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FS on Companies Ordinance
A number of potential disqualification cases concerning company directors are now being considered by the Administration for referral to the courts, the Financial Secretary, Sir Hamish Macleod, said tonight (Thursday),
Addressing the annual dinner of the Hong Kong Institute of Company Secretaries, Sir Hamish said with the passing of the Companies (Amendment) Ordinance 1994 which came fully into effect in the middle of last year, the scope and enforceability of the disqualification provisions under the Companies Ordinance had been improved.
He added that the Administration had also sought to make the courts and the crown prosecutors more aware of the new provisions.
"We hope that in future the authorities will be increasingly better equipped to take enforcement action where this is clearly necessary." he said.
Turning to company secretaries, Sir Hamish noted that they played the role of keeping directors of companies fully informed of their responsiblities.
"In my view, the company secretary could play a very important role in encouraging sound corporate governance.
"This applies not only to listed companies, which are already required to appoint non-executive directors, are subject to the listing rules and to greater regulatory scrutiny, but also to the large number of private companies that conduct substantial trading."
The Financial Secretary said the comprehensive review of the Companies Ordinance, now proceeding under Mr Ermanno Pascutto, was the first time that the legislation had been examined in a thorough-going way in over 20 years.
"It provides an opportunity to reflect some of the changes that have taken place in the commercial sector and the community at large during this period, as well as to consider significant developments that have taken place elsewhere." he said.