The Financial Services & the Treasury Bureau today launched the third public consultation on the Companies Ordinance rewrite, covering share capital, the capital maintenance regime and statutory amalgamation procedure. It will last three months until September 30.

On share capital the bureau proposes to introduce a mandatory no-par value share regime for all companies and provide a 12-month period for companies to review their arrangements before migration to no-par.

It also proposes to make other consequential and related amendments following the migration to no-par.

On the capital maintenance regime, it does not recommend adopting an across-the-board solvency test approach to distributions of all forms.

Views are invited on whether to streamline or modify the existing capital maintenance rules concerning reduction of capital, purchase by a company of its own shares and financial assistance by a company to another party for acquiring its own shares.

The bureau is also considering a court-free statutory amalgamation procedure.

The Companies Ordinance rewrite exercise began in mid-2006 to modernise company law. The second consultation covering company names, directors' duties, corporate directorship and registration of charges will close June 30.

Views collected will be considered for a draft bill to be issued for public consultation in mid-2009. The new Companies Bill is tentatively due for tabling at the Legislative Council in 2010's third quarter.

Click here for the detailed consultation document. People can send their views by writing to the bureau at 15/F Queensway Government Offices, faxing 2869 4195 or emailing co_rewrite@fstb.gov.hk.