Living in Uncertain Times: The Need to Strengthen Hong Kong Transnational Insolvency Law
60 Pages Posted: 7 Jan 2010 Last revised: 12 Feb 2010
Date Written: 1996
This article argues that Hong Kong should reform its transnational insolvency law before 1997. The article first examines the options available under Hong Kong law for protecting the assets of a foreign debtor and for obtaining cross-border assistance from Hong Kong courts, including non-insolvency options, the winding up of foreign companies, and the bankruptcy of individuals. He also summarizes the position in England, the United States, and China regarding the granting of recognition and assistance to Hong Kong insolvencies. It then discusses economic, political, and legal developments that will affect the post-1997 evolution of Hong Kong transnational insolvency law and the treatment of Hong Kong insolvencies by foreign courts. The article critiques recent law reform proposals, highlights weaknesses in the existing legislative and case law framework, and proposes many amendments to Hong Kong transnational insolvency law. The article also suggests that Hong Kong and China should enter into a bilateral cross-border insolvency agreement and take steps to maintain confidence in the administration and adjudication of Hong Kong insolvencies after 1997.
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