Will you stay no longer? Hong Kong Companies Court considers general stay provisions in recognition orders

When the Hong Kong Court recognises offshore soft-touch provisional liquidation, will there be an automatic stay of proceedings in Hong Kong? Recently, in Re FDG Electric Vehicles Limited [2020] HKCFI 2931, the Companies Court answered “no”. In doing so, the Court revisited the wording of the standard-form recognition order. Soft-touch provisional liquidations A soft-touch provisional … Read more

HONG KONG: NO TIME TO WASTE WHEN ENFORCING NON-COMPETE COVENANTS

The recent case of AB Club Ltd & Anors v Chan Yin Ki Cubie & Anors [2020] HKCFI 2769 reinforces the need for speed when seeking to enforce post-employment covenants. Any undue delay, even if only a matter of weeks, may mean a Court refuses to grant an interim injunction. Read more

To ask or not to ask? That is the question

In Joint And Several Provisional Liquidators Of Hsin Chong Construction Co Ltd (Provisional Liquidators Appointed) v. The Chinese University Of Hong Kong And Others [2020] HKCFI 2434, the Court dismissed the provisional liquidator’s application for directions on the distribution of funds, and explained that an application under section 200(3) of the Companies (Winding Up and … Read more

ENFORCING COURT CAN GRANT WIDER RELIEF THAN AWARD, SAYS HONG KONG COURT

The long-running case of Xiamen Xinjingdi Group Co Ltd v Eton Properties Limited and Others [2020] HKCFA 32 finally came to an end when the Court of Final Appeal (the CFA) handed down its decision on 9 Oct 2020. In the judgment, the CFA clarifies that in a common law enforcement action on an arbitral … Read more

Statutory but not mandatory – a reminder of the first principles

Statutory demand is a common and important tool in the winding up process. But recently, the Hong Kong Court of First Instance has reminded us that it is by no means a must. In Synergy Lighting Ltd v Hongkong and Shanghai Banking Corp Ltd [2020] HKCFI 2490, the Court emphasised that even though the requirement … Read more

HONG KONG: EXECUTIVE DOUBLE-HATTING AND DEEMED EMPLOYMENT RISKS

Having executives work across group companies is common as it can allow operational and cost efficiencies while keeping the underlying employment relationships simple. In its recent decision in Yung Wai Tak Abraham William v Natural Daily (NZ) Holdings Ltd [2020] HKCFI 2067, the Court of First Instance of the High Court (“CFI”) found a group … Read more

HONG KONG: RESIGNATION, REPUDIATION OR DISMISSAL?

In the recent decision of Lam Sin Yi Sindy v Leung King Wai William [2020] HKCFI 2525, the plaintiff challenged her former employer’s treatment of the termination of employment as a resignation. The decision is a useful reminder of the legal principles in relation to valid notice of termination and the perils of accepting a … Read more