Gov’t to give HK firms more power over shares, promote paperless communication

The bill will be introduced to the Legislative Council for its first reading on 4 December.

The government has published in the Companies (Amendment) Bill 2024 proposals including giving Hong Kong-listed companies more power over their shares and paperless corporate communication for both listed and unlisted companies. 

The bill proposes companies, upon buying back of their shares, to hold the shares as treasury shares, and to cancel, transfer, or sell on or off the exchange to any person at any time under certain restrictions.

Additionally, it proposes to allow companies to adopt the implied consent mechanism for disseminating corporate communication using a website and put sufficient safeguards to protect shareholders’ interests.

"Following the earlier amendments to the Listing Rules, the legislative amendments would provide more flexibility to listed companies, including Hong Kong-incorporated companies, to manage their capital,” a government spokesperson said. 

The spokesperson also added that if a company's articles of association contain a provision allowing corporate communication dissemination through a website, it may do so without seeking consent from each shareholder.

The bill will be introduced into the Legislative Council for its first reading on 4 December.