Hong Kongers and frequent visitors to Hong Kong will be familiar with the
famous Yung Kee goose restaurant, and the former will be aware of the
long-running family dispute (as a result of which part of the family is asking
for a winding up petition) over the running of the restaurant.
A key (no pun intended) preliminary question has been over whether Hong
Kong courts have jurisdiction over the case as the ultimate holding company is
a BVI company. The case went to Hong Kong’s Court of Final Appeal which this
month delivered its judgement on this issue, deciding that Hong Kong does
indeed have jurisdiction to hear the substantive case.
The Court’s reasoning was that there is "sufficient connection"
with Hong Kong, the criteria being whether the petitioner would derive
significant benefit from a winding-up order in Hong Kong even though the
company is incorporated elsewhere, and whether it is just and equitable to wind
up the company in Hong Kong after considering all the circumstances.
The decision is significant specifically in terms of the facts of the
case, namely the “sufficient connection” including the presence of shareholders
and directors in Hong Kong, but more importantly in general terms as it shows
that the use of an offshore company to run a business in Hong Kong does not
necessarily remove the jurisdiction of Hong Kong courts.
In more general terms still, this illustrates both the operation of the
common law process and principles in Hong Kong, as well as Hong Kong’s
robustness as a jurisdiction.
In this respect, Primasia Corporate Services Ltd. was pleased to be
quoted in an article in the South China Morning Post this month (“Offshore
Backlash A Boon For Hong Kong”) in which Hong Kong’s rule of law and smooth
bureaucracy are mooted as a reason for Hong Kong’s rise, as a ‘super
jurisdiction’, at the expense of offshore jurisdictions such as the BVI, Cayman
and Singapore.
***
Primasia will post the updates of Hong Kong and China from time to time. Follow us on our Website/ Blogger/ LinkedIn and stay tunned for our updates!
Primasia will post the updates of Hong Kong and China from time to time. Follow us on our Website/ Blogger/ LinkedIn and stay tunned for our updates!
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information?
Please
contact:
John Barclay -Email
Teresa Tam - Email
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Primasia
Corporate Services Limited
Tel: +852
2882 2088
Suite
1106-08, 11/F., Tai Yau Building, No. 181 Johnston Road, Wanchai, Hong Kong
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