reserve director of a private company ceases to have effect if—
(a) before the death of the director in respect of whom the person was nominated—

(i) the person resigns as reserve director in accordance with section 464; or
(ii) the company at a general meeting revokes the nomination; or

(b) the director in respect of whom the person was nominated ceases to be the sole member and sole director of
the company for any reason other than the death of that director.

(3) If the nomination of a person as a reserve director of a private company ceases to have effect under subsection
(2), the company must deliver a notice to the Registrar in accordance with section 645(4).

(4) Subject to compliance with the conditions specified in subsection (5), in the event of the death of the director in



Cap 622 - Companies Ordinance 171

respect of whom the reserve director is nominated, the reserve director is to be regarded as a director of the
company for all purposes until—
(a) a person is appointed as a director of the company in accordance with its articles; or
(b) the reserve director resigns from the office of director in accordance with section 464,
whichever is the earlier.

(5) The conditions specified for the purposes of subsection (4) are—
(a) that the nomination of the reserve director has not ceased to have effect under subsection (2); and
(b) that the reserve director is not prohibited by law nor disqualified from acting as a director of the company.


Section: 456 Restriction on body corporate being director L.N. 163 of 2013 03/03/2014


(1) This section applies to—
(a) a public company;
(b) a private company that is a member of a group of companies of which a listed company is a member; and
(c) a company limited by guarantee.

(2) A body corporate must not be appointed a director of the company.
(3) An appointment made in contravention of subsection (2) is void.
(4) Nothing in this section affects any liability of a body corporate under any provision of this Ordinance or the

Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap 32) if it—
(a) purports to act as a director; or
(b) acts as a shadow director,

although it could not, by virtue of this section, be appointed as a director.

Section: 457 Requirement to have at least one director who is natural

person
L.N. 163 of 2013 03/03/2014



(1) This section applies to a private company other than a private company that is a member of a group of
companies of which a listed company is a member.

(2) The company must have at least one director who is a natural person.

Section: 458 Direction requiring company to appoint director L.N. 163 of 2013 03/03/2014


(1) If it appears to the Registrar that a company is in contravention of section 453(2), 454(1) or 457(2), the Registrar
may direct the company to appoint a director or directors in compliance with that section.

(2) The direction must specify—
(a) the statutory requirement of which the company appears to be in contravention;
(b) subject to subsection (3), the period within which the company must comply with the direction; and
(c) that a failure to comply with the direction is an offence under subsection (6).

(3) The period must not be less than one month or more than 3 months after the date on which the direction is given.
(4) The Registrar may, before the end of the period specified in the direction, by notice in writing extend the period.
(5) The company must comply with the direction by making the necessary appointment or appointments before the

end of the period specified in the direction, or, if the period is extended by the Registrar under subsection (4), the
extended period.

(6) If a company fails to comply with a direction under this section, the company, and every responsible person of
the company, commit an offence, and each is liable to a fine at level 6 and, in the case of a continuing offence, to
a further fine of $2000 for each day during which the offence continues.


Part:
Division:
Subdivision:

10
1
2

Appointment of Directors L.N. 163 of 2013 03/03/2014







Cap 622 - Companies Ordinance 172

Section: 459 Minimum age for appointment as director L.N. 163 of 2013 03/03/2014


(1) A person must not be appointed a director of a company unless at the time of appointment the person has
attained the age of 18 years.

(2) An appointment made in contravention of subsection (1) is void.
(3) Nothing in this section affects any liability of a person under any provision of this Ordinance or the Companies

(Winding Up and Miscellaneous Provisions) Ordinance (Cap 32) if the person—
(a) purports to act as a director; or
(b) acts as a shadow director,

although the person could not, by virtue of this section, be appointed as a director.

Section: 460 Appointment of directors to be voted on individually L.N. 163 of 2013 03/03/2014


(1) This section applies to—
(a) a public company; and
(b) a company limited by guarantee.

(2) At a general meeting of the company, a motion for the appointment of 2 or more persons as directors of the
company by a single resolution must not be made, unless a resolution that it may be so made has first been
passed at the meeting without any vote against it.

(3) A resolution moved in contravention of subsection (2) is void, whether or not its being so moved was objected to
at the time.

(4) Despite the fact that the resolution is void, no provision (whether contained in a company’s articles or in any
contract with the company or otherwise) for the automatic reappointment of retiring directors in default of
another appointment applies.

(5) For the purposes of this section, a motion for approving a person’s appointment, or for nominating a person for
appointment, is to be regarded as a motion for the appointment of the person.


Section: 461 Validity of acts of director L.N. 163 of 2013 03/03/2014


(1) The acts of a person acting as a director are valid despite the fact that it is afterwards discovered—
(a) that there was a defect in the appointment of the person as a director;
(b) that the person was not qualified to hold office as a director or was disqualified from holding office as a

director;
(c) that the person had ceased to hold office as a director; or
(d) that the person was not entitled to vote on the matter in question.

(2) Subsection (1) applies even if—
(a) the appointment of the person as a director is void under section 456(3) or 459(2); or
(b) the resolution for the appointment of the person as a director is void under section 460(3).


Part:
Division:
Subdivision:

10
1
3

Removal and Resignation of Directors L.N. 163 of 2013 03/03/2014





Section: 462 Resolution to remove director L.N. 163 of 2013 03/03/2014


(1) A company may by an ordinary resolution passed at a general meeting remove a director before the end of the
director’s term of office, despite anything in its articles or in any agreement between it and the director.

(2) Subsection (1) does not, if the company is a private company, authorize the removal of a director who has held
office for life since 31 August 1984.

(3) Subsections (4), (5), (6), (7) and (8) apply in relation to a removal of a director by resolution, irrespective of
whether the removal by resolution is under subsection (1) or otherwise.

(4) Special notice is required of a resolution—



Cap 622 - Companies Ordinance 173

(a) to remove a director; or
(b) to appoint somebody in place of a director so removed at the meeting at which the director is removed.

Note—
See also section 578 which sets out the requirements regarding special notice.
(5) A vacancy created by the removal of a director, if not filled at the meeting at which the director is removed, may

be filled as a casual vacancy.
(6) A person appointed director in place of a removed director is to be regarded, for the purpose of determining the

time at which that person or any other director is to retire, as if that person had become director on the day on
which the person removed was last appointed a director.

(7) In relation to a resolution to remove a director before the end of the director’s term of office, no share may, on
a poll, carry a greater number of votes than it would carry in relation to the generality of matters to be voted on
at a general meeting of the company.

(8) If a share carries special voting rights (that is to say, rights different from those carried by other shares) in
relation to some matters but not others, the reference in subsection (7) to the generality of matters to be voted on
at a general meeting of the company is to be construed as a reference to the matters in relation to which the share
carries no special voting rights.

(9) This section is not to be regarded as depriving a person of compensation or damages payable to the person in
respect of the termination of—
(a) the person’s appointment as director; or
(b) any appointment terminating with that as director.


Section: 463 Director’s right to protest against removal L.N. 163 of 2013 03/03/2014


(1) On receipt of notice of a resolution under section 462(4) to remove a director, the company must forthwith send
a copy of the notice to the director concerned.

(2) The director (whether or not a member of the company) is entitled to be heard on the resolution at the meeting at
which the resolution is voted on.

(3) If notice is given of a resolution under section 462(4) to remove a director, the director—
(a) may make with respect to the resolution representations in writing to the company (not exceeding a

reasonable length); and
(b) may request the company to comply with the requirement specified in subsection (4) in relation to the

representations.
(4) The requirement specified for the purposes of subsection (3)(b) is—

(a) if the company receives the representations on a date that is more than 2 days before the last day on which
notice may be given under section 571(1) to call the meeting, the requirement—
(i) to state, in every notice of the meeting given to the members, that the representations have been made;

and
(ii) to send a copy of the representations to every member to whom a notice of the meeting is or has been

given; or
(b) if the company has not sent a copy of the representations to every member to whom a notice of the meeting

is or has been given, the requirement to ensure that the representations are read out at the meeting.
(5) Unless exempted by an order under subsection (6), the company must comply with a request made under

subsection (3)(b).
(6) On application by the company or by anyone who claims to be aggrieved, the Court may order that the company

is exempted from complying with the request, if it is satisfied that the person who has made representations and
made a requirement under subsection (3)—
(a) has abused the right to do so; or
(b) has used such a right to secure needless publicity for defamatory matter.

(7) If the company contravenes subsection (5), the resolution passed under section 462(1) is void even though
section 562(1) is complied with.


Section: 464 Resignation of director L.N. 163 of 2013 03/03/2014


(1) A director of a company may, unless it is otherwise provided in the articles of the company or by any agreement



Cap 622 - Companies Ordinance 174

with the company, resign as director at any time.
(2) If a director of a company resigns, the company must deliver a notice of the resignation to the Registrar in the

manner required by section 645(4).
(3) Despite subsection (2), if the director resigning has reasonable grounds for believing that the company will not

deliver the notice, the director resigning must deliver to the Registrar for registration a notice of the resignation
in the specified form.

(4) The notice required to be delivered under subsection (3) must state—
(a) whether the director resigning is required by the articles of the company or by any agreement with the

company to give notice of resignation to the company; and
(b) if notice is so required, whether the notice has been given in accordance with the requirement.

(5) If notice of the resignation of a director of a company is required to be given by the articles of the company or
by any agreement with the company, the resignation does not have effect unless the director gives notice in
writing of the resignation—
(a) in accordance with the requirement;
(b) by leaving it at the registered office of the company; or
(c) by sending it to the company in hard copy form or in electronic form.

(6) In this section—
director(董事) includes a reserve director and a person regarded as a director under section 455(4).

Part:
Division:

10
2

Directors’ Duty of Care, Skill and Diligence L.N. 163 of 2013 03/03/2014





Section: 465 Duty to exercise reasonable care, skill and diligence L.N. 163 of 2013 03/03/2014


(1) A director of a company must exercise reasonable care, skill and diligence.
(2) Reasonable care, skill and diligence mean the care, skill and diligence that would be exercised by a reasonably

diligent person with—
(a) the general knowledge, skill and experience that may reasonably be expected of a person carrying out the

functions carried out by the director in relation to the company; and
(b) the general knowledge, skill and experience that the director has.

(3) The duty specified in subsection (1) is owed by a director of a company to the company.
(4) The duty specified in subsection (1) has effect in place of the common law rules and equitable principles as

regards the duty to exercise reasonable care, skill and diligence, owed by a director of a company to the
company.

(5) This section applies to a shadow director as it applies to a director.
(6) For the purposes of subsection (5), a body corporate is not to be regarded as a shadow director of any of its

subsidiaries by reason only that the directors, or a majority of the directors, of the subsidiary are accustomed to
act in accordance with its direction or instructions.


Section: 466 Civil consequences of breach of duty to exercise reasonable

care, skill and diligence
L.N. 163 of 2013 03/03/2014



Without affecting other provisions of this Ordinance or the Companies (Winding Up and Miscellaneous Provisions)
Ordinance (Cap 32), the consequences of breach (or threatened breach) of the duty specified in section 465(1) are the
same as would apply if the common law rules or equitable principles that section 465(1) replaces applied.

Part:
Division:

10
3

Directors’ Liabilities L.N. 163 of 2013 03/03/2014





Section: 467 Interpretation and application L.N. 163 of 2013 03/03/2014


(1) In this Division—



Cap 622 - Companies Ordinance 175

permitted indemnity provision (獲准許的彌償條文) , in relation to a company, means a provision that—
(a) provides for indemnity against liability incurred by a director of the company to a third party; and
(b) meets the requirements specified in section 469(2);

third party (第三者) , in relation to a company, means a person other than the company or an associated company.
(2) Sections 468, 469 and 470 apply to any provision made on or after the commencement date* of those sections.
(3) Sections 471 and 472 apply to a permitted indemnity provision made on or after the commencement date* of

those sections.
(4) Section 473 applies to conduct by a director on or after the commencement date* of that section.
___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 468 Avoidance of provisions protecting director from liability L.N. 163 of 2013 03/03/2014


(1) This section applies to a provision contained in a company’s articles, or in a contract entered into by a
company, or otherwise.

(2) If a provision purports to exempt a director of the company from any liability that would otherwise attach to the
director in connection with any negligence, default, breach of duty or breach of trust in relation to the company,
the provision is void.

(3) If, by a provision, the company directly or indirectly provides an indemnity for a director of the company, or a
director of an associated company of the company, against any liability attaching to the director in connection
with any negligence, default, breach of duty or breach of trust in relation to the company or associated company
(as the case may be), the provision is void.

(4) Subsection (3) does not prevent a company from taking out and keeping in force insurance for a director of the
company, or a director of an associated company of the company, against—
(a) any liability to any person attaching to the director in connection with any negligence, default, breach of

duty or breach of trust (except for fraud) in relation to the company or associated company (as the case may
be); or

(b) any liability incurred by the director in defending any proceedings (whether civil or criminal) taken against
the director for any negligence, default, breach of duty or breach of trust (including fraud) in relation to the
company or associated company (as the case may be).


Section: 469 Permitted indemnity provision L.N. 163 of 2013 03/03/2014


(1) Section 468(3) does not apply to a provision for indemnity against liability incurred by the director to a third
party if the requirements specified in subsection (2) are met in relation to the provision.

(2) The provision must not provide any indemnity against—
(a) any liability of the director to pay—

(i) a fine imposed in criminal proceedings; or
(ii) a sum payable by way of a penalty in respect of non-compliance with any requirement of a regulatory

nature; or
(b) any liability incurred by the director—

(i) in defending criminal proceedings in which the director is convicted;
(ii) in defending civil proceedings brought by the company, or an associated company of the company, in

which judgment is given against the director;
(iii) in defending civil proceedings brought on behalf of the company by a member of the company or of an

associated company of the company, in which judgment is given against the director;
(iv) in defending civil proceedings brought on behalf of an associated company of the company by a

member of the associated company or by a member of an associated company of the associated
company, in which judgment is given against the director; or

(v) in connection with an application for relief under section 358 of the predecessor Ordinance or section
903 or 904 in which the Court refuses to grant the director relief.

(3) A reference in subsection (2)(b) to a conviction, judgment or refusal of relief is to the final decision in the
proceedings.



Cap 622 - Companies Ordinance 176

(4) For the purposes of subsection (3), a conviction, judgment or refusal of relief—
(a) if not appealed against, becomes final at the end of the period for bringing an appeal; or
(b) if appealed against, becomes final when the appeal, or any further appeal, is disposed of.

(5) For the purposes of subsection (4)(b), an appeal is disposed of if—
(a) it is determined, and the period for bringing any further appeal has ended; or
(b) it is abandoned or otherwise ceases to have effect.


Section: 470 Permitted indemnity provision to be disclosed in directors’

report
L.N. 163 of 2013 03/03/2014



(1) If, when a directors’ report prepared by the directors of a company is approved in accordance with section 391,
a permitted indemnity provision (whether made by the company or otherwise) is in force for the benefit of one
or more directors of the company, the report must state that the provision is in force.

(2) If, at any time during the financial year to which a directors’ report prepared by the directors of a company
relates, a permitted indemnity provision (whether made by the company or otherwise) was in force for the
benefit of one or more persons who were then directors of the company, the report must state that the provision
was in force.

(3) If, when a directors’ report prepared by the directors of a company is approved in accordance with section 391,
a permitted indemnity provision made by the company is in force for the benefit of one or more directors of an
associated company of the company, the report must state that the provision is in force.

(4) If, at any time during the financial year to which a directors’ report prepared by the directors of a company
relates, a permitted indemnity provision made by the company was in force for the benefit of one or more
persons who were then directors of an associated company of the company, the report must state that the
provision was in force.

(5) In this section—
directors’ report(董事報告) means—

(a) the report required to be prepared under section 388(1); or
(b) the consolidated report required to be prepared under section 388(2).


Section: 471 Place where copy of permitted indemnity provision must

be kept
L.N. 163 of 2013 03/03/2014



(1) This section has effect if a permitted indemnity provision is made for a director of a company, and applies—
(a) to that company (whether the provision is made by that company or an associated company of that

company); and
(b) if the provision is made by an associated company, to that associated company.

(2) A company to which this section applies must keep the following at its registered office or at a place prescribed
by regulations made under section 657—
(a) a copy of the permitted indemnity provision;
(b) if the provision is not in writing, a written memorandum setting out the terms of the provision.

(3) The company—
(a) must retain the copy or memorandum for at least one year after the date of termination or expiry of the

provision; and
(b) must keep the copy or memorandum available for inspection during that time.

(4) If the copy or memorandum is kept at a place other than the company’s registered office, the company must
notify the Registrar of the place, or any change in the place, at which the copy or memorandum is kept. The
notice must be in the specified form and delivered to the Registrar for registration within 15 days after the copy
or memorandum is first kept at that place or within 15 days after the change (as the case may be).

(5) If a company contravenes subsection (2) or (3), the company, and every responsible person of the company,
commit an offence, and each is liable to a fine at level 3.

(6) If a company contravenes subsection (4), the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 3 and, in the case of a continuing offence, to a further fine of $300
for each day during which the offence continues.



Cap 622 - Companies Ordinance 177

(7) In this section, a reference to a permitted indemnity provision includes a variation of the provision.

Section: 472 Right of member to inspect and request copy L.N. 163 of 2013 03/03/2014


(1) A member of a company is entitled, on request made in the prescribed manner and without charge, to inspect, in
accordance with regulations made under section 657, a copy of a permitted indemnity provision or a written
memorandum kept by the company under section 471.

(2) A member of the company is entitled, on request and on payment of a prescribed fee, to be provided with a copy
of the provision or memorandum in accordance with regulations made under section 657.

(3) In this section—
prescribed(訂明) means prescribed by regulations made under section 657.
(4) In this section, a reference to a permitted indemnity provision includes a variation of the provision.

Section: 473 Ratification of conduct by director involving negligence,

etc.
L.N. 163 of 2013 03/03/2014



(1) This section applies to the ratification by a company of conduct by a director involving negligence, default,
breach of duty or breach of trust in relation to the company.

(2) A decision of the company to ratify the conduct may only be made by resolution of the members of the
company.

(3) If such a resolution is proposed at a meeting, every vote in favour of the resolution by a member who—
(a) is a director in respect of whose conduct the ratification is sought;
(b) is an entity connected with that director; or
(c) holds any shares in the company in trust for that director or entity,

is to be disregarded.
(4) Subsection (3) does not prevent a member specified in that subsection from attending, being counted towards the

quorum for, or taking part in the proceedings at, any meeting at which the decision is considered.
(5) For the purposes of this section—

(a) conduct(行為) includes acts and omissions;
(b) director(董事) includes a former director;
(c) a shadow director is to be regarded as a director; and
(d) a reference to an entity connected with a director has the meaning given by section 486.

(6) Nothing in this section affects—
(a) the validity of a decision taken by unanimous consent of the members of the company; or
(b) any power of the directors to agree not to sue, or to settle or release a claim made by them on behalf of the

company.
(7) This section does not affect—

(a) any other Ordinance or rule of law imposing additional requirements for valid ratification; or
(b) any rule of law as to acts that are incapable of being ratified by the company.


Part:
Division:

10
4

Appointment and Resignation of Company Secretaries L.N. 163 of 2013 03/03/2014





Section: 474 Company required to have company secretary L.N. 163 of 2013 03/03/2014


(1) A company must have a company secretary.
(2) With effect from the date of incorporation of a company, the first company secretary of the company is the

person named as the company secretary in the incorporation form delivered to the Registrar under section 67(1).
(3) If the name of a firm is specified in the incorporation form under section 5(1)(c) of Schedule 2, all partners of

the firm as at the date of the incorporation form are the first joint company secretaries of the company.
(4) A company secretary of a company must—

(a) if a natural person, ordinarily reside in Hong Kong; and



Cap 622 - Companies Ordinance 178

(b) if a body corporate, have its registered office or a place of business in Hong Kong.
(5) Anything required or authorized to be done by or to the company secretary may be done—

(a) if the office is vacant or there is for any other reason no company secretary capable of acting, by or to any
assistant or deputy company secretary; or

(b) if there is no assistant or deputy company secretary capable of acting, by or to any officer of the company
authorized generally or specially in that behalf by the directors.


Section: 475 Circumstances under which director may not be company

secretary
L.N. 163 of 2013 03/03/2014



(1) Subject to subsections (2) and (3), a director of a company may be a company secretary of the company.
(2) The director of a private company having only one director must not also be a company secretary of the

company.
(3) No private company having only one director may have as company secretary of the company a body corporate

the sole director of which is the sole director of the private company.

Section: 476 Direction requiring company to appoint company

secretary
L.N. 163 of 2013 03/03/2014



(1) If it appears to the Registrar that a company is in contravention of section 474(1) or (4) or 475(2) or (3), the
Registrar may direct the company to appoint a company secretary in compliance with that section.

(2) The direction must specify—
(a) the statutory requirement of which the company appears to be in contravention;
(b) subject to subsection (3), the period within which the company must comply with the direction; and
(c) that a failure to comply with the direction is an offence under subsection (6).

(3) The period must not be less than one month or more than 3 months after the date on which the direction is given.
(4) The Registrar may, before the end of the period specified in the direction, by notice in writing extend the period.
(5) The company must comply with the direction by making the necessary appointment before the end of the period

specified in the direction, or, if the period is extended by the Registrar under subsection (4), the extended period.
(6) If a company fails to comply with a direction under this section, the company, and every responsible person of

the company, commit an offence, and each is liable to a fine at level 6 and, in the case of a continuing offence, to
a further fine of $2000 for each day during which the offence continues.


Section: 477 Resignation of company secretary L.N. 163 of 2013 03/03/2014


(1) A company secretary of a company may, unless it is otherwise provided in the articles of the company or by any
agreement with the company, resign as company secretary at any time.

(2) If a company secretary of a company resigns, the company must deliver a notice of the resignation to the
Registrar in the manner required by section 652(2).

(3) Despite subsection (2), if the company secretary resigning has reasonable grounds for believing that the
company will not deliver the notice, the company secretary resigning must deliver to the Registrar for
registration a notice of the resignation in the specified form.

(4) The notice required to be delivered under subsection (3) must state—
(a) whether the company secretary resigning is required by the articles of the company or by any agreement

with the company to give notice of resignation to the company; and
(b) if notice is so required, whether the notice has been given in accordance with the requirement.

(5) If notice of the resignation of a company secretary of a company is required to be given by the articles of the
company or by any agreement with the company, the resignation does not have effect unless the company
secretary gives notice in writing of the resignation—
(a) in accordance with the requirement;
(b) by leaving it at the registered office of the company; or
(c) by sending it to the company in hard copy form or in electronic form.





Cap 622 - Companies Ordinance 179

Part:
Division:

10
5

Miscellaneous Provisions Relating to Directors and
Company Secretaries

L.N. 163 of 2013 03/03/2014





Section: 478 Director vicariously liable for acts of alternate etc. L.N. 163 of 2013 03/03/2014


(1) If the articles of a company authorize a director to appoint an alternate director to act in place of the director,
then, unless the articles contain any provision to the contrary, whether express or implied—
(a) an alternate director so appointed is deemed to be the agent of the director who appoints the alternate

director; and
(b) a director who appoints an alternate director is vicariously liable for any tort committed by the alternate

director while acting in the capacity of alternate director.
(2) Nothing in subsection (1)(b) affects the personal liability of an alternate director for any act or omission.

Section: 479 Avoidance of acts done by person in dual capacity as

director and company secretary
L.N. 163 of 2013 03/03/2014



(1) A provision requiring or authorizing a thing to be done by or to a director and a company secretary of a company
is not satisfied by its being done by or to the same person acting—
(a) both as director and company secretary; or
(b) both as director and in place of the company secretary.

(2) This section applies to—
(a) any provision of this Ordinance or the Companies (Winding Up and Miscellaneous Provisions) Ordinance

(Cap 32); and
(b) any provision in a company’s articles.


Section: 480 Provisions as to undischarged bankrupt acting as director L.N. 163 of 2013 03/03/2014


(1) A person who is an undischarged bankrupt must not act as director of, or directly or indirectly take part or be
concerned in the management of, a company, except with the leave of the Court by which the person was
adjudged bankrupt.

(2) A person who contravenes subsection (1) commits an offence and is liable—
(a) on conviction on indictment to a fine of $700000 and to imprisonment for 2 years; or
(b) on summary conviction to a fine of $150000 and to imprisonment for 12 months.

(3) The Court must not give leave for the purposes of this section unless notice of intention to apply for it has been
served on the Official Receiver.

(4) If the Official Receiver is of opinion that it is contrary to the public interest that an application under subsection
(3) should be granted, the Official Receiver must attend the hearing of, and oppose the granting of, the
application.

(5) In subsection (1)—
company(公司) has the meaning given by section 168C(1) of the Companies (Winding Up and Miscellaneous

Provisions) Ordinance (Cap 32).

Section: 481 Minutes of directors’ meetings L.N. 163 of 2013 03/03/2014


(1) A company must cause minutes of all proceedings at meetings of its directors to be recorded.
(2) A company must keep the records under subsection (1) for at least 10 years from the date of the meeting.
(3) If a company contravenes subsection (1) or (2), the company, and every responsible person of the company,

commit an offence, and each is liable to a fine at level 5 and, in the case of a continuing offence, to a further fine
of $1000 for each day during which the offence continues.





Cap 622 - Companies Ordinance 180

Section: 482 Minutes as evidence L.N. 163 of 2013 03/03/2014


(1) Minutes recorded in accordance with section 481, if purporting to be signed by the chairperson of the meeting or
by the chairperson of the next directors’ meeting, are evidence of the proceedings at the meeting.

(2) If minutes have been recorded in accordance with section 481 of the proceedings at a meeting of directors, then,
until the contrary is proved—
(a) the meeting is to be regarded as having been duly held and convened;
(b) all proceedings at the meeting are to be regarded as having duly taken place; and
(c) all appointments at the meeting are to be regarded as valid.

(3) Subsection (2)(c) is subject to sections 456(3) and 459(2).

Section: 483 Written record of decision of sole director of private

company
L.N. 163 of 2013 03/03/2014



(1) If a private company has only one director and the director takes any decision that—
(a) may be taken in a meeting of directors; and
(b) has effect as if agreed in a meeting of directors,

the director must (unless that decision is taken by way of a resolution in writing) provide the company with a
written record of that decision within 7 days after the decision is made.

(2) If the director provides the company with a written record of a decision in accordance with subsection (1), that
record is sufficient evidence of the decision having been taken by the director.

(3) A company must keep a written record provided to the company in accordance with subsection (1) for at least 10
years from the date of the decision.

(4) A director who contravenes subsection (1) commits an offence.
(5) If a company contravenes subsection (3), the company, and every responsible person of the company, commit an

offence.
(6) A person who commits an offence under subsection (4) is liable to a fine at level 3.
(7) A person who commits an offence under subsection (5) is liable to a fine at level 5 and, in the case of a

continuing offence, to a further fine of $1000 for each day during which the offence continues.
(8) A contravention of subsection (1) by a director does not affect the validity of any decision mentioned in that

subsection.

Part: 11 Fair Dealing by Directors L.N. 163 of 2013 03/03/2014


(*Format changes—E.R. 1 of 2013)
____________________________________________________________________________
Note:
* The format of Part 11 has been updated to the current legislative styles.

Part:
Division:

11
1

Preliminary L.N. 163 of 2013 03/03/2014





Section: 484 Interpretation L.N. 163 of 2013 03/03/2014


(1) In this Division—
child (子女) includes a step-child, an illegitimate child and a child adopted in any manner recognized by the law of

Hong Kong;
cohabitation relationship (同居關係) means a relationship between 2 persons (whether of the same sex or of the

opposite sex) who live together as a couple in an intimate relationship;
director (董事) includes a shadow director.
(2) In this Division, a reference to a minor child is a reference to a child who is under 18 years of age.




Cap 622 - Companies Ordinance 181

Section: 485 Circumstances constituting contravention L.N. 163 of 2013 03/03/2014


In this Part, a reference to circumstances constituting a contravention includes, in the case of a transaction or
arrangement that, but for any fact or circumstances, would not be prohibited because of Subdivision 3 of Division 2,
the fact or circumstances.

Section: 486 Connected entity L.N. 163 of 2013 03/03/2014


(1) In this Part, a reference to an entity connected with a director or former director of a company is a reference to—
(a) a member of the director’s or former director’s family;
(b) a person who is in a cohabitation relationship with the director or former director;
(c) a minor child of a person falling within paragraph (b) who—

(i) is not a child of the director or former director; and
(ii) lives with the director or former director;

(d) a body corporate with which the director or former director is associated;
(e) a person acting in the capacity as trustee of a specified trust, other than a trust for the purpose of an

employee share scheme or a pension scheme; or
(f) a person acting in the capacity as partner of—

(i) the director or former director;
(ii) the spouse of the director or former director;
(iii) a minor child of the director or former director; or
(iv) another person who, by virtue of paragraph (e), is an entity connected with the director or former

director.
(2) For the purposes of subsection (1)(e), a trust is a specified trust—

(a) if the beneficiaries of the trust include—
(i) the director or former director;
(ii) the spouse of the director or former director; or
(iii) a minor child of the director or former director; or

(b) if—
(i) the terms of the trust give a power to the trustees that may be exercised for the benefit of—

(A) the director or former director;
(B) the spouse of the director or former director; or
(C) a minor child of the director or former director; and

(ii) the director or former director knows that the director or former director, or the spouse or child, is an
object of the power.

(3) In this section—
employee share scheme(僱員參股計劃) means a scheme for encouraging or facilitating the holding of shares in a

company by or for the benefit of—
(a) persons employed or formerly employed in good faith by that company or another company in the same

group of companies; or
(b) the spouses, widows, widowers or minor children of persons referred to in paragraph (a);

partner(合夥人), in relation to another person, means a person who is a partner of that other person in a partnership
within the meaning of the Partnership Ordinance (Cap 38).


Section: 487 Family member of director or former director L.N. 163 of 2013 03/03/2014


In this Part, a reference to a member of a director’s or former director’s family is a reference to—
(a) the spouse of the director or former director;
(b) a child of the director or former director; or
(c) a parent of the director or former director.





Cap 622 - Companies Ordinance 182

Section: 488 Director or former director associated with body corporate L.N. 163 of 2013 03/03/2014


(1) For the purposes of this Part, a director or former director is associated with a body corporate if—
(a) the director or former director, or any one or more of the entities specified in subsection (3), or the director

or former director together with any one or more of those specified entities, are entitled to exercise, or
control the exercise of, more than 30% of the voting power at any general meeting of that body corporate;
or

(b) the directors, or a majority of the directors, of that body corporate are accustomed to act in accordance with
the directions or instructions of—
(i) the director or former director; or
(ii) an entity connected with the director or former director.

(2) In this section, a reference to voting power the exercise of which is controlled by a director or former director, or
by an entity specified in subsection (3), includes voting power the exercise of which is controlled by another
body corporate if the director or former director, or any one or more of the specified entities, or the director or
former director together with any one or more of the specified entities, are entitled to exercise, or control the
exercise of, more than 50% of the voting power at any general meeting of that other body corporate.

(3) The entity specified for the purposes of subsections (1) and (2) is—
(a) the spouse of the director or former director;
(b) a minor child of the director or former director; or
(c) a person who, by virtue of section 486(1)(e), is an entity connected with the director or former director.


Section: 489 Company subject to more than one prohibition L.N. 163 of 2013 03/03/2014


(1) If a company is prohibited by more than one provision of this Part from doing something without the approval of
the members of the company, or of the members of a holding company of the company, specified in each
provision, the company is prohibited from doing the thing without all those approvals.

(2) Subsection (1) does not require a separate resolution for the purposes of each of the provisions.

Section: 490 Application to transaction or arrangement despite its

governing law
L.N. 163 of 2013 03/03/2014



For the purposes of this Part, it is immaterial whether or not the law (apart from this Ordinance) that governs a
transaction or arrangement is the law of Hong Kong.

Part:
Division:

11
2

Loan, Quasi-loan and Credit Transaction L.N. 163 of 2013 03/03/2014





Part:
Division:
Subdivision:

11
2
1

Preliminary L.N. 163 of 2013 03/03/2014





Section: 491 Interpretation L.N. 163 of 2013 03/03/2014


(1) In this Division—
director (董事) includes a shadow director;
guarantee (擔保) includes indemnity;
land (土地) includes any estate or interest in land, buildings, messuages and tenements of any nature or kind;
services (服務) means anything other than goods or land;
specified company (指明公司) means—

(a) a public company; or
(b) a private company or company limited by guarantee that is a subsidiary of a public company.



Cap 622 - Companies Ordinance 183

(2) For the purposes of this Division, a body corporate is not to be regarded as a shadow director of any of its
subsidiaries by reason only that the directors, or a majority of the directors, of the subsidiary are accustomed to
act in accordance with its directions or instructions.


Section: 492 Body corporate controlled by director L.N. 163 of 2013 03/03/2014


(1) For the purposes of this Division, a body corporate is controlled by a director if—
(a) the director is entitled to exercise, or control the exercise of, more than 50% of the voting power at any

general meeting of that body corporate; or
(b) the directors, or a majority of the directors, of that body corporate are accustomed to act in accordance with

the directions or instructions of the director.
(2) In subsection (1), a reference to voting power the exercise of which is controlled by a director includes voting

power the exercise of which is controlled by another body corporate if the director is entitled to exercise, or
control the exercise of, more than 50% of the voting power at any general meeting of that other body corporate.


Section: 493 Quasi-loan L.N. 163 of 2013 03/03/2014


(1) For the purposes of this Division, a person makes a quasiloan to a director or an entity connected with a director
if the person—
(a) agrees to pay, or pays otherwise than pursuant to an agreement, a sum for the director or connected entity—

(i) on terms that the director or connected entity (or another person on behalf of the director or connected
entity) will reimburse the person; or

(ii) in circumstances giving rise to a liability on the director or connected entity to reimburse the person; or
(b) agrees to reimburse, or reimburses otherwise than pursuant to an agreement, expenditure incurred by

another person for the director or connected entity—
(i) on terms that the director or connected entity (or another person on behalf of the director or connected

entity) will reimburse the person; or
(ii) in circumstances giving rise to a liability on the director or connected entity to reimburse the person.

(2) For the purposes of this Division, if a person makes a quasi-loan to a director or an entity connected with a
director, the director’s or connected entity’s liabilities under the quasi-loan include the liabilities of any other
person who has agreed to reimburse the person on the director’s or connected entity’s behalf.


Section: 494 Credit transaction L.N. 163 of 2013 03/03/2014


(1) For the purposes of this Division, a person enters into a credit transaction as creditor for a director or an entity
connected with a director if the person—
(a) supplies goods to the director or connected entity under a hire-purchase agreement;
(b) sells goods or land to the director or connected entity under a conditional sale agreement;
(c) leases or hires goods or leases land to the director or connected entity in return for periodical payments; or
(d) otherwise supplies goods or services or disposes of land to the director or connected entity on the

understanding that payment (whether in a lump sum or instalments or by way of periodical payments or
otherwise) is to be deferred.

(2) In this section—
conditional sale agreement(有條件售賣協議) means an agreement for the sale of goods or land under which—

(a) the purchase price or part of it is payable by instalments;
(b) the property in the goods or land is to remain in the seller until the conditions regarding the payment of

instalments, or other conditions, specified in the agreement are fulfilled; and
(c) despite such reservation of property, the buyer is to be in possession of the goods or land before the

fulfilment of those conditions;
hire-purchase agreement(租購協議) means an agreement for the bailment of goods under which the bailee may buy

the goods, or under which the property in the goods will or may pass to the bailee.




Cap 622 - Companies Ordinance 184

Section: 495 Person for whom transaction or arrangement entered into L.N. 163 of 2013 03/03/2014


(1) In this Division, a reference to a director, a body corporate controlled by a director, or an entity connected with a
director, for whom a transaction is entered into is—
(a) in the case of a loan or quasi-loan, or a guarantee or security in connection with a loan or quasi-loan, a

reference to the director, controlled body corporate or connected entity to whom the loan or quasi-loan is
made; or

(b) in the case of a credit transaction, or a guarantee or security in connection with a credit transaction, a
reference to the director or connected entity to whom goods, land or services are supplied, sold, leased,
hired or otherwise disposed of under the credit transaction.

(2) For the purposes of this Division, an arrangement is entered into for a director, a body corporate controlled by a
director, or an entity connected with a director if—
(a) in the case of an arrangement mentioned in section 504(1)(a) or (2)(a), a company takes part in the

arrangement under which another person enters into a transaction with the director, controlled body
corporate or connected entity; or

(b) in the case of an arrangement mentioned in section 504(1)(b) or (2)(b), a company enters into the
arrangement in relation to any rights, obligations or liabilities under a transaction entered into by another
person with the director, controlled body corporate or connected entity.


Section: 496 Prescribed approval of members L.N. 163 of 2013 03/03/2014


(1) In this Division, a reference to the prescribed approval of the members of a company that enters into a
transaction or arrangement, or the members of a holding company of the company, is a reference to an approval
obtained by a resolution of those members—
(a) that is passed before the transaction or arrangement is entered into; and
(b) in respect of which the requirements specified in subsection (2) are met.

(2) The requirements specified for the purposes of subsection (1)(b) are—
(a) that, in the case of a written resolution, a memorandum setting out the matters specified in subsection (4) is

sent to every member at or before the time at which the proposed resolution is sent to the member; or
(b) that, in the case of a resolution passed at a general meeting—

(i) a memorandum setting out the matters specified in subsection (4) is sent to every member together
with the notice convening the meeting; and

(ii) if the company is a specified company, the resolution is passed after disregarding every vote in favour
of the resolution by a member specified in subsection (5).

(3) Subject to any provision of the company’s articles, any accidental omission to send the memorandum to a
member is to be disregarded for the purpose of determining whether the requirement specified in subsection
(2)(a) or (b)(i) has been met.

(4) The matters specified for the purposes of subsection (2)(a) and (b)(i) are—
(a) in the case of a resolution for the purposes of section 500, 501 or 502—

(i) the nature of the transaction to be approved by the resolution;
(ii) the amount of the loan or quasi-loan;
(iii) the purpose for which the loan or quasi-loan is required; and
(iv) the extent of the company’s liability under any transaction connected with the loan or quasi-loan;

(b) in the case of a resolution for the purposes of section 503—
(i) the nature of the transaction to be approved by the resolution;
(ii) the amount and value of the credit transaction;
(iii) the purpose for which the goods, land or services supplied, sold, leased, hired or otherwise disposed of

under the credit transaction are required; and
(iv) the extent of the company’s liability under any transaction connected with the credit transaction; or

(c) in the case of a resolution for the purposes of section 504—
(i) the matters that would have to be disclosed if the company were seeking approval of the transaction to

which the arrangement relates;
(ii) the nature of the arrangement to be approved by the resolution; and



Cap 622 - Companies Ordinance 185

(iii) the extent of the company’s liability under the arrangement.
(5) The member specified for the purposes of subsection (2)(b)(ii) is—

(a) in the case of a resolution for the purposes of section 500 or 501—
(i) one who is the controlled body corporate to whom the loan is proposed to be made or was made;
(ii) one who is the director—

(A) who controls that body corporate; or
(B) to whom the loan or quasi-loan is proposed to be made or was made; or

(iii) one who holds any shares in the company in trust for that controlled body corporate or director;
(b) in the case of a resolution for the purposes of section 502—

(i) one who is the connected entity to whom the loan or quasi-loan is proposed to be made or was made;
(ii) one who is the director with whom that entity is connected; or
(iii) one who holds any shares in the company in trust for that connected entity or director;

(c) in the case of a resolution for the purposes of section 503—
(i) one who is the director or connected entity for whom the credit transaction is proposed to be entered

into or was entered into;
(ii) one who is the director with whom that entity is connected; or
(iii) one who holds any shares in the company in trust for the director specified in subparagraph (i) or (ii) or

that connected entity; or
(d) in the case of a resolution for the purposes of section 504—

(i) one who is the controlled body corporate, or connected entity, for whom the arrangement is proposed
to be entered into or was entered into;

(ii) one who is the director—
(A) who controls that body corporate;
(B) with whom that entity is connected; or
(C) for whom the arrangement is proposed to be entered into or was entered into; or

(iii) one who holds any shares in the company in trust for that controlled body corporate, connected entity
or director.

(6) Subsection (2)(b)(ii) does not prevent a member specified in subsection (5) from attending, being counted
towards the quorum for, or taking part in the proceedings at, any meeting at which the decision is considered.

(7) In this section, a reference to a transaction to which an arrangement relates is—
(a) in the case of an arrangement mentioned in section 504(1)(a) or (2)(a), a reference to the transaction entered

into with a director, a body corporate controlled by a director, or an entity connected with a director under
the arrangement; or

(b) in the case of an arrangement mentioned in section 504(1)(b) or (2)(b) in relation to any rights, obligations
or liabilities under a transaction, a reference to the transaction.

(8) For the purposes of subsection (1)(a), it is irrelevant whether the resolution is passed before, on or after the
commencement date* of this Division.

___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 497 Value of transaction or arrangement etc. L.N. 163 of 2013 03/03/2014


(1) For the purposes of this Division—
(a) the value of a transaction is to be determined in accordance with subsection (2); and
(b) the value of any other relevant transaction or arrangement is the value of the transaction or arrangement

determined in accordance with subsection (2) or (3), reduced by any amount by which the liabilities of the
director, the body corporate controlled by a director, or the entity connected with a director, for whom the
transaction or arrangement was entered into have been reduced.

(2) For the purposes of subsection (1)—
(a) the value of a loan is the amount of its principal;
(b) the value of a quasi-loan is the amount, or maximum amount, that the person to whom the quasi-loan is

made is liable to reimburse the person making the quasi-loan;
(c) the value of a credit transaction is the price that it is reasonable to expect could be obtained for goods, land



Cap 622 - Companies Ordinance 186

or services to which the transaction relates if they had been supplied (at the time the transaction is entered
into) in the ordinary course of business and on the same terms (apart from the price) as they have been
supplied, or are to be supplied, under the transaction; and

(d) the value of a guarantee or security is the amount guaranteed or secured.
(3) For the purposes of subsection (1)(b)—

(a) the value of an arrangement mentioned in section 504(1)(a) or (2)(a) is the value of the transaction entered
into with a director, a body corporate controlled by a director, or an entity connected with a director under
the arrangement; and

(b) the value of an arrangement mentioned in section 504(1)(b) or (2)(b) in relation to any rights, obligations or
liabilities under a transaction is the value of the transaction.


Section: 498 Total exposure amount L.N. 163 of 2013 03/03/2014


(1) In sections 509 and 510—
total exposure amount(風險承擔總額) means—

(a) in relation to a company that is not a specified company, the aggregate of the amounts specified in
subsection (2); or

(b) in relation to a specified company, the aggregate of the amounts specified in subsection (3).
(2) The amounts specified for the purposes of paragraph (a) of the definition of total exposure amount in subsection

(1) are—
(a) the amount of the transaction in question;
(b) the aggregate of the amounts outstanding at the time that transaction is entered into, in respect of the

principal and interest or otherwise, on every loan made by the company to a director of the company or of a
holding company of the company, or to a body corporate controlled by such a director (excluding the
transaction in question, and any loan made with the prescribed approval mentioned in section 500 or by
virtue of section 499, 505, 506, 507, 508, 511 or 512);

(c) the aggregate of the amounts representing the maximum liability of the company at that time under every
guarantee given by the company, and in respect of every security provided by the company, in connection
with any loan made by any person to a director of the company or of a holding company of the company, or
to a body corporate controlled by such a director (excluding the transaction in question, and any guarantee
or security given or provided with the prescribed approval mentioned in section 500 or by virtue of section
499, 505, 506, 507, 508, 511 or 512); and

(d) the aggregate of the net amounts incurred or to be incurred by the company at that time under every
arrangement specified in subsection (4) that is entered into by the company (excluding any arrangement
entered into with the prescribed approval mentioned in section 504 or by virtue of section 499).

(3) The amounts specified for the purposes of paragraph (b) of the definition of total exposure amount in subsection
(1) are—
(a) the amount of the transaction in question;
(b) the aggregate of the amounts outstanding at the time that transaction is entered into, in respect of the

principal and interest or otherwise, on every loan and quasi-loan made by the company to, and every credit
transaction entered into by the company as creditor for, a director of the company or of a holding company
of the company, or a body corporate controlled by such a director, or an entity connected with such a
director (excluding the transaction in question, and any loan, quasi-loan or credit transaction made or
entered into with the prescribed approval mentioned in section 500, 501, 502 or 503 or by virtue of section
499, 505, 506, 507, 508, 511 or 512);

(c) the aggregate of the amounts representing the maximum liability of the company at that time under every
guarantee given by the company, and in respect of every security provided by the company, in connection
with any loan or quasi-loan made by any person to, or any credit transaction entered into by any person as
creditor for, a director of the company or of a holding company of the company, or a body corporate
controlled by such a director, or an entity connected with such a director (excluding the transaction in
question, and any guarantee or security given or provided with the prescribed approval mentioned in section
500, 501, 502 or 503 or by virtue of section 499, 505, 506, 507, 508, 511 or 512); and

(d) the aggregate of the net amounts incurred or to be incurred by the company at that time under every
arrangement specified in subsection (5) that is entered into by the company (excluding any arrangement



Cap 622 - Companies Ordinance 187

entered into with the prescribed approval mentioned in section 504 or by virtue of section 499).
(4) An arrangement specified for the purposes of subsection (2)(d) is—

(a) an arrangement under which—
(i) another person makes a questionable loan to—

(A) a director of the company or of a holding company of the company; or
(B) a body corporate controlled by such a director; and

(ii) that other person, pursuant to the arrangement, has obtained or is to obtain any benefit from the
company or an associated company of the company; or

(b) an arrangement for an assignment to the company, or assumption by the company, of any rights, obligations
or liabilities under a questionable loan made by another person to—
(i) a director of the company or of a holding company of the company; or
(ii) a body corporate controlled by such a director.

(5) An arrangement specified for the purposes of subsection (3)(d) is—
(a) an arrangement under which—

(i) another person makes a questionable loan or quasi-loan to, or enters into a questionable credit
transaction as creditor for—
(A) a director of the company or of a holding company of the company;
(B) a body corporate controlled by such a director; or
(C) an entity connected with such a director; and

(ii) that other person, pursuant to the arrangement, has obtained or is to obtain any benefit from the
company or an associated company of the company; or

(b) an arrangement for an assignment to the company, or assumption by the company, of any rights, obligations
or liabilities under—
(i) a questionable loan or quasi-loan made by another person to—

(A) a director of the company or of a holding company of the company;
(B) a body corporate controlled by such a director; or
(C) an entity connected with such a director; or

(ii) a questionable credit transaction entered into by another person as creditor for—
(A) a director of the company or of a holding company of the company; or
(B) an entity connected with such a director.

(6) In this section—
(a) a reference to a questionable loan or quasi-loan made by a person to a director of the company, a body

corporate controlled by such a director, or an entity connected with such a director, under an arrangement is
a reference to a loan or quasi-loan (as the case may be) that, if it had been made by the company on the date
of the arrangement, would have been prohibited by section 500(1), 501(1) or 502(1) or would have been so
prohibited in the absence of sections 509 and 510;

(b) a reference to a questionable credit transaction entered into by a person as creditor for a director of the
company, or an entity connected with such a director, under an arrangement is a reference to a credit
transaction that, if it had been entered into by the company on the date of the arrangement, would have been
prohibited by section 503(1) or would have been so prohibited in the absence of sections 509 and 510;

(c) a reference to a questionable loan or quasi-loan made by a person to a director of a holding company of the
company, a body corporate controlled by such a director, or an entity connected with such a director, under
an arrangement is a reference to a loan or quasi-loan (as the case may be) that, if it had been made by the
company on the date of the arrangement, would have been prohibited by section 500(2), 501(2) or 502(2) or
would have been so prohibited in the absence of sections 509 and 510; and

(d) a reference to a questionable credit transaction entered into by a person as creditor for a director of a
holding company of the company, or an entity connected with such a director, under an arrangement is a
reference to a credit transaction that, if it had been entered into by the company on the date of the
arrangement, would have been prohibited by section 503(2) or would have been so prohibited in the
absence of sections 509 and 510.





Cap 622 - Companies Ordinance 188

Section: 499 Preservation of effect of members’ unanimous consent L.N. 163 of 2013 03/03/2014


(1) If, under a provision of this Division, a transaction or arrangement must not be entered into without the
prescribed approval of a company’s members, the provision does not prohibit the transaction or arrangement
from being entered into with the unanimous consent of those members given before it is entered into.

(2) If, under a provision of this Division, a transaction or arrangement may be entered into with only the prescribed
approval of a company’s members, the provision does not preclude the transaction or arrangement from being
entered into with the unanimous consent of those members given before it is entered into.

(3) For the purposes of subsection (1) or (2), it is irrelevant whether the unanimous consent is given before, on or
after the commencement date* of this Division.

___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Part:
Division:
Subdivision:

11
2
2

Prohibitions L.N. 163 of 2013 03/03/2014





Section: 500 Company must not make loan etc. to director or body
corporate controlled by director

L.N. 163 of 2013 03/03/2014



(1) Without the prescribed approval of its members, a company must not—
(a) make a loan to—

(i) a director of the company; or
(ii) a body corporate controlled by such a director; or

(b) give a guarantee or provide security in connection with a loan made by any person to—
(i) a director of the company; or
(ii) a body corporate controlled by such a director.

(2) Without the prescribed approval of its members and the prescribed approval of the holding company’s
members, a company must not—
(a) make a loan to—

(i) a director of a holding company of the company; or
(ii) a body corporate controlled by such a director; or

(b) give a guarantee or provide security in connection with a loan made by any person to—
(i) a director of a holding company of the company; or
(ii) a body corporate controlled by such a director.

(3) Despite subsection (2)—
(a) a company may enter into the transaction with only the prescribed approval of its members if the holding

company is incorporated outside Hong Kong; and
(b) a company may enter into the transaction with only the prescribed approval of the holding company’s

members if it is a wholly owned subsidiary of the holding company, and the holding company is
incorporated in Hong Kong.


Section: 501 Specified company must not make quasi-loan etc. to

director
L.N. 163 of 2013 03/03/2014



(1) Without the prescribed approval of its members, a specified company must not—
(a) make a quasi-loan to a director of the company; or
(b) give a guarantee or provide security in connection with a quasi-loan made by any person to such a director.

(2) Without the prescribed approval of its members and the prescribed approval of the holding company’s
members, a specified company must not—
(a) make a quasi-loan to a director of a holding company of the company; or



Cap 622 - Companies Ordinance 189

(b) give a guarantee or provide security in connection with a quasi-loan made by any person to such a director.
(3) Despite subsection (2)—

(a) a specified company may enter into the transaction with only the prescribed approval of its members if the
holding company is incorporated outside Hong Kong; and

(b) a specified company may enter into the transaction with only the prescribed approval of the holding
company’s members if it is a wholly owned subsidiary of the holding company, and the holding company
is incorporated in Hong Kong.


Section: 502 Specified company must not make loan or quasi-loan etc.

to connected entity
L.N. 163 of 2013 03/03/2014



(1) Without the prescribed approval of its members, a specified company must not—
(a) make a loan or quasi-loan to an entity connected with a director of the company; or
(b) give a guarantee or provide security in connection with a loan or quasi-loan made by any person to an entity

connected with such a director.
(2) Without the prescribed approval of its members and the prescribed approval of the holding company’s

members, a specified company must not—
(a) make a loan or quasi-loan to an entity connected with a director of a holding company of the company; or
(b) give a guarantee or provide security in connection with a loan or quasi-loan made by any person to an entity

connected with such a director.
(3) Despite subsection (2)—

(a) a specified company may enter into the transaction with only the prescribed approval of its members if the
holding company is incorporated outside Hong Kong; and

(b) a specified company may enter into the transaction with only the prescribed approval of the holding
company’s members if it is a wholly owned subsidiary of the holding company, and the holding company
is incorporated in Hong Kong.


Section: 503 Specified company must not enter into credit transaction

etc. as creditor for director or connected entity
L.N. 163 of 2013 03/03/2014



(1) Without the prescribed approval of its members, a specified company must not—
(a) enter into a credit transaction as creditor for—

(i) a director of the company; or
(ii) an entity connected with such a director; or

(b) give a guarantee or provide security in connection with a credit transaction entered into by any person as
creditor for such a director or an entity connected with such a director.

(2) Without the prescribed approval of its members and the prescribed approval of the holding company’s
members, a specified company must not—
(a) enter into a credit transaction as creditor for—

(i) a director of a holding company of the company; or
(ii) an entity connected with such a director; or

(b) give a guarantee or provide security in connection with a credit transaction entered into by any person as
creditor for such a director or an entity connected with such a director.

(3) Despite subsection (2)—
(a) a specified company may enter into the transaction with only the prescribed approval of its members if the

holding company is incorporated outside Hong Kong; and
(b) a specified company may enter into the transaction with only the prescribed approval of the holding

company’s members if it is a wholly owned subsidiary of the holding company, and the holding company
is incorporated in Hong Kong.





Cap 622 - Companies Ordinance 190

Section: 504 Company must not take part in arrangement purporting
to circumvent sections 500 to 503

L.N. 163 of 2013 03/03/2014



(1) Without the prescribed approval of its members, a company must not—
(a) take part in an arrangement under which—

(i) another person enters into a questionable transaction with a director of the company, a body corporate
controlled by such a director, or an entity connected with such a director; and

(ii) that other person, pursuant to the arrangement, has obtained or is to obtain any benefit from the
company or an associated company of the company; or

(b) arrange for an assignment to the company, or assumption by the company, of any rights, obligations or
liabilities under a questionable transaction entered into by another person with—
(i) a director of the company;
(ii) a body corporate controlled by such a director; or
(iii) an entity connected with such a director.

(2) Without the prescribed approval of its members and the prescribed approval of the holding company’s
members, a company must not—
(a) take part in an arrangement under which—

(i) another person enters into a questionable transaction with a director of a holding company of the
company, a body corporate controlled by such a director, or an entity connected with such a director;
and

(ii) that other person, pursuant to the arrangement, has obtained or is to obtain any benefit from the
company or an associated company of the company; or

(b) arrange for an assignment to the company, or assumption by the company, of any rights, obligations or
liabilities under a questionable transaction entered into by another person with—
(i) a director of a holding company of the company;
(ii) a body corporate controlled by such a director; or
(iii) an entity connected with such a director.

(3) Despite subsection (2)—
(a) a company may enter into the arrangement with only the prescribed approval of its members if the holding

company is incorporated outside Hong Kong; and
(b) a company may enter into the arrangement with only the prescribed approval of the holding company’s

members if it is a wholly owned subsidiary of the holding company, and the holding company is
incorporated in Hong Kong.

(4) In this section—
(a) a reference to a questionable transaction entered into by a person with a director of the company, a body

corporate controlled by such a director, or an entity connected with such a director, under an arrangement is
a reference to a transaction that, if it had been entered into by the company on the date of the arrangement,
would have been prohibited by section 500(1), 501(1), 502(1) or 503(1) or would have been so prohibited
in the absence of Subdivision 3; and

(b) a reference to a questionable transaction entered into by a person with a director of a holding company of
the company, a body corporate controlled by such a director, or an entity connected with such a director,
under an arrangement is a reference to a transaction that, if it had been entered into by the company on the
date of the arrangement, would have been prohibited by section 500(2), 501(2), 502(2) or 503(2) or would
have been so prohibited in the absence of Subdivision 3.


Part:
Division:
Subdivision:

11
2
3

Exceptions to Subdivision 2 L.N. 163 of 2013 03/03/2014







Cap 622 - Companies Ordinance 191

Section: 505 Exception for loan, quasi-loan and credit transaction of
value not exceeding 5% of net assets or called-up share
capital

L.N. 163 of 2013 03/03/2014



(1) A company is not prohibited by section 500, 501, 502 or 503 from making a loan or quasi-loan, entering into a
credit transaction or giving a guarantee or providing security in connection with a loan, quasi-loan or credit
transaction, if the aggregate of the value of the transaction in question, and the value of any other relevant
transaction or arrangement, does not exceed 5% of—
(a) the value of the company’s net assets as determined by reference to the relevant financial statements of the

company; or
(b) if no such relevant financial statements have been prepared, the amount of the company’s called-up share

capital.
(2) In this section, a reference to the relevant financial statements of a company is—

(a) a reference to the company’s annual financial statements or annual consolidated financial statements
prepared under Part 9 that were most recently sent to its members under section 430; or

(b) if no such annual financial statements or annual consolidated financial statements have been sent since the
commencement date* of section 430, a reference to the company’s accounts prepared under section 122 of
the predecessor Ordinance that were most recently sent to its members under section 129G of that
Ordinance.

(3) A transaction or arrangement is a relevant transaction or arrangement for the purposes of subsection (1)—
(a) if it is entered into before, or at the same time as, the transaction in question; and
(b) if—

(i) where the transaction in question is entered into for a director of the company, a body corporate
controlled by such a director, or an entity connected with such a director, it is entered into for the
director, controlled body corporate or connected entity by the company or a subsidiary of the company
as permitted by subsection (1); or

(ii) where the transaction in question is entered into for a director of a holding company of the company, a
body corporate controlled by such a director, or an entity connected with such a director, it is entered
into for the director, controlled body corporate or connected entity by the holding company or a
subsidiary of the holding company as permitted by subsection (1).

(4) Despite subsection (3), a transaction or arrangement is not a relevant transaction or arrangement for the purposes
of subsection (1) if—
(a) it was entered into by a body corporate that, at the time it was entered into—

(i) was a subsidiary of the company entering into the transaction in question; or
(ii) was a subsidiary of a holding company of that company; and

(b) at the time the question arises as to whether the transaction in question falls within subsection (1), the body
corporate is no longer such a subsidiary.

___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 506 Exception for expenditure on company business L.N. 163 of 2013 03/03/2014


(1) A company is not prohibited by section 500, 501, 502 or 503 from entering into any transaction to provide—
(a) a director of the company or of a holding company of the company;
(b) a body corporate controlled by such a director; or
(c) an entity connected with such a director,

with funds to meet expenditure specified in subsection (2) or to avoid incurring such expenditure.
(2) The expenditure is one incurred or to be incurred by the director, controlled body corporate or connected entity

(as the case may be)—
(a) for the purposes of the company; or
(b) for the purpose of enabling the director, controlled body corporate or connected entity (as the case may be)

to properly perform duties as an officer of the company.



Cap 622 - Companies Ordinance 192


Section: 507 Exception for expenditure on defending proceedings etc. L.N. 163 of 2013 03/03/2014


(1) If the condition specified in subsection (2) is satisfied, a company is not prohibited by section 500, 501, 502 or
503 from entering into any transaction—
(a) to provide a director of the company or of a holding company of the company with funds to meet

expenditure incurred or to be incurred by the director—
(i) in defending any criminal or civil proceedings in connection with any alleged negligence, default,

breach of duty or breach of trust by the director in relation to the company or an associated company of
the company; or

(ii) in connection with an application for relief under section 358 of the predecessor Ordinance or section
903 or 904; or

(b) to enable such a director to avoid incurring such expenditure.
(2) The condition is that the transaction in question is entered into on the terms—

(a) that the funds are to be repaid, or any liability of the company incurred in relation to that transaction is to be
discharged, if—
(i) the director is convicted in the proceedings;
(ii) judgment is given against the director in the proceedings; or
(iii) the court refuses to grant the director relief on the application; and

(b) that the funds are to be so repaid, or such liability is to be so discharged, not later than the date when the
conviction, judgment or refusal of relief becomes final.

(3) For the purposes of subsection (2), a conviction, judgment or refusal of relief—
(a) if not appealed against, becomes final at the end of the period for bringing an appeal; or
(b) if appealed against, becomes final when the appeal, or any further appeal, is disposed of.

(4) For the purposes of subsection (3)(b), an appeal is disposed of if—
(a) it is determined, and the period for bringing any further appeal has ended; or
(b) it is abandoned or otherwise ceases to have effect.


Section: 508 Exception for expenditure in connection with investigation

or regulatory action
L.N. 163 of 2013 03/03/2014



(1) If the condition specified in subsection (2) is satisfied, a company is not prohibited by section 500, 501, 502 or
503 from entering into any transaction—
(a) to provide a director of the company or of a holding company of the company with funds to meet

expenditure incurred or to be incurred by the director in putting up a defence in an investigation, or against
any action taken or proposed to be taken, by a regulatory authority in connection with any alleged
misconduct by the director in relation to the company or an associated company of the company; or

(b) to enable such a director to avoid incurring such expenditure.
(2) The condition is that the transaction in question is entered into on the terms—

(a) that the funds are to be repaid, or any liability of the company incurred in relation to that transaction is to be
discharged, if the director is found in the investigation or action to have committed the misconduct; and

(b) that the funds are to be so repaid, or such liability is to be so discharged, not later than the date when the
finding becomes final.

(3) For the purposes of subsection (2)—
(a) a finding subject to review—

(i) if no application for review has been made, becomes final at the end of the period for making an
application for review; or

(ii) if an application for review has been made, becomes final when the review, or any further review, is
disposed of;

(b) a finding subject to appeal—
(i) if not appealed against, becomes final at the end of the period for bringing an appeal; or
(ii) if appealed against, becomes final when the appeal, or any further appeal, is disposed of; and

(c) a finding not subject to review or appeal becomes final when it is made.



Cap 622 - Companies Ordinance 193

(4) For the purposes of subsection (3)(a)(ii) or (b)(ii), a review or appeal is disposed of if—
(a) it is determined, and the period for bringing any further review or appeal has ended; or
(b) it is abandoned or otherwise ceases to have effect.

(5) In this section—
misconduct(不當行為) means negligence, default, breach of duty or breach of trust.

Section: 509 Exception for home loan L.N. 163 of 2013 03/03/2014


(1) If the conditions specified in subsection (2) are satisfied, a company is not prohibited by section 500, 501, 502 or
503 from entering into any transaction—
(a) for the purpose of facilitating the purchase of any residential premises for use as the only or main residence

of—
(i) a director of the company;
(ii) an employee of the company who is a director of a holding company of the company; or
(iii) an employee of the company who is an entity connected with a director of the company or of a holding

company of the company;
(b) for the purpose of improving any residential premises so used; or
(c) in substitution for any transaction entered into by any other person for a purpose specified in paragraph (a)

or (b).
(2) The conditions are—

(a) that, at the time the transaction in question is entered into, the total exposure amount does not exceed 10%
of—
(i) the value of the company’s net assets as determined by reference to the relevant financial statements

of the company; or
(ii) if no such relevant financial statements have been prepared, the amount of the company’s called-up

share capital;
(b) that the company ordinarily enters into transactions for a purpose specified in subsection (3) on terms no

less favourable than those on which the transaction in question is entered into;
(c) that a valuation report on the residential premises is made and signed by a professionally qualified valuation

surveyor, who is subject to the discipline of a professional body, within 3 months before the date on which
the transaction in question is entered into; and

(d) that the transaction in question is secured by a legal mortgage on the land comprising the residential
premises.

(3) The purpose specified for the purposes of subsection (2)(b) is—
(a) to facilitate the purchase of any residential premises for use as the only or main residence of an employee of

the company;
(b) to improve any residential premises so used; or
(c) to substitute for any transaction entered into by any other person for a purpose specified in paragraph (a) or

(b).
(4) In this section—
residential premises(住用處所) means any residential premises together with any land to be occupied or enjoyed with

the premises.
(5) In this section, a reference to the relevant financial statements of a company is—

(a) a reference to the company’s annual financial statements or annual consolidated financial statements
prepared under Part 9 that were most recently sent to its members under section 430; or

(b) if no such annual financial statements or annual consolidated financial statements have been sent since the
commencement date* of section 430, a reference to the company’s accounts prepared under section 122 of
the predecessor Ordinance that were most recently sent to its members under section 129G of that
Ordinance.

___________________________________________________________________
Note:
* Commencement date: 3 March 2014.




Cap 622 - Companies Ordinance 194

Section: 510 Exception for leasing goods and land etc. L.N. 163 of 2013 03/03/2014


(1) If the conditions specified in subsection (2) are satisfied, a company is not prohibited by section 500, 501, 502 or
503 from leasing or hiring goods or leasing land to—
(a) a director of the company or of a holding company of the company;
(b) a body corporate controlled by such a director; or
(c) an entity connected with such a director.

(2) The conditions are—
(a) that, at the time the transaction in question is entered into, the total exposure amount does not exceed 10%

of—
(i) the value of the company’s net assets as determined by reference to the relevant financial statements

of the company; or
(ii) if no such relevant financial statements have been prepared, the amount of the company’s called-up

share capital; and
(b) that the terms of the transaction in question are not more favourable than what is reasonable to expect the

company to have offered, if the goods had been leased or hired, or the land had been leased, on the open
market, to a person unconnected with the company.

(3) In this section, a reference to the relevant financial statements of a company is—
(a) a reference to the company’s annual financial statements or annual consolidated financial statements

prepared under Part 9 that were most recently sent to its members under section 430; or
(b) if no such annual financial statements or annual consolidated financial statements have been sent since the

commencement date* of section 430, a reference to the company’s accounts prepared under section 122 of
the predecessor Ordinance that were most recently sent to its members under section 129G of that
Ordinance.

___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 511 Exception for transaction entered into in ordinary course

of business
L.N. 163 of 2013 03/03/2014



(1) A company is not prohibited by section 500, 501 or 502 from making a loan or quasi-loan, or giving a guarantee
or providing security in connection with a loan or quasi-loan, if—
(a) the company’s ordinary business includes the making of loans or quasi-loans, or the giving of guarantees

or provision of securities in connection with loans or quasi-loans (as the case may be);
(b) the loan, quasi-loan, guarantee or security is made, given or provided by the company in the ordinary course

of its business; and
(c) the amount of the loan or quasi-loan, guarantee or security is not greater, and the terms of it are not more

favourable, than what is reasonable to expect the company to have offered to a person of the same financial
standing but unconnected with the company.

(2) A company is not prohibited by section 503 from entering into a credit transaction, or giving a guarantee or
providing security in connection with a credit transaction, if—
(a) the company’s ordinary business includes the entering into of credit transactions, or the giving of

guarantees or provision of securities in connection with credit transactions (as the case may be);
(b) the credit transaction, guarantee or security is entered into, given or provided by the company in the

ordinary course of its business; and
(c) the amount of the credit transaction, guarantee or security is not greater, and the terms of it are not more

favourable, than what is reasonable to expect the company to have offered to a person of the same financial
standing but unconnected with the company.


Section: 512 Exception for intra-group transaction L.N. 163 of 2013 03/03/2014


If a company is a member of a group of companies, the company is not prohibited by section 500, 501, 502 or 503



Cap 622 - Companies Ordinance 195

from—
(a) making a loan or quasi-loan to, or entering into a credit transaction as creditor for, a body corporate that is a

member of the group; or
(b) giving a guarantee or providing security in connection with—

(i) a loan or quasi-loan made by any person to such a body corporate; or
(ii) a credit transaction entered into by any person as creditor for such a body corporate.


Part:
Division:
Subdivision:

11
2
4

Consequences of Contravention L.N. 163 of 2013 03/03/2014





Section: 513 Civil consequences of contravention L.N. 163 of 2013 03/03/2014


(1) If a company enters into a transaction in contravention of section 500, 501, 502 or 503, or enters into an
arrangement in contravention of section 504, the transaction or arrangement is voidable at the company’s
instance unless—
(a) restitution of any money or other asset that was the subject matter of the transaction or arrangement is no

longer possible;
(b) the company has been indemnified for any loss or damage resulting from the transaction or arrangement; or
(c) a person other than the director, controlled body corporate, or connected entity, for whom the transaction or

arrangement was entered into acquired rights in good faith, for value, and without actual notice of the
contravention, and those rights would be affected by the avoidance.

(2) Whether or not the transaction or arrangement has been avoided, each of the persons specified in subsection (3)
is liable—
(a) to account to the company for any gain that the person has made, directly or indirectly, by the transaction or

arrangement; and
(b) jointly and severally with any other person so liable under this section, to indemnify the company for any

loss or damage resulting from the transaction or arrangement.
(3) The persons are—

(a) a director of the company, or of a holding company of the company, for whom the company entered into the
transaction or arrangement;

(b) a body corporate controlled by such a director, or an entity connected with such a director, for whom the
company entered into the transaction or arrangement;

(c) the director of the company who controls such a body corporate or with whom such an entity is connected;
(d) the director of a holding company of the company who controls such a body corporate or with whom such

an entity is connected; and
(e) any other director of the company who authorized the transaction or arrangement.

(4) Despite subsection (2)—
(a) the controlled body corporate or connected entity specified in subsection (3)(b) is not liable if the controlled

body corporate or connected entity establishes that, at the time the transaction or arrangement was entered
into, it was not aware of the circumstances constituting the contravention;

(b) the director specified in subsection (3)(c) or (d) is not liable if the director establishes that the director took
all reasonable steps to secure the company’s compliance with section 500, 502, 503 or 504 (as the case
may be); and

(c) a director specified in subsection (3)(e) is not liable if the director establishes that, at the time the
transaction or arrangement was entered into, the director was not aware of the circumstances constituting
the contravention.

(5) This section does not exclude the operation of any other Ordinance or rule of law by virtue of which the
transaction or arrangement may be called into question or any liability to the company may arise.





Cap 622 - Companies Ordinance 196

Section: 514 Affirmation of contravening transaction or arrangement L.N. 163 of 2013 03/03/2014


(1) Despite section 513, a transaction or arrangement may no longer be avoided under that section if, within a
reasonable period after it is entered into, the transaction or arrangement is affirmed.

(2) If a transaction or arrangement contravenes Subdivision 2 because it was entered into without the prescribed
approval of the company’s members, the affirmation of the transaction or arrangement must be obtained by a
resolution of the company’s members.

(3) If a transaction or arrangement contravenes Subdivision 2 because it was entered into without the prescribed
approval of the holding company’s members, the affirmation of the transaction or arrangement must be
obtained by a resolution of the holding company’s members.

(4) If a transaction or arrangement contravenes Subdivision 2 because it was entered into without the prescribed
approval of the company’s members and the prescribed approval of the holding company’s members, the
affirmation of the transaction or arrangement must be obtained—
(a) by a resolution of the company’s members; and
(b) by a resolution of the holding company’s members.

(5) Subsections (2), (3) and (4) do not affect the validity of a company’s or holding company’s decision to affirm
a transaction or arrangement if it is taken by unanimous consent of the company’s or holding company’s
members.


Section: 515 Provisions supplementary to section 514 L.N. 163 of 2013 03/03/2014


(1) The following requirements must be met in relation to a resolution of the members of any company under
section 514—
(a) in the case of a written resolution, a memorandum setting out the matters specified in subsection (3) is sent

to every member at or before the time at which the proposed resolution is sent to the member; or
(b) in the case of a resolution passed at a general meeting—

(i) a memorandum setting out the matters specified in subsection (3) is sent to every member together
with the notice convening the meeting; and

(ii) if the company is a specified company, the resolution is passed after disregarding every vote in favour
of the resolution by a member specified in subsection (4).

(2) Subject to any provision of the company’s articles, any accidental omission to send the memorandum to a
member is to be disregarded for the purpose of determining whether the requirement specified in subsection
(1)(a) or (b)(i) has been met.

(3) The matters specified for the purposes of subsection (1)(a) and (b)(i) are—
(a) in the case of a resolution for the purpose of a contravention of section 500, 501 or 502—

(i) the nature of the transaction to be affirmed by the resolution;
(ii) the amount of the loan or quasi-loan;
(iii) the purpose for which the loan or quasi-loan is required; and
(iv) the extent of the company’s liability under any transaction connected with the loan or quasi-loan;

(b) in the case of a resolution for the purpose of a contravention of section 503—
(i) the nature of the transaction to be affirmed by the resolution;
(ii) the amount and value of the credit transaction;
(iii) the purpose for which the goods, land or services supplied, sold, leased, hired or otherwise disposed of

under the credit transaction are required; and
(iv) the extent of the company’s liability under any transaction connected with the credit transaction; or

(c) in the case of a resolution for the purpose of a contravention of section 504—
(i) the matters that would have to be disclosed if the company were seeking affirmation of the transaction

to which the arrangement relates;
(ii) the nature of the arrangement to be affirmed by the resolution; and
(iii) the extent of the company’s liability under the arrangement.

(4) The member specified for the purposes of subsection (1)(b)(ii) is—
(a) in the case of a resolution for the purpose of a contravention of section 500 or 501—



Cap 622 - Companies Ordinance 197

(i) one who is the controlled body corporate to whom the loan is proposed to be made or was made;
(ii) one who is the director—

(A) who controls that body corporate; or
(B) to whom the loan or quasi-loan is proposed to be made or was made;

(iii) one who is any other director of the company who authorized the loan or quasi-loan; or
(iv) one who holds any shares in the company in trust for the director specified in subparagraph (ii) or (iii)

or that controlled body corporate;
(b) in the case of a resolution for the purpose of a contravention of section 502—

(i) one who is the connected entity to whom the loan or quasi-loan is proposed to be made or was made;
(ii) one who is the director with whom that entity is connected;
(iii) one who is any other director of the company who authorized the loan or quasi-loan; or
(iv) one who holds any shares in the company in trust for the director specified in subparagraph (ii) or (iii)

or that connected entity;
(c) in the case of a resolution for the purpose of a contravention of section 503—

(i) one who is the director or connected entity for whom the credit transaction is proposed to be entered
into or was entered into;

(ii) one who is the director with whom that entity is connected;
(iii) one who is any other director of the company who authorized the credit transaction; or
(iv) one who holds any shares in the company in trust for the director specified in subparagraph (i), (ii) or

(iii) or that connected entity; or
(d) in the case of a resolution for the purpose of a contravention of section 504—

(i) one who is the controlled body corporate, or connected entity, for whom the arrangement is proposed
to be entered into or was entered into;

(ii) one who is the director—
(A) who controls that body corporate;
(B) with whom that entity is connected; or
(C) for whom the arrangement is proposed to be entered into or was entered into;

(iii) one who is any other director of the company who authorized the arrangement; or
(iv) one who holds any shares in the company in trust for the director specified in subparagraph (ii) or (iii)

or that controlled body corporate or connected entity.
(5) Subsection (1)(b)(ii) does not prevent a member specified in subsection (4) from attending, being counted

towards the quorum for, or taking part in the proceedings at, any meeting at which the decision is considered.
(6) In this section, a reference to a transaction to which an arrangement relates is—

(a) in the case of an arrangement mentioned in section 504(1)(a) or (2)(a), a reference to the transaction entered
into with a director, a body corporate controlled by a director, or an entity connected with a director under
the arrangement; or

(b) in the case of an arrangement mentioned in section 504(1)(b) or (2)(b) in relation to any rights, obligations
or liabilities under a transaction, a reference to the transaction.


Part:
Division:

11
3

Payment for Loss of Office L.N. 163 of 2013 03/03/2014





Part:
Division:
Subdivision:

11
3
1

Preliminary L.N. 163 of 2013 03/03/2014





Section: 516 Interpretation L.N. 163 of 2013 03/03/2014


(1) In this Division—
affected member (受影響成員) means—

(a) a holder of the shares to which the takeover offer relates; or



Cap 622 - Companies Ordinance 198

(b) a holder of shares of the same class as any of the shares to which the takeover offer relates;
director (董事) includes a shadow director;
takeover offer (收購要約) means a takeover offer as defined by section 689.
(2) In this Division—

(a) a reference to payment, compensation or consideration includes benefits otherwise than in cash; and
(b) a reference to loss of office as a director excludes loss of a person’s status as a shadow director.

(3) In section 517 and Subdivisions 2 and 3, a reference to a payment to a director or former director includes—
(a) a payment to an entity connected with the director or former director; and
(b) a payment to a person made at the direction of, or for the benefit of—

(i) the director or former director; or
(ii) an entity connected with the director or former director.

(4) In section 517 and Subdivisions 2 and 3, a reference to a payment by a person includes a payment by another
person made at the direction of, or on behalf of, the person.

(5) For the purposes of this Division, a body corporate is not to be regarded as a shadow director of any of its
subsidiaries by reason only that the directors, or a majority of the directors, of the subsidiary are accustomed to
act in accordance with its directions or instructions.


Section: 517 Payment for loss of office L.N. 163 of 2013 03/03/2014


(1) In this Division, a reference to a payment for loss of office made to a director or former director of a company is
a reference to a payment made to the director or former director—
(a) by way of compensation for loss of office as director of the company;
(b) by way of compensation for loss, while director of the company or in connection with ceasing to be director

of it, of—
(i) any other office or employment in connection with the management of the affairs of the company; or
(ii) any office (as director or otherwise) or employment in connection with the management of the affairs

of any subsidiary undertaking of the company;
(c) as consideration for or in connection with the retirement from the office as director of the company; or
(d) as consideration for or in connection with the retirement, while director of the company or in connection

with ceasing to be director of it, from—
(i) any other office or employment in connection with the management of the affairs of the company; or
(ii) any office (as director or otherwise) or employment in connection with the management of the affairs

of any subsidiary undertaking of the company.
(2) If, in connection with a transfer mentioned in section 522 or 523—

(a) the price to be paid to a director or former director of the company specified in subsection (3) for any shares
in the company exceeds the price that could at the time have been obtained by other holders of like shares;
or

(b) any valuable consideration is given to a director or former director of the company specified in subsection
(3) by a person other than the company,

the excess, or (as the case may be) the money value of the consideration, is to be regarded as a payment for loss
of office for the purposes of sections 522 and 523.

(3) The director or former director of the company is—
(a) one who is or was to cease to hold office in connection with the transfer; or
(b) one who is or was to cease to be the holder of either of the following offices in connection with the transfer


(i) any other office or employment in connection with the management of the affairs of the company;
(ii) any office (as director or otherwise) or employment in connection with the management of the affairs

of any subsidiary undertaking of the company.
(4) Subsection (1)(a) and (b) applies to a loss of office occurring on or after the commencement date* of this

Division.
(5) Subsection (1)(c) and (d) applies to a retirement occurring on or after the commencement date* of this Division.
(6) For the purposes of subsections (4) and (5), a loss of office or retirement occurs—

(a) in the case of a directorship, when the person ceases to be a director;



Cap 622 - Companies Ordinance 199

(b) in the case of any other office, when the person ceases to hold the office; or
(c) in the case of an employment, when the employment comes to an end.

___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 518 Prescribed approval of members or affected members L.N. 163 of 2013 03/03/2014


(1) In this Division, a reference to the prescribed approval of the members or affected members of a company is a
reference to an approval obtained by a resolution of those members or affected members—
(a) that is passed before the payment for loss of office is made; and
(b) in respect of which the requirements specified in subsection (2) are met.

(2) The requirements specified for the purposes of subsection (1)(b) are—
(a) that, in the case of a written resolution, a memorandum setting out the particulars of the payment is sent to

every member or affected member (as the case may be) at or before the time at which the proposed
resolution is sent to the member or affected member; or

(b) that, in the case of a resolution passed at a general meeting—
(i) a memorandum setting out the particulars of the payment is sent to every member or affected member

(as the case may be) together with the notice convening the meeting; and
(ii) if the company is a public company, the resolution is passed after disregarding every vote in favour of

the resolution by a member or affected member (as the case may be) specified in subsection (4) or (5).
(3) Subject to any provision of the company’s articles, any accidental omission to send the memorandum to a

member or affected member (as the case may be) is to be disregarded for the purpose of determining whether the
requirement specified in subsection (2)(a) or (b)(i) has been met.

(4) In the case of a resolution for the purposes of section 521 or 522, the member specified for the purposes of
subsection (2)(b)(ii) is—
(a) one who is the director or former director to whom the payment for loss of office is proposed to be made;
(b) one who is the proposed recipient of the payment for loss of office and who is not the director or former

director specified in paragraph (a); or
(c) one who holds any shares in the company in trust for that director, former director or recipient.

(5) In the case of a resolution for the purposes of section 523, the affected member specified for the purposes of
subsection (2)(b)(ii) is—
(a) one who is the director or former director to whom the payment for loss of office is proposed to be made;
(b) one who is the proposed recipient of the payment for loss of office and who is not the director or former

director specified in paragraph (a);
(c) one who makes the takeover offer;
(d) one who is an associate of the person making the takeover offer; or
(e) one who holds any shares in the company in trust for—

(i) that director, former director or recipient;
(ii) the maker of the takeover offer specified in paragraph (c); or
(iii) the associate.

(6) Subsection (2)(b)(ii) does not prevent a member or affected member (as the case may be) specified in subsection
(4) or (5) from attending, being counted towards the quorum for, or taking part in the proceedings at, any
meeting at which the decision is considered.

(7) In this section—
associate(有聯繫者), in relation to a person making a takeover offer, means an associate of the person as defined by

section 667.
(8) For the purposes of subsection (1)(a), it is irrelevant whether the resolution is passed before, on or after the

commencement date* of this Division.
___________________________________________________________________
Note:
* Commencement date: 3 March 2014.




Cap 622 - Companies Ordinance 200

Section: 519 Preservation of effect of members’ or affected members’
unanimous consent

L.N. 163 of 2013 03/03/2014



(1) If, under a provision of this Division, a transaction must not be entered into without the prescribed approval of a
company’s members or affected members, the provision does not prohibit the transaction from being entered
into with the unanimous consent of those members or affected members given before it is entered into.

(2) If, under a provision of this Division, a transaction may be entered into with only the prescribed approval of a
company’s members or affected members, the provision does not preclude the transaction from being entered
into with the unanimous consent of those members or affected members given before it is entered into.

(3) For the purposes of subsection (1) or (2), it is irrelevant whether the unanimous consent is given before, on or
after the commencement date* of this Division.

___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 520 This Division does not affect operation of other Ordinance

or law
L.N. 163 of 2013 03/03/2014



This Division does not affect the operation of any other Ordinance or rule of law requiring disclosure to be made with
respect to—

(a) any payment for loss of office mentioned in section 521, 522 or 523; or
(b) any other like payment made or to be made to a director or former director of a company.


Part:
Division:
Subdivision:

11
3
2

Prohibitions L.N. 163 of 2013 03/03/2014





Section: 521 Company must not make payment for loss of office to
director or former director

L.N. 163 of 2013 03/03/2014



(1) Without the prescribed approval of its members, a company must not make a payment for loss of office to a
director or former director of the company.

(2) Without the prescribed approval of its members and the prescribed approval of the holding company’s
members, a company must not make a payment for loss of office to a director or former director of a holding
company of the company.

(3) Despite subsection (2)—
(a) a company may enter into the transaction with only the prescribed approval of its members if the holding

company is incorporated outside Hong Kong; and
(b) a company may enter into the transaction with only the prescribed approval of the holding company’s

members if it is a wholly owned subsidiary of the holding company, and the holding company is
incorporated in Hong Kong.


Section: 522 Person must not make payment for loss of office to

director or former director in connection with transfer of
company’s undertaking or property

L.N. 163 of 2013 03/03/2014



(1) Without the prescribed approval of the company’s members, a person must not make a payment for loss of
office to a director or former director of a company in connection with a transfer of the whole or any part of the
undertaking or property of the company.

(2) Without the prescribed approval of the company’s members and the prescribed approval of the subsidiary’s
members, a person must not make a payment for loss of office to a director or former director of a company in
connection with a transfer of the whole or any part of the undertaking or property of a subsidiary of the
company.



Cap 622 - Companies Ordinance 201

(3) For the purposes of this section, a payment is presumed, except in so far as the contrary is shown, to be made in
connection with a transfer of any undertaking or property of a company if it is made pursuant to an arrangement

(a) entered into as part of the agreement for the transfer, or within one year before or 2 years after that

agreement is entered into; and
(b) to which the company, or any person to whom the transfer is made, is privy.

(4) Despite subsection (2), a person may enter into the transaction with only the prescribed approval of the
company’s members if the subsidiary is incorporated outside Hong Kong or is a wholly owned subsidiary of
the company.


Section: 523 Person must not make payment for loss of office to

director or former director in connection with transfer of
shares resulting from takeover offer

L.N. 163 of 2013 03/03/2014



(1) Without the prescribed approval of the affected members, a person must not make a payment for loss of office to
a director or former director of a company in connection with a transfer of shares in the company, or in a
subsidiary of the company, resulting from a takeover offer.

(2) For the purposes of this section, a payment is presumed, except in so far as the contrary is shown, to be made in
connection with a transfer of any shares in a company if it is made pursuant to an arrangement—
(a) entered into as part of the agreement for the transfer, or within one year before or 2 years after that

agreement is entered into; and
(b) to which the company, or any person to whom the transfer is made, is privy.

(3) Despite subsection (1), a person may enter into the transaction without the prescribed approval of a body
corporate’s affected members if the body corporate is incorporated outside Hong Kong.

(4) For the purposes of this section, the prescribed approval of the affected members of a payment is to be regarded
as being obtained if—
(a) a quorum is not present at a general meeting to consider the resolution in respect of which the requirement

specified in section 518(2)(b)(i) is met;
(b) the meeting is adjourned to a later date; and
(c) a quorum is not present at the adjourned meeting.


Part:
Division:
Subdivision:

11
3
3

Exceptions to Subdivision 2 L.N. 163 of 2013 03/03/2014





Section: 524 Exception for payments in discharge of legal obligation etc. L.N. 163 of 2013 03/03/2014


(1) A person is not prohibited by Subdivision 2 from making a payment in good faith—
(a) in discharge of an existing legal obligation;
(b) by way of damages for breach of an existing legal obligation;
(c) by way of settlement or compromise of any claim arising in connection with the termination of a person’s

office or employment; or
(d) by way of pension in respect of past services.

(2) For the purposes of subsection (1), if part of a payment falls within that subsection and part of it does not, the
payment is to be regarded as if those parts were separate payments.

(3) In this section—
existing legal obligation(現存法律義務)—

(a) in relation to a payment falling within section 521 and made by a company, means an obligation of the
company, or an associated company of it, that was not entered into in connection with, or in consequence
of, the event giving rise to the payment for loss of office; or

(b) in relation to a payment falling within section 522 or 523 and made by a person in connection with a
transfer of any undertaking, property or shares, means an obligation of the person that was not entered into



Cap 622 - Companies Ordinance 202

for the purpose of, in connection with, or in consequence of, the transfer;
pension(退休金) includes any superannuation allowance, superannuation gratuity or similar payment.
(4) For the purposes of the definition of existing legal obligation in subsection (3), if a payment falls within both

sections 521 and 522 or within both sections 521 and 523, it is to be regarded as falling within section 521 but
not within section 522 or 523.


Section: 525 Exception for small payment L.N. 163 of 2013 03/03/2014


(1) A company is not prohibited by section 521 from making a payment to a director or former director if the
aggregate of the amount or value of the payment, and the amount or value of any other payment for loss of office
made by the company or a subsidiary of the company to the director or former director in connection with the
same event, does not exceed $100000.

(2) A company is not prohibited by section 522 or 523 from making a payment to a director or former director in
connection with a transfer of any undertaking or property of, or shares in, the company or a subsidiary of the
company if the aggregate of the amount or value of the payment, and the amount or value of any other payment
for loss of office made by the company or a subsidiary of the company to the director or former director in
connection with the transfer, does not exceed $100000.

(3) A subsidiary of a company is not prohibited by section 522 or 523 from making a payment to a director or
former director in connection with a transfer of any undertaking or property of, or shares in, the company or a
subsidiary of the company if the aggregate of the amount or value of the payment, and the amount or value of
any other payment for loss of office made by the company, or the subsidiary making the payment, to the director
or former director in connection with the transfer, does not exceed $100000.


Part:
Division:
Subdivision:

11
3
4

Consequences of Contravention L.N. 163 of 2013 03/03/2014





Section: 526 Interpretation L.N. 163 of 2013 03/03/2014


For the purposes of this Division—
(a) unless the court directs otherwise, a payment is to be regarded as being made in contravention of section

522 if it is made in contravention of both sections 521 and 522; and
(b) unless the court directs otherwise, a payment is to be regarded as being made in contravention of section

523 if it is made in contravention of both sections 521 and 523.

Section: 527 Civil consequences of contravention of section 521 L.N. 163 of 2013 03/03/2014


If a payment is made by a company in contravention of section 521—
(a) the payment is held by the recipient in trust for the company; and
(b) any director of the company who authorized the payment is jointly and severally liable to indemnify the

company for any loss resulting from the payment.

Section: 528 Civil consequences of contravention of section 522 L.N. 163 of 2013 03/03/2014


(1) This section applies if a payment is made in connection with a transfer of any undertaking or property of a
company, or a subsidiary of a company, in contravention of section 522.

(2) The payment is held by the recipient in trust for the company or subsidiary.
(3) If the payment is made by or on behalf of the company, any director of the company who authorized the

payment is jointly and severally liable to indemnify the company for any loss resulting from the payment.
(4) If the payment is made by or on behalf of the subsidiary, any director of the subsidiary who authorized the

payment is jointly and severally liable to indemnify the subsidiary for any loss resulting from the payment.




Cap 622 - Companies Ordinance 203

Section: 529 Civil consequences of contravention of section 523 L.N. 163 of 2013 03/03/2014


(1) This section applies if a payment is made in connection with a transfer of shares in a company, or a subsidiary of
a company, resulting from a takeover offer in contravention of section 523.

(2) The payment is held by the recipient in trust for those who have sold their shares as a result of the offer made.
(3) The recipient must bear the expenses in distributing that sum amongst those who have sold their shares.
(4) If the payment is made by or on behalf of the company, any director of the company who authorized the

payment is jointly and severally liable to indemnify the company for any loss resulting from the payment.
(5) If the payment is made by or on behalf of the subsidiary, any director of the subsidiary who authorized the

payment is jointly and severally liable to indemnify the subsidiary for any loss resulting from the payment.

Part:
Division:

11
4

Directors’ Service Contract L.N. 163 of 2013 03/03/2014





Section: 530 Interpretation L.N. 163 of 2013 03/03/2014


(1) In this Division—
director (董事) includes a shadow director.
(2) For the purposes of this Division, a body corporate is not to be regarded as a shadow director of any of its

subsidiaries by reason only that the directors, or a majority of the directors, of the subsidiary are accustomed to
act in accordance with its directions or instructions.


Section: 531 Service contract L.N. 163 of 2013 03/03/2014


(1) In this Division, a reference to a service contract of a director of a company—
(a) is a reference to a contract under which—

(i) the director undertakes personally to perform services, as director or otherwise, for the company or for
a subsidiary of the company; or

(ii) services that the director undertakes personally to perform, as director or otherwise, are to be made
available by a third party to the company or to a subsidiary of the company; and

(b) includes the terms of a person’s appointment as director of the company.
(2) In this Division, a reference to a service contract of a director of a company is not restricted to a contract for the

performance of services outside the scope of a director’s ordinary duties as director.

Section: 532 Prescribed approval of members L.N. 163 of 2013 03/03/2014


(1) In this Division, a reference to the prescribed approval of the members of a company is a reference to an
approval obtained by a resolution of those members—
(a) that is passed before the company agrees to the provision; and
(b) in respect of which the requirements specified in subsection (2) are met.

(2) The requirements specified for the purposes of subsection (1)(b) are—
(a) that, in the case of a written resolution, a memorandum setting out the proposed service contract

(incorporating the provision in question) is sent to every member at or before the time at which the
proposed resolution is sent to the member; or

(b) that, in the case of a resolution passed at a general meeting—
(i) a memorandum setting out the proposed service contract (incorporating the provision in question) is

sent to every member together with the notice convening the meeting; and
(ii) if the company is a public company, the resolution is passed after disregarding every vote in favour of

the resolution by a member specified in subsection (4).
(3) Subject to any provision of the company’s articles, any accidental omission to send the memorandum to a

member is to be disregarded for the purpose of determining whether the requirement specified in subsection
(2)(a) or (b)(i) has been met.



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(4) The member specified for the purposes of subsection (2)(b)(ii) is—
(a) one who is the director with whom the service contract is proposed to be entered into; or
(b) one who holds any shares in the company in trust for that director.

(5) Subsection (2)(b)(ii) does not prevent a member specified in subsection (4) from attending, being counted
towards the quorum for, or taking part in the proceedings at, any meeting at which the decision is considered.

(6) For the purposes of subsection (1)(a), it is irrelevant whether the resolution is passed before, on or after the
commencement date* of this Division.

___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 533 Preservation of effect of members’ unanimous consent L.N. 163 of 2013 03/03/2014


(1) If, under section 534(1), any provision must not be agreed to without the prescribed approval of a company’s
members, that section does not prohibit the provision from being agreed to with the unanimous consent of those
members given before it is agreed to.

(2) For the purposes of subsection (1), it is irrelevant whether the unanimous consent is given before, on or after the
commencement date* of this Division.

___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 534 Company must not agree to director’s long-term

employment
L.N. 163 of 2013 03/03/2014



(1) Without the prescribed approval of its members, a company must not agree to any provision under which the
guaranteed term of the employment of a director of the company with the company exceeds or may exceed 3
years.

(2) In this section—
employment(僱用) means any employment under a director’s service contract.
(3) In this section, a reference to the guaranteed term of a director’s employment is—

(a) a reference to the period (if any) during which the employment—
(i) is to continue, or may be continued, otherwise than at the instance of the company (whether under the

original contract or under a new contract entered into pursuant to it); and
(ii) cannot be terminated by the company by notice, or can be so terminated only in specified

circumstances;
(b) in the case of employment terminable by the company by notice, a reference to the period of notice required

to be given; or
(c) in the case of employment having a period within paragraph (a) and a period within paragraph (b), a

reference to the aggregate of those periods.
(4) For the purposes of this section, if, more than 6 months before the end of the guaranteed term of a director’s

employment, the company enters into a further service contract otherwise than pursuant to a right given, by or
under the original contract, to the other party to it, the guaranteed term of the employment under the further
contract is to be regarded as including the unexpired period of the guaranteed term of the employment under the
original contract.

(5) For the purposes of subsection (4), it is irrelevant whether the original contract is entered into before, on or after
the commencement date* of this Division.

___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 535 Civil consequences of contravention of section 534 L.N. 163 of 2013 03/03/2014


If a company agrees to a provision in contravention of section 534—



Cap 622 - Companies Ordinance 205

(a) the provision is void to the extent of the contravention; and
(b) the contract is to be regarded as containing a term entitling the company to terminate it at any time by

giving reasonable notice.

Part:
Division:

11
5

Material Interests in Transaction, Arrangement or
Contract

L.N. 163 of 2013 03/03/2014





Section: 536 Director must declare material interests L.N. 163 of 2013 03/03/2014


(1) If a director of a company is in any way, directly or indirectly, interested in a transaction, arrangement or
contract, or a proposed transaction, arrangement or contract, with the company that is significant in relation to
the company’s business, and the director’s interest is material, the director must declare the nature and extent
of the director’s interest to the other directors in accordance with sections 537, 538 and 539.

(2) If an entity connected with a director of a public company is in any way, directly or indirectly, interested in a
transaction, arrangement or contract, or a proposed transaction, arrangement or contract, with the company that
is significant in relation to the company’s business, and the connected entity’s interest is material, the director
must declare the nature and extent of the connected entity’s interest to the other directors in accordance with
sections 537, 538 and 539.

(3) If a declaration made under subsection (1) or (2) proves to be, or becomes, inaccurate or incomplete, the director
must make a further declaration in accordance with sections 537, 538 and 539.

(4) This section does not require a director to declare an interest—
(a) if the director is not aware of the interest or the transaction, arrangement or contract in question; or
(b) if, or to the extent that, the interest concerns the terms of the director’s service contract that have been or

are to be considered by—
(i) a meeting of the directors; or
(ii) a committee of the directors appointed for the purpose under the company’s articles.

(5) For the purposes of subsection (4)(a), a director is to be regarded as being aware of matters of which the director
ought reasonably to be aware.

(6) This section does not affect the operation of any other Ordinance or rule of law restricting a director of a
company from having any interest in a transaction, arrangement or contract with the company.


Section: 537 Declaration to directors: timing L.N. 163 of 2013 03/03/2014


(1) A declaration of interest under section 536 in a transaction, arrangement or contract that has been entered into
must be made as soon as reasonably practicable.

(2) A declaration of interest under section 536 in a proposed transaction, arrangement or contract must be made
before the company enters into the transaction, arrangement or contract.

(3) Failure to comply with subsection (1) or (2) does not affect the underlying duty to make the declaration.

Section: 538 Declaration to directors: procedures L.N. 163 of 2013 03/03/2014


(1) A declaration to directors under section 536 must be—
(a) made at a directors’ meeting;
(b) made by notice in writing and sent by the director to the other directors; or
(c) made by general notice by the director.

(2) A notice for the purposes of subsection (1)(b)—
(a) must be sent—

(i) in hard copy form; or
(ii) if the recipient has agreed to receive it in electronic form, in the electronic form so agreed; and

(b) must be sent—
(i) by hand or by post; or
(ii) if the recipient has agreed to receive it by electronic means, by the electronic means so agreed.



Cap 622 - Companies Ordinance 206

(3) If a declaration to directors under section 536 is made by notice in writing—
(a) the making of the declaration is to be regarded as forming part of the proceedings at the next directors’

meeting after the notice is given; and
(b) section 481 applies as if the declaration had been made at that meeting.

(4) A general notice by a director for the purposes of subsection (1)(c) is a notice to the effect that—
(a) the director—

(i) has an interest (as member, officer, employee or otherwise) in a body corporate or firm specified in the
notice; and

(ii) is to be regarded as interested in any transaction, arrangement or contract that may, after the effective
date of the notice, be entered into with the specified body corporate or firm; or

(b) the director—
(i) is connected with a person specified in the notice (other than a body corporate or firm); and
(ii) is to be regarded as interested in any transaction, arrangement or contract that may, after the effective

date of the notice, be entered into with the specified person.
(5) A general notice must state—

(a) the nature and extent of the director’s interest in the specified body corporate or firm; or
(b) the nature of the director’s connection with the specified person.

(6) A general notice must be given—
(a) at a directors’ meeting; or
(b) in writing and sent to the company.

Note—
See also section 541 which requires a company receiving a general notice to send the general notice to other directors.
(7) A general notice given under subsection (6)(a) takes effect on the date of the directors’ meeting.
(8) A general notice given under subsection (6)(b) takes effect on the twenty-first day after the day on which it is

sent to the company.

Section: 539 Declaration to directors in case of company with sole

director
L.N. 163 of 2013 03/03/2014



(1) If a declaration to directors under section 536 is required of a sole director of a company that is required to have
more than one director—
(a) the declaration must be recorded in writing;
(b) the making of the declaration is to be regarded as forming part of the proceedings at the next directors’

meeting after the notice is given; and
(c) section 481 applies as if the declaration had been made at that meeting.

(2) This section does not affect the operation of section 545.

Section: 540 Application of Division to shadow director L.N. 163 of 2013 03/03/2014


(1) Subject to subsections (2), (3) and (4), the provisions of this Division relating to the duty of a director to declare
an interest under section 536 apply to a shadow director in the same manner as they apply to a director.

(2) Section 538(1)(a) and (6) does not apply to a shadow director.
(3) A general notice by a shadow director for the purposes of section 538(1)(c) is not effective unless it is given by

notice in writing and sent by the shadow director to the other directors.
(4) A notice for the purposes of subsection (3)—

(a) must be sent—
(i) in hard copy form; or
(ii) if the recipient has agreed to receive it in electronic form, in the electronic form so agreed; and

(b) must be sent—
(i) by hand or by post; or
(ii) if the recipient has agreed to receive it by electronic means, by the electronic means so agreed.





Cap 622 - Companies Ordinance 207

Section: 541 Companies must send general notices to other directors L.N. 163 of 2013 03/03/2014


(1) If a company receives a notice under section 538(6)(b) from a director, it must, within 15 days after the day on
which it receives the notice, send a copy of the notice to other directors of the company.

(2) If a company contravenes subsection (1), the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 6.


Section: 542 Offence L.N. 163 of 2013 03/03/2014


(1) A director or shadow director who contravenes section 536(1), (2) or (3) commits an offence and is liable to a
fine at level 6.

(2) If a person is charged with an offence under subsection (1) for contravening section 536(2), it is a defence to
establish that the person took all reasonable steps to secure compliance with that section.


Part:
Division:

11
6

Miscellaneous L.N. 163 of 2013 03/03/2014





Section: 543 Disclosure of management contract L.N. 163 of 2013 03/03/2014


(1) This section applies if—
(a) a company enters into a contract by which a person undertakes the management and administration of the

whole or any substantial part of any business of the company; and
(b) the contract is not a contract of service with any director of the company or any person engaged in the full-

time employment of the company.
(2) The directors’ report for any year in which the contract is in force must include—

(a) a statement of the existence and duration of the contract; and
(b) the name of every director and shadow director interested in the contract, and the nature and extent of the

interest.
(3) The company must keep the following at its registered office or at a place prescribed by regulations made under

section 657—
(a) a copy of the contract;
(b) if such a contract is not in writing, a written memorandum setting out the terms of the contract.

(4) The company—
(a) must retain the copy or memorandum for at least one year after the date of termination or expiry of the

contract; and
(b) must keep the copy or memorandum available for inspection during that time.

(5) If the copy or memorandum is kept at a place other than the company’s registered office, the company must
deliver to the Registrar for registration a notice, in the specified form, of the place, or any change in the place, at
which the copy or memorandum is kept. The notice must be delivered to the Registrar within 15 days after the
copy or memorandum is first kept at that place or within 15 days after the change (as the case may be).

(6) If subsection (3) or (4) is contravened, the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 3.

(7) If subsection (5) is contravened, the company, and every responsible person of the company, commit an offence,
and each is liable to a fine at level 3 and, in the case of a continuing offence, to a further fine of $300 for each
day during which the offence continues.

(8) In this section—
directors’ report (董事報告) means—

(a) the report required to be prepared under section 388(1); or
(b) the consolidated report required to be prepared under section 388(2).





Cap 622 - Companies Ordinance 208

Section: 544 Right of member to inspect and request copy L.N. 163 of 2013 03/03/2014


(1) A member of a company is entitled, on request made in the prescribed manner and without charge, to inspect, in
accordance with regulations made under section 657, a copy of a contract or a written memorandum kept by the
company under section 543.

(2) A member of the company is entitled, on request and on payment of a prescribed fee, to be provided with a copy
of the contract or memorandum in accordance with regulations made under section 657.

(3) In this section, a reference to a contract includes a variation of the contract.
(4) In this section—
prescribed(訂明) means prescribed by regulations made under section 657.

Section: 545 Contract with sole member who is also director L.N. 163 of 2013 03/03/2014


(1) This section applies if—
(a) a company having only one member enters into a contract with the member;
(b) the member is also a director of the company; and
(c) the contract is not entered into in the ordinary course of the company’s business.

(2) Unless the contract is in writing, the company must ensure that—
(a) the terms of the contract are set out in a written memorandum within 15 days from the entering into of the

contract; and
(b) the memorandum is kept at the place at which the books containing the minutes of the directors’ meetings

are kept.
(3) If a company contravenes subsection (2), the company, and every responsible person of the company, commit an

offence, and each is liable to a fine at level 3.
(4) A contravention of subsection (2) in relation to a contract does not affect the validity of the contract.
(5) This section does not exclude the operation of any other Ordinance or rule of law applying to contracts between

a company and a director of the company.
(6) In this section—
director(董事) includes a shadow director.
(7) For the purposes of this section, a body corporate is not to be regarded as a shadow director of any of its

subsidiaries by reason only that the directors, or a majority of the directors, of the subsidiary are accustomed to
act in accordance with its directions or instructions.


Section: 546 Financial Secretary may amend certain sums or

percentage figures
L.N. 163 of 2013 03/03/2014



(1) Subject to subsection (2), the Financial Secretary may, by notice published in the Gazette, amend any provision
of Division 2 or 3—
(a) by substituting for any sum of money specified in the provision a sum specified in the notice; or
(b) by substituting for any percentage figure specified in the provision a percentage figure specified in the

notice.
(2) A notice under this section may not be made to amend the amount of a fine.
(3) A notice under this section does not have effect in relation to anything done or not done before the notice comes

into operation.
(4) Proceedings in respect of any liability incurred before a notice under this section comes into operation may be

continued or instituted as if the notice had not been made.

Part: 12 Company Administration and Procedure L.N. 163 of 2013 03/03/2014


(*Format changes—E.R. 1 of 2013)
____________________________________________________________________________
Note:
* The format of Part 12 has been updated to the current legislative styles.



Cap 622 - Companies Ordinance 209


Part:
Division:

12
1

Resolutions and Meetings L.N. 163 of 2013 03/03/2014





Part:
Division:
Subdivision:

12
1
1

Preliminary L.N. 163 of 2013 03/03/2014





Section: 547 Interpretation L.N. 163 of 2013 03/03/2014


(1) In this Division—
circulation date (傳閱日期) , in relation to a written resolution or a proposed written resolution, means—

(a) the date on which copies of the resolution are sent to eligible members in accordance with section 553; or
(b) if copies are sent to eligible members on different days, the first of those days;

electronic address (電子地址) means any sequence or combination of letters, characters, numbers or symbols of any
language or, any number, used for the purposes of sending or receiving a document or information by electronic
means.

(2) For the purposes of this Division—
(a) in relation to a proposed written resolution, the eligible members are the members who would have been

entitled to vote on the resolution on the circulation date of the resolution; and
(b) if the persons entitled to vote on the resolution change during the course of the day that is the circulation

date of the resolution, the eligible members are the persons entitled to vote on the resolution at the time that
the first copy of the resolution is sent to a member for agreement.

(3) Nothing in this Division affects the operation of any other Ordinance or rule of law as to—
(a) things done otherwise than by passing a resolution;
(b) circumstances in which a resolution is or is not to be regarded as having been passed; or
(c) cases in which a person is precluded from alleging that a resolution has not been duly passed.


Part:
Division:
Subdivision:

12
1
2

Written Resolution L.N. 163 of 2013 03/03/2014





Section: 548 Written resolution L.N. 163 of 2013 03/03/2014


(1) Anything that may be done by a resolution passed at a general meeting of a company may be done, without a
meeting and without any previous notice being required, by a written resolution of the members of the company.

(2) Anything that may be done by a resolution passed at a meeting of a class of members of a company may be
done, without a meeting and without any previous notice being required, by a written resolution of that class of
members of the company.

(3) If a resolution is required by any Ordinance to be passed as an ordinary resolution or a special resolution, the
resolution may be passed as a written resolution; and a reference in any Ordinance to an ordinary resolution or a
special resolution includes a written resolution.

(4) A reference in any Ordinance to the date of passing of a resolution or the date of a meeting is, in relation to a
written resolution, the date on which the written resolution is passed under section 556.

(5) A written resolution of a company has effect as if passed by—
(a) the company at a general meeting; or
(b) a meeting of the relevant class of members of the company,

as the case may be, and a reference in any Ordinance to a meeting at which a resolution is passed or to members
voting in favour of a resolution is to be construed accordingly.

(6) This section does not apply to—



Cap 622 - Companies Ordinance 210

(a) a resolution removing an auditor before the end of the auditor’s term of office; or
(b) a resolution removing a director before the end of the director’s term of office.


Section: 549 Power to propose written resolution L.N. 163 of 2013 03/03/2014


A resolution may be proposed as a written resolution by—
(a) the directors of a company; or
(b) a member of a company.


Section: 550 Company’s duty to circulate written resolution proposed

by directors
L.N. 163 of 2013 03/03/2014



If the directors of a company have proposed a resolution as a written resolution under section 549(a), the company
must circulate the resolution.

Section: 551 Members’ power to request circulation of written

resolution
L.N. 163 of 2013 03/03/2014



(1) A member of a company may request the company to circulate a resolution that—
(a) may properly be moved; and
(b) is proposed as a written resolution under section 549(b).

(2) If a member requests a company to circulate a resolution, the member may request the company to circulate with
the resolution a statement of not more than 1000 words on the subject matter of the resolution.

(3) However, each member may only request the company to circulate one such statement with respect to the
resolution.


Section: 552 Company’s duty to circulate written resolution proposed

by members
L.N. 163 of 2013 03/03/2014



(1) A company must circulate a resolution proposed as a written resolution under section 549(b) and any statement
mentioned in section 551(2) if it has received requests that it do so from the members of the company
representing not less than the requisite percentage of the total voting rights of all the members entitled to vote on
the resolution.

(2) The requisite percentage mentioned in subsection (1) is 5% or a lower percentage specified for this purpose in
the company’s articles.

(3) A request—
(a) may be sent to the company in hard copy form or in electronic form;
(b) must identify the resolution and any statement mentioned in section 551(2); and
(c) must be authenticated by the person or persons making it.


Section: 553 Circulation of written resolution L.N. 163 of 2013 03/03/2014


(1) If a company is required under section 550 or 552 to circulate a resolution proposed as a written resolution, the
company must send at its own expense to every eligible member and every other member (if any) who is not an
eligible member—
(a) a copy of the resolution; and
(b) if so required under section 551(2), a copy of a statement mentioned in that section.

(2) The company may comply with subsection (1)—
(a) by sending copies at the same time (so far as reasonably practicable) to all members in hard copy form or in

electronic form or by making the copies available on a website;
(b) if it is possible to do so without undue delay, by sending the same copy to each member in turn (or different

copies to each of a number of members in turn); or
(c) by sending copies to some members in accordance with paragraph (a) and sending a copy or copies to other



Cap 622 - Companies Ordinance 211

members in accordance with paragraph (b).
(3) The company must send the copies (or if copies are sent to members on different days, the first of those copies)

not more than 21 days after it becomes subject to the requirement under subsection (1) to send the copies.
(4) If the company sends a copy of a proposed written resolution or statement by making it available on a website,

the copy is not validly sent for the purposes of this Subdivision unless the copy is available on the website
throughout the period—
(a) beginning on the circulation date; and
(b) ending on the date on which the resolution lapses under section 558.

(5) For the purposes of subsection (4), a failure to make a copy of a proposed written resolution or statement
available on a website throughout the period mentioned in that subsection is to be disregarded if—
(a) the copy is made available on the website for part of that period; and
(b) the failure is wholly attributable to circumstances that it would not be reasonable to have expected the

company to prevent or avoid.
(6) The company must ensure that the copy of the proposed written resolution sent to an eligible member is

accompanied by guidance as to—
(a) how to signify agreement to the resolution under section 556; and
(b) the date by which the resolution must be passed if it is not to lapse under section 558.

(7) If a company contravenes subsection (1), (3) or (6), the company, and every responsible person of the company,
commit an offence, and each is liable to a fine at level 5.

(8) The validity of the resolution, if passed, is not affected by a contravention of subsection (1), (3) or (6).

Section: 554 Application not to circulate accompanying statement L.N. 163 of 2013 03/03/2014


(1) A company is not required to circulate a statement mentioned in section 551(2) if, on an application by the
company or another person who claims to be aggrieved, the Court is satisfied that the rights given by that section
are—
(a) being abused; or
(b) being used to secure needless publicity for defamatory matter.

(2) The Court may order the members who requested the circulation of the statement to pay the whole or part of the
company’s costs on an application under subsection (1), even if they are not parties to the application.


Section: 555 Company’s duty to notify auditor of proposed written

resolution
L.N. 163 of 2013 03/03/2014



(1) If a company is required to send a resolution to a member of the company under section 553, it must, on or
before the circulation date, send to the auditor of the company (if more than one auditor, to everyone of them)—
(a) a copy of the resolution; and
(b) a copy of any other document relating to the resolution that is required to be sent to a member of the

company under that section.
(2) The copies may be sent to the auditor or auditors of the company in hard copy form or in electronic form.
(3) If a company contravenes subsection (1), the company, and every responsible person of the company, commit an

offence, and each is liable to a fine at level 3.
(4) The validity of the resolution, if passed, is not affected by a contravention of subsection (1).

Section: 556 Procedure for signifying agreement to proposed written

resolution
L.N. 163 of 2013 03/03/2014



(1) A written resolution is passed when all eligible members have signified their agreement to it.
(2) A member signifies agreement to a proposed written resolution when the company receives from the member (or

from someone acting on the member’s behalf) a document—
(a) identifying the resolution to which it relates; and
(b) indicating the member’s agreement to the resolution.

(3) The document—



Cap 622 - Companies Ordinance 212

(a) may be sent to the company in hard copy form or in electronic form; and
(b) must be authenticated by the member or by someone acting on the member’s behalf.

(4) A member’s agreement to a written resolution, once signified, may not be revoked.

Section: 557 Agreement signified by eligible members who are joint

holders of shares
L.N. 163 of 2013 03/03/2014



(1) If—
(a) 2 or more eligible members are joint holders of shares of a company;
(b) any holder has signified their agreement to a proposed written resolution; and
(c) if the company has received, before the end of the period mentioned in section 558(1), any objection to the

proposed written resolution from any other holder, the holder who has signified the agreement is more
senior than the holder who has made the objection,

then the other joint holder or holders are to be regarded as having signified their agreement to the proposed
written resolution for the purposes of section 556(1).

(2) For the purposes of this section, the seniority of a holder of a share is determined by the order in which the
names of the joint holders appear in the register of members of the company.

(3) Subsections (1) and (2) have effect subject to any provision of the company’s articles.

Section: 558 Period for agreeing to proposed written resolution L.N. 163 of 2013 03/03/2014


(1) A proposed written resolution lapses if it is not passed before the end of—
(a) the period specified for this purpose in the company’s articles; or
(b) if none is specified, the period of 28 days beginning on the circulation date.

(2) The agreement of a member to a proposed written resolution is ineffective if signified after the end of that
period.


Section: 559 Company’s duty to notify members and auditor that

written resolution has been passed
L.N. 163 of 2013 03/03/2014



(1) If a resolution of a company is passed as a written resolution, the company must, within 15 days after the
resolution is passed, send a notice of this fact to—
(a) every member of the company; and
(b) the auditor of the company (if more than one auditor, to everyone of them).

(2) If a company contravenes subsection (1), the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 3.


Section: 560 Sending document relating to written resolution by

electronic means
L.N. 163 of 2013 03/03/2014



If a company has given an electronic address in any document containing or accompanying a proposed written
resolution, it is to be regarded as having agreed that any document or information relating to that resolution may be
sent by electronic means to that address (subject to any conditions or limitations specified in the document).

Section: 561 Relationship between this Subdivision and provisions of

company’s articles
L.N. 163 of 2013 03/03/2014



(1) A provision of a company’s articles is void in so far as it would have the effect that a resolution that is required
by or otherwise provided for in an Ordinance could not be proposed and passed as a written resolution.

(2) Nothing in this Subdivision affects any provision of a company’s articles authorizing the company to pass a
resolution without a meeting, otherwise than in accordance with this Subdivision.

(3) Subsection (2) applies only if the resolution has been agreed to by all the members of the company who are
entitled to vote on the resolution.



Cap 622 - Companies Ordinance 213


Part:
Division:
Subdivision:

12
1
3

Resolutions at Meetings L.N. 163 of 2013 03/03/2014





Section: 562 General provisions L.N. 163 of 2013 03/03/2014


(1) A resolution of a company is validly passed at a general meeting if—
(a) notice of the meeting and of the resolution is given;
(b) the meeting is held and conducted; and
(c) the resolution is passed,

in accordance with this Subdivision and Subdivisions 4, 5, 6, 7, 8 and 9 (and, if relevant, Subdivision 10) and the
company’s articles.

(2) For the purposes of subsection (1), if there is any inconsistency between a provision of a Subdivision referred to
in that subsection, and a provision of the company’s articles, unless otherwise provided in or in respect of that
Subdivision, the provision of that Subdivision prevails over the provision of the articles to the extent of the
inconsistency.

(3) If a provision of any Ordinance—
(a) requires or otherwise provides for a resolution of a company, or of the members (or of a class of members)

of a company; and
(b) does not specify what kind of resolution is required,

what is required is an ordinary resolution unless the company’ s articles require a higher majority (or
unanimity).


Section: 563 Ordinary resolution L.N. 163 of 2013 03/03/2014


(1) An ordinary resolution of the members (or of a class of members) of a company means a resolution that is
passed by a simple majority.

(2) A resolution passed at a general meeting on a show of hands is passed by a simple majority if it is passed by a
simple majority of the total of the following—
(a) the number of the members who (being entitled to do so) vote in person on the resolution;
(b) the number of the persons who vote on the resolution as duly appointed proxies of members entitled to vote

on it.
(3) A resolution passed on a poll taken at a general meeting is passed by a simple majority if it is passed by

members representing a simple majority of the total voting rights of all the members who (being entitled to do
so) vote in person or by proxy on the resolution.

(4) Anything that may be done by an ordinary resolution may also be done by a special resolution.

Section: 564 Special resolution L.N. 163 of 2013 03/03/2014


(1) A special resolution of the members (or of a class of members) of a company means a resolution that is passed
by a majority of at least 75%.

(2) A resolution passed at a general meeting on a show of hands is passed by a majority of at least 75% if it is
passed by at least 75% of the total of the following—
(a) the number of the members who (being entitled to do so) vote in person on the resolution;
(b) the number of the persons who vote on the resolution as duly appointed proxies of members entitled to vote

on it.
(3) A resolution passed on a poll taken at a general meeting is passed by a majority of at least 75% if it is passed by

members representing at least 75% of the total voting rights of all the members who (being entitled to do so)
vote in person or by proxy on the resolution.

(4) If a resolution is passed at a general meeting—
(a) the resolution is not a special resolution unless the notice of the meeting included the text of the resolution



Cap 622 - Companies Ordinance 214

and specified the intention to propose the resolution as a special resolution; and
(b) if the notice of the meeting so specified, the resolution may only be passed as a special resolution.

(5) A reference to an extraordinary resolution of a company or of a meeting of any class of members of a company

(a) contained in any Ordinance that was enacted or document that existed before 31 August 1984; and
(b) deemed, in relation to a resolution passed or to be passed on or after that date, to be a special resolution of

the company or meeting under section 116(5) of the predecessor Ordinance,
continues to be deemed to be such a special resolution of the company or meeting.

Part:
Division:
Subdivision:

12
1
4

Calling Meetings L.N. 163 of 2013 03/03/2014





Section: 565 Directors’ power to call general meeting L.N. 163 of 2013 03/03/2014


The directors of a company may call a general meeting of the company.

Section: 566 Members’ power to request directors to call general

meeting
L.N. 163 of 2013 03/03/2014



(1) The members of a company may request the directors to call a general meeting of the company.
(2) The directors are required to call a general meeting if the company has received requests to do so from members

of the company representing at least 5% of the total voting rights of all the members having a right to vote at
general meetings.

(3) A request—
(a) must state the general nature of the business to be dealt with at the meeting; and
(b) may include the text of a resolution that may properly be moved and is intended to be moved at the meeting.

(4) Requests may consist of several documents in like form.
(5) A request—

(a) may be sent to the company in hard copy form or in electronic form; and
(b) must be authenticated by the person or persons making it.


Section: 567 Directors’ duty to call general meeting requested by

members
L.N. 163 of 2013 03/03/2014



(1) Directors required under section 566 to call a general meeting must call a meeting within 21 days after the date
on which they become subject to the requirement.

(2) A meeting called under subsection (1) must be held on a date not more than 28 days after the date of the notice
convening the meeting.

(3) If the requests received by the company identify a resolution that may properly be moved and is intended to be
moved at the meeting, the notice of the meeting must include notice of the resolution.

(4) The business that may be dealt with at the meeting includes a resolution of which notice has been included in the
notice of meeting in accordance with subsection (3).

(5) If the resolution is to be proposed as a special resolution, the directors are to be regarded as not having duly
called the meeting unless the notice of the meeting includes the text of the resolution and specifies the intention
to propose the resolution as a special resolution.


Section: 568 Members’ power to call general meeting at company’s

expense
L.N. 163 of 2013 03/03/2014



(1) If the directors—
(a) are required under section 566 to call a general meeting; and
(b) do not do so in accordance with section 567,



Cap 622 - Companies Ordinance 215

the members who requested the meeting, or any of them representing more than one half of the total voting
rights of all of them, may themselves call a general meeting.

(2) If the requests received by the company identify a resolution that may properly be moved and is intended to be
moved at the meeting, the notice of the meeting must include notice of the resolution.

(3) The meeting must be called for a date not more than 3 months after the date on which the directors become
subject to the requirement to call a meeting.

(4) The meeting must be called in the same manner, as nearly as possible, as that in which that meeting is required
to be called by the directors of the company.

(5) The business that may be dealt with at the meeting includes a resolution of which notice has been included in the
notice of meeting in accordance with subsection (2).

(6) Any reasonable expenses incurred by the members requesting the meeting by reason of the failure of the
directors duly to call a meeting must be reimbursed by the company.

(7) Any sum so reimbursed must be retained by the company out of any sum due or to become due from the
company by way of fees or other remuneration in respect of the services of the directors who were in default.


Section: 569 Members’ power to call general meeting when there is no

director etc.
L.N. 163 of 2013 03/03/2014



(1) If at any time a company does not have any director or does not have sufficient directors capable of acting to
form a quorum, any director, or any 2 or more members of the company representing at least 10% of the total
voting rights of all the members having a right to vote at general meetings, may call a general meeting in the
same manner, as nearly as possible, as that in which general meetings may be called by the directors of the
company.

(2) Subsection (1) has effect in so far as the articles of the company do not make other provision in that behalf.

Section: 570 Power of Court to order meeting L.N. 163 of 2013 03/03/2014


(1) This section applies if for any reason it is impracticable—
(a) to call a general meeting of a company in any manner in which general meetings of that company may be

called; or
(b) to conduct the meeting in the manner prescribed by the company’s articles or this Ordinance.

(2) The Court may, either of its own motion or on application—
(a) by a director of the company; or
(b) by a member of the company who would be entitled to vote at the meeting,

order a general meeting of the company to be called, held and conducted in any manner the Court thinks fit.
(3) If the order is made, the Court may give any ancillary or consequential directions that it thinks expedient.
(4) Directions given under subsection (3) may include a direction that one member of the company present at the

meeting in person or by proxy is to be regarded as constituting a quorum.
(5) A general meeting called, held and conducted in accordance with an order under subsection (2) is to be regarded

for all purposes as a general meeting of the company duly called, held and conducted.
(6) The legal personal representative of a deceased member of a company is to be regarded in all respects, for the

purposes of this section, as a member of the company having the same rights with respect to attending and
voting at a meeting of the company as the deceased member would, if living, have had.


Part:
Division:
Subdivision:

12
1
5

Notice of Meetings L.N. 163 of 2013 03/03/2014





Section: 571 Notice required of general meeting L.N. 163 of 2013 03/03/2014


(1) A general meeting of a company (other than an adjourned meeting) must be called by notice of—
(a) in the case of an annual general meeting, at least 21 days; and
(b) in any other case—



Cap 622 - Companies Ordinance 216

(i) if the company is a limited company, at least 14 days; and
(ii) if the company is an unlimited company, at least 7 days.

(2) If the company’s articles require a longer period of notice than that specified in subsection (1), a general
meeting of a company (other than an adjourned meeting) must be called by notice of that longer period.

(3) A general meeting of a company is to be regarded, despite the fact that it is called by shorter notice than that
specified in subsection (1) or in the company’s articles, as having been duly called if it is so agreed—
(a) in the case of an annual general meeting, by all the members entitled to attend and vote at the meeting; and
(b) in any other case, by a majority in number of the members having the right to attend and vote at the

meeting, being a majority together representing at least 95% of the total voting rights at the meeting of all
the members.


Section: 572 Manner in which notice to be given L.N. 163 of 2013 03/03/2014


(1) Notice of a general meeting of a company must be given—
(a) in hard copy form or in electronic form; or
(b) by making the notice available on a website,

or partly by one of those means and partly by another.
(2) If a company has given an electronic address in a notice calling a meeting, it is to be regarded as having agreed

that any document or information relating to proceedings at the meeting may be sent by electronic means to that
address (subject to any conditions or limitations specified in the notice).


Section: 573 Publication of notice of general meeting on website L.N. 163 of 2013 03/03/2014


(1) Without limiting Part 18, notice of a general meeting is not validly given by a company by making it available
on a website unless it is given in accordance with this section.

(2) When the company notifies a member of the availability of the notice on the website, the notification must—
(a) state that it concerns a notice of a company meeting;
(b) specify the place, date and time of the meeting; and
(c) in the case of an annual general meeting, state that it is an annual general meeting.

(3) The notice must be available on the website throughout the period beginning on the date of that notification and
ending on the conclusion of the meeting.


Section: 574 Persons entitled to receive notice of general meeting L.N. 163 of 2013 03/03/2014


(1) Notice of a general meeting of a company must be given to—
(a) every member of the company; and
(b) every director.

(2) In subsection (1), the reference to a member includes any person who is entitled to a share in consequence of the
death or bankruptcy of a member, if the company has been notified of that person’s entitlement.

(3) Subsections (1) and (2) have effect subject to any provision of the company’s articles.
(4) In the case of a listed company, notice of a general meeting of the company must be given to every member not

entitled to vote at the meeting at the same time and in the same manner as notice of the meeting is given to
members who are so entitled.

(5) A company is only required to comply with subsection (4) if the company is required to give notice of a general
meeting of the company to members who are entitled to vote at the general meeting.

(6) Despite subsection (4), if a meeting is called at any time by shorter notice than that specified in section 571(1) or
in the company’s articles, subsection (4) is to be regarded as having been complied with if the notice required
to be given under that subsection is given as soon as practicable after that time.


Section: 575 Duty to give notice of general meeting to auditor L.N. 163 of 2013 03/03/2014


(1) If notice of a general meeting of a company or any other document relating to the general meeting is required to
be given to a member, the company must give a copy of it to its auditor (if more than one auditor, to everyone of



Cap 622 - Companies Ordinance 217

them) at the same time as the notice or the other document is given to the member.
(2) If a company contravenes subsection (1), the company, and every responsible person of the company, commit an

offence, and each is liable to a fine at level 3.

Section: 576 Contents of notice of general meeting L.N. 163 of 2013 03/03/2014


(1) A company must ensure that a notice of a general meeting of the company—
(a) specifies the date and time of the meeting;
(b) specifies the place of the meeting (and if the meeting is to be held in 2 or more places, the principal place of

the meeting and the other place or places of the meeting);
(c) states the general nature of the business to be dealt with at the meeting;
(d) in the case of a notice calling an annual general meeting, states that the meeting is an annual general

meeting; and
(e) if a resolution is intended to be moved at the meeting—

(i) includes notice of the resolution; and
(ii) (where the company is not a wholly owned subsidiary) includes or is accompanied by a statement

containing the information and explanation, if any, that is reasonably necessary to indicate the purpose
of the resolution.

(2) Subsection (1)(a), (b) and (c) has effect subject to any provision of the company’s articles.
(3) Subsection (1)(e) does not apply in relation to a resolution of which—

(a) notice has been included in the notice of meeting under section 567(3) or 568(2); or
(b) notice has been given under section 615.

(4) If a company contravenes subsection (1)(e), the company, and every responsible person of the company, commit
an offence, and each is liable to a fine at level 3.

(5) The validity of a resolution, if passed at a general meeting of a company, is not affected by a contravention of
subsection (1)(e).

(6) Subsection (5) does not affect any common law rules or equitable principles, or the provisions of any other
Ordinance, as regards the validity of a resolution.

(7) In subsection (1)(e)—
wholly owned subsidiary(全資附屬公司) has the meaning given by section 357(3).

Section: 577 Explanation of improving director’s emoluments to be set

out in notice of general meeting
L.N. 163 of 2013 03/03/2014



(1) A company must not at a general meeting amend its articles so as to provide emoluments or improved
emoluments for a director of the company in respect of the office as director unless—
(a) there is set out in the notice calling the meeting or in a document attached to the notice an adequate

explanation of the provision; and
(b) the provision is approved by a resolution not relating also to other matters.

(2) In this section—
emoluments(薪酬) includes—

(a) fees and percentages;
(b) any sums paid by way of expenses allowance;
(c) any contribution paid in respect of the director under any pension scheme; and
(d) any benefits received by the director otherwise than in cash in respect of the director’s services as director.


Section: 578 Resolution requiring special notice L.N. 163 of 2013 03/03/2014


(1) If by any provision of this Ordinance special notice is required to be given of a resolution, the resolution is not
effective unless notice of the intention to move it has been given to the company at least 28 days before the
meeting at which it is moved.

(2) The company must, if practicable, give its members notice of the resolution at the same time and in the same
manner as it gives notice of the meeting.



Cap 622 - Companies Ordinance 218

(3) If that is not practicable, the company must give its members notice of the resolution at least 14 days before the
meeting—
(a) by advertisement in a newspaper circulating generally in Hong Kong; or
(b) in any other manner allowed by the company’s articles.

(4) If, after notice of the intention to move the resolution has been given to the company, a meeting is called for a
date 28 days or less after the notice has been given, the notice is to be regarded as having been properly given,
though not given within the time required.


Section: 579 Accidental omission to give notice of meeting or resolution L.N. 163 of 2013 03/03/2014


(1) If a company gives notice of—
(a) a general meeting; or
(b) a resolution intended to be moved at a general meeting,

any accidental omission to give notice to, or any non-receipt of notice by, any person entitled to receive notice
must be disregarded for the purpose of determining whether notice of the meeting or resolution is duly given.

(2) Except in relation to notice given under section 567, 568 or 616, subsection (1) has effect subject to any
provision of the company’s articles.


Part:
Division:
Subdivision:

12
1
6

Members’ Statements L.N. 163 of 2013 03/03/2014





Section: 580 Members’ power to request circulation of statement L.N. 163 of 2013 03/03/2014


(1) A member of a company may request the company to circulate, to members of the company entitled to receive
notice of a general meeting, a statement of not more than 1000 words with respect to—
(a) a matter mentioned in a proposed resolution to be dealt with at that meeting; or
(b) other business to be dealt with at that meeting.

(2) However, each member may only request the company to circulate—
(a) one such statement with respect to the resolution mentioned in subsection (1)(a); and
(b) one such statement with respect to the other business mentioned in subsection (1)(b).

(3) A company is required to circulate the statement if it has received requests to do so from—
(a) members representing at least 2.5% of the total voting rights of all the members who have a relevant right to

vote; or
(b) at least 50 members who have a relevant right to vote.

(4) In subsection (3)—
relevant right to vote(相關表決權利) means—

(a) in relation to a statement with respect to a matter mentioned in a proposed resolution, a right to vote on that
resolution at the meeting to which the requests relate; and

(b) in relation to any other statement, a right to vote at the meeting to which the requests relate.
(5) A request under subsection (3)—

(a) may be sent to the company in hard copy form or in electronic form;
(b) must identify the statement to be circulated;
(c) must be authenticated by the person or persons making it; and
(d) must be received by the company at least 7 days before the meeting to which it relates.


Section: 581 Company’s duty to circulate members’ statement L.N. 163 of 2013 03/03/2014


(1) A company that is required under section 580 to circulate a statement must send a copy of it to each member of
the company entitled to receive notice of the meeting—
(a) in the same manner as the notice of the meeting; and
(b) at the same time as, or as soon as reasonably practicable after, it gives notice of the meeting.



Cap 622 - Companies Ordinance 219

(2) Subsection (1) has effect subject to sections 582(2) and 583.
(3) If a company contravenes subsection (1), the company, and every responsible person of the company, commit an

offence, and each is liable to a fine at level 5.

Section: 582 Expenses of circulating members’ statement L.N. 163 of 2013 03/03/2014


(1) The expenses of the company in complying with section 581 need not be paid by the members who requested
the circulation of the statement if—
(a) the meeting to which the requests relate is an annual general meeting of the company; and
(b) requests sufficient to require the company to circulate the statement are received in time to enable the

company to send a copy of the statement at the same time as it gives notice of the meeting.
(2) Otherwise—

(a) the expenses of the company in complying with section 581 must be paid by the members who requested
the circulation of the statement unless the company resolves otherwise; and

(b) unless the company has previously so resolved, it is not bound to comply with that section unless there is
deposited with or tendered to it, not later than 7 days before the meeting, a sum reasonably sufficient to
meet its expenses in doing so.


Section: 583 Application not to circulate members’ statement L.N. 163 of 2013 03/03/2014


(1) A company is not required to circulate a statement under section 581 if, on an application by the company or
another person who claims to be aggrieved, the Court is satisfied that the rights given by section 580 are—
(a) being abused; or
(b) being used to secure needless publicity for defamatory matter.

(2) The Court may order the members who requested the circulation of the statement to pay the whole or part of the
company’s costs on an application under subsection (1), even if they are not parties to the application.


Part:
Division:
Subdivision:

12
1
7

Procedure at Meetings L.N. 163 of 2013 03/03/2014





Section: 584 Meeting at 2 or more places L.N. 163 of 2013 03/03/2014


(1) A company may hold a general meeting at 2 or more places using any technology that enables the members of
the company who are not together at the same place to listen, speak and vote at the meeting.

(2) Subsection (1) has effect subject to any provision of the company’s articles.

Section: 585 Quorum at meeting L.N. 163 of 2013 03/03/2014


(1) If a company has only one member, that member present in person or by proxy is a quorum of a general meeting
of the company.

(2) If that member of the company is a body corporate, that member present by its corporate representative is also a
quorum of a general meeting of the company.

(3) Subject to subsection (1) and the provisions of a company’s articles, 2 members present in person or by proxy
is a quorum of a general meeting of the company.

(4) If a member of the company is a body corporate, that member present by its corporate representative counts
towards a quorum of a general meeting of the company.

(5) In this section—
corporate representative(法團代表) means a person authorized under section 606 to act as the representative of the

body corporate.




Cap 622 - Companies Ordinance 220

Section: 586 Chairperson of meeting L.N. 163 of 2013 03/03/2014


(1) A member may be elected to be the chairperson of a general meeting by a resolution of the company passed at
the meeting.

(2) Subsection (1) is subject to any provision of the company’s articles that states who may or who may not be
chairperson.


Section: 587 Resolution passed at adjourned meeting L.N. 163 of 2013 03/03/2014


If a resolution is passed at an adjourned meeting of a company, the resolution is for all purposes to be regarded as
having been passed on the date on which it was in fact passed, and is not to be regarded as having been passed on any
earlier date.

Part:
Division:
Subdivision:

12
1
8

Voting at Meetings L.N. 163 of 2013 03/03/2014





Section: 588 General rules on votes L.N. 163 of 2013 03/03/2014


(1) On a vote on a resolution on a show of hands at a general meeting—
(a) every member present in person has one vote; and
(b) every proxy present who has been duly appointed by a member entitled to vote on the resolution has one

vote.
(2) If a member appoints more than one proxy, the proxies so appointed are not entitled to vote on the resolution on

a show of hands.
(3) On a vote on a resolution on a poll taken at a general meeting—

(a) in the case of a company having a share capital—
(i) every member present in person has one vote for each share held by him or her; and
(ii) every proxy present who has been duly appointed by a member has one vote for each share held by

that member; and
(b) in the case of a company not having a share capital—

(i) every member present in person has one vote; and
(ii) every proxy present who has been duly appointed by a member entitled to vote on the resolution has

one vote.
(4) Subsections (1), (2) and (3) have effect subject to any provision of the company’s articles.
(5) If any shares in a company are held in trust for the company, those shares do not, for so long as they are so held,

confer any right to vote at a general meeting of the company.

Section: 589 Votes of joint holders of shares L.N. 163 of 2013 03/03/2014


(1) In the case of joint holders of shares of a company, only the vote of the most senior holder who votes (and any
proxies duly authorized by the holder) may be counted by the company.

(2) For the purposes of this section, the seniority of a holder of a share is determined by the order in which the
names of the joint holders appear in the register of members of the company.

(3) Subsections (1) and (2) have effect subject to any provision of the company’s articles.

Section: 590 Declaration by chairperson on show of hands L.N. 163 of 2013 03/03/2014


(1) On a vote on a resolution on a show of hands at a general meeting, a declaration by the chairperson that the
resolution—
(a) has or has not been passed; or
(b) passed by a particular majority,



Cap 622 - Companies Ordinance 221

is conclusive evidence of that fact without proof of the number or proportion of the votes recorded in favour of
or against the resolution.

(2) An entry in respect of the declaration in minutes of the meeting recorded in accordance with section 618 is also
conclusive evidence of that fact without the proof.

(3) This section does not have effect if a poll is demanded in respect of the resolution before or on the declaration
under subsection (1) (and the demand is not subsequently withdrawn).


Section: 591 Right to demand poll L.N. 163 of 2013 03/03/2014


(1) A provision of a company’s articles is void in so far as it would have the effect of excluding the right to
demand a poll at a general meeting on any question other than—
(a) the election of the chairperson of the meeting; or
(b) the adjournment of the meeting.

(2) A provision of a company’s articles is void in so far as it would have the effect of making ineffective a demand
for a poll at a general meeting on any question other than those specified in subsection (1)(a) and (b), which is
made—
(a) by at least 5 members having the right to vote at the meeting;
(b) by a member or members representing at least 5% of the total voting rights of all the members having the

right to vote at the meeting; or
(c) by the chairperson of the meeting.

(3) The appointment of a proxy to vote on a matter at a general meeting of a company authorizes the proxy to
demand, or join in demanding, a poll on that matter.

(4) In applying subsection (2), a demand by a proxy counts—
(a) for the purposes of subsection (2)(a), as a demand by the member; and
(b) for the purposes of subsection (2)(b), as a demand by a member representing the voting rights that the proxy

is authorized to exercise.

Section: 592 Chairperson’s duty to demand poll L.N. 163 of 2013 03/03/2014


If, before or on the declaration of the result on a show of hands at a general meeting, the chairperson of the meeting
knows from the proxies received by the company that the result on a show of hands will be different from that on a
poll, the chairperson must demand a poll.

Section: 593 Voting on poll L.N. 163 of 2013 03/03/2014


On a poll taken at a general meeting of a company, a member entitled to more than one vote need not, if the member
votes—

(a) use all the votes; or
(b) cast all the votes the member uses in the same way.


Section: 594 Company’s duty to record result of poll in minutes of

general meeting
L.N. 163 of 2013 03/03/2014



(1) In respect of a resolution decided on a poll taken at a general meeting of a company, the company must record in
the minutes of proceedings of the general meeting—
(a) the result of the poll;
(b) the total number of votes that could be cast on the resolution;
(c) the number of votes in favour of the resolution; and
(d) the number of votes against the resolution.

(2) If a company contravenes subsection (1), the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 3.





Cap 622 - Companies Ordinance 222

Section: 595 Saving for provisions of articles as to determination of
entitlement to vote

L.N. 163 of 2013 03/03/2014



Nothing in this Subdivision affects—
(a) any provision of a company’s articles—

(i) requiring an objection to a person’s entitlement to vote on a resolution to be made in accordance with
the articles; and

(ii) for the determination of the objection to be final and conclusive; or
(b) the grounds on which such a determination may be questioned in legal proceedings.


Part:
Division:
Subdivision:

12
1
9

Proxies and Corporate Representatives L.N. 163 of 2013 03/03/2014





Section: 596 Right to appoint proxy L.N. 163 of 2013 03/03/2014


(1) Subject to subsection (2), a member of a company is entitled to appoint another person (whether a member or
not) as a proxy to exercise all or any of the member’s rights to attend and to speak and vote at a general
meeting of the company.

(2) In the case of a company limited by guarantee, the company’s articles may require that a proxy must be a
member of the company and if the company’s articles so require, a member of the company may only appoint
another member as a proxy.

(3) In the case of a company having a share capital, a member of the company may appoint separate proxies to
represent respectively the number of the shares held by the member that is specified in their instruments of
appointment.


Section: 597 Notice of meeting to contain statement of rights etc. L.N. 163 of 2013 03/03/2014


(1) A company must ensure that in a notice calling a general meeting of the company, there must appear, with
reasonable prominence, a statement informing the member of—
(a) the rights under section 596(1) and (3); and
(b) the requirement under section 596(2).

(2) If a company contravenes subsection (1), the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 3.

(3) A contravention of subsection (1) does not affect the validity of the meeting or of anything done at the meeting.

Section: 598 Notice required of appointment of proxy etc. L.N. 163 of 2013 03/03/2014


(1) This section applies to—
(a) the appointment of a proxy; and
(b) any document necessary to show the validity of, or otherwise relating to, the appointment of a proxy.

(2) A provision of the company’s articles is void in so far as it would have the effect of requiring the appointment
or document to be received by the company or another person earlier than the following time—
(a) in the case of a general meeting or adjourned general meeting, 48 hours before the time for holding the

meeting or adjourned meeting;
(b) in the case of a poll taken more than 48 hours after it was demanded, 24 hours before the time appointed for

the taking of the poll.
(3) In calculating the periods mentioned in subsection (2), no account is to be taken of any part of a day that is a

public holiday.




Cap 622 - Companies Ordinance 223

Section: 599 Sending documents relating to proxies in electronic form L.N. 163 of 2013 03/03/2014


(1) If a company has given an electronic address in—
(a) an instrument of proxy issued by the company in relation to a general meeting; or
(b) an invitation to appoint a proxy issued by the company in relation to the meeting,

it is to be regarded as having agreed that any document or information relating to proxies for that meeting may
be sent by electronic means to that address (subject to any conditions or limitations specified in the instrument or
invitation).

(2) In subsection (1), documents relating to proxies include—
(a) the appointment of a proxy in relation to a general meeting;
(b) any document necessary to show the validity of, or otherwise relating to, the appointment of a proxy; and
(c) notice of the termination of the authority of a proxy.


Section: 600 Company-sponsored invitations to appoint proxies L.N. 163 of 2013 03/03/2014


(1) A company must not, for the purposes of a general meeting of the company, issue at its expense invitations to
members to appoint as proxy a specified person or a number of specified persons unless the invitations are
issued to all members entitled to be sent a notice of the meeting and to vote at the meeting by proxy.

(2) Subsection (1) is not contravened if—
(a) there is issued to a member at that member’s request a form of appointment naming the proxy or a list of

persons willing to act as proxy; and
(b) the form or list is available on request to all members entitled to vote at the meeting by proxy.

(3) If a company contravenes subsection (1), every responsible person of the company, commits an offence, and
each is liable to a fine at level 3.


Section: 601 Requirement as to instrument of proxy issued by company L.N. 163 of 2013 03/03/2014


(1) This section applies to an instrument of proxy issued to a member of a company by the company for use by the
member for appointing a proxy to attend and vote at a general meeting of the company.

(2) The instrument of proxy must be such as to enable the member, according to the member’s intention, to
instruct the proxy to vote in favour of or against (or, in default of instructions, to exercise the proxy’s
discretion in respect of) each resolution dealing with any business to be transacted at the meeting.


Section: 602 Chairing meeting by proxy L.N. 163 of 2013 03/03/2014


(1) A proxy may be elected to be the chairperson of a general meeting by a resolution of the company passed at the
meeting.

(2) Subsection (1) is subject to any provision of the company’s articles that states who may or who may not be
chairperson.


Section: 603 Company-sponsored proxy’s duty to vote in the way

specified in appointment of proxy
L.N. 163 of 2013 03/03/2014



(1) This section applies to a person who is named by a company as a proxy, whether the nomination is made in—
(a) an instrument of proxy issued by the company in relation to a general meeting; or
(b) an invitation to appoint a proxy issued by the company in relation to the meeting.

(2) If the person has been duly appointed as a proxy by a member entitled to vote at the meeting, that person must,
subject to section 588—
(a) vote as a proxy—

(i) on a show of hands; or
(ii) on a poll; and

(b) vote in the way specified (if any) by the member in the appointment of proxy.
(3) If the person has been duly appointed as a proxy by 2 or more members entitled to vote at the meeting and the



Cap 622 - Companies Ordinance 224

members specify different ways to vote in their appointment of proxy, the proxy—
(a) must, subject to section 588(2), vote on a show of hands in the way specified by the member or members

representing a simple majority of the total voting rights that the proxy is authorized to exercise at the
meeting; and

(b) if there is no majority, must not vote on a show of hands.
(4) A person who knowingly and wilfully contravenes subsection (2) or (3) commits an offence and is liable to a

fine at level 3.

Section: 604 Notice required of termination of proxy’s authority L.N. 163 of 2013 03/03/2014


(1) This section applies to a notice that the authority of a person to act as proxy is terminated (notice of
termination).

(2) The termination of the authority of a person to act as proxy does not affect—
(a) whether there is a quorum at a general meeting (irrespective of whether the proxy has been counted in

deciding the question);
(b) the validity of anything the person does as chairperson of a general meeting; or
(c) the validity of a poll demanded by the person at a general meeting,

unless the company receives notice of the termination before the commencement of the meeting.
(3) The termination of the authority of a person to act as proxy does not affect the validity of a vote given by that

person unless the company receives notice of the termination—
(a) before the commencement of the meeting or adjourned meeting at which the vote is given; or
(b) in the case of a poll taken more than 48 hours after it is demanded, before the time appointed for the taking

of the poll.
(4) If the company’s articles require or permit members to give notice of termination to a person other than the

company, the references in subsections (2) and (3) to the company receiving notice have effect as if they were—
(a) references to that person; or
(b) references to the company or that person,
as the case requires.

(5) Subsections (2) and (3) have effect subject to any provision of the company’s articles that has the effect of
requiring notice of termination to be received by the company or another person at a time earlier than that
specified in those subsections.

(6) Subsection (5) is subject to subsection (7).
(7) A provision of the company’s articles is void in so far as it would have the effect of requiring notice of

termination to be received by the company or another person earlier than the following time—
(a) in the case of a general meeting or adjourned general meeting, 48 hours before the time for holding the

meeting or adjourned meeting;
(b) in the case of a poll taken more than 48 hours after it was demanded, 24 hours before the time appointed for

the taking of the poll.
(8) In calculating the periods mentioned in subsections (3)(b) and (7), no account is to be taken of any part of a day

that is a public holiday.

Section: 605 Effect of member’s voting in person on proxy’s authority L.N. 163 of 2013 03/03/2014


(1) A proxy’s authority in relation to a resolution is to be regarded as revoked if the member who has appointed
the proxy—
(a) attends in person the general meeting at which the resolution is to be decided; and
(b) exercises, in relation to that resolution—

(i) the voting right attached to the shares in respect of which the proxy is appointed; or
(ii) if the company does not have a share capital, the voting right the member is entitled to exercise.

(2) A member who is entitled to attend, speak or vote (either on a show of hands or on a poll) at a general meeting
remains so entitled in respect of that meeting or any adjournment of it, even though a valid appointment of a
proxy has been delivered to the company by or on behalf of that member.





Cap 622 - Companies Ordinance 225

Section: 606 Representation of body corporate at meetings L.N. 163 of 2013 03/03/2014


(1) A body corporate may by resolution of its directors or other governing body—
(a) if it is a member of a company, authorize any person it thinks fit to act as its representative at any meeting

of the company; and
(b) if it is a creditor (including a holder of debentures) of a company, authorize any person it thinks fit to act as

its representative at any meeting of any creditors of the company held under the provisions of—
(i) this Ordinance; or
(ii) any debenture or trust deed or other instrument.

(2) A person authorized under subsection (1) is entitled to exercise the same powers on behalf of the body corporate
as that body corporate could exercise if it were an individual member, creditor, or holder of debentures, of the
company.


Section: 607 Representation of recognized clearing house at meetings L.N. 163 of 2013 03/03/2014


(1) A recognized clearing house within the meaning of section 1 of Part 1 of Schedule 1 to the Securities and
Futures Ordinance (Cap 571) may, if it or its nominee is a member of a company, authorize any person or
persons it thinks fit to act as its representative or representatives, at any meeting of the company.

(2) If more than one person is authorized under subsection (1), the authorization must specify the number and class
of shares in respect of which each person is so authorized.

(3) A person authorized under subsection (1) is entitled to exercise the same powers on behalf of the recognized
clearing house (or its nominee) as that clearing house (or its nominee) could exercise if it were an individual
member of the company.


Section: 608 Saving for more extensive rights given by articles L.N. 163 of 2013 03/03/2014


Nothing in this Subdivision prevents a company’s articles from giving more extensive rights to members or proxies
than are given by this Subdivision.

Part:
Division:
Subdivision:

12
1
10

Annual General Meetings L.N. 163 of 2013 03/03/2014





Section: 609 Interpretation L.N. 163 of 2013 03/03/2014


In this Subdivision—
accounting reference period (會計參照期) has the meaning given by section 368.

Section: 610 Requirement to hold annual general meeting L.N. 163 of 2013 03/03/2014


(1) Subject to subsections (2) and (3), a company must, in respect of each financial year of the company, hold a
general meeting as its annual general meeting within the following period (in addition to any other meetings held
during the period)—
(a) in the case of a private company or a company limited by guarantee, 9 months after the end of its

accounting reference period by reference to which the financial year is to be determined; and
(b) in the case of any other company, 6 months after the end of its accounting reference period by reference to

which the financial year is to be determined.
(2) If the accounting reference period mentioned in subsection (1) is the first accounting reference period of the

company and is longer than 12 months, the company must hold a general meeting as its annual general meeting
within the following period—
(a) in the case of a private company or a company limited by guarantee—

(i) 9 months after the anniversary of the company’s incorporation; or



Cap 622 - Companies Ordinance 226

(ii) 3 months after the end of that accounting reference period,
whichever is the later; and
(b) in the case of any other company—

(i) 6 months after the anniversary of the company’s incorporation; or
(ii) 3 months after the end of that accounting reference period,

whichever is the later.
(3) If a company has by a directors’ resolution under section 371 or a notice delivered to the Registrar under that

section, shortened an accounting reference period, the company must hold a general meeting as its annual
general meeting within the following period—
(a) in the case of a private company or a company limited by guarantee—

(i) 9 months after the end of the shortened accounting reference period; or
(ii) 3 months after the date of the directors’ resolution,

whichever is the later; and
(b) in the case of any other company—

(i) 6 months after the end of the shortened accounting reference period; or
(ii) 3 months after the date of the directors’ resolution,

whichever is the later.
(4) A private company mentioned in subsections (1), (2) and (3) does not include a private company that is, at any

time during the financial year, a subsidiary of a public company.
(5) If for any reason the Court thinks fit to do so, it may, on an application made before the end of the period

otherwise allowed for holding an annual general meeting in respect of a financial year of a company, by order
extend that period by a further period specified in the order.

(6) If the period otherwise allowed for holding an annual general meeting in respect of a financial year of a
company has been extended under subsection (5), the company must hold a general meeting as its annual general
meeting within the period as so extended.

(7) If a company contravenes subsection (1), (2), (3) or (6), the Court may, on application by any member of the
company—
(a) call, or direct the calling of, a general meeting of the company; and
(b) give any ancillary or consequential directions that the Court thinks expedient, including—

(i) a direction modifying or supplementing, in relation to the calling, holding and conducting of the
meeting, the operation of the company’s articles; and

(ii) a direction that one member of the company present in person or by proxy is to be regarded as
constituting a meeting.

(8) Subject to any directions of the Court, a general meeting held under subsection (7) is to be regarded as an annual
general meeting of the company in respect of the financial year in respect of which the company has failed to
hold an annual general meeting in accordance with this section.

(9) If a company contravenes subsection (1), (2), (3) or (6), or contravenes a direction given under subsection (7),
the company, and every responsible person of the company, commit an offence, and each is liable to a fine at
level 5.


Section: 611 Exemption of dormant company from requirement to hold

annual general meeting
L.N. 163 of 2013 03/03/2014



(1) Section 610 does not apply to a company that is a dormant company under section 5(1).
(2) If such a company enters into an accounting transaction, subsection (1) ceases to have effect on and after the

date of the accounting transaction.

Section: 612 Circumstances in which company not required to hold

annual general meeting
L.N. 163 of 2013 03/03/2014



(1) A company is not required to hold an annual general meeting in accordance with section 610 if—
(a) everything that is required or intended to be done at the meeting (by resolution or otherwise) is done by a

written resolution; and



Cap 622 - Companies Ordinance 227

(b) a copy of each document that under this Ordinance would otherwise be required to be laid before the
company at the meeting or otherwise produced at the meeting is provided to each member, on or before the
circulation date of the written resolution.

(2) A company is also not required to hold an annual general meeting in accordance with section 610 if—
(a) the company has only one member; or
(b) all of the following are satisfied—

(i) the company has by resolution passed in accordance with section 613(1) dispensed with the holding of
the annual general meeting;

(ii) the company has not revoked the resolution under section 614(1), or the company has revoked the
resolution under that section but is not required to hold an annual general meeting under section
614(2)(b);

(iii) no member of the company has required the holding of the annual general meeting under section
613(5).


Section: 613 Dispensation with annual general meeting L.N. 163 of 2013 03/03/2014


(1) A company may, by resolution passed in accordance with subsection (3), dispense with the holding of annual
general meetings in accordance with section 610.

(2) A resolution mentioned in subsection (1) may be passed by a written resolution or at a general meeting.
(3) Despite any other provision of this Ordinance, a resolution mentioned in subsection (1) is only to be regarded as

passed if it has been passed by all members of the company who—
(a) are entitled to vote on the resolution on the date of the resolution; or
(b) in the case of a written resolution, are entitled to vote on the resolution on the circulation date of the

resolution.
(4) A resolution under subsection (1)—

(a) is not to have effect for the financial year in respect of which the period specified in section 610 for holding
an annual general meeting of the company has expired; and

(b) does not affect any liability already incurred by reason of default in holding an annual general meeting.
(5) If an annual general meeting would be required to be held in respect of a financial year but for this section, and

the meeting has not been held, any member of the company may, by notice to the company not later than 3
months before the end of the period within which the company would be required to hold an annual general
meeting in respect of that financial year but for this section, require the holding of an annual general meeting in
respect of that financial year.

(6) A notice mentioned in subsection (5) must be given in hard copy form or in electronic form.
(7) If a notice mentioned in subsection (5) is given, section 610 applies in respect of the financial year to which the

notice relates.

Section: 614 Revocation of resolution dispensing with annual general

meeting
L.N. 163 of 2013 03/03/2014



(1) A company may revoke a resolution mentioned in section 613(1) by passing an ordinary resolution to that effect.
(2) If a resolution mentioned in section 613(1) is revoked or otherwise ceases to have effect, the company—

(a) is required to hold an annual general meeting in accordance with section 610; but
(b) is not required to hold an annual general meeting in respect of a financial year that, but for this paragraph,

would be required to be held within 3 months after the resolution ceases to have effect.
(3) Subsection (2) does not affect any obligation of the company to hold an annual general meeting in respect of a

financial year in accordance with a notice given under section 613(5).

Section: 615 Members’ power to request circulation of resolution for

annual general meeting
L.N. 163 of 2013 03/03/2014



(1) If a company is required to hold an annual general meeting under section 610, the members of the company may
request the company to give, to members of the company entitled to receive notice of the annual general
meeting, notice of a resolution that may properly be moved and is intended to be moved at that meeting.



Cap 622 - Companies Ordinance 228

(2) A company must give notice of a resolution if it has received requests that it do so from—
(a) the members of the company representing at least 2.5% of the total voting rights of all the members who

have a right to vote on the resolution at the annual general meeting to which the requests relate; or
(b) at least 50 members who have a right to vote on the resolution at the annual general meeting to which the

requests relate.
(3) A request—

(a) may be sent to the company in hard copy form or in electronic form;
(b) must identify the resolution of which notice is to be given;
(c) must be authenticated by the person or persons making it; and
(d) must be received by the company not later than—

(i) 6 weeks before the annual general meeting to which the requests relate; or
(ii) if later, the time at which notice is given of that meeting.


Section: 616 Company’s duty to circulate resolution for annual general

meeting
L.N. 163 of 2013 03/03/2014



(1) A company that is required under section 615 to give notice of a resolution must send a copy of it at the
company’s own expense to each member of the company entitled to receive notice of the annual general
meeting—
(a) in the same manner as the notice of the meeting; and
(b) at the same time as, or as soon as reasonably practicable after, it gives notice of the meeting.

(2) The business that may be dealt with at an annual general meeting includes a resolution of which notice is given
in accordance with subsection (1).

(3) For the purposes of subsection (2), notice is to be regarded as having been given in accordance with subsection
(1) despite the accidental omission to give notice to one or more members.

(4) If a company contravenes subsection (1), the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 5.


Part:
Division:
Subdivision:

12
1
11

Records of Resolutions and Meetings L.N. 163 of 2013 03/03/2014





Section: 617 Written record where company has only one member L.N. 163 of 2013 03/03/2014


(1) This section applies if a company has only one member and that member takes any decision that—
(a) may be taken by the company at a general meeting; and
(b) has effect as if agreed by the company at a general meeting.

(2) The member must, unless the decision is taken by way of a written resolution, provide the company with a
written record of that decision within 7 days after the decision is made.

(3) A person who contravenes subsection (2) commits an offence and is liable to a fine at level 3.
(4) A contravention of subsection (2) does not affect the validity of any decision mentioned in that subsection.

Section: 618 Records of resolutions and meetings, etc. L.N. 163 of 2013 03/03/2014


(1) A company must keep records comprising—
(a) copies of all resolutions of members passed otherwise than at general meetings;
(b) minutes of all proceedings of general meetings; and
(c) all written records provided to the company in accordance with section 116BC(1) of the predecessor

Ordinance or section 617(2).
(2) A company must keep the copy, minutes or written record under subsection (1) for at least 10 years from the

date of the resolution, meeting or decision, as the case may be.
(3) If a company contravenes subsection (1) or (2), the company, and every responsible person of the company,

commit an offence, and each is liable to a fine at level 5 and, in the case of a continuing offence, to a further fine



Cap 622 - Companies Ordinance 229

of $1000 for each day during which the offence continues.

Section: 619 Place where records must be kept L.N. 163 of 2013 03/03/2014


(1) A company must keep the records mentioned in section 618 at—
(a) the company’s registered office; or
(b) a prescribed place.

(2) A company must notify the Registrar of the place at which the records mentioned in section 618 are kept. The
notice must be in the specified form and delivered to the Registrar for registration within 15 days after the
records are first kept at that place.

(3) A company must notify the Registrar of any change (other than a change of the address of the company’s
registered office) in the place at which the records mentioned in section 618 are kept. The notice must be in the
specified form and delivered to the Registrar for registration within 15 days after the change.

(4) Subsection (2) does not require a company to notify the Registrar of the place at which the records mentioned in
section 618 are kept—
(a) if, in the case of records that came into existence on or after the commencement date* of this section, they

have at all times been kept at the company’s registered office; or
(b) if—

(i) immediately before that commencement date*, the company kept the records for the purposes of
section 119A of the predecessor Ordinance; and

(ii) on and after that commencement date*, the records are kept for the purposes of section 618 at the place
at which they were kept immediately before that commencement date*.

(5) If a company contravenes subsection (1), (2) or (3), the company, and every responsible person of the company,
commit an offence, and each is liable to a fine at level 5 and, in the case of a continuing offence, to a further fine
of $1000 for each day during which the offence continues.

(6) In this section—
prescribed(訂明) means prescribed by regulations made under section 657.
___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 620 Right to inspect and request copy L.N. 163 of 2013 03/03/2014


(1) A member of a company is entitled, on request made in the prescribed manner and without charge, to inspect, in
accordance with regulations made under section 657, the records kept by the company under section 618.

(2) A member of the company is entitled, on request and on payment of a prescribed fee, to be provided with a copy
of any of those records in accordance with regulations made under section 657.

(3) In this section—
prescribed(訂明) means prescribed by regulations made under section 657.

Section: 621 Records as evidence of resolutions etc. L.N. 163 of 2013 03/03/2014


(1) If the record of a resolution of members passed otherwise than at a general meeting is kept under section
618(1)(a) and purports to be signed by a director of the company or company secretary of the company, then—
(a) the record is evidence of the passing of the resolution; and
(b) until the contrary is proved, the requirements of this Ordinance with respect to those proceedings are to be

regarded as having been complied with.
(2) The minutes of proceedings of a general meeting, if purporting to be signed by the chairperson of that meeting or

by the chairperson of the next general meeting, are evidence of the proceedings.
(3) If the record of the minutes of proceedings of a general meeting of a company is kept under section 618(1)(b),

then, until the contrary is proved—
(a) the meeting is to be regarded as having been duly held and convened;
(b) all proceedings at the meeting are to be regarded as having duly taken place; and



Cap 622 - Companies Ordinance 230

(c) all appointments made at the meeting are to be regarded as valid.
(4) If a company has only one member and that member provides the company with a written record of a decision in

accordance with section 617(2), the record is sufficient evidence of the decision having been taken by the
member.


Section: 622 Registration of and requirements relating to certain

resolutions, etc.
L.N. 163 of 2013 03/03/2014



(1) This section applies to—
(a) a special resolution, other than a special resolution to change the name of a company passed under section

107 or 770;
(b) a resolution agreed to by all the members of a company that, if not so agreed to, would not have been

effective for its purpose unless passed as a special resolution;
(c) a resolution or agreement agreed to by all the members of a class that, if not so agreed to, would not have

been effective for its purpose unless passed by some particular majority or otherwise in some particular
manner;

(d) a resolution or agreement that effectively binds all the members of a class though not agreed to by all those
members;

(e) an agreement made for the purposes of section 359(1)(b)(iii);
(f) a resolution passed for the purposes of section 360(1)(a), (2)(a)(i), (2)(b)(i) or (2)(c)(i);
(g) a resolution passed under section 613;
(h) a resolution requiring a company to be wound up voluntarily, passed under section 228(1)(a) of the

Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap 32);
(i) a resolution varying any matter or provision in the articles of a company that is expressly authorized by the

articles to be varied by ordinary resolution;
(j) an order of the Court (which alters a company’s articles) a copy of which is required to be delivered to the

Registrar under section 96; and
(k) an order of the Court which alters a resolution or an agreement referred to in paragraph (a), (b), (c), (d), (e),

(f), (g), (h) or (i).
(2) The company must deliver a copy of the order under subsection (1)(k), resolution or agreement to the Registrar

for registration within 15 days after it is made or passed.
(3) The company must ensure that a copy of the resolution, agreement or order of the Court that is for the time being

in force is included in or annexed to every copy of the articles issued, as the case may be—
(a) after the passing of the resolution; or
(b) after the making of the agreement or the order of the Court.

(4) Subsection (3) does not apply to an existing company whose articles have not been registered under this
Ordinance or any former Companies Ordinance.

(5) If the company is an existing company whose articles have not been registered under this Ordinance or any
former Companies Ordinance, the company must send a copy of the resolution, agreement or order of the Court
that is for the time being in force to any member at that member’s request, without charge.

(6) If the resolution or agreement is not in writing, a reference to a copy of the resolution or agreement in
subsections (2), (3) and (5) is to be construed as a written memorandum setting out the terms of the resolution or
agreement.

(7) If a company contravenes subsection (2), the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 3 and, in the case of a continuing offence, to a further fine of $300
for each day during which the offence continues.

(8) If a company contravenes subsection (3) or (5), the company, and every responsible person of the company,
commit an offence, and each is liable to a fine at level 3.

(9) For the purposes of subsections (7) and (8), a liquidator or provisional liquidator of the company is to be
regarded as an officer of the company.





Cap 622 - Companies Ordinance 231

Part:
Division:
Subdivision:

12
1
12

Application to Class Meetings L.N. 163 of 2013 03/03/2014





Section: 623 Application to class meetings of companies with share
capital

L.N. 163 of 2013 03/03/2014



(1) Subject to subsections (2) and (3), this Division (except Subdivision 10) applies, with necessary modifications,
in relation to a meeting of holders of shares in a class of a company’s shares as it applies in relation to a
general meeting.

(2) Sections 566, 567, 568, 570 and 575 do not apply in relation to a meeting of holders of shares in a class of a
company’s shares.

(3) In addition to those sections mentioned in subsection (2), sections 585 and 591 do not apply in relation to a
meeting in connection with the variation of the rights attached to shares in a class (variation of class rights
meeting).

(4) The quorum for a variation of class rights meeting is—
(a) in the case of a meeting other than an adjourned meeting, 2 persons present in person or by proxy together

holding at least one-third of the total voting rights of holders of shares in the class; and
(b) in the case of an adjourned meeting, one person present in person or by proxy holding any shares in the

class.
(5) For the purposes of subsection (4), if a person is present by proxy, that person is to be regarded as holding only

the shares in respect of which the proxy is authorized to exercise voting rights.
(6) At a variation of class rights meeting, any holder of shares in the class who is present in person or by proxy may

demand a poll.
(7) For the purposes of this section—

(a) any amendment of a provision in a company’s articles for the variation of the rights attached to shares in a
class, or the insertion of such a provision into the articles, is itself to be regarded as a variation of those
rights; and

(b) a reference to the variation of the rights attached to mshares in a class includes the abrogation of those
rights.


Section: 624 Application to class meetings of companies without share

capital
L.N. 163 of 2013 03/03/2014



(1) Subject to subsections (2) and (3), this Division (except Subdivision 10) applies, with necessary modifications,
in relation to a meeting of a class of members of a company without a share capital as it applies in relation to a
general meeting.

(2) Sections 566, 567, 568, 570 and 575 do not apply in relation to a meeting of a class of members.
(3) In addition to those sections mentioned in subsection (2), sections 585 and 591 do not apply in relation to a

meeting in connection with the variation of the rights of a class of members (variation of class rights meeting).
(4) The quorum for a variation of class rights meeting is—

(a) in the case of a meeting other than an adjourned meeting, 2 members of the class present in person or by
proxy together representing at least one-third of the total voting rights of members of the class; and

(b) in the case of an adjourned meeting, one member of the class present (in person or by proxy).
(5) At a variation of class rights meeting, any member present in person or by proxy may demand a poll.
(6) For the purposes of this section—

(a) any amendment of a provision in a company’s articles for the variation of the rights of a class of members,
or the insertion of such a provision into the articles, is itself to be regarded as a variation of those rights; and

(b) a reference to the variation of the rights of a class of members includes the abrogation of those rights.




Cap 622 - Companies Ordinance 232

Part:
Division:

12
2

Registers L.N. 163 of 2013 03/03/2014





Part:
Division:
Subdivision:

12
2
1

Preliminary L.N. 163 of 2013 03/03/2014





Section: 625 Interpretation L.N. 163 of 2013 03/03/2014


In this Division—
prescribed (訂明) means prescribed by regulations made under section 657.

Part:
Division:
Subdivision:

12
2
2

Register of Members L.N. 163 of 2013 03/03/2014





Section: 626 Interpretation L.N. 163 of 2013 03/03/2014


In this Subdivision—
branch register (登記支冊) means, except in section 640, a branch register of members kept under section 636.

Section: 627 Register of members L.N. 163 of 2013 03/03/2014


(1) A company must keep in the English or Chinese language a register of members.
(2) A company must enter in the register of members—

(a) the names and addresses of its members;
(b) the date on which each person is entered in the register as a member; and
(c) the date on which any person ceases to be a member.

(3) In the case of a company having a share capital, the company must enter in the register of members, with the
names and addresses of the members, a statement of—
(a) the shares held by each member, distinguishing each share by its number so long as the share has a number;

and
(b) the amount paid or agreed to be considered as paid on the shares of each member.

(4) A company must enter in the register of members the particulars required under subsections (2) and (3) within 2
months after the company has received notice of the particulars concerned.

(5) In the case of a person mentioned in subsection (2)(c), all entries in the register relating to that person on the date
on which the person ceased to be a member may be destroyed after the end of a period of 10 years from that
date.

(6) A company must retain a copy of any details that were included in the register of members immediately before
the commencement date* of subsection (5) until 10 years after the member concerned ceased to be a member.

(7) If a company contravenes subsection (1), (4) or (6), the company, and every responsible person of the company,
commit an offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine
of $700 for each day during which the offence continues.

___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 628 Place where register must be kept L.N. 163 of 2013 03/03/2014


(1) A company must keep its register of members at—



Cap 622 - Companies Ordinance 233

(a) the company’s registered office; or
(b) a prescribed place.

(2) A company must notify the Registrar of the place at which the register of members is kept. The notice must be in
the specified form and delivered to the Registrar for registration within 15 days after the register is first kept at
that place.

(3) A company must notify the Registrar of any change (other than a change of the address of the company’s
registered office) in the place at which the register of members is kept. The notice must be in the specified form
and delivered to the Registrar for registration within 15 days after the change.

(4) Subsection (2) does not require a company to notify the Registrar of the place at which the register of members
is kept—
(a) if, in the case of a register that came into existence on or after the commencement date* of this section, it

has at all times been kept at the company’s registered office; or
(b) if—

(i) immediately before that commencement date*, the company kept a register for the purposes of section
95 of the predecessor Ordinance; and

(ii) on and after that commencement date*, that register is kept as a register of members for the purposes
of section 627 at the place at which it was kept immediately before that commencement date*.

(5) If a company contravenes subsection (1), (2) or (3), the company, and every responsible person of the company,
commit an offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine
of $700 for each day during which the offence continues.

___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 629 Statement that company has only one member L.N. 163 of 2013 03/03/2014


(1) If, after a person ceases to be a member of a company, the number of members of the company falls to one, the
company must, within 15 days after the date on which the cessation is entered in its register of members under
section 627(2)(c), enter in the register—
(a) a statement that it has only one member; and
(b) the date on which it became a company having only one member.

(2) If the membership of a company increases from one to 2 or more members, the company must, within 15 days
after the date on which the particulars of the new member are entered in its register of members under section
627(2), enter in the register—
(a) a statement that it has ceased to have only one member; and
(b) the date on which that event occurred.

(3) If a company contravenes subsection (1) or (2), the company, and every responsible person of the company,
commit an offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine
of $700 for each day during which the offence continues.


Section: 630 Index of members L.N. 163 of 2013 03/03/2014


(1) A company having more than 50 members must keep an index of the names of the members of the company,
unless its register of members is in a form that constitutes in itself an index.

(2) The company must make any necessary alteration in the index within 15 days after the date on which any
alteration is made in its register of members.

(3) The company must ensure that the index contains, in respect of each member, a sufficient indication to enable
the account of that member in the register to be readily found.

(4) The company must keep the index at the same place as its register of members at all times.
(5) If a company contravenes subsection (1), (2), (3) or (4), the company, and every responsible person of the

company, commit an offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a
further fine of $700 for each day during which the offence continues.





Cap 622 - Companies Ordinance 234

Section: 631 Right to inspect and request copy L.N. 163 of 2013 03/03/2014


(1) A member of a company is entitled, on request made in the prescribed manner and without charge, to inspect the
register of members of the company, and the index of members’ names, in accordance with regulations made
under section 657.

(2) Any other person is entitled, on request made in the prescribed manner and on payment of a prescribed fee, to
inspect the register and index in accordance with regulations made under section 657.

(3) A person is entitled, on request and on payment of a prescribed fee, to be provided with a copy of the register or
index, or any part of it, in accordance with regulations made under section 657.


Section: 632 Power to close register of members L.N. 163 of 2013 03/03/2014


(1) A company may, on giving notice in accordance with subsection (2), close its register of members, or the part of
it relating to members holding shares of any class, for any period or periods not exceeding in the whole 30 days
in each year.

(2) A notice for the purposes of subsection (1)—
(a) if the company is a listed company, must be given—

(i) in accordance with the listing rules applicable to the stock market; or
(ii) by advertisement in a newspaper circulating generally in Hong Kong; and

(b) in the case of any other company, must be given by advertisement in a newspaper circulating generally in
Hong Kong.

(3) The period of 30 days mentioned in subsection (1) may be extended in respect of any year by a resolution of the
company’s members passed in that year.

(4) The period of 30 days mentioned in subsection (1) must not be extended for a further period or periods
exceeding 30 days in the whole in any year.

(5) A company must, on demand, provide any person seeking to inspect a register or part of a register that is closed
under this section with a certificate signed by the company secretary of the company stating the period for
which, and by whose authority, it is closed.

(6) If a company contravenes subsection (5), the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 3.


Section: 633 Power of Court to rectify register L.N. 163 of 2013 03/03/2014


(1) If—
(a) the name of any person is, without sufficient cause, entered in or omitted from the register of members of a

company; or
(b) default is made or unnecessary delay takes place in entering in the register the fact of any person having

ceased to be a member,
a person aggrieved, or any member of the company, or the company, may apply to the Court for rectification of

the register.
(2) If an application is made under subsection (1), the Court may—

(a) refuse the application; or
(b) subject to section 167, order rectification of the register and payment by the company of any damages

sustained by any party aggrieved.
(3) Subject to section 167, on an application under subsection (1), the Court—

(a) may decide any question relating to the title of any person who is a party to the application to have the
person’s name entered in or omitted from the register, whether the question arises—
(i) between members or alleged members; or
(ii) between members or alleged members on the one hand and the company on the other hand; and

(b) generally may decide any question necessary or expedient to be decided for rectification of the register.
(4) In the case of a company required by this Ordinance to deliver particulars relating to its members to the

Registrar for registration, the Court, when making an order for rectification of the register, must by its order
direct notice of the rectification to be given to the Registrar.





Cap 622 - Companies Ordinance 235

Section: 634 Trusts not to be entered in register L.N. 163 of 2013 03/03/2014


No notice of any trust (whether expressed, implied or constructive) may be—
(a) entered in the register of members of a company; or
(b) receivable by the Registrar.


Section: 635 Register to be proof in the absence of contrary evidence L.N. 163 of 2013 03/03/2014


In the absence of evidence to the contrary, the register of members is proof of any matters that are by this Ordinance
required or authorized to be inserted in it.

Section: 636 Branch register of members L.N. 163 of 2013 03/03/2014


(1) A company having a share capital may keep in a place outside Hong Kong a branch register of its members
resident there if it is authorized to do so by its articles.

(2) A company that begins to keep a branch register must deliver to the Registrar for registration a notice in the
specified form within 15 days after doing so, stating the address where the branch register is kept.

(3) A company that keeps a branch register must deliver to the Registrar for registration a notice in the specified
form of any change in the address where the branch register is kept, within 15 days after the change.

(4) If a company contravenes subsection (2) or (3), the company, and every responsible person of the company,
commit an offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine
of $700 for each day during which the offence continues.


Section: 637 Keeping of branch register L.N. 163 of 2013 03/03/2014


(1) A branch register must be kept in the same manner in which the company’s register of members (the principal
register) is by this Ordinance required to be kept.

(2) A company that keeps a branch register may close it in the same manner in which the principal register may be
closed under section 632 except that the advertisement mentioned in that section must be inserted in a newspaper
circulating generally in the place in which the branch register is kept.

(3) A company that keeps a branch register—
(a) must cause a duplicate of it to be kept at the place at which the company’s principal register is kept; and
(b) must, within 15 days after an entry is made in the branch register—

(i) transmit a copy of the entry to its registered office; and
(ii) update the duplicate of the branch register.

(4) A duplicate of a branch register is to be regarded for all the purposes of this Ordinance as part of the principal
register.

(5) Subject to the provisions of this Ordinance, a company may by its articles make any provision that it thinks fit
respecting the keeping of branch registers.

(6) If a company contravenes subsection (3), the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine of $700
for each day during which the offence continues.


Section: 638 Transactions in shares registered in branch register L.N. 163 of 2013 03/03/2014


(1) The shares registered in a branch register of a company must be distinguished from those registered in the
company’s register of members.

(2) No transaction with respect to any shares registered in a branch register may, during the continuance of that
registration, be registered in any other register.


Section: 639 Discontinuance of branch register L.N. 163 of 2013 03/03/2014


(1) A company may discontinue a branch register.



Cap 622 - Companies Ordinance 236

(2) If a company discontinues a branch register, all the entries in that register must be transferred to—
(a) some other branch register kept in the same place outside Hong Kong by the company; or
(b) the company’s register of members.

(3) If a company discontinues a branch register, it must within 15 days after the discontinuance deliver to the
Registrar for registration a notice in the specified form informing the Registrar of—
(a) the discontinuance; and
(b) the register to which all the entries have been transferred.

(4) If a company contravenes subsection (3), the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a further fine of $700
for each day during which the offence continues.


Section: 640 Provisions as to branch registers of non-Hong Kong

companies kept in Hong Kong
L.N. 163 of 2013 03/03/2014



If under the law in force in any place outside Hong Kong, companies incorporated under that law have power to keep
in Hong Kong branch registers of their members resident in Hong Kong, the Financial Secretary may by order direct
that—

(a) those branch registers must be kept at a place in Hong Kong as specified in the order;
(b) sections 631 and 633, subject to any modifications and adaptations specified in the order, apply to and in

relation to those branch registers kept in Hong Kong as they apply to and in relation to the registers of
members.


Part:
Division:
Subdivision:

12
2
3

Register of Directors L.N. 163 of 2013 03/03/2014





Section: 641 Register of directors L.N. 163 of 2013 03/03/2014


(1) A company must keep in the English or Chinese language a register of directors.
(2) Subject to section 56(5), (6)(a) and (7)(a), a company must enter in the register of directors the required

particulars specified in section 643 of each person who is a director or reserve director (if any) of the company.
(3) A company must keep the register of directors at—

(a) the company’s registered office; or
(b) a prescribed place.

(4) A company must notify the Registrar of the place at which the register of directors is kept. The notice must be in
the specified form and delivered to the Registrar for registration within 15 days after the register is first kept at
that place.

(5) A company must notify the Registrar of any change (other than a change of the address of the company’s
registered office) in the place at which the register of directors is kept. The notice must be in the specified form
and delivered to the Registrar for registration within 15 days after the change.

(6) Subsection (4) does not require a company to notify the Registrar of the place at which the register of directors is
kept—
(a) if, in the case of a register that came into existence on or after the commencement date* of this section, it

has at all times been kept at the company’s registered office; or
(b) if—

(i) immediately before that commencement date*, the company kept a register for the purposes of section
158 of the predecessor Ordinance; and

(ii) on and after that commencement date*, that register, in so far as it relates to the directors or reserve
directors of the company, is kept as a register of directors for the purposes of subsection (1) at the
place at which it was kept immediately before that commencement date*.

(7) If a company contravenes subsection (1), (2), (3), (4) or (5), the company, and every responsible person of the
company, commit an offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a



Cap 622 - Companies Ordinance 237

further fine of $700 for each day during which the offence continues.
___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 642 Right to inspect and request copy L.N. 163 of 2013 03/03/2014


(1) A member of a company is entitled, on request made in the prescribed manner and without charge, to inspect the
register of directors of the company in accordance with regulations made under section 657.

(2) Any other person is entitled, on request made in the prescribed manner and on payment of the prescribed fee, to
inspect the register in accordance with regulations made under section 657.

(3) A person is entitled, on request and on payment of a prescribed fee, to be provided with a copy of the register, or
any part of it, in accordance with regulations made under section 657.


Section: 643 Particulars of directors to be registered L.N. 163 of 2013 03/03/2014


Remarks:
Subsections (1)(a)(ii), (2)(b) and (3)(b) in so far as it relates to a correspondence address and (5) are not yet in
operation.

(1) If a company is a private company (other than one that is a member of a group of companies of which a listed

company is a member), its register of directors must contain the following particulars with respect to each
director—
(a) if the director is a natural person—

(i) the present forename and surname, former forename or surname (if any), and aliases (if any);
(ii) the usual residential address and a correspondence address; and
(iii) the number of the identity card or, if the director does not have an identity card, the number and

issuing country of any passport held by the director; and
(b) if the director is a body corporate, the corporate name and the address of its registered or principal office.

(2) If a company is a public company, a company limited by guarantee, or a private company that is a member of a
group of companies of which a listed company is a member, its register of directors must contain the following
particulars with respect to each director—
(a) the present forename and surname, former forename or surname (if any), and aliases (if any);
(b) the usual residential address and a correspondence address; and
(c) the number of the identity card or, if the director does not have an identity card, the number and issuing

country of any passport held by the director.
(3) If a company is a private company having only one member and that member is the sole director of the

company, its register of directors must contain the following particulars with respect to the reserve director of
the company (if any)—
(a) the present forename and surname, former forename or surname (if any), and aliases (if any);
(b) the usual residential address and a correspondence address; and
(c) the number of the identity card or, if the director does not have an identity card, the number and issuing

country of any passport held by the director.
(4) In this section—
forename(名字) includes a Christian or given name;
residential address(住址)—

(a) does not include an address at a hotel unless the person to whom it relates is stated, for the purposes of this
section, to have no other permanent address; and

(b) does not include a post office box number;
surname(姓氏), for a person usually known by a title different from the person’s surname, means that title.
(5) For the purposes of subsections (1)(a)(ii), (2)(b) and (3)(b), a correspondence address must not be a post office

box number.
(6) In this section, a reference to a former forename or surname does not include—

(a) in relation to a person—



Cap 622 - Companies Ordinance 238

(i) a forename or surname that was changed or ceased to be used before the person attained the age of 18
years; and

(ii) a forename or surname that has been changed or ceased to be used for a period of at least 20 years;
(b) in relation to a person usually known by a title different from the person’s surname, the name by which

the person was known before the adoption of or succession to the title; and
(c) in relation to a married woman, a name or surname by which she was known before her marriage.

(7) The Financial Secretary may, by notice published in the Gazette, amend subsection (1), (2), (3), (4), (5) or (6).

Section: 644 Protection of certain particulars from inspection


Remarks:
Not yet in operation

(1) Despite section 642(1), (2) and (3), a company may withhold the following particulars contained in its register of

directors from a person who inspects the register or requests for a copy of it or any part of it—
(a) an address contained in the register as the usual residential address of a director or reserve director; and
(b) the number of the identity card or passport of a director or reserve director.

(2) A company may only exercise the power under subsection (1) in the prescribed manner and to the prescribed
extent.


Section: 645 Duty to notify Registrar of appointment and change L.N. 163 of 2013 03/03/2014


Remarks:
Section 645(5) is not yet in operation.

(1) If a person is appointed as director of a company otherwise than under section 453(3) or (4) or section 454(2) or

(3), the company must, within 15 days after the appointment, deliver to the Registrar for registration a notice in
the specified form containing—
(a) the director’s particulars specified in its register of directors;
(b) a statement that the person has accepted the appointment; and
(c) if the person is a natural person, a statement that he or she has attained the age of 18 years.

(2) The company must, within 15 days after the nomination of a person as a reserve director of the company, deliver
to the Registrar for registration a notice in the specified form containing all the particulars with respect to that
person that are required to be contained in its register of directors.

(3) If a person is nominated as a reserve director of a private company, the company must, within 15 days after the
nomination, deliver to the Registrar for registration a statement in the specified form that the person has accepted
the nomination and has attained the age of 18 years.

(4) If a person ceases to be a director or reserve director of a company or there is any change in the particulars
contained in the register of directors of a company, the company must, within 15 days after the cessation or
change, deliver to the Registrar for registration a notice in the specified form containing—
(a) the particulars of cessation or change and the date on which it occurred; and
(b) other matters that are specified in the form.

(5) If the company is not allowed under section 56(7)(b) to state in a notice under subsection (4) that a director’s
correspondence address is changed to an address other than the address specified in subparagraph (i) or (ii) of
that section, subsection (4) does not apply in relation to that change.

(6) If a company contravenes subsection (1), (2), (3) or (4), the company, and every responsible person of the
company, commit an offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a
further fine of $700 for each day during which the offence continues.


Section: 646 Duty of director to make disclosure L.N. 163 of 2013 03/03/2014


(1) A director of a company must give notice to the company of matters relating to the director that are required for
the purposes of sections 643 and 645.

(2) A reserve director of a company must give notice to the company of matters relating to the reserve director that



Cap 622 - Companies Ordinance 239

are required for the purposes of sections 643 and 645.
(3) A person who contravenes subsection (1) or (2) commits an offence and is liable to a fine at level 4.

Section: 647 Registrar to keep an index of directors L.N. 163 of 2013 03/03/2014


Remarks:
Section 647(4) and (5) is not yet in operation.

(1) The Registrar must keep an index of every person who is a director of a company or a reserve director of a

private company.
(2) The particulars contained in the index must, in respect of each director or reserve director, include—

(a) the name and address of the director or reserve director;
(b) the latest particulars sent to the Registrar in respect of the director or reserve director; and
(c) the name of each company of which the director or reserve director can be identified as a director or reserve

director.
(3) The index kept under this section must be open for inspection by any person on payment of a prescribed fee.
(4) Despite subsection (3), the following particulars contained in the index must not be open for inspection under

that subsection—
(a) the usual residential address of the director or reserve director; and
(b) the full number of the identity card or passport of the director or reserve director.

(5) Subsection (4) does not affect the inclusion in the index of a correspondence address of the director or reserve
director, nor does it affect the inspection of the correspondence address under subsection (3), even if the
correspondence address is the same as the usual residential address of the director or reserve director.


Part:
Division:
Subdivision:

12
2
4

Register of Company Secretaries L.N. 163 of 2013 03/03/2014





Section: 648 Register of company secretaries L.N. 163 of 2013 03/03/2014


(1) A company must keep in the English or Chinese language a register of company secretaries.
(2) A company must enter in the register of company secretaries the required particulars specified in section 650 of

a person who is, or persons who are the company secretary or joint company secretaries of the company.
(3) A company must keep the register of company secretaries at—

(a) the company’s registered office; or
(b) a prescribed place.

(4) A company must notify the Registrar of the place at which the register of company secretaries is kept. The notice
must be in the specified form and delivered to the Registrar for registration within 15 days after the register is
first kept at that place.

(5) A company must notify the Registrar of any change (other than a change of the address of the company’s
registered office) in the place at which the register of company secretaries is kept. The notice must be in the
specified form and delivered to the Registrar for registration within 15 days after the change.

(6) Subsection (4) does not require a company to notify the Registrar of the place at which the register of company
secretaries is kept—
(a) if, in the case of a register that came into existence on or after the commencement date* of this section, it

has at all times been kept at the company’s registered office; or
(b) if—

(i) immediately before that commencement date*, the company kept a register for the purposes of section
158 of the predecessor Ordinance; and

(ii) on and after that commencement date*, that register, in so far as it relates to the company secretary or
joint company secretaries of the company, is kept as a register of company secretaries for the purposes
of subsection (1) at the place at which it was kept immediately before that commencement date*.



Cap 622 - Companies Ordinance 240

(7) If a company contravenes subsection (1), (2), (3), (4) or (5), the company, and every responsible person of the
company, commit an offence, and each is liable to a fine at level 4 and, in the case of a continuing offence, to a
further fine of $700 for each day during which the offence continues.

___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Section: 649 Right to inspect and request copy L.N. 163 of 2013 03/03/2014


(1) A member of a company is entitled, on request made in the prescribed manner and without charge, to inspect the
register of company secretaries of the company in accordance with regulations made under section 657.

(2) Any other person is entitled, on request made in the prescribed manner and on payment of the prescribed fee, to
inspect the register in accordance with regulations made under section 657.

(3) A person is entitled, on request and on payment of a prescribed fee, to be provided with a copy of the register, or
any part of it, in accordance with regulations made under section 657.


Section: 650 Particulars of company secretaries to be registered L.N. 163 of 2013 03/03/2014


(1) The register of company secretaries of a company must contain the following particulars with respect to the
company secretary or, if there are joint company secretaries, with respect to each of them—
(a) if the company secretary is a natural person—

(i) the present forename and surname, former forename or surname (if any), and aliases (if any);
(ii) the correspondence address; and
(iii) the number of the identity card or, if the company secretary does not have an identity card, the number

and issuing country of any passport held by the company secretary; and
(b) if the company secretary is a body corporate, the corporate name and the address of its registered or

principal office.
(2) If all the partners in a firm are joint company secretaries of a company, the name and principal office of the firm

may be stated instead of the particulars mentioned in subsection (1)(a) or (b).
(3) In this section—
forename(名字) includes a Christian or given name;
surname(姓氏), for a person usually known by a title different from the person’s surname, means that title.
(4) For the purposes of subsection (1)(a)(ii), a correspondence address must be a place in Hong Kong and must not

be a post office box number.
(5) In this section, a reference to a former forename or surname does not include—

(a) in relation to a person—
(i) a forename or surname that was changed or ceased to be used before the person attained the age of 18

years; and
(ii) a forename or surname that has been changed or ceased to be used for a period of at least 20 years;

(b) in relation to a person usually known by a title different from the person’s surname, the name by which
the person was known before the adoption of or succession to the title; and

(c) in relation to a married woman, a name or surname by which she was known before her marriage.
(6) The Financial Secretary may, by notice published in the Gazette, amend subsection (1), (2), (3), (4) or (5).

Section: 651 Protection of identification number from inspection


Remarks:
Not yet in operation

(1) Despite section 649(1), (2) and (3), a company may withhold the number of the identity card or passport of a

company secretary contained in its register of company secretaries from a person who inspects the register or
requests for a copy of it or any part of it.

(2) A company may only exercise the power under subsection (1) in the prescribed manner and to the prescribed
extent.



Cap 622 - Companies Ordinance 241


Section: 652 Duty to notify Registrar of appointment and change L.N. 163 of 2013 03/03/2014


(1) If a person or persons are appointed as company secretary or joint company secretaries of a company
otherwise than under section 474(2) or (3), the company must, within 15 days after the appointment,
deliver to the Registrar for registration a notice in the specified form containing the company
secretary’s or joint company secretaries’ particulars specified in its register of company secretaries.

(2) If a person ceases to be a company secretary of the company or there is any change in the particulars
contained in the register of company secretaries of a company, the company must, within 15 days after
the cessation or change, deliver to the Registrar for registration a notice in the specified form
containing—
(a) the particulars of the cessation or change and the date on which it occurred; and
(b) any other particulars that are specified in the form.

(3) If a company contravenes subsection (1) or (2), the company, and every responsible person of the
company, commit an offence, and each is liable to a fine at level 4 and, in the case of a continuing
offence, to a further fine of $700 for each day during which the offence continues.


Section: 653 Duty of company secretary to make disclosure L.N. 163 of 2013 03/03/2014


(1) A company secretary of a company must give notice to the company of matters relating to the company
secretary that are required for the purposes of sections 650 and 652.

(2) A person who contravenes subsection (1) commits an offence and is liable to a fine at level 4.

Part:
Division:

12
3

Company Records L.N. 163 of 2013 03/03/2014





Section: 654 Meaning of company records L.N. 163 of 2013 03/03/2014


In this Division—
company records(公司紀錄 ) means any register, index, agreement, memorandum, minutes or other document

required by this Ordinance to be kept by a company, but does not include accounting records.

Section: 655 Form of company records L.N. 163 of 2013 03/03/2014


(1) A company must adequately record for future reference the information required to be contained in any company
records.

(2) Subject to subsection (1), company records may be—
(a) kept in hard copy form or in electronic form; and
(b) arranged in the manner that the directors of the company think fit.

(3) If the records are kept in electronic form, the company must ensure that they are capable of being reproduced in
hard copy form.

(4) If any company records required by this Ordinance to be kept by a company are kept by the company by
recording the information in question in electronic form, any duty imposed on the company under this Ordinance
to allow inspection of the company records is to be regarded as a duty to allow inspection of—
(a) a reproduction of the recording, or the relevant part of the recording, in hard copy form; or
(b) if requested by the person inspecting the recording, the recording, or the relevant part of the recording, by

electronic means.
(5) If a company contravenes subsection (1), the company, and every responsible person of the company, commit an

offence, and each is liable to a fine at level 3 and, in the case of a continuing offence, to a further fine of $300
for each day during which the offence continues.

(6) If a company contravenes subsection (3), the company, and every responsible person of the company, commit an



Cap 622 - Companies Ordinance 242

offence, and each is liable to a fine at level 3.
(7) In this section—
in electronic form(電子形式) means in the form of an electronic record;
in hard copy form(印本形式) means in a paper form or similar form capable of being read.

Section: 656 Duty to take precautions against falsification L.N. 163 of 2013 03/03/2014


(1) If company records are kept otherwise than by making entries in a bound book, a company—
(a) must take adequate precautions to guard against falsification; and
(b) must take adequate steps to facilitate the discovery of the falsification.

(2) If a company contravenes subsection (1), the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 3.


Section: 657 Regulations about keeping and inspection of company

records and provision of copies
L.N. 163 of 2013 03/03/2014



Remarks:
Section 657(2)(g) is not yet in operation.

(1) The Financial Secretary may make regulations to—

(a) provide for the obligations of a company that is required by any provision of this Ordinance—
(i) to keep any company records;
(ii) to make available for inspection any company records; or
(iii) to provide copies of any company records or trust deeds;

(b) prescribe the fees payable in respect of company records or trust deeds; and
(c) prescribe any other thing that is required or permitted to be prescribed under this Ordinance in respect of

company records or trust deeds.
(2) The regulations may—

(a) prescribe places other than a company’s registered office at which company records are required to be
kept;

(b) prescribe the manner in which a request for inspection is to be made;
(c) require a company to inform a person of the most recent date on which alterations were made to a register

or an index;
(d) make provision as to the time, duration and manner of inspection, including the circumstances in which and

the extent to which the copying of information is permitted in the course of inspection;
(e) define what may be required of a company as regards the nature, extent and manner of extracting or

presenting any information for the purposes of inspection or the provision of copies;
(f) make provision as to the time within which a copy of company records, or a copy of a trust deed, must be

provided; and
(g) prescribe the manner in which and the extent to which a company may exercise the power under section

644 or 651.
(3) Regulations made under subsection (2)(a) may, in relation to a provision of this Ordinance requiring a company

to keep any company records—
(a) prescribe a place—

(i) by reference to the company’s principal place of business or the place at which the company keeps
any other records; or

(ii) in any other way;
(b) provide that that provision is not complied with by keeping company records at a place prescribed in the

regulations unless conditions prescribed in the regulations are met; and
(c) prescribe more than one place in relation to that provision.

(4) Regulations made under subsection (1), (2) or (3) may provide that—
(a) if a company contravenes any of the regulations made under subsection (1), (2) or (3), an offence is

committed by—



Cap 622 - Companies Ordinance 243

(i) the company; and
(ii) every responsible person of the company;

(b) a person who commits an offence mentioned in paragraph (a) is liable to a fine not exceeding level 5 and, in
the case of a continuing offence, to a further fine not exceeding $1000 for each day during which the
offence continues;

(c) the Court may—
(i) by order compel an immediate inspection of company records;
(ii) by order direct that a copy of company records, or a copy of a trust deed, be provided to a person

entitled to be provided with the copy; and
(iii) make any order as to the time, duration and manner of inspection, including the circumstances in

which and the extent to which the copying of information is permitted in the course of inspection; and
(d) if company records or a trust deed is kept at the office of a person other than the company concerned, an

order mentioned in paragraph (c) may be made against that other person and that other person’s officers
and other employees (if any).

(5) Nothing in any provision of this Ordinance or in the regulations made under this section is to be construed as
preventing a company—
(a) from providing more extensive facilities than are required by the regulations; or
(b) if a fee may be charged, from charging a lesser fee than that prescribed or none at all.

(6) In this section—
trust deed(信託契據) means a trust deed or any other document securing the issue of debentures.

Part:
Division:

12
4

Registered Office and Publication of Company Names L.N. 163 of 2013 03/03/2014





Section: 658 Registered office of company L.N. 163 of 2013 03/03/2014


(1) A company must have a registered office in Hong Kong to which all communications and notices may be
addressed.

(2) The intended address of a company’s registered office stated in the incorporation form registered in respect of
the company is to be regarded as the address of its registered office with effect from the date of its incorporation
until a notice of change in respect of the address is delivered to the Registrar under subsection (3).

(3) If the address of a company’s registered office is changed, the company must deliver to the Registrar for
registration a notice of the change in the specified form within 15 days after the change.

(4) The inclusion in the annual return of a company of a statement as to the address of its registered office does not
satisfy the obligation imposed by subsection (3).

(5) If a company contravenes subsection (1) or (3), the company, and every responsible person of the company,
commit an offence, and each is liable to a fine at level 5 and, in the case of a continuing offence, to a further fine
of $1000 for each day during which the offence continues.


Section: 659 Requirement to disclose company name, etc. L.N. 163 of 2013 03/03/2014


(1) The Financial Secretary may make regulations to require companies—
(a) to display prescribed information in prescribed locations;
(b) to state prescribed information in common seals, and in prescribed descriptions of documents or

communications; and
(c) to provide prescribed information on request to those they deal with in the course of their business.

(2) The regulations—
(a) may in prescribed circumstances require disclosure of the name of the company;
(b) may make provision as to the manner in which any prescribed information is to be displayed, stated or

provided; and
(c) may exempt a company from any requirement of the regulations made under subsection (1).

(3) The regulations may provide that, for the purposes of any requirement to disclose a company’s name, any



Cap 622 - Companies Ordinance 244

variation between a word or words required to be part of the name and a permitted abbreviation of that word or
those words (or vice versa) is to be disregarded.


Section: 660 Criminal consequences of failure to make required

disclosures
L.N. 163 of 2013 03/03/2014



Regulations made under section 659 may provide that—
(a) if a company contravenes any of the regulations made under that section, an offence is committed by—

(i) the company; and
(ii) every responsible person of the company;

(b) if any person who is acting on behalf of the company contravenes any of the regulations made under that
section, an offence is committed by that person; and

(c) a person who commits an offence mentioned in paragraph (a) or (b) is liable to a fine not exceeding level 3.

Section: 661 Civil consequence of failure to make required disclosures L.N. 163 of 2013 03/03/2014


If an officer of a company or a person on its behalf signs or authorizes to be signed on behalf of the company, any bill
of exchange, promissory note, endorsement, cheque or order for money or goods in which the company’s name is
not mentioned in the manner as required by regulations made under section 659, that officer or person is personally
liable to the holder of the bill of exchange, promissory note, cheque or order for money or goods for the amount of it
(unless it is duly paid by the company).

Part:
Division:

12
5

Annual Return L.N. 163 of 2013 03/03/2014





Section: 662 Requirement to deliver annual return L.N. 163 of 2013 03/03/2014


(1) A private company must in respect of every year (except the year of its incorporation) deliver to the Registrar for
registration an annual return specified in subsection (5) within 42 days after the company’s return date.

(2) The company’s return date mentioned in subsection (1) is, in respect of a particular year, the anniversary of the
date of the company’s incorporation in that year.

(3) A public company or a company limited by guarantee must in respect of every financial year deliver to the
Registrar for registration an annual return specified in subsection (5) within 42 days after the company’s return
date.

(4) The company’s return date mentioned in subsection (3) is, in respect of a particular financial year—
(a) if the company is a public company, the date that is 6 months after the end of its accounting reference

period; and
(b) if the company is a company limited by guarantee, the date that is 9 months after the end of its accounting

reference period.
(5) An annual return under this section must comply with the requirements under section 664.
(6) If a company contravenes subsection (1) or (3), the company, and every responsible person of the company,

commit an offence, and each is liable to a fine at level 5 and, in the case of a continuing offence, to a further fine
of $1000 for each day during which the offence continues.

(7) If a person is convicted of an offence under subsection (6), the magistrate may, in addition to any penalty that
may be imposed, order that the person must, within a time specified in the order, do the act that the person has
failed to do.

(8) A person who contravenes an order under subsection (7) commits an offence and is liable to a fine at level 5 and,
in the case of a continuing offence, to a further fine of $1000 for each day during which the offence continues.

(9) In this section—
accounting reference period(會計參照期) has the meaning given by section 368.




Cap 622 - Companies Ordinance 245

Section: 663 Exemption of dormant company from requirement to
deliver annual return

L.N. 163 of 2013 03/03/2014



(1) Section 662 does not apply to a company that is a dormant company under section 5(1).
(2) If such a company enters into an accounting transaction, subsection (1) ceases to have effect on and after the date

of the accounting transaction.

Section: 664 Contents of annual return L.N. 163 of 2013 03/03/2014


(1) A company’s annual return under section 662 must—
(a) be in the specified form; and
(b) contain, with respect to the company, the particulars specified in the form.

(2) Without limiting section 23, the Registrar may, for the purposes of this section, specify different forms or
particulars in relation to different types of companies.

(3) Without limiting subsection (1), an annual return under section 662 must—
(a) contain the information specified in Schedule 6; and
(b) be accompanied by the documents specified in that Schedule.

(4) Despite subsection (3), if—
(a) an annual return is required to be delivered by a private company under section 662(1) in respect of a year;

and
(b) at any time during the year—

(i) the company registers any transfer of shares in the company in contravention of the restriction imposed
by the company’s articles;

(ii) the membership of the company exceeds the number specified in section 11(1)(a)(ii); or
(iii) the company makes an invitation to the public to subscribe for any shares or debentures of the

company,
the annual return must contain the information, and be accompanied by the documents, specified in subsection

(5) instead.
(5) The information and documents are—

(a) information and documents specified for the purposes of a public company in Schedule 6; and
(b) information and documents that relate to the financial year of the company ending on a date within the year

in respect of which the annual return is required to be delivered.
(6) The Court may, on the application of the company or a person interested in the matter, order that subsection (4)

does not apply to the company.
(7) The Court may make the order on any terms and conditions that the Court thinks just and expedient.
(8) The Court must not make the order unless the Court is satisfied that—

(a) the occurrence of the event mentioned in subsection (4)(b)(i), (ii) or (iii) was accidental;
(b) it was due to inadvertence or to some other sufficient cause that the event occurred; or
(c) it is just and equitable to grant the relief on other grounds.


Section: 665 Construction of reference to annual return L.N. 163 of 2013 03/03/2014


A reference in this Ordinance to a company’s last annual return, or to an annual return delivered in accordance with
section 662, is to be construed as including (so far as necessary to ensure the continuity of the law) a return made up to
a date before the commencement date* of that section, or forwarded to the Registrar in accordance with the
predecessor Ordinance.
___________________________________________________________________
Note:
* Commencement date: 3 March 2014.

Part: 13 Arrangements, Amalgamation, and Compulsory Share

Acquisition in Takeover and Share Buy-back
L.N. 163 of 2013 03/03/2014



(Amended E.R. 1 of 2013)



Cap 622 - Companies Ordinance 246

(*Format changes—E.R. 1 of 2013)
____________________________________________________________________________
Note:
* The format of Part 13 has been updated to the current legislative styles.

Part:
Division:

13
1

Preliminary L.N. 163 of 2013 03/03/2014





Section: 666 Interpretation L.N. 163 of 2013 03/03/2014


In this Part—
child (子女) includes a step-child, an illegitimate child and a child adopted in any manner recognized by the law of

Hong Kong;
cohabitation relationship (同居關係) means a relationship between 2 persons (whether of the same sex or of the

opposite sex) who live together as a couple in an intimate relationship;
offer period (要約期), in relation to an offer, means the period within which the offer can be accepted;
repurchasing company (回購公司), in relation to a general offer, means the listed company that makes the offer.

Section: 667 Associate L.N. 163 of 2013 03/03/2014


(1) In this Part, a reference to an associate of an offeror or member, is—
(a) if the offeror or member is a natural person, a reference to—

(i) the offeror’s or member’s spouse;
(ii) a person who is in a cohabitation relationship with the offeror or member;
(iii) a child of the offeror or member;
(iv) a child of a person falling within subparagraph (ii) who—

(A) is not a child of the offeror or member;
(B) lives with the offeror or member; and
(C) has not attained the age of 18;

(v) a parent of the offeror or member;
(vi) a body corporate in which the offeror or member is substantially interested; or
(vii) a person who is a party, or a nominee of a party, to an acquisition agreement with the offeror or

member; or
(b) if the offeror or member is a body corporate, a reference to—

(i) a body corporate in the same group of companies as the offeror or member;
(ii) a body corporate in which the offeror or member is substantially interested; or
(iii) a person who is a party, or a nominee of a party, to an acquisition agreement with the offeror or

member.
(2) In this Part, a reference to an associate of a repurchasing company is a reference to—

(a) a body corporate in the same group of companies as the repurchasing company;
(b) a body corporate in which the repurchasing company is substantially interested; or
(c) a person who is a party, or a nominee of a party, to an acquisition agreement with the repurchasing

company.
(3) For the purposes of subsections (1) and (2), an offeror, member or repurchasing company is substantially

interested in a body corporate if—
(a) the body corporate, or its directors or a majority of its directors, are accustomed to act in accordance with

the directions or instructions of the offeror, member or repurchasing company; or
(b) the offeror, member or repurchasing company is entitled to exercise, or control the exercise of, more than

30% of the voting power at any general meeting of the body corporate.
(4) In subsection (3), a reference to voting power the exercise of which is controlled by an offeror, member or

repurchasing company includes voting power the exercise of which is controlled by another body corporate if
the offeror, member or repurchasing company is entitled to exercise, or control the exercise of, more than 50%



Cap 622 - Companies Ordinance 247

of the voting power at any general meeting of that other body corporate.
(5) For the purposes of subsections (1) and (2), an agreement is an acquisition agreement if—

(a) it is an agreement for the acquisition of—
(i) any of the shares to which the takeover offer or general offer relates; or
(ii) an interest in those shares; and

(b) it includes provisions imposing obligations or restrictions on any of the parties to it with respect to the use,
retention or disposal of the party’s interests in the shares acquired pursuant to the agreement.


Part:
Division:

13
2

Arrangements and Compromises L.N. 163 of 2013 03/03/2014





Section: 668 Interpretation L.N. 163 of 2013 03/03/2014


(1) In this Division—
arrangement (安排) includes a reorganization of the company’s share capital by the consolidation of shares of

different classes, or by the division of shares into different classes, or both;
company (公司) , except in section 675, means a company liable to be wound up under the Companies (Winding Up

and Miscellaneous Provisions) Ordinance (Cap 32).
(2) In this Division, a reference to a company’s articles, in the case of a company not having articles, is to be read

as the instrument constituting or defining the constitution of the company.

Section: 669 Application of Division L.N. 163 of 2013 03/03/2014


This Division applies if an arrangement or compromise is proposed to be entered into by a company with either or
both of the following—

(a) the creditors, or any class of the creditors, of the company;
(b) the members, or any class of the members, of the company.


Section: 670 Court may order meeting of creditors or members to be

summoned
L.N. 163 of 2013 03/03/2014



(1) The Court may, on application made for the purposes of this subsection—
(a) order a meeting specified in subsection (2)(a), or a meeting specified in subsection (2)(b), or both (as the

case may be) to be summoned in any manner that the Court directs; and
(b) for the purposes of section 674(4), declare a person to be a person specified under that section.

(2) The meeting is—
(a) if the arrangement or compromise is proposed to be entered into—

(i) with the creditors of the company, a meeting of those creditors; or
(ii) with a class of the creditors of the company, a meeting of that class of creditors; and

(b) if the arrangement or compromise is proposed to be entered into—
(i) with the members of the company, a meeting of those members; or
(ii) with a class of the members of the company, a meeting of that class of members.

(3) Subject to subsection (4), an application for the purposes of subsection (1) may be made only by—
(a) in the case of a meeting of creditors, the company or any of the creditors;
(b) in the case of a meeting of a class of creditors, the company or any creditor of that class;
(c) in the case of a meeting of members, the company or any of the members; or
(d) in the case of a meeting of a class of members, the company or any member of that class.

(4) If the company is being wound up, an application for the purposes of subsection (1) may be made only by the
liquidator or provisional liquidator.

(5) An application for the purposes of subsection (1) must be made in a summary way.




Cap 622 - Companies Ordinance 248

Section: 671 Explanatory statements to be issued or made available to
creditors or members

L.N. 163 of 2013 03/03/2014



(1) If a meeting is summoned under section 670—
(a) every notice summoning the meeting that is sent to a creditor or member must be accompanied by an

explanatory statement complying with subsections (3) and (4); and
(b) every notice summoning the meeting that is given by advertisement—

(i) must include an explanatory statement complying with subsections (3) and (4); or
(ii) must state where and how a creditor or member entitled to attend the meeting may obtain a copy of the

explanatory statement.
(2) If a notice given by advertisement states that a creditor or member entitled to attend the meeting may obtain a

copy of an explanatory statement, the company must provide a copy of the statement, free of charge, to a
creditor or member applying in the manner specified in the notice.

(3) An explanatory statement—
(a) must explain the effect of the arrangement or compromise; and
(b) must state—

(i) any material interests of the company’s directors, whether as directors or as members or as creditors
of the company or otherwise, under the arrangement or compromise; and

(ii) the effect of the arrangement or compromise on those interests, in so far as the effect is different from
the effect on the like interests of other persons.

(4) If the arrangement or compromise affects the rights of the company’s debenture holders, an explanatory
statement must give the like explanation as respects the trustees of any deed for securing the issue of the
debentures as it is required to give as respects the directors.

(5) If subsection (1) or (2) is contravened, all of the following commit an offence—
(a) the company;
(b) every responsible person of the company;
(c) a liquidator or provisional liquidator of the company who authorizes or permits, participates in, or fails to

take all reasonable steps to prevent, the contravention;
(d) a trustee of a deed for securing the issue of the company’s debentures who authorizes or permits,

participates in, or fails to take all reasonable steps to prevent, the contravention.
(6) A person who commits an offence under subsection (5) is liable to a fine at level 5.
(7) If a person is charged with an offence under subsection (5) for a contravention of subsection (1), it is a defence

to establish that the contravention was due to the refusal of another person, who was a director of the company
or a trustee for debenture holders of the company, to supply the necessary particulars of that other person’s
interests.


Section: 672 Directors and trustees must notify company of interests

under arrangement or compromise etc.
L.N. 163 of 2013 03/03/2014



(1) If a meeting is summoned under section 670, a director of the company, or a trustee for its debenture holders,
must give notice to the company of any matter relating to the director or trustee that may be necessary for the
purposes of section 671.

(2) A person who contravenes subsection (1) commits an offence and is liable to a fine at level 5.

Section: 673 Court may sanction arrangement or compromise L.N. 163 of 2013 03/03/2014


(1) This section applies if the creditors or the class of creditors, or the members or the class of members, or both,
with whom the arrangement or compromise is proposed to be entered into, agree or agrees to the arrangement or
compromise.

(2) The Court may, on application made for the purposes of this subsection, sanction the arrangement or
compromise.

(3) Subject to subsection (4), an application for the purposes of subsection (2) may be made only by—
(a) in the case of an arrangement or compromise proposed to be entered into with the creditors of a company,



Cap 622 - Companies Ordinance 249

the company or any of the creditors;
(b) in the case of an arrangement or compromise proposed to be entered into with a class of creditors of a

company, the company or any creditor of that class;
(c) in the case of an arrangement or compromise proposed to be entered into with the members of a company,

the company or any of the members; or
(d) in the case of an arrangement or compromise proposed to be entered into with a class of members of a

company, the company or any member of that class.
(4) If the company is being wound up, an application for the purposes of subsection (2) may be made only by the

liquidator or provisional liquidator.
(5) An arrangement or compromise sanctioned by the Court under subsection (2) is binding—

(a) on the company or, if the company is being wound up, on the liquidator or provisional liquidator and
contributories of the company; and

(b) on the creditors or the class of creditors, or the members or the class of members, or both, with whom the
arrangement or compromise is proposed to be entered into.

(6) An order made by the Court under subsection (2) has no effect until an office copy of the order is registered by
the Registrar under Part 2.

(7) If the order of the Court amends the company’s articles, or any resolution or agreement to which section 622
applies, the office copy of that order delivered to the Registrar for registration for the purposes of subsection (6)
must be accompanied by a copy of those articles, or the resolution or agreement, as amended.

(8) If subsection (7) is contravened, the company, and every responsible person of the company, commit an offence,
and each is liable to a fine at level 3.


Section: 674 Provision supplementary to section 673(1): agreement to

arrangement or compromise
L.N. 163 of 2013 03/03/2014



(1) For the purposes of section 673(1)—
(a) the creditors agree to the arrangement or compromise if, at a meeting of the creditors summoned under

section 670, a majority in number representing at least 75% in value of the creditors present and voting, in
person or by proxy, agree to the arrangement or compromise;

(b) a class of creditors agrees to the arrangement or compromise if, at a meeting of the class of creditors
summoned under section 670, a majority in number representing at least 75% in value of the class of
creditors present and voting, in person or by proxy, agree to the arrangement or compromise;

(c) subject to subsection (2)(a), the members agree to the arrangement or compromise if, at a meeting of the
members summoned under section 670—
(i) members representing at least 75% of the voting rights of the members present and voting, in person or

by proxy, agree to the arrangement or compromise; and
(ii) unless the Court orders otherwise, a majority in number of the members present and voting, in person

or by proxy, agree to the arrangement or compromise; and
(d) subject to subsection (2)(b), a class of members agrees to the arrangement or compromise if, at a meeting of

the class of members summoned under section 670—
(i) members representing at least 75% of the voting rights of the class of members present and voting, in

person or by proxy, agree to the arrangement or compromise; and
(ii) unless the Court orders otherwise, a majority in number of the class of members present and voting, in

person or by proxy, agree to the arrangement or compromise.
(2) However, where the arrangement involves a general offer within the meaning of section 707 or a takeover offer


(a) the members agree to the arrangement if—

(i) at a meeting of the members summoned under section 670, members representing at least 75% of the
voting rights of the members present and voting, in person or by proxy, agree to the arrangement; and

(ii) the votes cast against the arrangement at the meeting do not exceed 10% of the total voting rights
attached to all disinterested shares in the company;

(b) a class of members agrees to the arrangement if—
(i) at a meeting of the class of members summoned under section 670, members representing at least 75%

of the voting rights of the class of members present and voting, in person or by proxy, agree to the



Cap 622 - Companies Ordinance 250

arrangement; and
(ii) the votes cast against the arrangement at the meeting do not exceed 10% of the total voting rights

attached to all disinterested shares of the class in the company.
(3) In subsection (2)—
disinterested shares(無利害關係股份) means—

(a) in the case of a takeover offer, shares in the company other than those held—
(i) by the offeror, or by a nominee on behalf of the offeror;
(ii) by an associate of the offeror (except a person who falls within section 667(1)(a)(vii) or (b)(iii) or a

person specified in subsection (4)); or
(iii) by a person who is a party to an acquisition agreement within the meaning of section 667(5) with the

offeror (except a person specified in subsection (4)), or by a nominee on behalf of the person under the
acquisition agreement;

(b) in the case of a general offer, shares in the company other than those held—
(i) by a non-tendering member as defined by section 705(1), or by a nominee on behalf of the member;
(ii) by an associate of such a non-tendering member (except a person who falls within section

667(1)(a)(vii) or (b)(iii) or a person specified in subsection (4));
(iii) by a nominee on behalf of the repurchasing company;
(iv) by an associate of such a repurchasing company (except a person who falls within section 667(2)(c) or

a person specified in subsection (4)); or
(v) by a person who is a party to such an acquisition agreement with such a non-tendering member or

repurchasing company (except a person specified in subsection (4)), or by a nominee on behalf of the
person under the acquisition agreement.

(4) The person specified for the purposes of paragraph (a)(ii) and (iii) and (b)(ii), (iv) and (v) of the definition of
disinterested shares in subsection (3) is a person declared under section 670(1)(b) to be a person specified under
this section.

(5) For the purposes of subsections (2) and (3)—
(a) an offer to acquire shares in a company is a takeover offer if—

(i) it is an offer to acquire all the shares, or all the shares of any class, in the company, except those that,
at the date of the offer, are held by the offeror; and

(ii) the terms of the offer are the same—
(A) where the offer does not relate to shares of different classes, in relation to all the shares to which

the offer relates; or
(B) where the offer relates to shares of different classes, in relation to all the shares of each class to

which the offer relates; and
(b) an offer under which consideration is provided for the cancellation of shares in a company is also a takeover

offer if—
(i) it is an offer under which consideration is provided for the cancellation of all the shares, or all the

shares of any class, in the company, except—
(A) those that, at the date of the offer, are held by the offeror;
(B) those that are specified in the offer document as shares that are not to be cancelled under the

offer; and
(C) those that, at the date of the offer, are held by a member residing in a place where such an offer is

contrary to the law of the place; and
(ii) the terms of the offer are the same—

(A) where the offer does not relate to shares of different classes, in relation to all the shares to which
the offer relates; or

(B) where the offer relates to shares of different classes, in relation to all the shares of each class to
which the offer relates.

(6) In subsection (5)—
shares(股份) means shares that have been allotted on the date of the offer.
(7) In subsection (5)(a)(i) and (b)(i), a reference to shares that are held by an offeror—

(a) includes shares that the offeror has contracted, unconditionally or subject to conditions being satisfied, to
acquire; but



Cap 622 - Companies Ordinance 251

(b) excludes shares that are the subject of a contract—
(i) entered into by the offeror with a holder of shares in the company in order to secure that the holder will

accept the offer when it is made; and
(ii) entered into for no consideration and by deed, for consideration of negligible value, or for

consideration consisting of a promise by the offeror to make the offer.
(8) For the purposes of subsection (5)(a)(ii) and (b)(ii), even though, in relation to all the shares, or all the shares of

a class of shares, to which an offer relates, there is a difference in the value of consideration offered for the
shares allotted earlier as against the value of consideration offered for those allotted later, the terms of the offer
are to be regarded as the same in relation to all the shares concerned if—
(a) shares carry an entitlement to a particular dividend that other shares of the same class, by reason of being

allotted at a different time, do not carry;
(b) the difference in value of consideration merely reflects that difference in entitlement to dividend; and
(c) but for the difference in the value of consideration, the terms of the offer would be the same in relation to

all the shares concerned.
(9) For the purposes of subsection (5)(a)(ii) and (b)(ii), even though, in relation to all the shares, or all the shares of

a class of shares, to which an offer relates, there is a difference in the form of consideration offered, the terms of
the offer are to be regarded as the same in relation to all the shares concerned if—
(a) the law of a place outside Hong Kong precludes an offer of consideration in the form specified in the terms

of the offer, or precludes it except after compliance by the offeror with conditions with which the offeror is
unable to comply or that the offeror regards as unduly onerous;

(b) consideration in another form is offered to a person to whom an offer of consideration in the specified form
is so precluded;

(c) the person is able to receive consideration in that other form that is of substantially equivalent value; and
(d) but for the difference in the form of consideration, the terms of the offer would be the same in relation to all

the shares concerned.
(10) Despite subsection (5), a takeover offer may include, among the shares to which it relates, shares that will be

allotted after the date of the offer but before a date specified in the offer.
(11) In subsections (2), (3), (4), (5), (6), (7), (8), (9) and (10), a reference to shares in a company includes—

(a) debentures that are convertible into shares in the company; and
(b) securities of the company that are convertible into, or entitle the holder to subscribe for, shares in the

company.
Those subsections apply to those debentures or securities as if they were shares of a separate class of the

company, and a reference to a member or a holder of shares in those subsections is to be read accordingly.

Section: 675 Court’s additional powers to facilitate reconstruction or

amalgamation
L.N. 163 of 2013 03/03/2014



(1) This section applies if—
(a) an application is made for the purposes of section 673(2) to sanction the arrangement or compromise; and
(b) it is shown to the Court that—

(i) the arrangement or compromise is proposed for the purpose of, or in connection with, a scheme for the
reconstruction of one or more companies, or for the amalgamation of 2 or more companies; and

(ii) under the scheme, the property or undertaking of any company concerned in the scheme, or any part of
that property or undertaking, is to be transferred to another company.

(2) If the Court sanctions the arrangement or compromise, it may, by the order or a subsequent order, make
provision for any or all of the following—
(a) the transfer of the transferor’s property, undertaking or liabilities, or any part of it or them, to the

transferee;
(b) the allotting or appropriation by the transferee of any shares, debentures, policies, or other like interests in

the transferee which, under the arrangement or compromise, are to be allotted or appropriated by the
transferee to or for any person;

(c) the continuation by or against the transferee of any legal proceedings pending by or against the transferor;
(d) the dissolution, without winding up, of the transferor;
(e) the provision to be made for any person, who within the time, and in the manner, that the Court directs,



Cap 622 - Companies Ordinance 252

dissents from the arrangement or compromise;
(f) the transfer or allotting of any interest in property to any person concerned in the arrangement or

compromise;
(g) any incidental, consequential and supplemental matters that are necessary to ensure that the reconstruction

or amalgamation is fully and effectively carried out.
(3) If an order provides for the transfer of property under subsection (2)—

(a) the property is, by virtue of the order, transferred to, and vests in, the transferee; and
(b) where the order so directs, the property vests freed from any charge that is to cease to have effect by virtue

of the arrangement or compromise.
(4) If an order provides for the transfer of liabilities under subsection (2), the liabilities are, by virtue of the order,

transferred to, and become liabilities of, the transferee.
(5) If the Court, by an order, makes provision for any matter under subsection (2), the order has no effect to the

extent to which it purports to make the provision until an office copy of the order is registered by the Registrar
under Part 2.

(6) If the order of the Court amends the company’s articles, or any resolution or agreement to which section 622
applies, the office copy of that order delivered to the Registrar for registration for the purposes of subsection (5)
must be accompanied by a copy of those articles, or the resolution or agreement, as amended.

(7) If subsection (6) is contravened, the company, and every responsible person of the company, commit an offence,
and each is liable to a fine at level 3.

(8) In this section—
liabilities(法律責任) includes—

(a) duties of a personal character and incapable of being assigned or performed vicariously under the law; and
(b) duties of any other description;

property(財產) includes—
(a) rights and powers of a personal character and incapable of being assigned or performed vicariously under

the law; and
(b) rights and powers of any other description;

transferee(受讓人 ), in relation to an arrangement or compromise proposed for the purpose of a scheme of
reconstruction or amalgamation, means the company to which another company’s property, undertaking or
liabilities, or any part of it or them, is to be transferred under the scheme;

transferor(出讓人 ), in relation to an arrangement or compromise proposed for the purpose of a scheme of
reconstruction or amalgamation, means the company whose property, undertaking or liabilities, or any part of it
or them, is to be transferred to another company under the scheme.


Section: 676 Court may order costs L.N. 163 of 2013 03/03/2014


(1) This section applies in relation to an application made for the purposes of section 673(2) for an order of the
Court sanctioning an arrangement that falls within section 674(2).

(2) The Court may make any order that it thinks fit about the costs incurred or to be incurred by a member who
dissents from the arrangement in opposing the application.

(3) An order may require the company or any other party to the application to indemnify the member against the
costs incurred or to be incurred by the member.

(4) The Court may only make an order about costs (including the requirement as to indemnification) under this
section in favour of the member if it is satisfied that the member was acting in good faith in, and had reasonable
grounds for, opposing the application.

(5) The Court may only make an order about costs under this section against the member if the member’s
opposition to the application is frivolous or vexatious.


Section: 677 Company’s articles to be accompanied by order of Court L.N. 163 of 2013 03/03/2014


(1) Every copy of the company’s articles issued by the company after an order is made for the purposes of section
673 or 675 must be accompanied by a copy of the order, unless the effect of the order, and the effect of the
arrangement or compromise to which the order relates, has been incorporated into the articles by alteration to



Cap 622 - Companies Ordinance 253

those articles.
(2) If subsection (1) is contravened, the company, and every responsible person of the company, commit an offence,

and each is liable to a fine at level 3.

Part:
Division:

13
3

Amalgamation of Companies within Group L.N. 163 of 2013 03/03/2014





Section: 678 Interpretation L.N. 163 of 2013 03/03/2014


(1) In this Division, a company is a wholly owned subsidiary of another company if it has no members except—
(a) that other company;
(b) a nominee of that other company;
(c) a wholly owned subsidiary of that other company; or
(d) a nominee of that subsidiary.

(2) A cancellation of shares under this Division is not a reduction of share capital for the purposes of Part 5.
(3) For the purposes of this Division, a resolution approving an amalgamation mentioned in section 680(1) or 681(1)

is an amalgamation proposal that has been approved.

Section: 679 Solvency statement L.N. 163 of 2013 03/03/2014


(1) In this Division, a reference to a solvency statement made by the directors of an amalgamating company is a
reference to a statement made before the time specified in subsection (2) that—
(a) in the directors’ opinion—

(i) as at the date of the statement, there is no ground on which the amalgamating company could be found
to be unable to pay its debts; and

(ii) the amalgamated company will be able to pay its debts as they fall due during the period of 12 months
immediately after the date on which the amalgamation is to become effective; and

(b) as at the date of the statement—
(i) none of the following exists—

(A) any floating charge created by the amalgamating company;
(B) any other security created by the amalgamating company over a class of assets, to any of which

the security interest has not attached; or
(ii) there exists such a floating charge or other security, and each person entitled to the charge or security

has consented in writing to the amalgamation proposal.
(2) The time specified for the purposes of subsection (1) is—

(a) if the amalgamation is to be approved by a resolution passed on a poll at a general meeting, the date of the
meeting; or

(b) if the amalgamation is to be approved by a written resolution, the circulation date of the resolution.
(3) In forming an opinion for the purposes of subsection (1)(a)(ii), the directors must take into account all the

liabilities of the amalgamated company (including contingent and prospective liabilities).
(4) In subsection (2)(b)—
circulation date(傳閱日期) has the meaning given by section 547(1).

Section: 680 Vertical amalgamation L.N. 163 of 2013 03/03/2014


(1) A company (amalgamating holding company), and one or more of its wholly owned subsidiaries, may
amalgamate, and continue, as one company if—
(a) the members of the amalgamating holding company approve the amalgamation on the terms specified in

subsection (2); and
(b) the members of each of the amalgamating subsidiaries approve the amalgamation on the terms specified in

subsection (2).
(2) The terms are—



Cap 622 - Companies Ordinance 254

(a) that the shares of each of the amalgamating subsidiaries will be cancelled without payment or other
consideration;

(b) that the articles of the amalgamated company will be the same as the articles of the amalgamating holding
company;

(c) that the directors of each amalgamating company—
(i) are satisfied that, as at the date of the solvency statement made by them, there is no ground on which

the amalgamating company could be found to be unable to pay its debts; and
(ii) after taking into account all the liabilities of the amalgamated company (including contingent and

prospective liabilities), are satisfied that the amalgamated company will be able to pay its debts as they
fall due during the period of 12 months immediately after the date on which the amalgamation is to
become effective;

(d) that the directors of each amalgamating company have confirmed that as at the date of the solvency
statement made by them—
(i) none of the following exists—

(A) any floating charge created by the amalgamating company;
(B) any other security created by the amalgamating company over a class of assets, to any of which

the security interest has not attached; or
(ii) there exists such a floating charge or other security, and each person entitled to the charge or security

has consented in writing to the amalgamation proposal;
(e) that the person or persons named in the resolution will be the director or directors of the amalgamated

company.
(3) An approval for the purposes of subsection (1)(a) must be obtained by a special resolution of the company

passed on a poll at a general meeting but not by a written resolution.
(4) An approval for the purposes of subsection (1)(b) must be obtained by a special resolution of the company

passed on a poll at a general meeting or by a written resolution.
(5) This section does not apply unless each amalgamating company is a company limited by shares.

Section: 681 Horizontal amalgamation L.N. 163 of 2013 03/03/2014


(1) Two or more of the wholly owned subsidiaries of a company may amalgamate, and continue, as one company if
the members of each amalgamating company approve the amalgamation on the terms specified in subsection (2).

(2) The terms are—
(a) that the shares of all but one of the amalgamating companies will be cancelled without payment or other

consideration;
(b) that the articles of the amalgamated company will be the same as the articles of the amalgamating company

whose shares are not cancelled;
(c) that the directors of each amalgamating company—

(i) are satisfied that, as at the date of the solvency statement made by them, there is no ground on which
the amalgamating company could be found to be unable to pay its debts; and

(ii) after taking into account all the liabilities of the amalgamated company (including contingent and
prospective liabilities), are satisfied that the amalgamated company will be able to pay its debts as they
fall due during the period of 12 months immediately after the date on which the amalgamation is to
become effective;

(d) that the directors of each amalgamating company have confirmed that as at the date of the solvency
statement made by them—
(i) none of the following exists—

(A) any floating charge created by the amalgamating company;
(B) any other security created by the amalgamating company over a class of assets, to any of which

the security interest has not attached; or
(ii) there exists such a floating charge or other security, and each person entitled to the charge or security

has consented in writing to the amalgamation proposal;
(e) that the person or persons named in the resolution will be the director or directors of the amalgamated

company.
(3) An approval for the purposes of subsection (1) must be obtained by a special resolution of the amalgamating



Cap 622 - Companies Ordinance 255

company passed on a poll at a general meeting or by a written resolution.
(4) This section does not apply unless each amalgamating company is a company limited by shares.

Section: 682 Directors of amalgamating company must notify secured

creditors of proposed amalgamation
L.N. 163 of 2013 03/03/2014



(1) The directors of each amalgamating company under section 680 or 681 must comply with subsection (2)—
(a) if the amalgamation is to be approved by a resolution passed on a poll at a general meeting, at least 21 days

before the date of the meeting; or
(b) if the amalgamation is to be approved by a written resolution, on or before the circulation date of the

resolution.
(2) Those directors—

(a) must give written notice of the proposed amalgamation to every secured creditor of the amalgamating
company; and

(b) must publish notice of the proposed amalgamation in an English language newspaper, and a Chinese
language newspaper, circulating generally in Hong Kong.

(3) If the directors of an amalgamating company contravene subsection (1), each of them commits an offence and is
liable to a fine at level 3.

(4) In subsection (1)(b)—
circulation date(傳閱日期) has the meaning given by section 547(1).

Section: 683 Director of amalgamating company must issue certificate

on solvency statement
L.N. 163 of 2013 03/03/2014



(1) Every director of the amalgamating company who votes in favour of making a solvency statement must issue a
certificate—
(a) stating—

(i) that, in the director’s opinion, the conditions specified in section 679(1)(a)(i) and (ii) are satisfied;
and

(ii) the grounds for that opinion; and
(b) stating that the condition specified in section 679(1)(b) is satisfied.

(2) A person who contravenes subsection (1) commits an offence and is liable to a fine at level 4.
(3) A director of the amalgamating company commits an offence if the director votes in favour of making a

solvency statement, or otherwise causes a solvency statement to be made, without having reasonable grounds for
the opinion and fact expressed in the statement.

(4) A person who commits an offence under subsection (3) is liable—
(a) on conviction on indictment to a fine of $150000 and to imprisonment for 2 years; or
(b) on summary conviction to a fine at level 6 and to imprisonment for 6 months.


Section: 684 Registration of amalgamation L.N. 163 of 2013 03/03/2014


(1) For the purpose of effecting an amalgamation, the following documents must be delivered to the Registrar for
registration within 15 days after the approval of the amalgamation proposal—
(a) the amalgamation proposal that has been approved;
(b) every certificate required by section 683(1);
(c) a certificate issued by the directors of each amalgamating company stating that the amalgamation has been

approved in accordance with—
(i) this Division; and
(ii) the articles of the amalgamating company;

(d) a notice of appointment of the directors of the amalgamated company;
(e) a certificate issued by the directors, or the proposed directors, of the amalgamated company stating that

where the proportion of the claims of the amalgamated company’s creditors in relation to the value of that
company’s assets is greater than the proportion of the claims of an amalgamating company’s creditors in



Cap 622 - Companies Ordinance 256

relation to the value of that company’s assets, no creditor will be prejudiced by that fact.
(2) A document mentioned in subsection (1)(a), (b), (c), (d) or (e) must be in the specified form.
(3) As soon as practicable after the documents mentioned in subsection (1) are registered, the Registrar must issue a

certificate of amalgamation.
(4) A certificate of amalgamation may be issued in any form that the Registrar thinks fit.

Section: 685 Effective date of amalgamation L.N. 163 of 2013 03/03/2014


(1) A certificate of amalgamation issued under section 684(3) must specify a date as the effective date of the
amalgamation.

(2) If an amalgamation proposal specifies a date on which the amalgamation is intended to become effective, and
that date is the same as or later than the date on which the Registrar registers the documents mentioned in section
684(1), that date must be specified in the certificate of amalgamation as the effective date of the amalgamation.

(3) On the effective date of an amalgamation—
(a) the amalgamation takes effect;
(b) each amalgamating company ceases to exist as an entity separate from the amalgamated company; and
(c) the amalgamated company succeeds to all the property, rights and privileges, and all the liabilities and

obligations, of each amalgamating company.
(4) On and after the effective date of an amalgamation—

(a) any proceedings pending by or against an amalgamating company may be continued by or against the
amalgamated company;

(b) any conviction, ruling, order or judgment in favour of or against an amalgamating company may be
enforced by or against the amalgamated company; and

(c) any agreement entered into by an amalgamating company may be enforced by or against the amalgamated
company unless otherwise provided in the agreement.

(5) As soon as practicable after the effective date of an amalgamation, the Registrar must make a note of the
amalgamation in the Companies Register in relation to each amalgamating company.


Section: 686 Court may intervene in amalgamation proposal in certain

cases
L.N. 163 of 2013 03/03/2014



(1) If the Court is satisfied that giving effect to an amalgamation proposal would unfairly prejudice a member or
creditor of an amalgamating company or a person to whom an amalgamating company is under an obligation, it
may, on application by the member, creditor or person made before the date on which the amalgamation
becomes effective, make any order it thinks fit in relation to the amalgamation proposal.

(2) Without limiting subsection (1), the Court may make an order—
(a) directing that effect must not be given to the amalgamation proposal;
(b) modifying the amalgamation proposal in the manner specified in the order; or
(c) directing the amalgamating company or its directors to reconsider the amalgamation proposal or any part of

that proposal.
(3) Without limiting subsection (1), the Court may also make an order directing the amalgamated company, or any

other party to the proceedings, to purchase shares of a member of an amalgamating company who would be
unfairly prejudiced by the amalgamation proposal.

(4) On making an application for the purposes of subsection (1), the applicant must deliver to the Registrar for
registration a notice of the application in the specified form.

(5) If the Registrar receives a notice under subsection (4), he or she must withhold registration of the documents
mentioned in section 684(1) unless the Court otherwise directs or the application is dismissed by the Court or is
withdrawn.

(6) If an order is made under this section, every company in relation to which the order is made must deliver an
office copy of the order to the Registrar for registration within 7 days after the order is made.

(7) If a company contravenes subsection (6), the company, and every responsible person of the company, commit an
offence, and each is liable to a fine at level 3 and, in the case of a continuing offence, to a further fine of $300
for each day during which the offence continues.





Cap 622 - Companies Ordinance 257

Part:
Division:

13
4

Compulsory Acquisition after Takeover Offer L.N. 163 of 2013 03/03/2014





Part:
Division:
Subdivision:

13
4
1

Preliminary L.N. 163 of 2013 03/03/2014





Section: 687 Interpretation L.N. 163 of 2013 03/03/2014


In this Division—
nominee (代名人) , in relation to a company that is a member of a group of companies, includes a nominee on behalf

of another company that is a member of the group.

Section: 688 Application of Division to convertible securities and

debentures
L.N. 163 of 2013 03/03/2014



(1) This Division applies in relation to debentures of a company that are convertible into shares in the company, or
to securities of a company that are convertible into, or entitle the holder to subscribe for, shares in the company,
as if those debentures or securities were shares of a separate class of the company. A reference to a holder of
shares, and to shares being allotted, is to be read accordingly.

(2) In this Division, a reference to 90% in number of the shares of any class is—
(a) in the case of securities mentioned in subsection (1), a reference to 90% of the number of those securities;

and
(b) in the case of debentures mentioned in subsection (1), a reference to 90% of the total amount payable on

those debentures.

Section: 689 Takeover offer L.N. 163 of 2013 03/03/2014


(1) For the purposes of this Division, an offer to acquire shares in a company is a takeover offer if—
(a) it is an offer to acquire all the shares, or all the shares of any class, in the company, except those that, at the

date of the offer, are held by the offeror; and
(b) the terms of the offer are the same—

(i) where the offer does not relate to shares of different classes, in relation to all the shares to which the
offer relates; or

(ii) where the offer relates to shares of different classes, in relation to all the shares of each class to which
the offer relates.

(2) In subsection (1)—
shares(股份) means shares that have been allotted on the date of the offer.
(3) In subsection (1)(a), a reference to shares that are held by an offeror—

(a) includes shares that the offeror has contracted, unconditionally or subject to conditions being satisfied, to
acquire; but

(b) excludes shares that are the subject of a contract—
(i) entered into by the offeror with a holder of shares in the company in order to secure that the holder will

accept the offer when it is made; and
(ii) entered into for no consideration and by deed, for consideration of negligible value, or for

consideration consisting of a promise by the offeror to make the offer.
(4) For the purposes of subsection (1)(b), even though, in relation to all the shares, or all the shares of a class of

shares, to which an offer relates, there is a difference in the value of consideration offered for the shares allotted
earlier as against the value of consideration offered for those allotted later, the terms of the offer are to be
regarded as the same in relation to all the shares concerned if—
(a) shares carry an entitlement to a particular dividend that other shares of the same class, by reason of being



Cap 622 - Companies Ordinance 258

allotted at a different time, do not carry;
(b) the difference in value of consideration merely reflects that difference in entitlement to dividend; and
(c) but for the difference in the value of consideration, the terms of the offer would be the same in relation to

all the shares concerned.
(5) For the purposes of subsection (1)(b), even though, in relation to all the shares, or all the shares of a class of

shares, to which an offer relates, there is a difference in the form of consideration offered, the terms of the offer
are to be regarded as the same in relation to all the shares concerned if—
(a) the law of a place outside Hong Kong precludes an offer of consideration in the form specified in the terms

of the offer, or precludes it except after compliance by the offeror with conditions with which the offeror is
unable to comply or that the offeror regards as unduly onerous;

(b) consideration in another form is offered to a person to whom an offer of consideration in the specified form
is so precluded;

(c) the person is able to receive consideration in that other form that is of substantially equivalent value; and
(d) but for the difference in the form of consideration, the terms of the offer would be the same in relation to all

the shares concerned.
(6) Despite subsection (1), a takeover offer may include, among the shares to which it relates, shares that will be

allotted after the date of the offer but before a date specified in the offer.

Section: 690 Non-communication etc. does not prevent offer from being

takeover offer
L.N. 163 of 2013 03/03/2014



(1) Even though an offer to acquire shares is not communicated to a holder of shares, that does not prevent the offer
from being a takeover offer for the purposes of this Division if—
(a) no Hong Kong address for the holder is registered in the company’s register of members;
(b) the offer was not communicated to the holder in order not to contravene the law of a place outside Hong

Kong; and
(c) either—

(i) the offer is published in the Gazette; or
(ii) the offer can be inspected, or a copy of it obtained, at a place in Hong Kong or on a website, and a

notice is published in the Gazette specifying the address of that place or website.
(2) It is not to be inferred from subsection (1) that an offer that is not communicated to a holder of shares cannot be

a takeover offer for the purposes of this Division unless the conditions specified in paragraphs (a), (b) and (c) of
that subsection are satisfied.

(3) Even though it is impossible or more difficult for a person, by reason of the law of a place outside Hong Kong,
to accept an offer to acquire shares, that does not prevent the offer from being a takeover offer for the purposes
of this Division.

(4) It is not to be inferred from subsection (3) that an offer that is impossible, or more difficult, for certain persons to
accept cannot be a takeover offer for the purposes of this Division unless the reason for the impossibility or
difficulty is the one mentioned in that subsection.


Section: 691 Shares to which takeover offer relates L.N. 163 of 2013 03/03/2014


(1) For the purposes of this Division, if, after a takeover offer is made but before the end of the offer period, the
offeror acquires, or contracts unconditionally to acquire, any of the shares to which the offer relates but does not
do so by virtue of acceptances of the offer, those shares are not to be regarded as shares to which the offer
relates. This subsection has effect subject to subsection (2).

(2) For the purposes of this Division, those shares are to be regarded as shares to which the takeover offer relates,
and the offeror is to be regarded as having acquired or contracted to acquire them by virtue of acceptances of
that offer, if—
(a) the value of the consideration for which the shares are acquired, or contracted to be acquired, at the time of

the acquisition or contract, does not exceed the value of the consideration specified in the terms of that
offer; or

(b) those terms are subsequently revised so that when the revision is announced, the value of the consideration
for which the shares are acquired, or contracted to be acquired, at the time of the acquisition or contract, no



Cap 622 - Companies Ordinance 259

longer exceeds the value of the consideration specified in those terms.
(3) For the purposes of this Division, shares that an associate of the offeror, or a nominee on the offeror’s behalf,

holds, or has contracted, unconditionally or subject to conditions being satisfied, to acquire, whether at the date
of the takeover offer or subsequently, are not to be regarded as shares to which that offer relates, even if that
offer extends to those shares. This subsection has effect subject to subsection (4).

(4) For the purposes of this Division, where, after a takeover offer is made but before the end of the offer period, an
associate of the offeror, or a nominee on the offeror’s behalf, acquires, or contracts unconditionally to acquire,
any of the shares to which the offer relates, the shares are to be regarded as shares to which the offer relates if—
(a) the value of the consideration for which the shares are acquired, or contracted to be acquired, at the time of

the acquisition or contract, does not exceed the value of the consideration specified in the terms of the offer;
or

(b) those terms are subsequently revised so that when the revision is announced, the value of the consideration
for which the shares are acquired, or contracted to be acquired, at the time of the acquisition or contract, no
longer exceeds the value of the consideration specified in those terms.


Section: 692 Revised offer not to be regarded as fresh offer L.N. 163 of 2013 03/03/2014


For the purposes of this Division, a revision of the terms of an offer to acquire shares is not to be regarded as the
making of a fresh offer if—

(a) the terms of the offer make provision for—
(i) their revision; and
(ii) acceptances on the previous terms to be treated as acceptances on the revised terms; and

(b) the revision is made in accordance with that provision.

Part:
Division:
Subdivision:

13
4
2

“Squeeze-out” L.N. 163 of 2013 03/03/2014





Section: 693 Offeror may give notice to buy out minority shareholders L.N. 163 of 2013 03/03/2014


(1) If, in the case of a takeover offer that does not relate to shares of different classes, the offeror has, by virtue of
acceptances of the offer, acquired, or contracted unconditionally to acquire, at least 90% in number of the shares
to which the offer relates, the offeror may give notice to the holder of any other shares to which the offer relates
that the offeror desires to acquire those shares.

(2) If, in the case of a takeover offer that relates to shares of different classes, the offeror has, by virtue of
acceptances of the offer, acquired, or contracted unconditionally to acquire, at least 90% in number of the shares
of any class to which the offer relates, the offeror may give notice to the holder of any other shares of that class
to which the offer relates that the offeror desires to acquire those shares.

(3) If, in the case of a takeover offer that does not relate to shares of different classes, the offeror has, by virtue of
acceptances of the offer, acquired, or contracted unconditionally to acquire, less than 90% in number of the
shares to which the offer relates, the offeror may apply to the Court for an order authorizing the offeror to give
notice to the holder of any other shares to which the offer relates that the offeror desires to acquire those shares.

(4) If, in the case of a takeover offer that relates to shares of different classes, the offeror has, by virtue of
acceptances of the offer, acquired, or contracted unconditionally to acquire, less than 90% in number of the
shares of any class to which the offer relates, the offeror may apply to the Court for an order authorizing the
offeror to give notice to the holder of any other shares of that class to which the offer relates that the offeror
desires to acquire those shares.

(5) The Court may, on application under subsection (3) or (4), make the order if it is satisfied that—
(a) after reasonable enquiry, the offeror has been unable to trace one or more of the persons holding shares to

which the takeover offer relates;
(b) had the person, or all those persons, accepted the takeover offer, the offeror would have, by virtue of

acceptances of that offer, acquired, or contracted unconditionally to acquire, at least 90% in number of the
shares, or the shares of any class, to which that offer relates; and



Cap 622 - Companies Ordinance 260

(c) the consideration offered is fair and reasonable.
(6) The Court must not make the order unless it is satisfied that it is just and equitable to do so having regard to all

the circumstances and, in particular, to the number of holders of shares who have been traced but who have not
accepted the takeover offer.

(7) If the Court makes an order authorizing the offeror to give notice to the holder of any shares, the offeror may
give notice to that holder.


Section: 694 Notice to minority shareholders L.N. 163 of 2013 03/03/2014


(1) A notice to a holder of shares under section 693—
(a) must be given in the specified form; and
(b) must be given to the holder before whichever is the earlier of the following—

(i) the end of the period of 3 months beginning on the day after the end of the offer period of the takeover
offer;

(ii) the end of the period of 6 months beginning on the date of the takeover offer.
(2) The notice must be given to the holder of shares—

(a) by delivering it personally to that holder in Hong Kong;
(b) by sending it by registered post to that holder to—

(i) an address of that holder in Hong Kong registered in the books of the company; or
(ii) if there is no such address, an address in Hong Kong supplied by that holder to the company for the

giving of notice to that holder; or
(c) in the manner directed by the Registrar on an application made under subsection (3).

(3) An offeror may apply to the Registrar for directions regarding the manner in which the notice is to be given to a
holder of shares if—
(a) there is no address of the holder in Hong Kong registered in the books of the company; and
(b) the holder has not supplied to the company an address in Hong Kong for the giving of notice to the holder.

(4) If the takeover offer gives the holder of shares a choice of consideration, the notice—
(a) must give particulars of the choices;
(b) must state that the holder may, within 2 months after the date of the notice, indicate the holder’s choice by

a letter sent to the offeror at an address specified in the notice; and
(c) must state which consideration specified in the offer will apply if the holder does not indicate a choice.

(5) If the takeover offer provides that the holder of shares is to receive shares in or debentures of the offeror, with an
option to receive some other consideration to be provided by a third party instead, the offeror may indicate in the
notice that the terms of the takeover offer include the option.

(6) If the offeror does not indicate in the notice that the terms of the takeover offer include the option, the offeror
may offer in the notice a corresponding option to receive some other consideration to be provided by the offeror.

(7) For the purposes of subsection (5), consideration is to be regarded as being provided by a third party if it is made
available to the offeror on terms that it is to be used by the offeror as consideration for the takeover offer.


Section: 695 Offeror’s right to buy out minority shareholders L.N. 163 of 2013 03/03/2014


(1) This section applies if a notice is given under section 693 to the holder of any shares.
(2) Unless the Court makes an order under subsection (3), the offeror is entitled and bound to acquire the shares on

the terms of the takeover offer.
(3) The Court may, on application by the holder made within 2 months after the date on which the notice was given,

order that—
(a) the offeror is not entitled and bound to acquire the shares; or
(b) the offeror is entitled and bound to acquire the shares on the terms specified in the order.

(4) For the purposes of subsection (2)—
(a) if the takeover offer falls within section 694(4), the terms of the takeover offer are to be regarded as

including the particulars and statements included in the notice for the purposes of that section;
(b) if the takeover offer falls within section 694(5), the terms of the takeover offer are to be regarded as not

including the option unless the offeror indicates otherwise in the notice; and



Cap 622 - Companies Ordinance 261

(c) if, within 2 months after the date of the notice, the holder of the shares, by a letter sent to the offeror at an
address specified in the notice, exercises the corresponding option offered under section 694(6), the terms
of the takeover offer are to be regarded as including the corresponding option.


Section: 696 Obligations of offeror with right to buy out minority

shareholders
L.N. 163 of 2013 03/03/2014



(1) If, by virtue of section 695(2), an offeror is entitled and bound to acquire any shares in a company, the offeror
must comply with subsection (3) within 2 months after the date of the notice.

(2) If an application for the purposes of section 695(3) is pending at the end of those 2 months, the offeror must
comply with subsection (3) as soon as practicable after the application has been disposed of, unless the Court
orders that the offeror is not entitled and bound to acquire the shares.

(3) The offeror—
(a) must send to the company—

(i) a copy of the notice under section 693; and
(ii) an instrument of transfer of the shares to which the notice relates, executed on behalf of the holder of

the shares by a person appointed by the offeror; and
(b) must pay or transfer to the company the consideration for the shares to which the notice relates.

(4) Subsection (3)(a)(ii) does not require the offeror to send to the company an instrument of transfer of any shares
for which a share warrant is for the time being outstanding.


Section: 697 Company must register offeror as shareholder L.N. 163 of 2013 03/03/2014


On receiving an instrument of transfer under section 696(3)(a)(ii), the company must register the offeror as the holder
of the shares.

Section: 698 Company must hold consideration paid by offeror on trust L.N. 163 of 2013 03/03/2014


(1) On receiving any consideration under section 696(3)(b) in respect of any shares, the company must hold the
consideration on trust for the person who, before the offeror acquired the shares, was entitled to them.

(2) If the consideration consists of any money, the company must deposit the money into a separate interest-bearing
bank account.

(3) The company must not pay out or deliver the consideration to any person claiming to be entitled to it unless the
person produces to the company—
(a) the share certificate or other evidence of title to the shares; or
(b) an indemnity to the company’s satisfaction.


Section: 699 Provisions supplementary to section 698 L.N. 163 of 2013 03/03/2014


(1) This section applies if—
(a) the person entitled to the consideration held on trust under section 698(1) cannot be found;
(b) the company has made reasonable enquiries at reasonable intervals to find that person; and
(c) 12 years have elapsed since the consideration was received, or the company is wound up.

(2) The company, or if the company is wound up, the liquidator, must sell—
(a) any consideration other than cash; and
(b) any benefit other than cash that has accrued from the consideration.

(3) The company, or if the company is wound up, the liquidator, must pay into court a sum representing—
(a) the consideration so far as it is cash;
(b) the proceeds of any sale under subsection (2); and
(c) any interest, dividend or other benefit that has accrued from the consideration.

(4) The trust terminates on the payment being made under subsection (3).
(5) The expenses of the following may be paid out of the consideration held on trust—

(a) the enquiries mentioned in subsection (1)(b);



Cap 622 - Companies Ordinance 262

(b) the sale mentioned in subsection (2);
(c) the proceedings relating to the payment into court mentioned in subsection (3).


Part:
Division:
Subdivision:

13
4
3

“Sell-out” L.N. 163 of 2013 03/03/2014





Section: 700 Offeror may be required to buy out minority shareholders L.N. 163 of 2013 03/03/2014


(1) If, in the case of a takeover offer that does not relate to shares of different classes—
(a) the offeror has, by virtue of acceptances of the offer, acquired, or contracted unconditionally to acquire,

some but not all of the shares to which the offer relates; and
(b) at any time before the end of the offer period, the shares in the company controlled by the offeror represent

at least 90% in number of the shares in the company,
the holder of any shares to which the offer relates who has not accepted the offer before the end of that period

may, by a letter addressed to the offeror, require the offeror to acquire those shares.
(2) If, in the case of a takeover offer that relates to shares of different classes—

(a) the offeror has, by virtue of acceptances of the offer, acquired, or contracted unconditionally to acquire,
some but not all of the shares of any class to which the offer relates; and

(b) at any time before the end of the offer period, the shares in the company controlled by the offeror represent
at least 90% in number of the shares of that class,

the holder of any shares of that class to which the offer relates who has not accepted the offer before the end of
that period may, by a letter addressed to the offeror, require the offeror to acquire those shares.

(3) Rights given to the holder of any shares by this section to require an offeror to acquire the shares are only
exercisable within 3 months after whichever is the later of the following—
(a) the end of the offer period;
(b) the date of the notice given to the holder under section 701.

(4) If the takeover offer gives the holder of shares a choice of consideration, that holder may indicate the holder’s
choice in the letter requiring the offeror to acquire the shares.

(5) In this section, a reference to shares controlled by an offeror is a reference to—
(a) shares that are held by the offeror, by an associate of the offeror or by a nominee on the offeror’s behalf;
(b) shares that the offeror has, by virtue of acceptances of the takeover offer, acquired or contracted

unconditionally to acquire; or
(c) other shares that the offeror, an associate of the offeror, or a nominee on the offeror’s behalf, has acquired,

or has contracted, unconditionally or subject to conditions being satisfied, to acquire.

Section: 701 Offeror must notify minority shareholders of right to be

bought out
L.N. 163 of 2013 03/03/2014



(1) If the holder of any shares is entitled under section 700 to require an offeror to acquire the shares, the offeror
must give notice to the holder of—
(a) the holder’s rights under that section; and
(b) the period within which those rights are exercisable.

(2) Subsection (1) does not apply if the offeror has given the holder a notice under section 693 that the offeror
desires to acquire the shares.

(3) An offeror who contravenes subsection (1) commits an offence and is liable to a fine at level 5.

Section: 702 Notice to minority shareholders L.N. 163 of 2013 03/03/2014


(1) A notice to a holder of shares under section 701—
(a) must be given in the specified form; and
(b) must be given to the holder within one month after the first day on which the holder of the shares is entitled



Cap 622 - Companies Ordinance 263

under section 700 to require the offeror to acquire those shares.
(2) If the notice is given before the end of the offer period of the takeover offer, it must state that the offer is still

open for acceptance.
(3) The notice must be given to the holder of shares—

(a) by delivering it personally to that holder in Hong Kong;
(b) by sending it by registered post to that holder to—

(i) an address of that holder in Hong Kong registered in the books of the company; or
(ii) if there is no such address, an address in Hong Kong supplied by that holder to the company for the

giving of notice to that holder; or
(c) in the manner directed by the Registrar on an application made under subsection (4).

(4) An offeror may apply to the Registrar for directions regarding the manner in which the notice is to be given to a
holder of shares if—
(a) there is no address of the holder in Hong Kong registered in the books of the company; and
(b) the holder has not supplied to the company an address in Hong Kong for the giving of notice to the holder.

(5) If the takeover offer gives the holder of shares a choice of consideration, the notice—
(a) must give particulars of the choices;
(b) must state that the holder may indicate the holder’s choice in the letter requiring the offeror to acquire any

shares under section 700; and
(c) must state which consideration specified in the offer will apply if the holder does not indicate a choice.

(6) If subsection (1), (2), (3) or (5) is contravened, the offeror commits an offence and is liable to a fine at level 4.
(7) If the takeover offer provides that the holder of shares is to receive shares in or debentures of the offeror, with an

option to receive some other considerations to be provided by a third party instead, the offeror may indicate in
the notice that the terms of the takeover offer include the option.

(8) If the offeror does not indicate in the notice that the terms of the takeover offer include the option, the offeror
may offer in the notice a corresponding option to receive some other consideration to be provided by the offeror.

(9) For the purposes of subsection (7), consideration is to be regarded as being provided by a third party if it is made
available to the offeror on terms that it is to be used by the offeror as consideration for the takeover offer.


Section: 703 Minority shareholders’ right to be bought out by offeror L.N. 163 of 2013 03/03/2014


(1) This section applies if the holder of any shares requires the offeror to acquire the shares under section 700.
(2) Unless the Court makes an order under subsection (3), the offeror is entitled and bound to acquire the shares on

the terms of the takeover offer or on other terms as agreed between that holder and the offeror.
(3) The Court may, on application by the holder or offeror, order that the offeror is entitled and bound to acquire the

shares on the terms specified in the order.
(4) For the purposes of subsection (2)—

(a) if the takeover offer falls within section 702(5), the terms of the takeover offer are to be regarded as
including the particulars and statements included in the notice for the purposes of that section;

(b) if the takeover offer falls within section 702(7), the terms of the takeover offer are to be regarded as not
including the option unless the offeror indicates otherwise in the notice under section 701; and

(c) if, when requiring the offeror to acquire the shares, the holder of the shares exercises the corresponding
option offered under section 702(8), the terms of the takeover offer are to be regarded as including the
corresponding option.


Section: 704 Shareholder to be regarded as not having exercised right

to be bought out in certain circumstances
L.N. 163 of 2013 03/03/2014



(1) This section applies if—
(a) the holder of any shares exercises rights given by section 700 to require an offeror to acquire the shares;
(b) at the time when those rights are exercised, there are shares in the company—

(i) that the offeror has contracted to acquire subject to conditions being satisfied; and
(ii) in relation to which the contract has not become unconditional; and

(c) the requirement imposed by section 700(1)(b) or (2)(b) (as the case may be) would not be satisfied if those
shares were not taken into account.



Cap 622 - Companies Ordinance 264

(2) For the purposes of section 703, the holder of shares is to be regarded as not having exercised the rights to
require the offeror to acquire the shares unless, at any time before the end of the period during which those rights
are exercisable—
(a) in the case of a takeover offer that does not relate to shares of different classes, the shares that the offeror

has, by virtue of acceptances of the offer, acquired or contracted unconditionally to acquire, with or without
any other shares in the company that the offeror has acquired, or has contracted unconditionally to acquire,
represent at least 90% in number of the shares in the company; or

(b) in the case of a takeover offer that relates to shares of different classes, the shares of any class that the
offeror has, by virtue of acceptances of the offer, acquired or contracted unconditionally to acquire, with or
without any other shares of that class that the offeror has acquired, or has contracted unconditionally to
acquire, represent at least 90% in number of the shares of that class.


Part:
Division:

13
5

Compulsory Acquisition after General Offer for Share
Buy-back

L.N. 163 of 2013 03/03/2014





Part:
Division:
Subdivision:

13
5
1

Preliminary L.N. 163 of 2013 03/03/2014





Section: 705 Interpretation L.N. 163 of 2013 03/03/2014


(1) In this Division—
nominee (代名人) , in relation to a company that is a member of a group of companies, includes a nominee on behalf

of another company that is a member of the group;
non-tendering member (不售股成員) , in relation to a general offer, means a member who gives notice under section

711(1) that the member will not tender any shares to be bought back by the repurchasing company under the
offer.

(2) In this Division, a reference to shares that are held by a non-tendering member includes—
(a) shares that are held by an associate of the non-tendering member or by a nominee on the non-tendering

member’s behalf; and
(b) shares that the non-tendering member, an associate of the non-tendering member, or a nominee on the non-

tendering member’s behalf, has contracted, unconditionally or subject to conditions being satisfied, to
acquire.


Section: 706 Application of Division to convertible securities and

debentures
L.N. 163 of 2013 03/03/2014



(1) This Division applies in relation to debentures of a repurchasing company that are convertible into shares in the
company, or to securities of a repurchasing company that are convertible into, or entitle the holder to subscribe
for, shares in the company, as if those debentures or securities were shares of a separate class of the company. A
reference to a holder of shares, and to shares being allotted, is to be read accordingly.

(2) In this Division, a reference to 90% in number of the shares of any class is—
(a) in the case of securities mentioned in subsection (1), a reference to 90% of the number of those securities;

and
(b) in the case of debentures mentioned in subsection (1), a reference to 90% of the total amount payable on

those debentures.

Section: 707 General offer L.N. 163 of 2013 03/03/2014


(1) For the purposes of this Division, a listed company’s offer to buy back shares in the company is a general offer
if—



Cap 622 - Companies Ordinance 265

(a) it is an offer to buy back all the shares, or all the shares of any class, in the company, except—
(i) those that, at the date of the offer, are held by a member residing in a place where such an offer is

contrary to the law of the place; and
(ii) those that, at the date of the offer, are held by the repurchasing company; and

(b) the terms of the offer are the same—
(i) where the offer does not relate to shares of different classes, in relation to all the shares to which the

offer relates; or
(ii) where the offer relates to shares of different classes, in relation to all the shares of each class to which

the offer relates.
(2) In subsection (1)—
shares(股份) means shares that have been allotted on the date of the offer.
(3) In subsection (1)(a)(ii), a reference to shares that are held by the repurchasing company—

(a) is a reference to shares that the repurchasing company has contracted, unconditionally or subject to
conditions being satisfied, to acquire; but

(b) excludes shares that are the subject of a contract—
(i) entered into by the repurchasing company with a holder of shares in that company in order to secure

that the holder will accept the offer when it is made; and
(ii) entered into for no consideration and by deed, for consideration of negligible value, or for

consideration consisting of a promise by the repurchasing company to make the offer.
(4) For the purposes of subsection (1)(b), even though, in relation to all the shares, or all the shares of a class of

shares, to which an offer relates, there is a difference in the value of consideration offered for the shares allotted
earlier as against the value of consideration offered for those allotted later, the terms of the offer are to be
regarded as the same in relation to all the shares concerned if—
(a) shares carry an entitlement to a particular dividend that other shares of the same class, by reason of being

allotted at a different time, do not carry;
(b) the difference in value of consideration merely reflects that difference in entitlement to dividend; and
(c) but for the difference in the value of consideration, the terms of the offer would be the same in relation to

all the shares concerned.
(5) For the purposes of subsection (1)(b), even though, in relation to all the shares, or all the shares of a class of

shares, to which an offer relates, there is a difference in the form of consideration offered, the terms of the offer
are to be regarded as the same in relation to all the shares concerned if—
(a) the law of a place outside Hong Kong precludes an offer of consideration in the form specified in the terms

of the offer, or precludes it except after compliance by the repurchasing company with conditions with
which the repurchasing company is unable to comply or that the repurchasing company regards as unduly
onerous;

(b) consideration in another form is offered to a person to whom an offer of consideration in the specified form
is so precluded;

(c) the person is able to receive consideration in that other form that is of substantially equivalent value; and
(d) but for the difference in the form of consideration, the terms of the offer would be the same in relation to all

the shares concerned.
(6) Despite subsection (1), a general offer may include, among the shares to which it relates, shares that will be

allotted after the date of the offer but before a date specified in the offer.

Section: 708 Non-communication etc. does not prevent offer from being

general offer
L.N. 163 of 2013 03/03/2014



(1) Even though an offer to buy back shares is not communicated to a holder of shares, that does not prevent the
offer from being a general offer for the purposes of this Division if—
(a) no Hong Kong address for the holder is registered in the repurchasing company’s register of members;
(b) the offer was not communicated to the holder in order not to contravene the law of a place outside Hong

Kong; and
(c) either—

(i) the offer is published in the Gazette; or



Cap 622 - Companies Ordinance 266

(ii) the offer can be inspected, or a copy of it obtained, at a place in Hong Kong or on a website, and a
notice is published in the Gazette specifying the address of that place or website.

(2) It is not to be inferred from subsection (1) that an offer that is not communicated to a holder of shares cannot be
a general offer for the purposes of this Division unless the conditions specified in paragraphs (a), (b) and (c) of
that subsection are satisfied.

(3) Even though it is impossible or more difficult for a person, by reason of the law of a place outside Hong Kong,
to accept an offer to buy back shares, that does not prevent the offer from being a general offer for the purposes
of this Division.

(4) It is not to be inferred from subsection (3) that an offer that is impossible, or more difficult, for certain persons to
accept cannot be a general offer for the purposes of this Division unless the reason for the impossibility or
difficulty is the one mentioned in that subsection.


Section: 709 Shares to which general offer relates L.N. 163 of 2013 03/03/2014


(1) For the purposes of this Division, if, after a general offer is made but before the end of the offer period, the
repurchasing company buys back, or contracts unconditionally to buy back, any of the shares to which the offer
relates but does not do so by virtue of acceptances of the offer, those shares are not to be regarded as shares to
which the offer relates. This subsection has effect subject to subsection (2).

(2) For the purposes of this Division, those shares are to be regarded as shares to which the general offer relates, and
the repurchasing company is to be regarded as having bought them back or contracted to buy them back by
virtue of acceptances of that offer, if—
(a) the value of the consideration for which the shares are bought back, or contracted to be bought back, at the

time of the buy-back or contract, does not exceed the value of the consideration specified in the terms of
that offer; or

(b) those terms are subsequently revised so that when the revision is announced, the value of the consideration
for which the shares are bought back, or contracted to be bought back, at the time of the buy-back or
contract, no longer exceeds the value of the consideration specified in those terms.

(3) For the purposes of this Division, shares that an associate of the repurchasing company, or a nominee on the
repurchasing company’s behalf, holds, or has contracted, unconditionally or subject to conditions being
satisfied, to buy back, whether at the date of the general offer or subsequently, are not to be regarded as shares to
which that offer relates, even if that offer extends to those shares. This subsection has effect subject to
subsection (4).

(4) For the purposes of this Division, where, after a general offer is made but before the end of the offer period, an
associate of the repurchasing company, or a nominee on the repurchasing company’s behalf, buys back, or
contracts unconditionally to buy back, any of the shares to which the offer relates, the shares are to be regarded
as shares to which the offer relates if—
(a) the value of the consideration for which the shares are bought back, or contracted to be bought back, at the

time of the buy-back or contract, does not exceed the value of the consideration specified in the terms of the
offer; or

(b) those terms are subsequently revised so that when the revision is announced, the value of the consideration
for which the shares are bought back, or contracted to be bought back, at the time of the buy-back or
contract, no longer exceeds the value of the consideration specified in those terms.

(5) For the purposes of this Division, the shares held by a nontendering member are not to be regarded as shares to
which the general offer relates, even if that offer extends to those shares.


Section: 710 Revised offer not to be regarded as fresh offer L.N. 163 of 2013 03/03/2014


For the purposes of this Division, a revision of the terms of an offer to buy back shares is not to be regarded as the
making of a fresh offer if—

(a) the terms of the offer make provision for—
(i) their revision; and
(ii) acceptances on the previous terms to be treated as acceptances on the revised terms; and

(b) the revision is made in accordance with that provision.




Cap 622 - Companies Ordinance 267

Section: 711 Member may give notice that member will not tender
shares for buy-back under general offer

L.N. 163 of 2013 03/03/2014



(1) A member of a repurchasing company may, on or before the date on which notice of an authorizing meeting of
the company is given, give notice to every other member of the company that the member will not tender any
shares held by the member to be bought back by the company under the general offer.

(2) A non-tendering member is not entitled to tender any shares held by the member to be bought back by the
repurchasing company under the general offer even if that offer extends to those shares.

(3) In this section—
authorizing meeting(授權會議), in relation to a repurchasing company, means a meeting of the company called for

the purpose of authorizing a general offer that the company intends to make.

Part:
Division:
Subdivision:

13
5
2

“Squeeze-out” L.N. 163 of 2013 03/03/2014





Section: 712 Repurchasing company may give notice to buy out
minority shareholders

L.N. 163 of 2013 03/03/2014



(1) This section applies if a member or members of the repurchasing company has or have given notice under
section 711 that the member or members will not tender any shares to be bought back by that company under a
general offer.

(2) If, in the case of a general offer that does not relate to shares of different classes, the repurchasing company has,
by virtue of acceptances of the offer, bought back, or contracted unconditionally to buy back, at least 90% in
number of the shares to which the offer relates, the repurchasing company may give notice to the holder of any
other shares to which the offer relates that it desires to buy back those shares.

(3) If, in the case of a general offer that relates to shares of different classes, the repurchasing company has, by
virtue of acceptances of the offer, bought back, or contracted unconditionally to buy back, at least 90% in
number of the shares of any class to which the offer relates, the repurchasing company may give notice to the
holder of any other shares of that class to which the offer relates that it desires to buy back those shares.

(4) If, in the case of a general offer that does not relate to shares of different classes, the repurchasing company has,
by virtue of acceptances of the offer, bought back, or contracted unconditionally to buy back, less than 90% in
number of the shares to which the offer relates, the repurchasing company may apply to the Court for an order
authorizing it to give notice to the holder of any other shares to which the offer relates that it desires to buy back
those shares.

(5) If, in the case of a general offer that relates to shares of different classes, the repurchasing company has, by
virtue of acceptances of the offer, bought back, or contracted unconditionally to buy back, less than 90% in
number of the shares of any class to which the offer relates, the repurchasing company may apply to the Court
for an order authorizing it to give notice to the holder of any other shares of that class to which the offer relates
that it desires to buy back those shares.

(6) The Court may, on application under subsection (4) or (5), make the order if it is satisfied that—
(a) after reasonable enquiry, the repurchasing company has been unable to trace one or more of the persons

holding shares to which the general offer relates;
(b) had the person, or all those persons, accepted the general offer, the repurchasing company would have, by

virtue of acceptances of that offer, bought back, or contracted unconditionally to buy back, at least 90% in
number of the shares, or the shares of any class, to which that offer relates; and

(c) the consideration offered is fair and reasonable.
(7) The Court must not make the order unless it is satisfied that it is just and equitable to do so having regard to all

the circumstances and, in particular, to the number of holders of shares who have been traced but who have not
accepted the general offer.

(8) If the Court makes an order authorizing the repurchasing company to give notice to the holder of any shares, the
repurchasing company may give notice to that holder.





Cap 622 - Companies Ordinance 268

Section: 713 Notice to minority shareholders L.N. 163 of 2013 03/03/2014


(1) A notice to a holder of shares under section 712—
(a) must be given in the specified form; and
(b) must be given to the holder before whichever is the earlier of the following—

(i) the end of the period of 3 months beginning on the day after the end of the offer period of the general
offer;

(ii) the end of the period of 6 months beginning on the date of the general offer.
(2) The notice must be given to the holder of shares—

(a) by delivering it personally to that holder in Hong Kong;
(b) by sending it by registered post to that holder to—

(i) an address of that holder in Hong Kong registered in the books of the company; or
(ii) if there is no such address, an address in Hong Kong supplied by that holder to the company for the

giving of notice to that holder; or
(c) in the manner directed by the Registrar on an application made under subsection (3).

(3) The repurchasing company may apply to the Registrar for directions regarding the manner in which the notice is
to be given to a holder of shares if—
(a) there is no address of the holder in Hong Kong registered in the books of the company; and
(b) the holder has not supplied to the company an address in Hong Kong for the giving of notice to the holder.

(4) If the general offer gives the holder of shares a choice of consideration, the notice—
(a) must give particulars of the choices;
(b) must state that the holder may, within 2 months after the date of the notice, indicate the holder’s choice by

a letter sent to the repurchasing company at an address specified in the notice; and
(c) must state which consideration specified in the offer will apply if the holder does not indicate a choice.


Section: 714 Repurchasing company’s right to buy out minority

shareholders
L.N. 163 of 2013 03/03/2014



(1) This section applies if a notice is given under section 712 to the holder of any shares.
(2) Unless the Court makes an order under subsection (3), the repurchasing company is entitled and bound to buy

back the shares on the terms of the general offer.
(3) The Court may, on application by the holder made within 2 months after the date on which the notice was given,

order that—
(a) the repurchasing company is not entitled and bound to buy back the shares; or
(b) the repurchasing company is entitled and bound to buy back the shares on the terms specified in the order.

(4) For the purposes of subsection (2), if the general offer falls within section 713(4), the terms of the general offer
are to be regarded as including the particulars and statements included in the notice for the purposes of that
section.


Section: 715 Obligations of repurchasing company with right to buy out

minority shareholders
L.N. 163 of 2013 03/03/2014



(1) If, by virtue of section 714(2), a repurchasing company is entitled a