The Decision in Akai: The Interaction of Apparent Authority and Knowing Receipt

Abstract

The recent decision of Hong Kong's Court of Final Appeal in Thanakharn Kasikorn Chamkat (Mahachon) v Akai Holdings Ltd ([2010] HKEC 1692, CFA) illustrated the interaction of parallel claims in the tort of conversion and for knowing receipt when a director wrongly claims to be entitled to give a lender security over corporate assets that are then disposed of in exercise of the lender's (non-existent) security rights.

Keywords: Company law, security, agency, apparent authority, knowing receipt

JEL Classification: K11, K12