Liquidators' victory in fraudulent trading claims

The Hong Kong Court has handed down its first trial judgment on fraudulent trading under section 275 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance. The case involved fraudulent loan applications by a former officer of two companies, leading to declarations and a substantial judgment sum of over US$39 million in favour of the liquidators.

The judgment provides critical insights into the elements of fraudulent trading claims as well as the calculation of recoverable sums under Hong Kong law, drawing on approaches established in Singapore.

This decision offers valuable guidance for liquidators in navigating such claims.

Click here (PDF) to read.