From a civil litigation and insolvency perspective, we look at the key impacts of the Hong Kong Courts’ recent General Adjournment of Proceedings (GAP) from 7 March 2022 to 11 April 2022 and related governmental closures.
Key Takeaways
1. The recent implementation of GAP has resulted in a de facto stay of new actions and proceedings, and adjournment of existing actions, including bankruptcy and winding-up petitions.
In a hearing yesterday, 6 April 2022, the High Court considered an application of the directors of VTB Capital PLC (VTB UK) for the appointment of Teneo Financial Advisory Limited as administrators.
In what Mr Justice Fancourt described as “an unusual case in all sorts of ways”, the English High Court was faced with a number of questions relating to how the UK’s insolvency regime can interact with the sanctions packages introduced in response to Russia’s invasion of Ukraine.
1. Introduction
The winding up of insolvent companies in Hong Kong is governed by the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Chapter 32 of the Laws of Hong Kong) (“CWUMPO”), the Companies (Winding-up) Rules (Chapter 32H) (“CWUR”) and case laws. They provide the legal source of civil liabilities for directors, shareholders and senior management.
2. Directors
In a decision delivered on the 13th March 2022, case no. 246/2018 ISB, the Civil Court (Commercial Section) placed the defendant company into liquidation on the ground that it was unable to pay its debts, after considering and concluding that the circumstances that had previously led the Court in the same case to determine the existence of a bona fide dispute and consequently suspend the hearing of the liquidation proceedings, no longer existed.
As we previously reported, certain temporary bankruptcy code amendments that Congress originally enacted in connection with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) expired as of
In the recent case of Baker v Financial Conduct Authority (Re Ipagoo LLP) [2022] EWCA Civ 302 the Court of Appeal has given useful guidance on the interaction of the Electronic Money Regulations 2011 (EMRs), which implemented the EU Electronic Money Directive (EMD), with the Insolvency Act 1986 (the 1986 Act), in respect of the status and basis of the Asset Pool, and the waterfall of payments where there is a distribution from an insolvent estate.
Vigilantibus, et non dormientibus, jura subveniunt is a noted maxim which means ‘the laws assist those who are vigilant, not those who sleep over their rights‘ . This is a pertinent principle which applies predominantly while determining if a particular cause of action has been espoused within the limitation period.
Two years into the pandemic, policymakers struggle to strike a balance between mitigating the ongoing human costs of the crisis and exacerbating the financial strain caused by economic support measures. The 2022 World Development Report (Report) considers the central role that finance will play in enabling countries to recover economically from the pandemic, which in 2020 caused the global economy to shrink by approximately 3% and led to the largest singleyear surge in global debt in decades.
“Retail apocalypse” was the phrase coined to describe the anticipated demise of the brick-and-mortar retail store in the face of the unparalleled convenience of online shopping and other electronic commerce. Over the past decade, in response to the challenges faced by the changing retail landscape, many shopping centres tried to “e-proof” their properties by emphasizing in-person experiences that can be provided through salons, arcades, movie theatres and restaurants.
El reconocimiento de un derecho de separación por el atesoramiento abusivo de beneficios supone un mecanismo de protección de la minoría. Su ejercicio, sin embargo, puede resultar perjudicial para la sociedad, que tendrá que abonar al socio saliente el valor de su participación. Por este motivo, siempre se ha planteado la posibilidad de enervar, de algún modo, el ejercicio del derecho. La Sentencia del Tribunal Supremo de 25 de enero se ocupa de un caso de esta naturaleza reconociendo, en un supuesto muy concreto, el carácter abusivo del ejercicio del derecho de separación.