Hong Kong to Introduce Corporate Rescue Regime and Insolvency Trading Regime

14 December, 2020
After abortive attempts in 2000-2001, 2008-2009, and 2014 to introduce a statutory corporate rescue procedure, the Hong Kong Government has recently announced in a paper submitted to the Legislative Council that it will present the Companies (Corporate Rescue) Bill (the “Bill”) to the Legislative Council in early 2021. Once enacted, the Bill will introduce a … Read more

IS THE JUICE WORTH THE SQUEEZE?

10 December, 2020
This post refers to the Court of Appeal decision in Shandong Chenming.  The Court of Final Appeal has in May 2022 further considered the second core requirement in Shandong Chenming. See our blog post here. The natural and most appropriate jurisdiction in which to wind up a company is its place of incorporation. The Hong … Read more

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

03 December, 2020
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

16 November, 2020
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

06 November, 2020
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 Hong Kong Court of First Instance dismissed the provisional liquidator’s application for directions on the distribution of funds, and explained that an application under section 200(3) of … Read more

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

28 October, 2020
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

28 October, 2020
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