Herbert Smith Freehills reviews the 2018 decision of the Hong Kong High Court in Company A and Others v Company B and Others  HKCU 3575, where the plaintiffs sought a receivership order over shares that might be used to satisfy any arbitral award in their favour. The Court noted that such orders were ‘draconian’ and ‘invasive’, and should not be easily granted unless there was ‘solid evidence’ of a risk the assets will be dissipated, or the application is otherwise justified on clear facts, confirming the Court can order interim relief in support of an arbitration, even against a person or entity which is not party to the arbitration, but that such power will be exercised sparingly.
About Phillip Rompotis
Phillip practices as a barrister and arbitrator in Hong Kong. He has over 25 years’ litigation and arbitration experience in commercial disputes relating to construction & engineering, financial services, joint venture & shareholders agreements, technology, trusts, property and landlord & tenant. He is a Fellow of the Chartered Institute of Arbitrators, the Singapore Institute of Arbitrators, the Malaysian Institute of Arbitrators, and a member of various lists/panels of arbitrators.View