RIF Executive Committee (“RIFEC”) Composition for 2010
In addition to the twelve RIFEC members, announced in the previous issue (Issue no. 8) of The IP's Voice, Ronald Kung, a Council member, has been appointed as a Council nominee on the RIFEC and Neil McDonald of Lovells and Kenny Tam King Ching of Kenny Tam and Co. have been co-opted by the RIFEC as members for the year 2010.
Johnson Kong has been re-appointed as the chairman and Bruno Arboit has been elected by members of the RIFEC to continue as the deputy chair. A warm welcome to all the new and returning members.
|
|
|
Institute Comments on Corporate Rescue Proposals |
The RIFEC recently submitted its views to the government on the introduction of a corporate rescue framework in Hong Kong.
The submission urged the government to give priority to the introduction of a corporate rescue procedure in Hong Kong. It also made technical and detailed suggestions to help facilitate the rescue process. These included seeking greater flexibility in terms of the length of the moratorium on creditor actions, and recommending that other possible sources of funding for employees' entitlements be explored, to boost the chances for troubled companies to be turned around.
The submission indicated support for insolvent trading provisions as a useful means of encouraging directors to initiate rescue action early, rather than going deeper into debt and reducing the chances of a successful rescue, as well as, potentially, affecting other businesses.
RIFEC chair, Johnson Kong, explained to reporters at a press briefing on 9 February 2010 that the global financial crisis had highlighted the need for Hong Kong to introduce a flexible, cost effective corporate rescue framework to help companies facing temporary financial difficulties.
|
|
Judiciary Issues Revised Practice Direction 3.3
This revised Practice Direction 3.3, dated 2 December 2009, sets out the provision for voluntary mediation in respect of petitions presented under section 168A and petitions for winding up on the just and equitable ground under section 177(1)(f) of the Companies Ordinance (Cap. 32), where there is no allegation of insolvency concerning the subject company, and no allegation that the affairs of the company require full investigation in the public interest.
This revised Practice Direction 3.3 became effective on 1 January 2010, superseding Practice Direction 3.3 dated 4 September 2008 and Practice Direction 3.3A dated 23 September 2009. |
|
|
|
|
Court Decision on Release of Transcripts of s.221 Private Examinations
The case of David John Kennedy v Kelly Cheng and Robert Yip (FACV No. 30 of 2008) raised the following main questions of law :
-
Is a liquidator free to disclose to the police transcripts of private examinations conducted pursuant to s.221 of the Companies Ordinance (Cap. 32), or does disclosure require the leave of the court?
The above questions arose because a liquidator disclosed, without the court’s leave, the transcripts of the private examination of two former directors of a company in liquidation, and they sought to have the liquidator committed for contempt as a result.
In a judgment on the question of whether a liquidator was free to disclose private examination transcripts to the police, handed down on 20 October 2009, the Court of Final Appeal ("CFA") held that "a liquidator who reports wrongdoing to the police may supply them with the transcripts of private examinations, and does not need the court’s leave to do so."
The CFA went on to say, "If leave had been required, disclosure without leave would still not have been contempt unless the person making such disclosure without leave had acted in the knowledge that the court’s leave was required and had made the disclosure intending to circumvent such requirement and pre-empt a decision by the court on disclosure."
Click here for the full judgment.
|
|
| Article: Asia Aluminum vs FerroChina – A Tale of Two PRC Restructurings |
This article, by Ferrier Hodgson, discusses the key factors which should be taken into account when considering the risks of any investment with PRC exposure and how to maximise the chances of a return in an insolvency scenario, no matter in which jurisdiction insolvency proceedings are conducted. Two PRC restructurings, Asia Aluminum and FerroChina, are used to demonstrate that administration proceedings involving PRC assets cannot be dealt with uniformly. Different circumstances and limitations faced by the administrators of the two cases necessitated the need for flexible solutions in order to achieve returns to stakeholders.
|
|
|
INSOL Update |
INSOL International board meeting
The board of INSOL International met on 20 and 21 November 2009 in London. Click here to view a report of the key issues considered at the meeting.
2010-11 Global Insolvency Practice Course
The Global Insolvency Practice Course is an advanced educational qualification focusing on international insolvency. Participants who successfully complete the course will be granted a Fellowship from INSOL International.
The 2010-11 Global Insolvency Practice Course is currently open for applications. Click here to view the course brochure, which contains the application form. Enrolment deadline is 30 July 2010.
INSOL new office
The office of INSOL International has moved to 6-7 Queen Street, London, EC4N 1SP, UK and the current contact details are telephone: +44 (0)20 7248 3333, facsimile: +44 (0)20 7248 3384 and email: <heather@insol.ision.co.uk>. |
|
| Your RIF Needs You! |
If you have news or personnel updates that may be of interest to other RIF members, or have just set up a new firm in the insolvency field, why not share the information with your fellow members.
The RIF Editorial sub-committee welcomes news, articles and other contributions from members – a commentary on recent legal judgment, for example, or details of an interesting work assignment. The IP's Voice is your newsletter and the voice of insolvency professionals in Hong Kong. If you would like to contribute a newsworthy item to The IP's Voice, see "Contact us" below.
|
|
|
| Quick links: |
 The Institute's website |
| RIF webpages |
| Past issues of The IP's Voice |
INSOL International
|
|
Contact us
|
For enquiries on the content of this e-newsletter, comments on consultations, submission of articles or newsworthy items, etc., please email Mary Lam, Assistant Director, Specialist Practices at: <rif@hkicpa.org.hk>. |
| |
If you require any technical assistance on this transmission, please contact the IT support team at 2287-7800 or <itsupport@hkicpa.org.hk>. |
| |
|
|
Disclaimer
|
Some sections of this newsletter contain information from outside sources. We endeavour to link to reputable sources but the Institute is not responsible for the accuracy of the content and the content does not necessarily represent the views of the Institute.
This email together with the file(s) transmitted is intended solely for addressee(s) only and may contain confidential or privileged information. If you received this email in error, please contact the sender and delete it together with its attachment(s) from your computer(s). You should note that the views expressed in this email are those of the authors and do not necessarily represent those of the Institute. The recipient should check this email and all attachments for the presence of viruses. The Institute will not accept liability for any damage caused by any viruses transmitted with this email. |
|
|
