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Trading in the twilight – a recent UK case may pose risks for Hong Kong company directors who “postpone the inevitable"

When a company is in financial distress, directors face difficult choices. Should they trade on to try to “trade out” of the company’s financial difficulties or should they file for insolvency? If they act too soon, will...more

9/24/2024  /  Board of Directors , Hong Kong , Insolvency , UK

Auditors’ liability – English case casts doubt on effectiveness of disclaimers in negligence actions

A recent English case may cause concern amongst Hong Kong auditors hoping to protect themselves from liability towards third parties by the inclusion of standard disclaimer wording in their engagement agreements. The decision...more

5/23/2024  /  Auditors , Audits , Duty of Care , Negligence , UK

UK Supreme Court preserves principles of contractual interpretation in RTI Ltd v MUR Shipping BV

The UK Supreme Court has unanimously decided that, in the absence of express wording, parties seeking to rely on a force majeure clause with a reasonable endeavours proviso are not required to accept offers of non-contractual...more

All a matter of timing - English construction court considers when there’s a cause of action for defective design - Talking Point...

The Technology and Construction Court in London has given a wide-ranging review of the law that frequently arise in construction projects, particularly on issues of limitation and when a cause of action over a supposedly...more

When push comes to shove - UK Supreme Court issues definitive guidance on banks' Quincecare duties

The UK Supreme Court in Philipp (Respondent) v Barclays Bank UK Plc (Appellant) [2023] UKSC 25 has confirmed that the so-called "Quincecare duty" – a duty on a bank to refrain from executing a payment instruction from its...more

Cardinal duty – UK Supreme Court clarifies arbitrators' obligations of impartiality and disclosure

The United Kingdom (UK) Supreme Court has handed down its much-anticipated judgment in Halliburton Company v. Chubb Bermuda Insurance Ltd [2020] UKSC 48 in respect of Haliburton's application to remove an arbitrator for...more

No pain, no gain – English court finds that interim payments under a joint venture contract should not be adjusted for cost...

Construction companies entering into joint venture (JV) contracts should be cautious of entering into agreements where the responsibility for, and timing of cost overruns is not tightly specified, to avoid unexpected...more

The good, the bad and the ugly

One year on from Australia's Royal Commission on Banking - The report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (the Report), was published one year ago....more

Courts in England and Hong Kong order immediate prison sentence and restate serious consequences of disobeying disclosure orders

In recent weeks, courts in England and Hong Kong have taken the opportunity to set out the serious consequences that follow from deliberately breaching disclosure orders made in the context of freezing orders....more

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