Does the Hong Kong Companies Ordinance ("Ordinance") contain provisions that deal with "shadow companies" set up with no active business in Hong Kong, but are used to attempt to legitimize infringing activities in Mainland China or elsewhere?

The Ordinance contains two sections that were specifically enacted in order to address shadow companies:

1. Section 22(2), which enables the Registry to direct a company to change its name if, in the opinion of the Registry, it is "the same as" or "too like" an existing registered company name, provided an application is made to the Registry within 12 months of the date of registration of the company.

2. Section 22A, which enables the Registry to direct a company to change its name if, in the opinion of the Registry, "the name by which a company is registered gives so misleading an indication of the nature of its activities as to be likely to cause harm to the public." There is no time limit for an application under Section 22A.