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 ReadingProvisional Supervision in Hong Kong: Employees’ Pre-Appointment Entitlements
By Stephen Briscoe The treatment of employees and their pre-appointment entitlements is the issue which has caused the previous two failures of this legislation to pass through LegCo. Before considering the current provisions it is worth asking why this part of the proposed legislation has caused so much angst and why it has delayed the…
Continue ReadingProvisional Supervision – Meetings, Stress and Snail Mail
Provisional Supervision – Meetings of Creditors and Investigation Powers by Stephen Briscoe First Meeting of Creditors The provisional supervisor is required to convene a first meeting of creditors within 10 business days of the date of his appointment. He must give at least seven days notice of this meeting and although the draft proposals make…
Continue ReadingWho can be Appointed as Provisional Supervisor in Hong Kong?
By Stephen Briscoe Based on the Hong Kong government’s latest proposals, the only people who will be eligible to be appointed as provisional supervisors will be Certified Public Accountants or solicitors with practising certificates. They will be regulated respectively by the HKICPA and the Law Society of Hong Kong. Surprisingly, in view of the potential…
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 ReadingProvisional Supervision Bill: Signs of Commitment?
More on Provisional Supervision and Insolvent Trading by: Stephen Briscoe The administration has now embarked on another round of consultations on the proposed corporate rescue bill and the sense is that there is a real commitment on the part of the government to push through with its implementation after two previously unsuccessful attempts. There remain…
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