Tighten the search ︱ ban on checking the company’s director’s ID card address, hindering the dispatch of litigation subpoenas, affecting investment and merger

01 Investigation

Written by: Chen Jingqi and He Jinkang

2021-03-30 16:10

Last update date: 2021-03-30 16:13

Since the anti-regulation campaign, the government has tightened a number of searches in order to crack down on the "start".

Following the license plate search, the Financial Services and the Treasury Bureau recently submitted a document to the Legislative Council, requesting a "trilogy" to prohibit public access to company registration information, involving directors and company secretaries’ usual addresses and full ID numbers. It is expected to be as fast as possible. Gazetted implementation inside.

Barrister Ho Min-kuang pointed out that in addition to journalists, it would also affect due diligence's pre-investigation of corporate mergers and acquisitions and investment, and hinder investors' decision to choose to develop in Hong Kong. He also pointed out that the usual addresses of directors and secretaries are prohibited. , Will increase the difficulty of distributing litigation subpoenas.

Tighten Search and Special Pages｜Restricted Searches for Directors and Detailed License Plates have a profound impact on news, business and industry

In the first stage, the full ID number and usual address of directors are banned

The document proposes that the new search arrangement is divided into three stages. In the first stage, the company can immediately refuse public access to the usual residential addresses of directors; the full ID numbers of directors and company secretaries.

The second stage is next October. Any registration documents submitted to the Companies Registry will involve protected information, that is, the usual residential address and ID number. The Companies Registry will voluntarily no longer provide the above information for public inspection.

To the third stage, which is December 2023, the company can apply to the Companies Registry to collect the company documents that have been registered in the past.

Gazetted and implemented within the shortest month

The document pointed out that the relevant subsidiary regulations will be submitted to the Legislative Council in May this year to be dealt with in a procedure of first enactment and then deliberation, which means that the government can first gazette and immediately prohibit public access to the protected information of directors and company secretaries.

According to the current company search, the document shows the name of the company, the address of the registered office, the name and address of the company secretary, as well as the name of the director, the usual address and the full ID number.

However, after the implementation of the new search arrangement, the register will only display the correspondence addresses of the directors and company secretaries and part of the ID number for public inspection, but the data subject, authorized persons of the parties, company members, liquidators, public officials or public institutions, etc. This is an exception, but does not include lawyers and journalists.

He Minkuang, a member and barrister of Law and Political Science, said that the amendments affect the daily work of the legal profession. For example, when lawyers are entrusted to conduct mergers and acquisitions, they often need to conduct due-diligence.

(Official website of Fazheng Huisi)

Barrister: Affect the daily work of the legal profession

He Minkuang, a member and barrister of Law and Political Science, said that the amendments affect the daily work of the legal profession. For example, when lawyers are entrusted to conduct mergers and acquisitions, they often need to conduct due-diligence and investigate the background of the other company’s directors. Unable to continue, "A private detective must be used to help the investigation."

"I don't even know the subpoena is sent to the side."

Attorney He also pointed out that in some civil litigations, basic operations such as deciding whether to proceed with litigation and who is listed as the defendant must rely on company search assistance. The amendments may affect lawyers’ work judgments. The mailing address is covered, "We don't even know the subpoena is sent to the side."

Xiao Qianwen, Director-General of the Industrial Casualty Rights Association.

(Profile Picture / Huang Shuhui)

Affect the recovery of work-related injuries

The labor sector also expressed that it was affected. The Director General of the Industrial Injury Rights Association, Siu Chien-wen, pointed out that after a worker suffers a work-related injury, if the employer is unwilling to admit responsibility and refuse to report to the Labor Department, the worker must report to the Department by himself.

However, because some of the workers are casual workers or have just arrived, and they don't know the details of the company they belong to, they have to rely on company searches to obtain information.

Xiao Qianwen pointed out that workers must prepare the company's full name, company address, telephone number, and contact information. He described that "you can't get the same thing". He also pointed out that workers sometimes only know what the company calls "Neiji" instead of relying on company search. It is easy to "sue the wrong person."

Xiao Tan said that after the amendments to the regulations, the role of workers is "very passive, and they don't work hard enough." He hopes that the government can shelve the regulations.

The press opposes Lam Cheng: it is privilege to watch the reporter to explain

The government's tightening of company searches has affected the media, the legal profession, business and the labor sector to varying degrees. Chief Executive Carrie Lam Cheng Yuet-ngor was asked by reporters before attending the executive meeting this morning (30th) that the above-mentioned industries would be affected by the tightening of searches. , Will reporters be exempted, but Lam Cheng only responded that personal privacy should be protected. The existence of a public register is already balanced. If information is not necessary, it can be protected instead of being disclosed. , Emphasizing that no one has privileges.

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