Reforming Corporate Rescue Procedures in Hong Kong

Journal of Corporate Law Studies, Vol. 1, No. 2, p. 485, December 2001

15 Pages Posted: 3 Feb 2010 Last revised: 12 Feb 2010

See all articles by Philip Smart

Philip Smart

The University of Hong Kong - Faculty of Law

Charles D. Booth

Institute of Asian-Pacific Business Law, William S. Richardson School of Law, University of Hawaii at Manoa; University of Hawaii at Manoa - William S. Richardson School of Law

Date Written: 2001

Abstract

The need for a statutory corporate rescue mechanism has long been recognized in Hong Kong. That need was heavily underscored by the recent Asian financial crisis. Following recommendations made in 1996 by the Law Reform Commission of Hong Kong, legislation was introduced in January 2000, in the form of the Companies (Amendment) Bill 2000. The Bill proposed a regime, to be known as “provisional supervision”, which would allow a company – without having to go to court – to appoint an insolvency specialist to take over its affairs under the protection of a moratorium. Once appointed, the provisional supervisor would formulate a plan for voluntary arrangement for approval by the company’s creditors. However, after serious opposition was raised against the Bill, the provisional supervision proposals were dropped. It is anticipated that a modified provisional supervision regime will soon be put back on the legislative agenda. This paper offers a critical analysis of the provisional supervision regime contained in the Bill, with particular emphasis on the Government’s controversial proposals regarding the rights of secured creditors and the treatment of workers’ wages.

Suggested Citation

Smart, Philip and Booth, Charles D., Reforming Corporate Rescue Procedures in Hong Kong (2001). Journal of Corporate Law Studies, Vol. 1, No. 2, p. 485, December 2001, Available at SSRN: https://ssrn.com/abstract=1547462

Philip Smart

The University of Hong Kong - Faculty of Law ( email )

Pokfulam Road
Hong Kong, Hong Kong
China

Charles D. Booth (Contact Author)

Institute of Asian-Pacific Business Law, William S. Richardson School of Law, University of Hawaii at Manoa ( email )

University of Hawai'i at Manoa
2515 Dole Street
Honolulu, HI 96822-2328
United States

University of Hawaii at Manoa - William S. Richardson School of Law ( email )

2515 Dole Street
Honolulu, HI 96822-2350
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
240
Abstract Views
2,070
Rank
227,974
PlumX Metrics