Latest Legislative Developments

Amendments to Insurance Companies Ordinance introduced by Companies (Amendment) Ordinance 2005

The Companies (Amendment) Ordinance 2005 ("Amendment Ordinance") [PDF] was gazetted on 8 July 2005.

The Amendment Ordinance amends the provisions of the Companies Ordinance (Cap. 32) relating to the accounts of a company. It also introduces consequential amendments to Parts 1, 2, 3 and 4 of the Third Schedule to the Insurance Companies Ordinance (Cap.41) ("ICO") in relation to the preparation of accounts and statements by insurers.

Under the consequential amendments to the ICO, a reference in Parts 1, 2, 3 and 4 of the Third Schedule to "holding company" and "subsidiary/subsidiary company" shall be deemed to include "parent company" and "subsidiary undertaking" respectively. The term "parent company" or "subsidiary undertaking" shall be construed in accordance with section 2B of the CO as read with the Twenty-third Schedule to that Ordinance. According to section 2B and the Twenty-third Schedule to the CO as introduced by the Amendment Ordinance, the term "undertaking" includes body corporates, partnerships and other unincorporated associations.

The consequential amendments to the ICO shall apply in relation to an insurer for its financial years beginning on or after 1 January 2006.

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