Understanding the Significant Controllers Register (SCR)
The Significant Controllers Register (SCR) is a legal document that needs to be properly kept by companies in Hong Kong. According to the Companies Ordinance (Chapter 622 of the laws of Hong Kong), all companies registered in Hong Kong (except for publicly listed companies) are required to establish and maintain a SCR to record the information of significant controllers within the company.
Who is Considered a Significant Controller?
A "Significant Controller" refers to an individual or a legal entity that has or controls more than 25% of the rights in the company. This could be a shareholder of the company, or someone who has significant influence over the company.
Purpose and Importance of the Register
The main purpose of this register is to increase corporate transparency and assist in combating financial crimes such as money laundering and terrorism financing. Maintaining the update and accuracy of this register is a legal obligation of the company, and if this requirement is not met, the company and its responsible persons may need to bear the corresponding legal consequences.
Access to the Significant Controllers Register
When necessary, the Companies Registry of Hong Kong or law enforcement agencies can request to see this register. However, this register is not open to the public and cannot generally be viewed by the public.