Who is the proper party to bring a validation order application under section 42 of the Bankruptcy Ordinance (Cap. 6)?, by Richard Hudson, Cathy Wu
Section 42 of the Bankruptcy Ordinance (Cap. 6) (“BO”) provides that where a person is adjudged bankrupt, any disposition of property made by that person from the date of presentation of the bankruptcy petition is void unless made with the consent of the Court or unless subsequently ratified by the Court. The purpose of this section is to prevent the improper dissipation of the bankrupt’s assets once a bankruptcy petition is filed and to protect the principle of pari passu distribution. Full article »
What disputes does an arbitration clause cover?, by KK Cheung
The recent case of VK Holdings (HK) Ltd v Panasonic Eco Solutions (Hong Kong) Company Ltd demonstrates the importance of carefully drafting arbitration clauses to ensure they reflect the parties’ intentions about what disputes are to be covered. In this case, the court held that an arbitrator had correctly ruled that he had jurisdiction over the dispute and dismissed VK’s application under s.34 of the Arbitration Ordinance to set aside his interim award. Full article »
Hong Kong Courts’ Pro-Enforcement Stance in relation to foreign arbitration awards, by KK Cheung
In the recent case of 廣東長虹電子有限公司 v Inspur Electronics (HK) Ltd, the judge at first instance had granted the Applicant leave to enforce a Mainland arbitration award. The Respondent applied to set aside such leave, but the court refused. The Respondent then applied for leave to appeal that refusal, but the Court of Appeal made it clear, that (in light of section 84(3) of the Arbitration Ordinance (which is applicable to Mainland arbitration awards) and reading it together with section 14(3)(ea)(v) of the High Court Ordinance), where a judge refuses to set aside leave granted to enforce an arbitration award, there can be no appeal from that refusal. Full article »
Advertisements of Investment Products without the SFC’s Authorization, by Rita Li
It is an offence under section 103(1) of the Securities and Futures Ordinance to issue advertisements, invitations or documents relating to investments in certain cases, subject to exemptions under section 103(3). The exemption under section 103(3)(k) provides that sub-section (1) does not apply to any advertisement, invitation or document made in respect of securities or structured products, or interests in any collective investment scheme, that are or are intended to be disposed of only to professional investors. Full article »