The following is the major point of this issue:

1. All companies incorporated in Hong Kong (except listed companies) are required to identify a person/persons who has/ have significant control over the company and maintain a significant controllers register which will be accessible by law enforcement officers upon demand.

2. Each company must designate at least one person as its representative to provide assistance relating to the significant controllers register of the company to law enforcement officers.

3. Major obligations of a company:

To comply with the new requirements relating to Significant Controllers Registers , a company has in broad terms the following obligations:

• Failure to comply with the above obligations is a criminal offence. The company and every responsible person of the company are liable to fine at level 4 (i.e. HK$25,000). Where applicable, there is a further daily fine of HK$700.

4. Obligations of notice addressees:

• Failure to comply with any of the requirements in the notice within 1 month from the date of the notice is a criminal offence. The notice addressee and every related person (if any) are liable to a fine at level 4 (i.e.HK$25,000)

5. Offences for false statement:

• a. If any person knowingly or recklessly makes a statement which is misleading, false, or deceptive in any material particular in the Significant Controllers Registers or
• b. If any person knowingly or recklessly makes a statement or provides any information that is misleading, false or deceptive in a material particular in the reply to a company’s notice,

The person commits an offence and is liable -

• on conviction on indictment to a fine of HK$300,000 and imprisonment for two years; or
• on summary conviction, to a fine at level 6 (i.e. HK$100,000) and imprisonment for six months

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For further enquiry, please call (852) 22359000. We look forward to assisting you to fulfill the New Ordinance.