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What is "The IP's Voice" |
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By now you will no doubt be aware that the Restructuring and Insolvency Faculty ("RIF") came into existence in April 2008. The RIF is the first specialist faculty to be established by the Hong Kong Institute of Certified Public Accountants ("HKICPA"/"the Institute"). The RIF aims to keep members informed of developments in the world of insolvency and restructuring both locally and internationally where these impact on, or are of interest to, RIF members. "The IP's Voice", the RIF's e-newsletter is a new channel of communication with members. The Editorial Sub-committee hopes this will be an interactive channel and, as such, the sub-committee welcomes contributions from members. Details of how to contribute are set out below (see "Your RIF Needs You!").
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| Click photo for more photos of the RIF inauguration |
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| RIF Executive Committee |
An executive committee ("RIFEC"), chaired by Mr. Johnson Kong, has been established to oversee the operation of the RIF. The committee, which meets monthly comprises 16 members appointed by the Institute's Council, who are drawn from accounting, legal and insolvency practices. The intention is that, after a transitional period, there will be an election for a proportion of the seats on the RIFEC. Initially three sub-committees have been created under the committee. These sub-committees and their respective remits are as follows:
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Technical Sub-committee (Convenor - Mr. Alan Tang): |
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To develop industry best practice guidelines and coordinate views on consultation documents, etc. |
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Member Services Sub-committee (Convenor - Mr. Johnson Kong): |
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To organise seminars and other events and activities for members |
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Editorial Sub-committee (Convenor - Mr. Bruno Arboit): |
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To produce faculty e-newsletter and monitor the content of RIF webpages |
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| Message from RIFEC Chairman |
I should like to congratulate the Editorial Sub-committee on this inaugural issue of "The IP's Voice" e-newsletter. I look forward to this becoming a regular communication with RIF members. Remember this is your faculty and I hope to see active participation by members of the RIF through contributions of articles and interesting market information in future issues. If you have any views or suggestions on the work of the RIF, or on this e-newsletter, please let us know (see "Contact us" below).
Johnson Kong
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| Publications and Consultations |
Companies Ordinance Rewrite consultation
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The third consultation paper in the CO Rewrite project has recently been released. It covers proposals on share capital, the capital maintenance regime and amalgamation procedure. Issues include: |
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Whether to introduce a mandatory no-par value share regime |
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Whether to retain the current capital maintenance procedure or to adopt a solvency test for distributions |
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Whether to introduce a court-free statutory amalgamation procedure
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The deadline for comments is 30 September 2008. Please send any views to Mary Lam, Assistant Director, Specialist Practices (see "Contact us" below ) for the RIF Technical Sub-committee. |
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The RIF held a lunch seminar on 29 May 2008 on the second consultation under the Companies Ordinance ("CO") Rewrite project, which focused on company names, corporate directors and the registration of charges. The Institute issued a submission on 11 July 2008, based on the consolidated views of the RIFEC and other committees within the Institute. The consultation has now ended. |
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| (c) |
We look forward to work commencing on the insolvency provisions of the CO under the Rewrite project, which we understand will be later in 2008. If you have any views or comments on what amendments should be made, please also send these to Mary Lam for the RIF Technical Sub-committee to consider. |
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| INSOL Update |
RIF members must have heard about INSOL on many occasions. But how well do you really know INSOL?
INSOL is a leading international professional association whose mission is to take the leadership role in international turnaround, insolvency and related credit issues, facilitate the exchange of information and ideas, and encourage greater international co-operation and communication amongst the insolvency profession, credit community and related constituencies.
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Currently INSOL has over 9,000 members, 99% of whom are from INSOL member associations, the remainder being individual members. The HKICPA is a long-standing INSOL member association. The RIF has now taken over from the former Insolvency Interest Group as the HKICPA's membership base and hence RIF members are also INSOL members.
As one of the ten largest member associations, the HKICPA is entitled to nominate a representative to the INSOL board for a three-year term. The current director is Mr. Johnson Kong. Mr Kong will complete his term this September and will be succeeded by Mr. Bruno Arboit, a vice-chair of the RIFEC. The board meets twice a year and board conference calls are also held as and when required. The business of INSOL is managed by the executive committee, which comprises the president, vice-president, treasurer and executive director, who are also board members.
INSOL Shanghai
As you will know by now, the INSOL annual regional conference will be held in Shanghai between 14 - 16 September, at the Pudong Shangri-La Hotel. The conference will examine some key trends and current issues in insolvency and HKCIPA has accredited the conference for CPD purposes. As the largest member association in the greater China region, the HKICPA RIF is expecting to have a large representation. Mark this event in your diaries and book your place through the INSOL website.
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Court News
Jumbo Fortune
A recent judgment by Madam J Kwan in Jumbo Fortune (Hong Kong) Limited sheds further light on the circumstances under which liquidators may utilise section 221 of the CO (Cap. 32) to retrieve records from third parties, in this case the former auditors of the company in liquidation.
Reciprocal Enforcement of Judgments between Hong Kong and the Mainland
A reciprocal enforcement regime providing for the mutual recognition of qualifying judgments between the Mainland and Hong Kong took effect on 1 August 2008.
The regime applies to contracts entered into after 1 August 2008, which contain an exclusive jurisdiction clause in favour of either the Hong Kong or Mainland courts. It is important to start considering whether your commercial contracts should be drafted to take account of the benefits under the new regime. Further general information is contained in an article on the subject kindly produced by Allen & Overy.
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| About Town |
People on the Move
Stephen Briscoe and Wong Tek Meng have recently opened a new firm under the name Briscoe & Wong and are offering their services to distressed companies in Hong Kong, the Mainland and elsewhere in the region.
Do you have any new apointments that you wish to announce, or have you just set up a new firm in the insolvency field? Let other RIF members in on the news by sending relevant information to The IP's Voice (See "Contact us" below).
Turnaround Management Association ("TMA")
The TMA's vice president of international relations, Gordon Johnson spoke at a cocktail reception on 16 June 2008 held at the offices of Mayer Brown JSM.
The TMA has plans to form new chapters in Hong Kong, the Mainland and other countries in the region, to add to its existing Asian presence in Australia/New Zealand, Japan, and Taiwan, and regional networks in North America and Europe. The TMA's membership includes accountants, bankers, lenders, lawyers, consultants, financial advisors, investors, appraisers, auctioneers, administrators, liquidators, judges, academics and economists. Further details are on the TMA's website: www.turnaround.org
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| In Memoriam: Prof. Philip St. John Smart |
Prof. Philip St. John Smart, the former course director of the Institute's Diploma in Insolvency, who was instrumental in helping get the course up and running, passed away suddenly on 17 June 2008. A memorial service for Philip will be arranged by the law faculty of University of Hong Kong, where he taught, in September 2008. An epitaph to Philip has been written by Profs. Andrew Halkyard and Charles Booth.
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| Your RIF Needs You! |
Do you have news that may be of interest to other members? Well don't keep it to yourself. It could be a recent legal judgment, details of an interesting work assignment or news of a forthcoming event. If you have any news that may be of interest to other members, or would like to contribute an article then send it to the Editorial Sub-committee (see "Contact us" below).
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| Quick links: |
 The Institute's website |
| RIF webpages |
| INSOL International |
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| Contact us |
For enquiries on the content of this e-newsletter, comments on consultations, submission of articles or newsworthy items, etc. please email Mary Lam at: rif@hkicpa.org.hk. |
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If you require any technical assistance on this transmission, please contact IT support team at 2287-7800 or itsupport@hkicpa.org.hk. |
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| Disclaimer |
Some sections of this newsletter contain information from outside sources. We endeavour to link to reputable sources but the Institute is not responsible for the accuracy of the content and the content does not necessarily represent the views of the Institute.
This email together with the file(s) transmitted is intended solely for addressee(s) only and may contain confidential or privileged information. If you received this email in error, please contact the sender and delete it together with its attachment(s) from your computer(s). You should note that the views expressed in this email are those of the author and do not necessarily represent those of the Institute. The recipient should check this email and all attachments for the presence of viruses. The Institute will not accept liability for any damage caused by any viruses transmitted with this email.
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