In this week’s update: an updated checklist for managing an electronic signing on a corporate or commercial transaction, the FCA and AIM are to bring an end to temporary relaxations introduced due to Covid-19 and the court orders a listed company to be wound up on “just and equitable grounds.
Good afternoon.
Following are this week’s summaries of the Court of Appeal for Ontario for the week of March 21, 2022.
Areas of law covered in the cases this week included bankruptcy and insolvency (setting aside discharge from bankruptcy and after-acquired property), municipal liability for building inspections, two child protection decisions, guarantees and a partnership dispute.
Wishing everyone an enjoyable weekend.
Table of Contents
Civil Decisions
A key bankruptcy-related response to the pandemic has ended as the increased debt limits under subchapter V of chapter 11, passed by Congress in the CARES Act, have expired. In an effort to provide bankruptcy relief and access to subchapter V of chapter 11 of the Bankruptcy Code to a greater number of small businesses, Congress raised the debt limit for subchapter V eligibility from the original $2,725,625 million to $7.5 million via the CARES Act, passed in March of 2020.
Re Hsin Chong Construction Co., Ltd.[2021] HKCFA 14
The Company and Build King Construction Limited (“Build King”) entered into a joint venture agreement (the “JV Agreement”) in November 2013 to form and operate a joint venture (the “JV”). The JV was subsequently awarded a government contract for a major project in June 2016 with the Company taking a 65% interest and Build King the remaining 35%.
Stanford International Bank Ltd (in liquidation) v HSBC Bank PLC[2021] EWCA Civ 535
Stanford International Bank Limited (“SIB”), which collapsed into liquidation in 2009, held multiple accounts with HSBC between 2003 to 2009 (“Accounts”). SIB had debts in excess of US$5 billion arising from its being used as the vehicle for one of the largest Ponzi schemes in history. The liquidators of SIB (“Liquidators”) made two claims against HSBC as follows:
Ho Man Kit And Another v Lo Siu Chu Judy And Another[2022] HKCFI 133
The Plaintiffs in this case were the joint and several trustees of Li Bao Tian (“B”), who was adjudged bankrupt on 7 December 2016. The 1st and the 2nd Defendants (collectively, “Defendants”) are mother and son. B was in an intimate relationship with the 1st Defendant, albeit whilst legally married to another woman and is the father of the 2nd Defendant.
Lee Siu Fung Siegfried[2021] 5 HKLRD 627
In January 2001, a bankruptcy petition was presented against Mr. Lee Siu Fung Siegfried in respect of a HK$322 million debt arising out of a guarantee given by him. In or around September 2016, the trustees in bankruptcy obtained an order for the private examination of Mr. Lee and the Applicants, who are the younger brother and son of Mr. Lee.
Here’s a vindication for the Small Business Administration’s discrimination against bankruptcy debtors:
Re So Tsz Man[2021] HKCFI 3732
This case concerns the self-petitions presented by four debtors for their own bankruptcy (the “Four Petitions”). The Four Petitions (i.e. Re So Tsz Man(HCB 7033/2020), Re Lee Wing(HCB 7299/2020), Re Tam Wai Yiu(HCB 7569/2020) and Re Qiu Wenjun(HCB 3930/2021) shared a substantial similar fact pattern:
Re Hsin Chong Construction Co Ltd (Provisional Liquidators: Application for Directions)
[2021] 5 HKLRD 212, [2021] HKCA 1581