The webinar introduces significant changes related to the treasury share regime and the proposed company re-domiciliation scheme in Hong Kong, focusing first on the treasury share regime that began in June 2024. The Hong Kong Stock Exchange amended its listing rules to allow repurchased shares to be held in treasury, aligning with 92% of companies incorporated in jurisdictions like the PRC, Bermuda, and Cayman Islands, where this practice is permitted.
Previously, the repurchase of shares resulted in cancellation, restricting the holding of treasury shares due to concerns about market manipulation and insider trading. Now, companies can adjust their share capital more dynamically, with treasury shares still retaining their listed status, subject to local jurisdiction laws. The second part of the presentation discusses the proposed company re-domiciliation regime, driven by a need for economic alignment and corporate governance improvements.
The new regime, aiming to simplify the re-domicile process, will allow overseas companies to retain legal status while operating under Hong Kong law, aiding those from low-tax jurisdictions seeking Hong Kong’s financial benefits. Companies must meet solvency and compliance criteria, including member approval for the re-domicile, without undergoing complex restructuring. This regime is not currently extended to companies limited by guarantee, considering a lack of demand, while the Hong Kong government will closely monitor potential outward re-domiciliation needs.
Finally, comparisons with other jurisdictions like Singapore and the UK are made, highlighting Hong Kong's approach to avoiding economic substance tests and aligning closely with global re-domiciliation norms.
Read more: https://www.charltonslaw.com/hong-kongs-proposed-company-re-domiciliation-regime/
#FinancialRegulations #TreasuryShares #HongKongBusiness
Timecodes: 00:00 Introduction to New Financial Regulations 03:23 Historical and Legal Context of Treasury Shares 06:42 Legal Framework and Definitions of Treasury Shares 09:42 Operational Requirements for Holding Treasury Shares 12:51 Restrictions on Resales and Market Conduct 16:15 Detailed Guidelines for Specific Transactions 18:54 Legal Safeguards against Market Manipulation 22:19 Shareholder Communication and Reporting Obligations 27:15 Voting Rights and Shareholder Dynamics 29:21 Disclosure of Interest and Stamp Duty Implications 31:12 Introduction to Proposed Hong Kong Re-domiciliation Schemes 35:58 Legislative and Economic Implications 38:43 Application Requirements and Process for Re-domiciliation 44:19 Financial and Taxation Issues Surrounding Re-domiciliation 47:15 Comparisons with Global Re-domicile Regimes 58:20 UK’s Proposed Re-domiciliation Framework 62:45 Conclusion of the Webinar
Charltons Law Firm: https://www.charltonslaw.com/
Julia Charlton https://www.charltonslaw.com/the-firm/people-culture/team-profile/julia-charlton/
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