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Jonathan Addo
Jonathan Addo
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Ian Mann
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Nick Hoffman
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Chai Ridgers
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William Peake
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Claire Goldstein
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Jayson Wood
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Phillip Kite
Phillip Kite
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Stuart Cullen
Stuart Cullen
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Lorinda Peasland
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Paul Madden
Paul Madden
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Jessica Williams
Jessica Williams
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Paula Kay
Paula Kay
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Andrew Thorp
Andrew Thorp
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Henry Mander
Henry Mander
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Andrew Johnstone
Andrew Johnstone
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Nicola Roberts
Nicola Roberts
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Julie Engwirda
Julie Engwirda
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Paul Smith
Paul Smith
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Harneys litigation podcast “Take 10” season two, episode two: CEFC Shanghai - landmark common law recognition of PRC administrators in Hong Kong. Would BVI/Cayman Islands follow suit?

Welcome to this season’s second episode of the Offshore Litigation Take 10 podcast.

In this episode, Andrew Johnstone and Ian Mann discuss the decision in CEFC Shanghai: the first PRC office holder to be recognised under the common law in Hong Kong.

Click below to listen.

Key Takeaways:

CEFC Shanghai

  • CEFC Shanghai was a PRC company in Administration. The Administrators sought common law recognition in Hong Kong in order to stop a garnishee order nisi from being made final.
  • The House of Lords decision of Galbraith v Grimshaw [1910] AC 508 not followed, but obiter dicta in Privy Council decision of Grupo Torras SA v Al-Sabah [2014] 2 CLC 636 followed.
  • The decision in CEFC Shanghai was consistent with established principles of common law recognition.

Cross border recognition: BVI vs Cayman Islands

  • In the BVI, Part XIX of the BVI Insolvency Act permits orders in aid of foreign insolvency proceedings at the request of a foreign liquidator, but only to representatives appointed in 9 specific jurisdictions, of which the PRC is not included.
  • Could the common law power of recognition be relied upon by PRC Administrators instead? The answer is: “maybe”, but the BVI Court of Appeal will have to clarify some conflicting first instance decisions.
  • The Cayman Islands does have a statutory provision for recognition of foreign companies under Part XVII of the Cayman Islands Companies Law.

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Harneys litigation podcast “Take 10” season two, episode two: CEFC Shanghai - landmark common law recognition of PRC administrators in Hong Kong. Would BVI/Cayman Islands follow suit?

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