Did you know...
it has been argued that a factoring arrangement over invoices of a company could be challenged as a charge over book debts and thus is void against liquidators of the company unless registered under section 80 of the Companies Ordinance.
It is not uncommon to see that the law governing a loan document is different from that of the debtor company’s place of incorporation. Can the rights of the lender be altered by a restructuring plan sanctioned in the latter? The English court said “no” in a recent case1, applying the longstanding Gibbs rule that also applies under Hong Kong law.
Background
Introduction Hong Kong At a Glance Population: 7 million Languages: English, Cantonese and Mandarin Time zones: 8 hours ahead of Greenwich Mean Time Climate: Subtropical with long, hot summers and pleasant temperate winters Political System
Did you know...that the Official Receiver retains its right to ad valorem fees (relating to pre-conversion realisations) pursuant to the Companies (Fees and Percentages) Order (Cap 32C) (“Fees Order”) on conversion of a compulsory liquidation to a creditors’ voluntary winding-up.
Recent developments
The Hong Kong Government has released its major proposals for introducing a new statutory corporate rescue procedure. At the same time, it has published the consultation conclusions for improving the corporate insolvency and winding up provisions in the Companies (Winding Up and Miscellaneous Provisions Ordinance) (Chapter 32) (“C(WUMP)O”). The Government plans to introduce an amendment bill into the Legislative Council in 2015.
Implications for companies
The Protection of Wages on Insolvency (Amendment) Ordinance 2012 (the “Ordinance”) was passed by the Legislative Council on 18 April 2012 and came into force on 29 June 2012.
Under the Ordinance, the scope of the Protection of Wages on Insolvency Fund will be expanded to cover:
Welcome to the fifth edition of Baker & McKenzie's quarterly Asia Pacific Financial Services & Regulatory Newsletter.
Dispute Resolution Beijing/Hong Kong/Shanghai Client Alert Court of Final Appeal Widens Shareholders’ Rights for the Winding-up of Foreign Companies in Hong Kong The Court of Final Appeal’s recent decision in the Yung Kee saga (Kam Leung Sui Kwan, Personal Representative of the Estate of Kam Kwan Sing, the deceased v Kam Kwan Lai & Ors (FACV 4/2015, 11 November 2015)) has widened the door to winding-up relief for shareholders of foreign companies.
Dispute Resolution Beijing/Hong Kong/Shanghai Client Alert Creditors Petitioning for Bankruptcy Beware: Absconding Bankrupts May Walk Free After Staying Away from Hong Kong for 4 Years Recent developments The Hong Kong Court of Final Appeal (“CFA”)1 has ruled unconstitutional a provision under the Bankruptcy Ordinance (“Ordinance”) that prevents the period of bankruptcy from commencing when a bankrupt is not in Hong Kong.
The Hong Kong court in Re The Joint Liquidators of Supreme Tycoon Limited (in liquidation in the British Virgin Islands) (08/02/2018, HCMP833/2017), [2018] HKCFI 277 (“Re Supreme Tycoon”) has, for the first time, granted recognition and assistance to foreign liquidators appointed in a creditors’ voluntary winding-up.