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

Good faith in bad times

Can a good faith obligation under PRC law preclude a party from bringing a winding up petition in Hong Kong? A recent Hong Kong Court of First Instance suggests not. In Harbor Prosper (HK) Investments Ltd v. Elegant Profit (Hong Kong) Ltd [2020] HKCFI 2261, the respondent to a winding up petition argued that it … Read more

HONG KONG: RECOVERING BONUSES FROM EMPLOYEES – PART 2

In a previous article we discussed circumstances where an employer may seek damages against an employee who has engaged in serious misconduct or been seriously negligent at work. In the recent case of Xu Yi Jun v GF Capital (Hong Kong) Ltd [2020] HKCA 663, the Court of Appeal considered whether it is permissible for … Read more

English Court of Appeal considers application of “SAAMCO” principle in context of auditor’s negligence case

The English Court of Appeal has held that, where an auditor negligently failed to detect management’s dishonest concealment of the claimant’s insolvency, it was liable for the losses suffered by the claimant in continuing to conduct its loss-making business: Assetco Plc v Grant Thornton UK LLP [2020] EWCA Civ 1151. While the decision recognises that … Read more

HERBERT SMITH FREEHILLS UPDATES ESSENTIAL GUIDE TO DISPUTES CLAUSES IN CHINA CONTRACTS

Herbert Smith Freehills has launched the 8th edition of its guide, “Dispute resolution and governing law clauses for China-related commercial contracts‎”. Better known as “The Dragon Book“, this practical guide explains how Mainland Chinese law affects parties’ choice of law and dispute resolution in China-related contracts.‎ Join us for a launch webinar on Wednesday 9 … Read more