Hong Kong insolvency law regulates the position of companies which are in financial distress and are unable to pay or provide for all of their debts or other obligations, and matters ancillary to and arising from financial distress..
What is the priority of liquidation in Hong Kong?
Certain creditors, i.e. employees and certain government departments, enjoy a priority in respect of their claims against the company. Employees' claims are preferential to the extent of all accrued holiday pay, arrears of wages (HK$8,000), pay in lieu of notice (HK$2,000) and severance pay (HK$8,000)..
What is the relevant date of insolvency?
387(. 5) For the purposes of section 258 in Part VIII (individual voluntary arrangements), the relevant date is, in relation to a debtor who is not an undischarged bankrupt, the date of the interim order made under section 252 with respect to his proposal..
Who can act as liquidator in Hong Kong?
The directors should proceed to appoint a provisional liquidator, who is generally a solicitor or professional accountant and must give his consent to act as the provisional liquidator in writing..
Who does the Insolvency Act 1986 apply to?
The UK legislation called the Insolvency Act 1986 provides the legal framework for dealing with financial problems of individuals, partnerships, and companies..
Certain creditors, i.e. employees and certain government departments, enjoy a priority in respect of their claims against the company. Employees' claims are preferential to the extent of all accrued holiday pay, arrears of wages (HK$8,000), pay in lieu of notice (HK$2,000) and severance pay (HK$8,000).
How long does it take to dissolve a company in Hong Kong? There are two main ways to dissolve a solvent company in Hong Kong: by deregistration and by liquidation. A company with no assets and liabilities can be deregistered within 6 to 9 months or be liquidated within 12 months.
This can include: disqualification from managing a company; fines of up to $200,000; an order to pay compensation to the company equivalent to the loss suffered by creditors.
Usually someone called an 'insolvency practitioner' or ' Official Receiver' is appointed to deal with the insolvency. They will be in charge of the case and could act as one of the following: administrator. liquidator.
Hong Kong insolvency law regulates the position of companies which are in financial distress and are unable to pay or provide for all of their debts or other obligations, and matters ancillary to and arising from financial distress.
Hong Kong insolvency law regulates the position of companies which are in financial distress and are unable to pay or provide for all of their debts or InsolvencyLiquidationVoidable transactionsDirectors' duties
In Hong Kong, the statutory framework for regulating the affairs of insolvent companies is found in the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap.32) (the “C(WUMP)O”) and the Companies (Winding Up) Rules (Cap.32H).
In Hong Kong, the statutory framework for regulating the affairs of insolvent companies is found in the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap.32) (the “C(WUMP)O”) and the Companies (Winding Up) Rules (Cap.32H).
Are there statutory provisions for cross-border insolvency and restructuring in Hong Kong?
While there are currently no statutory provisions in relation to cross-border insolvency and restructuring in Hong Kong, Hong Kong courts have developed certain common law principles which in effect provide for the recognition of overseas insolvency officeholders and the grant of assistance to them in certain circumstances
How does Hong Kong corporate bankruptcy work?
Following collection of the assets of a debtor company, the liquidator will make distributions from the proceeds of the disposition of such assets to meet the proven claims of creditors
In this regard, Hong Kong corporate bankruptcy laws establish a system of ranking the claims of creditors
What is the purpose of corporate insolvency law?
The fundamental purpose of corporate insolvency law is to resolve all claims against insolvent companies, and provide a fair and orderly process for realising and collecting the assets of insolvent companies and distributing them among creditors in accordance with the statutory scheme of distribution
In the United Kingdom, only an authorised or licensed insolvency practitioner (IP) may be appointed in relation to formal insolvency procedures.
Insolvency law hong kong
Tracing is a legal process, not a remedy, by which a claimant demonstrates what has happened to his/her property, identifies its proceeds and those persons who have handled or received them, and asks the court to award a proprietary remedy in respect of the property, or an asset substituted for the original property or its proceeds. Tracing allows transmission of legal claims from the original assets to either the proceeds of sale of the assets or new substituted assets.
In the United Kingdom, only an authorised or licensed insolvency practitioner (IP) may be appointed in relation to formal insolvency procedures.
Tracing is a legal process
Tracing is a legal process, not a remedy, by which a claimant demonstrates what has happened to his/her property, identifies its proceeds and those persons who have handled or received them, and asks the court to award a proprietary remedy in respect of the property, or an asset substituted for the original property or its proceeds. Tracing allows transmission of legal claims from the original assets to either the proceeds of sale of the assets or new substituted assets.
