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.
Arbitration and Winding Up / China Arbitration / Hong Kong / Interim Relief / Parallel Court and Arbitration Proceedings
Hong Kong Court Grants Receivership Order In Aid Of PRC-Seated CIETAC Arbitration
