A legislative proposal will be reintroduced on October 13 to amend the definition of the term "subsidiary" in the Companies Ordinance for the purposes of group accounts.

The proposal, contained in the Companies (Amendment) Bill 2004, seeks to make the definition more closely aligned with International Accounting Standards.

The bill aims to ensure group accounts better reflect a company's financial position. The definition of "subsidiary" for purposes other than the preparation of group accounts will not be affected.

The bill has been prepared in consultation with the Institute of Certified Public Accountants. The amendments will improve the Companies Ordinance and ensure the ordinance continues to provide Hong Kong with a commercial legal infrastructure commensurate with its status as a major international commercial centre.

The proposal was originally part of the Companies (Amendment) Bill 2003. It was taken out when the bill was passed in July, as the Bills Committee concerned did not have enough time to scrutinise it within the Legislative Council's second term of office.

The bill will be gazetted on October 8.