Proposed improvements to the Hong Kong corporate insolvency regime

The new Hong Kong Companies Ordinance is planned to come into operation in the first quarter of 2014. This wholesale renovation of the law governing the operation of companies in Hong Kong repeals almost all of the existing provisions of the Companies Ordinance with a few exceptions, including the existing insolvency and winding-up provisions. These will remain in their current form and be retitled as the Companies (Winding Up and Miscellaneous Provisions) Ordinance.

As the current insolvency and winding-up provisions date back to 1984, the Government recently launched a comprehensive exercise to improve Hong Kong’s insolvency and winding up regime. In mid-April 2013, it published the Consultation Document on Legislative Proposals for the Improvement of Corporate Insolvency Law (“Consultation Document”). An amendment bill is expected to be introduced in the Legislative Council by 2014/2015…

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