Auditor Liaison

According to Hong Kong Companies Ordinance section 429(1), a company’s directors must, in respect of each financial year, lay before the company in annual general meeting, or in any other general meeting directed by the Court, a copy of the reporting documents for the financial year.

Section 429(4) states that, a director of a company who willfully fails to take all reasonable steps to secure compliance with subsection (1) commits an offence and is liable to a fine of $300,000 and to imprisonment for 12 months.

Section 405 further states that, a company’s auditor (Certified Public Accountant (Practising) must prepare a report for the members on any financial statements prepared by the directors, a copy of which is laid before the company in general meeting. The first audit report shall be presented to the shareholders in Annual General Meeting within 18 months after incorporation.