Principles of Hong Kong Law and the Companies Ordinance
A short but examinable foundation: Hong Kong's common-law system preserved under the Basic Law, and the company-law rules that govern how companies are formed and how they may raise money from the public.
Legal system and company law
Under Article 8 of the Basic Law, the common law, rules of equity, ordinances and customary law previously in force are maintained, so Hong Kong runs a common-law system distinct from the Mainland's civil-law system. Company law is set out in the Companies Ordinance, with prospectus and public-offer requirements in the Companies (Winding Up and Miscellaneous Provisions) Ordinance. A public offer of shares generally requires a registered prospectus meeting statutory content requirements; a private company is prohibited from offering its shares to the public.