Hong Kong: Protection for employers against team move (Part III): The Interplay between restrictive covenants and springboard injunction

Reading Time: 6 minutesIntroduction In our August employment newsletter, we discussed the UK case QBE Management Services (UK) Ltd v Dymoke & Others [2012] IRLR 458, where the employer successfully obtained, among other things, a 12-month springboard injunction against its former employees and their financial backer from starting a new competing business venture.  Springboard injunction is a short term injunction […]

Hong Kong: Can love be a defence to bribery and misconduct in public office?

Reading Time: 4 minutesIntroduction The case HKSAR v Wilson Fung Wing-yip & Cheyenne Chan Ung-iok [2019] HKDC 1113 has caught much media attention. The unsuccessful prosecution on the defendants’ bribery charges raises the question of whether a romantic relationship can ever be used as a shield to defend a couple from bribery charges. Background On 28 September 2004, Ms Cheyenne […]

Hong Kong: Enforcing a claim tainted with illegality – the Hong Kong position after the UK Supreme Court Decision in Patel

Reading Time: 8 minutesIntroduction Illegality defence is a legal doctrine which prevents a claimant from pursuing a claim if it arises in connection with some illegal act on the part of the claimant. Such doctrine is underpinned by the principle that one should not be able to benefit from his or her own wrongdoing. The English Supreme Court […]

Hong Kong: Tripartite MOU on accessing the audit working papers for compliance

Reading Time: 4 minutesIntroduction Enforcements against corporate fraud and misfeasance have always been top priorities for the Securities and Futures Commission of Hong Kong (the “SFC”).  In investigating the business affairs and conduct of a listed issuer, audit working papers of the listed issuer are crucial for the SFC to gain a thorough understanding of the business and […]

Hong Kong: When Would the Court Exercise its Power to Set Aside an Arbitral Award?

Reading Time: 5 minutesIntroduction Hong Kong is a jurisdiction where the policy encourages and upholds the autonomy and finality of arbitration, i.e. a policy of minimal interference with awards.[1]  Party seeking the Court’s leave to appeal an arbitral award pursuant to section 5 of schedule 2 of the Arbitration Ordinance (Cap. 609) (the “AO”) must satisfy that the […]

Hong Kong: Protection for employers against team move (Part II): Springboard Injunction

Reading Time: 5 minutesIntroduction If a senior employee abuses his power and uses his senior position to exert his influence over his subordinate or junior employees to foment their resignations to join a new employer (often the employer’s competitor) or misuses the employer’s confidential information that only senior employees have access to, and uses such information to negotiate […]

Hong Kong: Claiming damages in addition to setting aside void disposition in insolvency

Reading Time: 5 minutesIntroduction Section 284 of the Insolvency Act 1986, which is the equivalent of section 42 of the Bankruptcy Ordinance (Cap. 6), provides that where a person is adjudged bankrupt, disposition of property made by that person in the period from the day of the presentation of the petition to the vesting of the bankrupt’s estate […]

Hong Kong: A glimpse of hearing at Hong Kong’s Trade Marks Registry

Reading Time: 5 minutesIntroduction Whilst trade mark infringement and passing-off are common areas of dispute in the courts in Hong Kong these days, contentious matters arising from or in connection with trade mark registration, such as opposition to registration, request for a declaration of invalidity in respect of a registered trade mark which did not qualify for registration […]

Variation of a Mareva injunction may not override legitimate interests of third parties

Reading Time: 6 minutesIntroduction In Securities And Futures Commission v Mo Shau Wah And Others [2018] 3 HKLRD 356, the Court of Appeal (“CA”) dismissed an appeal brought by Mo Shau Wah (“Mo”) in relation to a Mareva injunction obtained against her in proceedings brought by the Securities and Futures Commission (“SFC”), against the dismissal of her application for an […]

Hong Kong: Gay civil servant wins final appeal on spousal benefits for husband

Reading Time: 7 minutesIntroduction We discussed the judgment of the Court of First Instance (“CFI”) in Leung Chun Kwong v Secretary for the Civil Service and Another [2017] CFI 736; HCAL 258/2015 and also its appeal judgment of the Court of Appeal (“CA”) ([2018] HKCA 318; CACV 126/2017) respectively in our Newsletters June 2017 and June 2018 issues. This year, the appellant (“Mr Leung”) […]

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 […]