Keywords: shadow companies, Hong Kong, shadow
company names, Hong Kong
Following the passing of the Companies (Amendment) Ordinance
2010 in July this year, the Hong Kong Government recently announced
that several parts of the new legislation, including the measures
to tackle shadow company names, will come into effect on 10
The Government recently gazetted that those new statutory
provisions on shadow companies will come into effect on 10 December
The chief weapon introduced is the new power of the Companies
Registrar to act upon orders by Hong Kong courts to direct a shadow
company to change its company name to one not including the
prohibited brand name(s). If the shadow company fails to comply,
the Registrar can proceed to replace the objectionable part(s) of
the company name with its registration number.
Once the new law becomes effective, brand owners who have
obtained a favourable court order can invoke this new power of the
Registrar by submitting a sealed copy of court order and a
prescribed form of the Registrar (to be made available on the
Over the years, we have represented brand owners in over 350
cases against shadow companies in Hong Kong. From our experience,
many brand owners face practical difficulties in ensuring those
shadow companies do change their objectionable names as required by
the court orders. While in the past we have through various means
helped our clients achieve their objectives, we believe the new law
would provide a cost-effective alternative to assist the
enforcement of those court orders.
Copyright 2010. JSM, Mayer Brown International LLP
and/or Mayer Brown LLP. All rights reserved. Mayer Brown is a
global legal services organization comprising legal practices that
are separate entities ("Mayer Brown Practices"). The
Mayer Brown Practices are: JSM, a Hong Kong partnership, and its
associated entities in Asia; Mayer Brown International LLP, a
limited liability partnership incorporated in England and Wales;
and Mayer Brown LLP, a limited liability partnership established in
the United States. The Mayer Brown Practices are known as Mayer
Brown JSM in Asia.
This article provides information and comments on legal
issues and developments of interest. The foregoing is not a
comprehensive treatment of the subject matter covered and is not
intended to provide legal advice. Readers should seek specific
legal advice before taking any action with respect to the matters
discussed herein. Please also read the JSM legal publications Disclaimer.
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