Primasia Corporate Services Limited: August 2012

Wednesday, 29 August 2012

China Updates- Foreign Exchange

The State Administration of Foreign Exchange of the PRC (SAFE) has issued a notice allowing Chinese domestic companies to use foreign currency loans obtained from domestic banks to fund offshore subsidiaries. Previously, such companies could only use their foreign currency reserves, foreign currency purchased with RMB or foreign currency pools approved by SAFE to fund offshore subsidiaries.

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Primasia will post the updates of Hong Kong and China from time to time. Follow us on our Website/ Blogger/ LinkedIn and stay tunned for our updates!

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Need more information?
Please contact:
John Barclay -Email
Teresa Tam - Email
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Follow us on:
Website: Primasia HK / Primasia China
LinkedIn: Primasia
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Primasia Corporate Services Limited
Tel: +852 2882 2088
Suite 1106-08, 11/F., Tai Yau Building, No. 181 Johnston Road, Wanchai, Hong Kong

Thursday, 23 August 2012

China Updates- Labour Law

Draft amendments for discussion include the following provisions to improve protection of workers. (Some employers have been abusing the use of labour outsourcing services.)

(a) Stricter restrictions in use of labour outsourcing services (restrict to genuinely temporary arrangements)

(b) Stricter requirements (such as higher capital requirements) for labour outsourcing service providers

(d) Tougher penalties

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Primasia will post the updates of Hong Kong and China from time to time. Follow us on our Website/ Blogger/ LinkedIn and stay tunned for our updates!

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Hong Kong Updates- New Companies Ordinance

New Companies Ordinance passed on 12th July

Key points include:

(a) Abolition of par value for shares

(b) Restricting corporate directorships of private companies: each private company will be required to have at least one director who is a natural person, to enhance transparency and accountability. A grace period of six months from the commencement date of the new ordinance will be given.

(e) Strengthening enforcement: lower threshold for prosecution and a new definition of “responsible person” (who can be prosecuted).

(f) Simplified reporting for companies that meet specified size criteria

(g) Strengthening of auditors’ rights to require a wider range of persons to provide information or explanations.

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Primasia will post the updates of Hong Kong and China from time to time. Follow us on our Website/ Blogger/ LinkedIn and stay tunned for our updates!

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