An ordinance amendment is set to enhance Hong Kong's corporate governance regime and make company law more business-friendly.

The Companies (Amendment) Ordinance 2003 (save for section 67 relating to the index of directors) will become effective on February 13.

The Financial Services & the Treasury Bureau said that when brought into operation, the law will ensure that our companies legislation continues to provide Hong Kong with a commercial legal infrastructure that is commensurate with our status as a major international commercial centre.

The ordinance implements recommendations that seek to enhance the protection of shareholders' rights, update the requirements regarding directorships, and make some technical amendments.

It also introduces some changes to the Companies Ordinance to simplify filing requirements and to facilitate electronic processing at the Companies Registry, in anticipation to the operation of its Integrated Companies Registry Information System.

The bureau said Phase I of system, which allows customers to conduct online searches on documents kept by the Companies Registry around-the-clock, is at an advanced stage. Services should start early next year.