Assessing the Impact of the New Hong Kong Companies Ordinance on Charitable Institutions

Skadden, Arps, Slate, Meagher & Flom LLP

Christopher W. Betts

The new Hong Kong Companies Ordinance (New CO) came into effect on March 3, 2014, with the aim to enhance corporate governance, ensure better regulation, facilitate business and modernize the law. As the New CO essentially replaces an 80-year-old regulatory framework, the changes have far-reaching effects for companies, their directors, officers and other stakeholders.

The impact also will be felt by registered charitable institutions incorporated as Hong Kong companies limited by guarantee. While there is no single governmental body or piece of legislation regulating Hong Kong charities, these entities and their directors and officers need to consider the myriad ways in which the New CO may affect their operations.

For a detailed analysis of the changes and their impact on Hong Kong charities, click here. For an executive summary, click here.