In brief Whilst the Court is, in general, slow to interfere with the internal management of a company, it is empowered to grant the appropriate remedies in certain circumstances including declaratory and injunctive reliefs under the common law and the Companies Ordinance (CO). A recent case has demonstrated that the Court is not hesitant to exercise such power in order to safeguard shareholders’ rights and scrutinize directors’ conduct. In this case, the Court held that…
In brief A recent decision of the Hong Kong Court reaffirmed the robust approach taken by the Court in examining the enforceability of a non-compete clause in an employment context even at the interim-interim stage. A former employer has the burden of proof to adduce evidence to substantiate that a non-compete clause is reasonable and necessary for the protection of the former employer’s legitimate business interests for it to be enforceable. The Court will take…
In brief The long overdue “Mainland Judgments in Civil and Commercial Matters (Reciprocal Enforcement) Bill” (“RE Bill”) was passed by the Hong Kong Legislative Council on 26 October 2022. The RE Bill implements the “Arrangement on Reciprocal Recognition and Enforcement of Judgments in Civil and Commercial Matters by the Courts of the Mainland and of the Hong Kong Special Administrative Region”, which was signed between the Supreme People’s Court of the Mainland and the HKSAR…
In Brief The Hong Kong Judiciary continued to further expand the scope of remote hearings and issued various guidance notes and guidelines to facilitate the operation of remote hearings since its first initiative during the General Adjournment Period (GAP) in 2020.[1] In response to the fifth wave of COVID-19 in early 2022, the Judiciary implemented the second GAP on 7 March 2022 and issued its latest guidance note dated 25 March 2022 on hearing outside…
Since 1 December 2021, the Rules of the High Court (Cap. 4A) (“RHC”) and the Rules of the District Court (Cap. 336H) (“RDC”) have been amended to abolish the fraud exception rule (“Amendment Rules”). The amendments have enlarged the scope of summary judgment to cover an action begun by writ (“Writ Action”), which includes a claim based on an allegation of fraud. Upon the implementation of the legislative changes, a party with a claim based…
On 29 September 2021, the Sale of Goods (United Nations Convention) Ordinance (Cap. 641) (“Ordinance”) was passed by the Legislative Council and will come into operation on a day to be appointed by the Secretary for Justice by notice published in the Gazette. Following the passing of the Ordinance, it is anticipated that the United Nations Convention on Contracts for the International Sale of Goods (“Convention”) will have the force of law in Hong Kong…
In brief Boardroom battles are becoming more common in Hong Kong, particularly in a listed company context. A boardroom can be a place where individuals with the best intentions for a company can exchange views, but it can also be a hotbed for conflict when disagreements arise. A recent Court of First Instance judgment sets out some reminders of the cardinal principles which an applicant in a boardroom battle should observe in an ex parte…