By Stephen Briscoe The Administration has now posted its first substantive response to issues raised in front of the LegCo Bills Committee back in November 2015. Here is a link to the response, but in truth it paints quite a dismal picture. First Meeting of Creditors in a Creditors’ Voluntary Liquidation (CVL) Concerns have been expressed regarding…
Continue ReadingLiquidators & Committees of Inspection
By Stephen Briscoe Conduct of the Winding Up Committee Of Inspection As part of the proposed changes, the Administration has made a number of sensible suggestions that are likely to improve the interaction between liquidators and Committees Of Inspection. For the sake of clarity, the new proposals will provide for the minimum and maximum number…
Continue ReadingMore Disclosure by Liquidators of Hong Kong Companies Ordinance
More Disclosure for Liquidators; Should Insolvency Practitioners be Licensed? – (The Correct Answer is Yes!) By Stephen Briscoe Who Can Act As A Liquidator This section of the Administration’s proposals focuses on the appointment and control of provisional liquidators and liquidators. There are a number of sensible suggestions about establishing those categories of people who should not…
Continue ReadingInsolvent Trading – The Last Piece of HK’s Corporate Rescue Puzzle
By Stephen Briscoe In the eyes of many people in Hong Kong, the most important part of the new corporate rescue legislation is that relating to Insolvent Trading. Very similar to Wrongful Trading in the UK, the purpose of this legislation is to encourage directors of distressed companies to act sooner rather than later, and…
Continue ReadingHong Kong’s Provisional Supervision Plans, in Plain English
By Stephen Briscoe Hong Kong’s proposed new legislation on Provisional Supervision and Insolvent Trading has been in the pipeline for the last 20 years or so but before groaning “Oh no, not again,” this time there seems to be a genuine will on the part of the Administration to press ahead with bringing it back…
Continue ReadingProvisional Supervision – The Latest Chapter
Following the latest round of consultations, the administration has issued it’s latest views on Provisional Supervision and Insolvent Trading. It has been tweaked a little from its most recent incarnation back in 2011, but in most respects it’s very similar. We understand from the grapevine that it’s going to be introduced to LegCo in the…
Continue ReadingNew Companies Ordinance Winding Up and Insolvency Conclusions Published
As most of you are aware, earlier this year the new Companies Ordinance came into force. At that time the parts of the old Companies Ordinance that had not been amended, effectively s.166 onwards, were renamed as The Companies (Winding-up and Miscellaneous Provisions) Ordinance – just rolls off the tongue doesn’t it?? Following a period…
Continue ReadingHK’s New Companies Ordinance a Mouthful
Hong Kong’s new Companies Ordinance (Cap 622) comes into force 3 March 2014. The changes apply primarily to those sections of the Ordinance that deal with, for want of a better phrase, live companies. Those sections of the Ordinance that deal with dead and dying companies will remain unchanged until the current round of consultations…
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