Opinions on Carrying out the Pilot Work for Recognition and Assistance in Bankruptcy Proceedings of Hong Kong Special Administrative Region were promulgated on 11 May 2021, and entered into force on the same date.
There are 24 articles in total. The Opinions aim to implement Article 95 of the Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China, and further improve the judicial assistance system between the Mainland and the Hong Kong Special Administrative Region.
The key points are as follows:
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The Supreme People’s Court has designated the people’s courts of Shanghai Municipality, Xiamen, Fujian Province, and Shenzhen, Guangdong Province to carry out the pilot work for recognition and assistance in bankruptcy proceedings of Hong Kong.
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The Opinions apply to the bankruptcy proceedings of Hong Kong, in which the Hong Kong Special Administrative Region is the location of the debtor’s center of main interests. For the purpose hereof, the term “center of main interests” generally refers to the registered seat of the debtor. Meanwhile, the people’s court shall take full account of factors such as the location of the debtor’s main office, the main place of business, and the location of its main property. When the Hong Kong administrator applies for recognition and assistance, the debtor’s center of main interests shall have been present in the Hong Kong Special Administrative Region for at least six consecutive months.
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After the people’s court recognizes the bankruptcy proceedings of Hong Kong, the settlement by the debtor to individual creditors shall be null and void. Any civil litigation or arbitration involving the debtor that has commenced and is not yet concluded shall be suspended, and such litigation or arbitration shall continue after the Hong Kong administrator takes over the debtor’s property.
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After recognizing the bankruptcy proceedings of Hong Kong, the people’s court may rule that the Hong Kong administrator is entitled to perform his duties in the Mainland upon application, or may appoint a Mainland administrator upon the application of the Hong Kong administrator or a creditor.
Cover Photo by Fré Sonneveld (https://unsplash.com/@fresonneveld) on Unsplash
Contributors: CJO Staff Contributors Team
