BACKGROUND

2. The draft bill 2004 includes changes arising from recommendations 2.18, 2.19, 2.21, 2.22, 2.24 and 5.8 made by the Company Legislation and Regulatory Framework Committee ("CLRFC") in their Final Report first published in October 2002 These recommendations relates to the following:

	Abolishing the concept of par value and authorized share capital.
	Introducing an alternative capital reduction process which does not require court sanction.
	Liberalising the financial assistance restrictions to allow financial assistance to be provided under additional circumstances.
	Allowing share-buyback to be funded out of profits as well as capital where supported by a declaration of solvency.
	Allowing repurchased shares to be held as treasury shares.
	Introducing a more effective and efficient statutory form of merger/amalgamation process.

Please click here if you wish to view the CLRFC Final Report containing the recommendations. Please click here for the highlights of the draft Bill.

PUBLIC CONSULTATION

3. MOF would like to invite interested parties to provide comments on the draft Bill. Whilst specific queries have been raised in the bill to facilitate the feedback process, you may comment on any other matters not specifically raised. A copy of the draft Bill can be downloaded here.

FEEDBACK CHANNEL

9. Respondents may send in their comments, in the prescribed template, via:

The Ministry would request that all comments be submitted by 20 September 2004. Thank you.