Hong Kong: draft Companies Bill - first phase consultation launched

The first phase of consultation for the draft Companies Bill began today and will last until 16 March 2010. A consultation paper has been published along with parts of the draft Companies Bill. The remaining parts of the Bill will be published early next year. 

Chapter 2 of the consultation paper is titled "enhancing corporate governance" and this sets out, inter alia, proposals for the codification of the director's duty of care, skill and diligence and the requirement that every private company should have at least one natural person as a director. Chapter 9 seeks views on whether the common law derivative action should be abolished, given the availability of a statutory derivative action.