BDO Hong Kong Debunks BDO China Merger Speculation
by Mary Swire, Lowtax.net, Hong Kong
16 September, 2014
Accountancy and business advisory group BDO Hong Kong has refuted speculation about a tie-up between it and BDO China, stating that: "Under the current legal and regulatory environment between Mainland China and Hong Kong, and different firm cultures, both it and BDO China have agreed that a merger will not be realized in the short term."
BDO Hong Kong confirmed that it has been "in discussion with BDO China since last year for closer cooperation with the aim of providing exceptional service to clients which operate in both jurisdictions." BDO Hong Kong clarified that BDO China does not have any equity interest in the firm.
Albert Au, Chairman of BDO Hong Kong, said: "The concept of territorial integrity is fundamental within the BDO network. Each BDO member firm is allocated a territory on an exclusive basis and work in a given territory should be carried out by the member firm to which that territory is allocated. Not respecting the exclusivity obligation and/or the territorial integrity of another member firm is a serious infringement of the regulations which govern the behavior of fellow BDO member firms."
"The establishment of the two subsidiary companies, Shu Lun Pan Union (HK) CPA Limited and BDO China Shu Lun Pan (HK) Management Limited by BDO China in Hong Kong clearly violated BDO's regulations and we have requested that these companies be closed immediately," he added.
"As you would imagine," Albert concluded, "this could have and has caused market rumors for BDO in Hong Kong, and is highly unsatisfactory. BDO Hong Kong is confident that this matter would be resolved satisfactorily in the current discussion with BDO China and with the involvement and support of BDO International."
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