ESG reporting stands as a critical pillar for businesses in Hong Kong that aim to align with global standards of sustainability and ethical practices. This guide delves into the essentials of ESG (Environmental, Social, and Governance) by learning what it is and its difference from sustainability, and further covers the crucial role of ESG reporting and the best practices for it, ensuring your business not only meets regulatory expectations but also capitalises on the opportunities presented by sustainable business practices.

Adapting to change is vital for the survival of any business, and if you’re exploring how to respond to the changing landscape in your market, you will have heard the term business transformation.

Business transformation describes the fundamental and significant changes that an organisation undergoes to improve its operational and financial performance, competitiveness and strategic position. It can involve transforming technology and digital applications, people, culture, organisational structure, processes and strategy.

Successful business transformation requires strong leadership, effective communication and the commitment of the entire organisation to embrace change; in short, it requires an effective change management strategy and execution.

A subset of business transformation is another industry buzz phrase; digital transformation. It is common knowledge that the effective use of technology improves business efficiency, reduces costs and ensures compliance. However, adjusting to the expectations of digital-savvy consumers can be a major challenge for businesses in Hong Kong.

This article discusses the imperatives of digital transformation in relation to payroll and finance functions for Hong Kong businesses and the challenges this entails. It also explores solutions, with advice for business leaders and entrepreneurs on how they can successfully embrace the transformation of these key functions for the future health of their businesses.

On 28 February 2024, Hong Kong’s Financial Secretary, Mr. Paul Chan presented the 2024-25 Budget, themed ‘Advance with Confidence, Seize Opportunities, Strive for High-quality Development’.

Hong Kong faced unexpected challenges during the fiscal year 2023-24, resulting in slower economic growth and a larger fiscal deficit than anticipated. To address these issues, the 2024-25 Budget adopted a fiscal consolidation strategy and outlined a comprehensive plan aimed at stimulating economic growth and enhancing competitiveness.

Our exclusive commentary on the Hong Kong Budget 2024-25 offers insights into the key tax proposals announced, which will impact businesses and individuals.

• Global Tax Initiative
• Profits Tax Relief
• Tax Incentives
• Other Key Measures and Proposals
• Other Duties and Charges

Download our commentary now to understand how you can navigate these changes with confidence.

Our tax team will be conducting a webinar at 11am-12pm on 14 March, guiding you through some of these key changes. Click here to register for your complimentary seat.

Performance Share Plans (PSPs) have emerged as a crucial component in driving corporate success and aligning employee interests with business objectives in Hong Kong. As a sophisticated form of Employee Share Option Plan (ESOP), PSPs in Hong Kong are designed to offer long-term incentives to employees. In this essential guide, we delve into the fundamental knowledge of PSPs and how they can strategically improve business performance, leveraging their power for long-term growth and success.

Restricted Share Plans (RSPs) have taken centre stage as a key mechanism for fostering employee loyalty and driving organisational success in Hong Kong. In this guide, we explore the essentials of RSPs, their role in aligning employee efforts with corporate goals and their impact in cultivating a committed and performance-driven workforce.

In Hong Kong, the appointment of a company secretary for a limited company is mandatory from company incorporation. As a business leader, you may choose to hire a company secretary internally or engage the company secretarial services of an external team.

Given the pivotal role of the company secretary in contemporary Hong Kong, your choice will have significant impacts on the operation, safety and future direction of your company.

To guide you in making an informed decision, we turn to Esther Choy, Head of Corporate Secretarial for BoardRoom Hong Kong. In this article, Esther shares her views on how an in-house company secretary or an outsourced company secretarial services provider might be the best fit for your business.

The increasing importance of environmental, social and governance (ESG) issues in corporate Hong Kong has directed attention towards the payroll function, with many leadership teams now prioritising payroll compliance as part of their planning.

Today, the benefits of robust payroll systems are plentiful; beyond supporting regulatory compliance, they bolster your organisation’s reputation and foster a positive work culture internally.

In this article, Ken Wong, Managing Director for Payroll for Asia, and Miles Ng, Associate Director, Business Development, explain the significance of payroll compliance for contemporary business leaders and provide advice for engaging quality payroll services in Hong Kong.

The COVID-19 pandemic altered the business landscape of marketplaces worldwide. Adapting to continual uncertainty and change has been necessary for survival. However, as we enter a new age of economic promise, Asia-Pacific enterprises are taking a proactive approach to corporate governance in order to assure a bright future for themselves and the larger economy.

In this article, Samantha Tai, Regional Managing Director for Corporate Secretarial, outlines the significance of corporate governance in Hong Kong. She further discusses how leaders may build values-based governance procedures in order to achieve outstanding results. In addition, we look at how the company secretary may advise and execute best-practice corporate governance measures to full effect.

Historically, the corporate secretary was a primarily administrative role and held minimal influence with the board. Today however, as a member of senior management and a statutory officer, the company secretary now handles various critical obligations for the organisation.

Company secretaries act as a connection between the board of directors, senior management and the company’s stakeholders (including regulatory bodies). This is in addition to their role in administrating crucial undertakings such as minutes taking, secretarial compliance and also company incorporation. Other duties include utilising digital technology, such as board management and ESG software, to strengthen board and shareholder procedures and improve corporate governance. Furthermore, because they are well-versed in local laws, they can guarantee that corporate governance standards are established, followed and evaluated on a regular basis.

The present responsibilities of the company secretary, according to Samantha, are clearly defined in the Corporate Governance Guide for Boards and Directors.

“In Hong Kong, the company secretary’s views on corporate governance are sought since they attend all board meetings, are familiar with relevant regulations and understand compliance needs,” she explains. “They advise the board on corporate governance practices that must be implemented. This might be related to the board’s structure or the company’s rules and code of ethics.”

They also assist publicly traded corporations in demonstrating corporate governance in their annual reports, including any alternative means utilised to attain the same goals.

Company secretarial responsibilities have become so synonymous with corporate governance that the Institute of Company Secretaries in the United Kingdom and the Institute of Chartered Secretaries and Administrators in Australia have both rebranded to the ‘Chartered Governance Institute’, with other regions expected to follow suit.

In Hong Kong, The Hong Kong Chartered Governance Institute unveiled its new brand identity in Jan 2022. Aiming to reflect its unique position and critical role as highly qualified experts in corporate governance in Hong Kong and the Mainland China, and as the China Division of the Chartered Governance Institute, an international organisation with nine Divisions globally.

While it is critical to ensure that your corporate governance policies and yearly reports are up to date, effective governance cannot be accomplished simply with documentation. According to Samantha, integrated reporting will most likely become essential in the coming years.

“Integrated reporting is a method based on integrated thinking that communicates how a company’s strategy, governance, performance and prospects lead to value generation,” Samantha explains. “It gives your yearly report more weight.”

Rather than viewing reporting simply as a compliance exercise, embarking on an integrated reporting journey provides for improved employee engagement and value generation.

Because all members of an organisation play a role in achieving good governance, it is equally critical to spend time articulating the importance of corporate governance to board members and personnel. You may do this by demonstrating how corporate governance standards are valuable instruments for improving business performance rather than arbitrary duties that must be completed.

“Successful corporate governance is interwoven into the company’s day-to-day activities,” Samantha explains. “It’s not merely a compliance policy.”

Developing a corporate culture that prioritises Environmental, Social and Governance (ESG) can significantly elevate a company’s corporate governance. By integrating ESG considerations into business strategy, decision-making processes, and daily operations, you can demonstrate a solid commitment to ethical and responsible practices.

According to Samantha, corporate governance issues are often overlooked by many CEOs due to their focus on navigating a challenging economy.

Regulators are urging increasing board engagement in ESG efforts in the interests of top-down corporate governance, with country-specific compliance requirements changing on a regular basis. Board directors are better placed to account for ESG risks and make choices that increase shareholder value. As a result, more emphasis is placed on developing a complete ESG strategy that benefits not just the organisation, its shareholders and the environment but also its employees. This leads to long-term financial performance and value creation for all stakeholders.

The strength of your corporate governance policies, practices and structures in the coming years will determine your business’s immediate and long-term prosperity.

It is critical that your business’s board of directors and management team embrace its governance structure, but it is also critical that your company secretary steers its success. Choose a company secretary with diverse knowledge, strong ethics and exceptional communication skills for optimal results.

Having an expert company secretary handle your corporate governance frees up your executive team to focus on other essential business objectives such as digital transformation.

Contact BoardRoom’s corporate secretarial experts to learn how we can assist your company in meeting its corporate governance objectives.

If your firm intends to expand throughout the Asia-Pacific region (APAC), outsourced accounting services can help you achieve seamless business growth in an unpredictable economic climate.

Given the complexities of the accounting function, it is common for business owners to be intimidated by the notion of hiring outside staff. In this article, we will look at how outsourcing can be used to create a smart business model and what actions you should take to guarantee a smooth transition.

A good provider will prioritise the critical tasks that require attention. Once things are under control, they will collaborate with you to develop a comprehensive end-to-end accounting solution for your company, as well as a tailored approach to advice.

To set the initial onboarding and subsequent relationship up for success, evaluate who in your organisation is most suited to engage with them directly.

The designated individual might be a finance manager, CEO, firm owner or director; the most essential thing is that they have extensive financial expertise and can discuss financial topics in depth. This will also assist in guaranteeing that the final solutions are matched to your specific requirements.

An expert accounting team working in close partnership with your internal team is critical to ensuring a smooth and lucrative trajectory, regardless of where you are in your expansion journey.

Please contact us to learn more about BoardRoom’s world-class accounting and bookkeeping services, as well as our complementary payroll outsourcing and tax advisory solutions.