The idea of reforming Hong Kong’s corporate rescue regime was first floated back in 1996. It was introduced in the form of the Companies (Corporate Rescue) Bill 2001 but got nowhere due to differences of opinion. This was returned to the table subsequently in 2003, 2009 and 2014, but nothing ever came to fruition.
Chris Wong and Kenix Yuen have been quoted in an article in Economic Digest on winding up. The article touches on points to note on various situations of winding up including compulsory winding-up and voluntary winding-up.
We recently acted for the joint provisional liquidators of Rare Earth Magnesium Technology Group (“the Company”) appointed by the Supreme Court of Bermuda in a conventional application for the recognition of the Bermuda soft-touch provisional liquidation of the Company.
COVID-19 has created unforeseen challenges to businesses all over the world, resulting in many companies being unable to survive the pandemic. Hong Kong has been no exception. In Hong Kong, according to data published by the Hong Kong Government’s Official Receiver’s Office, in the first seven months of the year, 5219 compulsory bankruptcy petitions and 247 compulsory winding-up petitions were presented, representing 13.7% and 5.1% year-on-year increase respectively. The effect of COVID-19 may yet be fully reflected by these figures.
The ICLG to restructuring and insolvency covers common issues in restructuring and insolvency, including issues that arise when a company is in financial difficulties, restructuring options, insolvency procedures, tax, employees, and cross-border issues.
For directors, the winding up of a company could be judgment day when their past misdeeds come back to haunt them. If insolvency is on the horizon, there are various matters directors should bear in mind lest incurring personal liability if insolvency becomes inevitable.
COVID-19 has created unforeseen challenges for businesses all over the world with an impact so far-reaching that several organisations are no longer able to survive. Governments have swiftly enacted relief measures but the financial consequences of the pandemic on businesses is unprecedented. Some common law jurisdictions have created new insolvency law measures to tackle the uphill struggle businesses face, but what rescue options are available in Hong Kong?
Nick Gall is featured in the latest Who’s Who Legal Thought Leaders: Litigation 2020 guidebook which brings together for the first time the insight, expertise and wisdom of some of the world’s foremost litigation lawyers in a single book.
We are delighted to announce that Gall received a “Disputes and Investigations” Deal of the Year award from China Business Law Journal for our work on the arbitration between CVC and Zhang Lan.
The ICLG to: Corporate Recovery & Insolvency covers common issues in corporate recovery and insolvency – including issues that arise when a company is in financial difficulties, restructuring options, insolvency procedures, tax, employees, cross-border issues, groups and reform – in 31 jurisdictions.
