A new chapter of mutual recognition and enforcement of judgments between Mainland and Hong Kong: Hong Kong sets a date to implement the Mainland Judgments in Civil and Commercial Matters (Reciprocal Enforcement) Ordinance (Cap. 645)

Introduction and legislative history Recently, on 10 November 2023, the Hong Kong Government announced that the Mainland Judgments in Civil and Commercial Matters (Reciprocal Enforcement) Ordinance (Cap. 645) (the “Ordinance“) will become effective on 29 January 2024. This marks a new chapter for mutual recognition and enforcement of judgments in Mainland and Hong Kong. The … Read more

SINGAPORE COURT OF APPEAL DECISION HIGHLIGHTS THE IMPORTANCE OF ACCURATE INTERNAL SANCTIONS ASSESSMENTS IN CONTRACTUAL RISK MANAGEMENT

If an internally maintained sanctions list returns red flags, but the entity is not on an official sanctions list, is that sufficient to justify activating a sanctions clause to deny payment to that party? What considerations should financial institutions take into account when managing risk in dealing with sanctioned, or potentially sanctioned, entities? These are … Read more

When informal workouts don’t work out: English High Court rules bank that lent support to restructuring did not dishonestly assist in putting assets beyond creditors’ reach

In the current economic climate, more and more companies are getting into financial difficulties, informal workouts by debtor companies, with support from certain creditors, seem to be increasingly common. The latest English High Court decision of Henderson & Jones Ltd v Ross & Ors [2023] EWHC 1276 (Ch) highlights a possible litigation risk for the … Read more

PRC ADOPTS COMMERCIAL EXCEPTION TO STATE IMMUNITY

The PRC has passed a new law which will apply the “restrictive” approach to foreign state immunity with effect from 1 January 2024.  As a result, foreign states will not be granted immunity from suit or execution in the PRC in respect of commercial activities.  The PRC government has indicated that the same approach should … Read more

English High Court gives guidance on the so-called creditor duty where a company faces solvency-threatening claim

When a company is in the so-called “twilight zone” approaching insolvency, it is well-established that the directors’ fiduciary duties require them to take into account interest of creditors (the so-called “creditor duty”). In the recent decision of Stephen John Hunt v Jagtar Singh [2023] EWHC 1784 (Ch), the English High Court examined whether it is necessary … Read more