Baker McKenzie review the Hong Kong High Court’s 27 June 2017 decision in Chen Hong Qing v Mi Jingtian & Others, where the court issued a receivership order on the shares of a Hong Kong company which the plaintiff had alleged were at risk of being transferred to a third party in breach of a share pledge the plaintiff had entered into with the defendants. The authors note that the Court found that the defendants had blatantly acted in disregard of the plaintiff’s rights under the Share Pledge by attempting to sell the HK Shares to the third party without the plaintiff’s consent, that there was a real risk that control over the HK Shares would be lost if the receivership order were not granted, and that a receiver would be in the best position to balance the competing interests of the parties (including the third party) in exercising the voting rights and preserving the value of the HK Shares pending determination of the CIETAC arbitration.
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 Hong Kong Institute of Arbitrators, the Singapore Institute of Arbitrators, the Malaysian Institute of Arbitrators, and a member of various lists/panels of arbitrators.View