Proposals on the Companies Ordinance's accounting and auditing provisions will be finalised early next year, the Financial Services & the Treasury Bureau says. Views will be sought on the new Companies Bill in mid-2009 before introducing it to lawmakers by the third quarter of 2010.

In its 2006-07 annual report published today, the Standing Committee on Company Law Reform said it considered the proposals made by a joint working group with representatives from the Government and Institute of Certified Public Accountants. It also considered the draft public consultation paper, which was issued to the public in March.

The bureau is studying the responses received and will seek the views of the joint working group and the standing committee before finalising the proposals.

On rewriting the Companies Ordinance, which began in mid-2006, the standing committee considered the general framework of the new Companies Bill and the proposed workplan, the types of firms allowed to be formed and incorporated under the new law and definitions of private and public firms, beneficial owners' enjoyment of members' rights, directors' duties, and electronic communications between companies and shareholders and other communication-related matters.

The standing committee's recommendations on the new Companies Bill will be incorporated into a white bill for public consultation in mid-2009 and tabled to lawmakers by the third quarter of 2010.

Before the white bill consultation, a topical consultation on other complex issues including directors' duties, no par value share regime and capital maintenance, registration of charges, company name registration and court-free merger procedure will be launched in next year's second quarter.

To read the standing committee's annual report, click here.