What is Significant Controllers Register?

What is Significant Controller Register?

Effective from March 1, 2018, the Hong Kong government has implemented a new law mandating all companies to maintain a significant controller register ("SCR"), in an effort to enhance transparency of the ultimate beneficial ownership of each entity. While the register itself is not disclosed to the general public, law enforcement officers will be able to request access to the information upon need. Every company has the legal responsibility to keep an updated SCR at the registered office address  

Who are the significant controllers of a company?

The new law defines a "significant controller" as either:

1.A natural person who has significant control over the company, or

2.A legal corporate entity that is a shareholder of the company (directly or indirectly) and has significant control over the company.

The new law defines ''significant control" as either:

1.Hold, directly or indirectly, more than 25% of the issued shares or rights to the company's capital/profits.

2.Hold, directly or indirectly, more than 25% of the company's voting rights.

3.Has the right to appoint or remove a majority of the company's board of directors.

4.Has the right to exercise, or actually do exercise, significant influence or control over the company.

5.Has the right to exercise, or actually do exercise, significant influence or control over the activities of a trust or firm that satisfies any of the first four conditions in relation to the company.