Companies (Amendment) Ordinance 2018: Maintaining of Significant Controllers Register by Hong Kong Incorporated Companies

The Companies (Amendment) Ordinance 2018, which came into operation on 1 March 2018 imposed on companies incorporated in Hong Kong (excluding listed companies in Hong Kong) an obligation to maintain a Significant Controllers Register (SCR).

Coupled with the Common Reporting Standard, which took effect on 1 July 2017 in Hong Kong, the new provision reflects the government’s intention to increase the transparency of corporate beneficial ownership in order to enhance Hong Kong’s regulatory regime to combat money laundering and terrorist financing.

1. Who has to maintain a significant controller register?

All companies formed and registered under the Companies Ordinance (Cap. 622) or former Companies Ordinance (Cap. 32), including:

  • Companies limited by shares
  • Companies limited by guarantee
  • Unlimited companies

The above is not applicable to listed companies in Hong Kong.

2. Who is a significant controller?

A significant controller includes a registrable person and a registrable legal entity that has significant control over the company.

A person is considered to have significant control over the company if one or more of the following conditions are met:

  • The person holds, directly or indirectly, more than 25% of the issued shares in the company (or the right(s) to share in more than 25% of the capital or profits of the company if the company does not have a share capital)
  • The person holds, directly or indirectly, more than 25% of the voting rights of the company
  • The person holds, directly or indirectly, the right to appoint or remove a majority of the board of directors of the company
  • The person has the right to exercise, or actually exercises, significant influence or control over the company
  • The person has the right to exercise, or actually exercises, significant influence or control over the activities of a trust or a firm that is not a legal person, but whose trustees or members satisfy any of the four conditions above

3. Designated representative

The company is required to designate at least one person as representative to provide assistance relating to the SCR of the company to law enforcement officers and such representative must be in either one of the following capacities:

  • A shareholder/director/employee of the company who is a natural person resident in Hong Kong
  • A certified public accountant or a firm / corporate practice of certified public accountants in Hong Kong
  • A qualified Solicitor or Registered Foreign Lawyer in Hong Kong
  • A person licensed to carry on a business as trust or company service provider

4. How to prepare and maintain SCR?

  • Take reasonable steps to identify the company’s significant controllers (for example, by reviewing the company’s register of members, articles of association, shareholders agreements or other agreements)
  • Send out notice to any person who is reasonably believed to be a significant controller and any person who is reasonably believed to know the identity of the significant controller
  • Enter the required particulars of the company’s significant controllers in the SCR
  • Keep the required particulars in the SCR up-to-date
  • Make the SCR available for inspection by a law enforcement officer and a significant controller whose name has been entered in the SCR

5. What are the consequences of non-compliance?

  • If a company fails to comply with the above requirements, the company, and each of its responsible persons (including directors, managers and company secretaries), will be liable on conviction.
  • If any person knowingly or recklessly makes a statement which is misleading, false or deceptive in the SCR; or in the reply to a company’s notice, the person commits an offence and is liable to a fine and/or imprisonment.

6. Who can inspect SCR?

  • Companies Registry
  • Customs and Excise Department
  • Hong Kong Monetary Authority
  • Hong Kong Police Force
  • Immigration Department
  • Inland Revenue Department
  • Insurance Authority
  • Independent Commission Against Corruption
  • Securities and Futures Commission

7. How can Horizons help?

Our corporate and commercial team is available to advise you on the compliance steps and the ongoing obligations under the new SCR regime by:

  • Providing advice on the duties and obligations of your company
  • Acting as a designated representative of your company
  • Assisting in identifying the significant controllers of your company
  • Issuing relevant notices on behalf of your company
  • Preparing, updating and maintaining the SCR
  • Making the SCR available for inspection by law enforcement officer(s)

 

2018年香港公司条例大变革—“重要控制人”剖析

自2017年7月1日《CRS全球征税信息自动交换》在香港宣布正式生效起，中国税收居民的香港金融帐户资讯将于2018年底首次从香港税务机关交到中国及相关协议国家的税务机关。而香港的《2018年公司 ( 修订 ) 条例》（“修订条例”）亦于2018年3月1日生效，对香港的《公司条例》作出修订，并规定在香港注册成立的公司（香港上市公司除外）须备存重要控制人登记册，以披露公司的实益拥有权。

此修订条例无疑是提高公司的拥有权及控制权的透明度，以打击用法人身份掩饰洗钱或恐怖分子资金筹集的举措。

一。哪些公司需要备存重要控制人登记册？

适用于所有根据《公司条例》组成及注册的公司：

  • 股份有限公司
  • 担保有限公司
  • 无限公司

上述，为香港上市公司除外。

二。 谁是重要控制人？

公司的重要控制人包括：“须登记人士”，即对该公司有重大控制权的自然人或指明实体；及“须登记法律实体”，例如：对该公司有重大控制权，并为该公司的股东的某公司。

任何人士如符合下述1 个或以上条件，即对公司有重大控制权：

  • 直接或间接持有该公司25%以上的已发行股份（或如该公司没有股本，直接或间接持有分摊该公司25%以上的资本或分享该公司 25%以上的利润的权利）
  • 直接或间接持有该公司25%以上的表决权
  • 直接或间接持有委任或罢免该公司董事局过半数董事的权利
  • 有权利或实际上对该公司发挥或行使重大影响力或控制
  • 有权利或实际上对某信托或商号的活动发挥或行使重大影响力或控制，而该信托或商号并不是法人，但该信托的受托人或商号的成员，就该公司而言符合前述4个条件中的任意1个条件

三。谁可担任指定代表？

根据修订条例规定，公司须指定最少一名代表人（指定代表），以提供与该公司的重要控制人登记册有关的协助，包括协助公司注册处人员确认该公司是否遵从相关法例，以及对执法人员予以协助。

指定代表须由符合以下条件之一的人士担任：

  • 该公司的股东╱董事╱雇员，而且必须是居于香港的自然人
  • 香港执业会计师或执业会计师事务所/法团
  • 香港执业律师或在香港注册的外地律师
  • 持有信托或公司服务牌照的人士

四。 如何预备及备存重要控制人登记册?

  • 公司须采取合理步骤 (如检视成员登记册、股东协议等其他可供查阅文件)以识别及确定每名重要控制人
  • 向任何公司所知晓的或有合理理由认为其为公司重要控制人身份的人士发出通知
  • 将重要控制人的所需详情记入重要控制人登记册
  • 公司须确保重要控制人登记册上的数据更新
  • 指定代表对执法人员查阅重要控制人登记册予以协助

五。 请注意，凡未有履行上述责任，根据修订条例，有关公司及其每名责任人（包括董事、经理及公司秘书）均属犯罪。

六。 谁可查阅重要控制人登记册?

  • 公司注册处
  • 香港海关
  • 香港金融管理局
  • 香港警务处
  • 入境事务处
  • 税务局
  • 保险业监管局
  • 廉政公署
  • 证券及期货事务监察委员会（证监会）

七。赫力盛可提供之协助

  • 赫力盛专业团队协助客户就此修订条例下提供法律指引及意见
  • 担任公司指定代表
  • 协助客户识别重要控制人，并代发出相关通知
  • 准备重要控制人登记册，并定期更新该登记册的详情
  • 提供重要控制人登记册予执法人员查阅

If you would like more information on Significant Controllers Register (SCR) or other related issues, send us an email at talktous@horizons-advisory.com, and we’ll have a Horizons professional contact you.  

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