Hong Kong insolvency law

Insolvency
Processes
Administration Bankruptcy Chapter 7 (US) CVA Conservatorship Dissolution Examinership IVA Liquidation Provisional liquidation Receivership
Officials
Insolvency practitioner Tribunal Regulatory agency Liquidator Referee in Bankruptcy Trustee in bankruptcy
Claimants
Creditor Preferential creditor Secured creditor Unsecured creditor
Restructuring
Administration (UK) Chapter 11 (US) Cram down Restructuring Scheme of arrangement
Avoidance regimes
Fraudulent conveyance Undervalue transaction Unfair preference Voidable floating charge
Offences
Fraudulent trading Misfeasance Trading while insolvent Wrongful trading
Security
Floating charge Lien Mortgage Second lien loan Security interest
International
Chapter 15 (US) Cross-border insolvency Insolvency Regulation UNCITRAL Model Law
By country
Anguilla Australia BVI Canada Cayman China Hong Kong India Ireland Russia South Africa Switzerland United Kingdom United States
Other
Anti-deprivation rule Bankruptcy alternatives Creditors' rights Chapter 9 (US) Debtor Default Financial distress History of bankruptcy law List of bankrupts Pari passu Pre-packaged insolvency Sovereign default Subordination
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Hong Kong insolvency law regulates the position of companies which are in financial distress and are unable to pay or provide for all of their debts or other obligations, and matters ancillary to and arising from financial distress. The law in this area is now primarily governed by the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap 32)^[1] and the Companies (Winding Up) Rules (Cap 32H).^[2] Prior to 2012 Cap 32 was called the Companies Ordinance, but when the Companies Ordinance (Cap 622) came into force in 2014,^[3] most of the provisions of Cap 32 were repealed except for the provisions relating to insolvency, which were retained and the statute was renamed to reflect its new principal focus.^[4]

Under Hong Kong law, the term insolvency is usually used with reference to companies, and bankruptcy is used in relation to individuals. Personal bankruptcy is regulated by the Bankruptcy Act (Cap 6).^[5]

The objectives underpinning Hong Kong insolvency law have been described as follows:^[4]

The fundamental purpose of corporate insolvency law is to resolve all claims against insolvent companies, and provide a fair and orderly process for realising and collecting the assets of insolvent companies and distributing them among creditors in accordance with the statutory scheme of distribution.
(at paragraph 1.1)