Asia Disputes Notes

A new chapter of mutual recognition and enforcement of judgments between Mainland and Hong Kong: Hong Kong sets a date to implement the Mainland Judgments in Civil and Commercial Matters (Reciprocal Enforcement) Ordinance (Cap. 645)

Introduction and legislative history Recently, on 10 November 2023, the Hong Kong Government announced that the Mainland Judgments in Civil and …

The Hong Kong Court of Appeal to clarify application of Guy Lam in arbitration in upcoming appeals

By way of an update to the series of recent Court of First Instance decisions on whether a winding up petition ought to be stayed where the underlying …

What is the effect of Guy Lam on winding up petitions involving an arbitration clause? A third voice

Where a winding up petition is based on a debt arising from a contract with a non-Hong Kong exclusive jurisdiction clause, the court will tend to dismiss …

When informal workouts don't work out: English High Court rules bank that lent support to restructuring did not dishonestly assist in putting assets beyond creditors' reach

In the current economic climate, more and more companies are getting into financial difficulties, informal workouts by debtor companies, with support …

Litigation and Arbitration Funding in Hong Kong: Will the UK Supreme Court decision in PACCAR Affect Hong Kong Litigation Funding?

In R. (on the Application of PACCAR Inc) v Competition Appeal Tribunal [2023] UKSC 28 (judgment handed down on 26 July 2023), the UK Supreme Court …

English High Court gives guidance on the so-called creditor duty where a company faces solvency-threatening claim

When a company is in the so-called “twilight zone” approaching insolvency, it is well-established that the directors’ fiduciary duties require them to …

Can you petition for winding up if your debt is subject to arbitration? The debate continues

Following the Court of Final Appeal's landmark decision in Guy Lam, Hong Kong's Court of First Instance (the "Court") considers that winding up petitions …

Not "worthless window dressing": Hong Kong Court declares keepwell deeds are enforceable contractual obligations

In two remarkably similar cases, Re Peking University Founder Group Company Limited [2023] HKCFI 1350 (the “Peking University Case”) …

Hong Kong SFC broadens powers to tackle insider dealing, but puts on hold other proposed measures following industry feedback

"NOTES HOLDERS" WITH INDIRECT BENEFICIAL INTEREST HAVE NO STANDING TO WIND UP ISSUER COMPANY

In Re Leading Holdings Group Limited [2023] HKCFI 1770, the Hong Kong Court has made it clear for the first time that, based on a construction of the …

The Hong Kong Court reiterates that a company remains only a nominal party in unfair prejudice petitions fought between its shareholders

Unfair prejudice petitions are a means for minority shareholders to seek redress against a shareholder said to be in control of the company, on the basis …

English High Court reaffirms decision not to allow activists to proceed with derivative action against Shell

In our recent blog post, we discussed the English High Court's decision to block the shareholder derivative action commenced by an activist shareholder, …