Q&A

The recent regulatory changes are aiming to reducing regulatory burdens, compliance costs, providing greater flexibility to companies, improving corporate governance and bringing benefits to various stakeholder groups. These regulatory amendments are expected to be in effect from mid-October 2013 onwards.

The impacts are to be discussed in the following aspects:

• On companies: non-voting shares are possible to be issued, subject to certain safeguards and permission under the articles of association.
• On SMEs: new concept of “small company” will be introduced for determining statutory audit, which should lower auditing costs.
• On retail investors: multiple-proxies regime will be introduced to allow indirect investors and Central Provident Fund investors to attend and vote at shareholder’s meeting.