Conviction for Failing to Keep Significant Controllers Register on the Increase
In the beginging of 2019, the Companies Registry announced that twelve Hong Kong companies were prosecuted for failing to keep the significant controllers register at their registered offices. The result of this prosecution led to the companies being fined.
Under the Companies (Amendment) Ordinance 2018, companies incorporated in Hong Kong (except companies listed on the Hong Kong Stock Exchange) are required to take reasonable steps to ascertain and identify persons who have significant control over the company. They are also required to maintain a significant controllers register (SCR) to be accessible by law enforcement officers.
Consequences for non-compliance
If a company fails to keep a register of its significant controllers, the company and each of its responsible persons commit an offence. Below are the offences and penalties at a glance:
Hong Kong incorporated companies (including overseas companies with Hong Kong incorporated subsidiaries) should ensure that they have:
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