Beautician Challenges Billionaire Over New Hong Kong Privacy Law
March 5, 2013 Leave a comment
Beautician Challenges Billionaire Over New Hong Kong Privacy Law
Late last year, staff at a shuttered Hong Kong beauty salon turned to company filings to track down the boss they say vanished owing them HK$900,000 ($116,000).
Man Lee, 32, said she and five colleagues got some money back after protesting at another office they linked to their former employer.
Now, Hong Kong’s government wants to restrict public access to records of corporate directors. The move may make it harder for workers like Man to track down runaway bosses — and erode the city’s reputation by making it easier to launder money and cheat on taxes, according to lawyers, corporate transparency advocates and the former head of the Companies Registry.
“The less transparent a corporate entity is, then the greater the scope for criminal malpractice,” said Gordon Jones, Hong Kong’s registrar of companies from 1993 to 2007. “The free flow of information is Hong Kong’s big competitive advantage.”
Hong Kong, a part of China with its own legal system and currency, has Asia’s second-largest stock market by value, data compiled by Bloomberg show. It’s also the top destination for cash outflows from the mainland, totaling $525.6 billion by the end of 2011, according to official trade data. Greater secrecy increases the temptation for companies to launder assets through the former British colony, according to Jones.
Small businesses, due diligence firms and journalists are among those opposing the legal change to be put before lawmakers in May. The proposal will prevent the public accessing directors’ full identification numbers and home addresses. Read more of this post




