New Companies Ordinances P.1: Changes to Constitutional Document and Common Seal

As of March 3rd this year there are New Companies Ordinances to improve the quality corporate governance, ensure better regulation, modernise the law and to make the process easier for businesses.

Highlights of Major Changes: Constitutional Document and Common Seal

Abolition of Memorandum: Memorandum of Association is no longer needed for all local companies, and Articles of Association is now the constitutional document of a company. For companies registered under Cap. 32 (“existing companies”), current terms in the Memorandum of Association will be regarded as provisions in their Articles of Association. Table A in the First Schedule to Cap. 32, in so far as not modified by the provisions of the new CO, will continue to apply to existing companies which adopt Table A as their Articles of Association.

Model Articles: are prescribed under the new CO for use by private companies limited by shares, public companies and companies limited by guarantee.

Common Seal: remains same

(Changes will be effective on 3rd March 2014)

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