Liquidators examinations and legal professional privilege

Hong Kong's highest court has considered for the second time in recent years the conduct of examinations under section 221 of the Companies Ordinance. That section enables (amongst other things) a court to compel any persons whom it believes may have information concerning the affairs or dealings of a company in liquidation to be examined in private under oath.

Filed under:
Hong Kong, Insolvency & Restructuring, Litigation, Herbert Smith Freehills LLP, Audit, Discovery, Negligence, Liquidation, Writ, Liquidator (law), Tangible property, Legal professional privilege, Ernst & Young, Court of Appeal of England & Wales, High Court of Justice, Court of Final Appeal (Hong Kong)
Location:
Hong Kong
Firm:
Herbert Smith Freehills LLP
Auditor liability

On September 30th, the Sixth Circuit affirmed the dismissal of the bankruptcy trustee's lawsuit against Deloitte & Touche, the debtor's former auditor. The trustee alleged that Deloitte negligently failed to uncover and report unsound related-party transactions by the debtor's sole shareholder and CEO, and aided and abetted the CEO's breach of his fiduciary duty to the debtor. Affirming dismissal, the Court held the trustee failed to allege reliance upon Deloitte's audits and the statute of limitations bars the aiding and abetting claim.

Filed under:
USA, Company & Commercial, Insolvency & Restructuring, Litigation, Winston & Strawn LLP, Bankruptcy, Shareholder, Debtor, Breach of contract, Fiduciary, Statute of limitations, Limited liability partnership, Negligence, Sixth Circuit, Chief executive officer, Trustee
Location:
USA
Firm:
Winston & Strawn LLP