Hong Kong journalists and academics fear new requirement when using online companies register
Need to declare reason for search means reporters and members of the public could be exposed to legal risks
A new move by the Companies Registry meant to protect the privacy of those serving as company directors has backfired, sparking concerns about a possible curb on corporate transparency and the free flow of information.
Under the new arrangement, which came into effect on Sunday, users seeking particulars of registered companies or their directors through the registry’s online search service must declare a reason for doing so.
And they may expose themselves to legal risks should they not use the personal data collected for the purpose they have declared.
The registry said the requirement was introduced to prevent the abuse of personal particulars in the wake of a privacy commission report last year. It also said the move was in line with the Companies Ordinance.
But reporters, academics and researchers have expressed reservations. The Hong Kong Journalists Association is expected to meet registry officials on Tuesday to discuss the arrangement.
Company searches have been a powerful tool for investigative reporting. In a recent example, the flat-swap deal scandal involving permanent secretary for home affairs Betty Fung Ching Suk-yee could not have been uncovered if the media had not been able to dig out particulars of the companies involved.
Corporate transparency advocate David Webb, who has been drawing together publicly available data to build databases of companies and organisations, said the move went against the global trend of enhanced transparency.
Webb said: “I see there is no checkbox for the purposes of journalism and research.
“It seems that in the wake of the Panama Papers, Hong Kong is seeking to move backwards towards greater secrecy, aiding and abetting fraud and corruption, at the same time as other countries are moving forward with transparency.
“Last year, the UK Companies Registry put everything online for free open access.”
Civic Party lawmaker Claudia Mo Man-ching said: “I think the Companies Registry should add ‘news reporting’ as an option … or it would be best if it restored the website as it was. [The public impression has been that] press freedom has been worsening in Hong Kong, and it was worrying and suspicious for the registry to make the change.”
Chinese University journalism professor Dr Clement So York-kee questioned why the change was needed. “I can’t really see how such a requirement is helping to protect personal privacy … yet it could be an obstacle for journalists and residents.”
“It is also unfavourable for the free flow of information in society and for journalists to do their job as society’s monitor.”
At the centre of the controversy are nine purposes a user must choose from. Six of the listed purposes are about whether the searcher has any dealing with a company or its directors. Others include ascertaining the particulars of a company, its directors or former directors.
The user can check one or more of the purposes and also has to affirm that “the personal data obtained from the search should only be used for the stated purposes”. No one can use the register without a declared reason.
Privacy Commissioner Stephen Wong Kai-yi said the registry had struck a balance between the protection of privacy and access to information.
“There is no need for journalists to be overly worried,” said Wong, citing exemptions in the privacy law that cover, among other things, news activities and archiving.
However, he agreed that an extra checkbox for “news reporting in the public interest” could be considered if reporters believed it could offer them better protection for their work. But it would be up to the registry whether to adopt it or not, he said.
Additional reporting by Tony Cheung and Gary Cheung