SMU Lexicon: Singapore’s Approach Towards Adopting the Multi-Factorial Approach in Insolvency Proceedings

Reading Time: 5 minutesIntroduction In cross-border insolvency, there are two contrasting approaches. On the one hand, there is the territorial approach, focused primarily on the interest of the local creditors.[1] On the other, there is the universal approach, where one court leads the administration of the insolvency proceedings, and other courts cooperate with the main action.[2] For the […]

Does removing an insolvent party from a joint venture infringe the anti-deprivation rule?

Reading Time: 5 minutesIntroduction The Court of First Instance analysed whether a clause within a joint venture agreement between a company in liquidation and an interested party should be void for being classified as “disposition” under section 182 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap 32). Build King Construction Ltd (“BK”) formed a joint venture […]

Hong Kong: Court orders boiler room fraudsters to compensate investors

Reading Time: 4 minutesIntroduction On 21 December 2018, the Securities and Futures Commission (the “SFC”) succeeded in its actions against boiler room fraudsters, where the Court of First Instance (the “CFI”) ordered such fraudsters to compensate investors who fell victim to the scams, in accordance with section 213 of the Securities and Futures Ordinance (the “SFO”). Background Boiler […]

Hong Kong Update: Supervising clients’ investments – Can“high-level supervisory role” of trustees be limited?

Reading Time: 4 minutesIn certain banking arrangements in which investments are made in relation to a trust, a fiduciary relationship may arise when the bank or its affiliates act as a corporate trustee of a trust or a director of a company customer. A party may be regarded as a fiduciary if it owes an obligation to act […]