What Is a Corporation Group?

A group company refers to a multi-level, multi-level, monopoly joint organization composed of several companies. Generally speaking, the company group itself is not an independent legal person organization, and its members are independent legal persons. A company that is a member of a company group has its own name and articles of association, has its own property and accounts, and conducts business activities in its own name. The combination of member companies in the company group is various and diverse, and it is not just a combination of parent and subsidiary companies.

Group of companies

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A group company refers to a multi-level, multi-level, monopoly joint organization composed of several companies. Generally speaking, the company group itself is not an independent legal person organization, and its members are independent legal persons. A company that is a member of a company group has its own name and articles of association, has its own property and accounts, and conducts business activities in its own name. The combination of member companies in the company group is various and diverse, and it is not just a combination of parent and subsidiary companies.

Chinese name

Group of companies

Foreign name

group companies

Independent

Have own property and accounts

Member combinations

Tight and varied

In order to protect investors, the Company Regulations make the following main provisions for company groups:

1. A private company owns any subsidiary, or a subsidiary of another company formed and registered under the Companies Ordinance, or a subsidiary of an existing company. Exemptions under section 141D (section 141D (3) of the Companies Ordinance);

2. At the end of the financial year, the group of companies shall submit the group accounts to the company for inspection (Article 124 of the Company Regulations). The group accounts submitted to the company for inspection must truthfully and fairly reflect the overall affairs and profits or losses of the company members and the subsidiary companies dealt with (deal with) related to company members (section 126 of the Companies Ordinance) ;

3. Article 142 or 143 of the Companies Ordinance has appointed an inspector to investigate the affairs of a company. If the company is considered to be a member of a group of companies, the inspector may investigate other companies within the group to complete the investigation. The affairs of the member company (section 144 of the Companies Ordinance);

4. A company is a member of a group of companies, and the directors of any of these companies have suggestions on the disposal of any fixed assets, such as the amount or value of the consideration for the proposed asset disposal and the fixed assets disposed of during the relevant period. The sum of the amount or value of the consideration exceeds 33% of the value of the fixed assets shown in the company's most recent balance sheet submitted to the company for review at the meeting, and the proposal must not be implemented unless the company has approved it at the meeting .

Within the group, each member company is not only independent, but also interrelated and constrained. This is a manifestation of the balance between the interests of the company group, the interests of member companies, and the interests of investors.