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Zheng Ruohua signs the Mainland courts' mutual recognition and assistance in bankruptcy proceedings. The Mainland can recognize Hong Kong's winding-up proceedings

2021-05-22T09:42:50.241Z


The Secretary for Justice Zheng Ruohua signed with the Supreme People’s Court in Shenzhen last week to sign the "Minutes of the Meeting on Mutual Recognition and Assistance in Bankruptcy Procedures between the Mainland and Hong Kong Special Administrative Region Courts", allowing Hong Kong liquidators to apply to the Mainland courts.


Political situation

Written by: Zhou Lixi

2021-05-19 19:38

Last update date: 2021-05-19 19:38

The Secretary of Justice Zheng Ruohua signed with the Supreme People’s Court in Shenzhen last week on the "Minutes of the Meeting on the Mutual Recognition and Assistance of Bankruptcy Procedures between the Mainland and Hong Kong Special Administrative Region Courts", allowing Hong Kong liquidators to apply to the Mainland courts for recognition of the winding-up procedures in Hong Kong, and Allow Mainland bankruptcy administrators to apply to the Hong Kong High Court for recognition of bankruptcy proceedings in the Mainland.

Zheng Ruohua said that this cooperation mechanism can strengthen the protection of the interests of creditors and debtors, reduce unemployment through good use of debt restructuring, optimize the business environment, encourage investment, and attract more companies to invest in Hong Kong in the long run as a platform for investment in the Mainland. It also enables companies to use Hong Kong law as the applicable law for contracts when investing in the Mainland.

The Secretary of Justice Zheng Ruohua published a blog stating that the cooperation mechanism encourages companies to make more use of the restructuring process, so that creditors can reach a consensus on the restructuring plan as soon as possible, so that financially troubled companies can protect employment by reducing the chance of liquidation.

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Zheng Ruohua today published a blog entitled "Mutual Recognition and Assistance in Company Winding-up and Debt Restructuring", mentioning the signing of an earlier cooperation mechanism with the Mainland.

Zheng Ruohua pointed out that the cooperation mechanism encourages enterprises to make more use of the restructuring process, so that creditors can reach a consensus on the restructuring plan as soon as possible, so that companies in financial difficulties can protect employment by reducing the chances of liquidation.

She believes that the cooperation mechanism jointly established by the two places will help increase the confidence of creditors and investors.

This cooperation mechanism is a pilot scheme to link the procedures and rules between the Mainland and Hong Kong. Zheng Ruohua said that this is an important move for judicial assistance between the two places, and two major breakthroughs have been made: The signing of the "Minutes of the Talks" reflects the uniqueness of "One Country, Two Systems" , Making Hong Kong the only jurisdiction outside the Mainland that allows mutual recognition and assistance in bankruptcy procedures, highlighting the country’s trust in the Hong Kong judicial system and firm support for Hong Kong as an international legal hub.

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Pilot cooperation mechanism to explore cross-border liquidation cooperation rules first

Zheng Ruohua mentioned that the cooperation mechanism refers to relevant international rules, including some principles of the "Model Law on Cross-border Insolvency" promulgated by the United Nations Trade Law Commission in 1997, but it has more depth, breadth and clarity, and is more suitable for the two places. Need and development.

She emphasized that the most important goal of the cooperation mechanism is to implement "One Country, Two Systems" and Hong Kong as the only common law jurisdiction in China, to first explore cross-border liquidation cooperation rules, and then to further provide cross-border legal and dispute resolution services. With the help of the country's development, it promotes the construction of foreign-related rule of law, and contributes to the "rule of law in China."

The Shenzhen Intermediate People's Court held a forum on the law and practice of cross-border liquidation cooperation between the Mainland and Hong Kong on the day the "Minutes of the Talks" was signed to explain the cooperation mechanism and attracted more than 500 people to sign up, about half of which came from Hong Kong.

At the same time, the Department of Justice has also issued a practical guide to briefly explain the main points of the procedures for applying for recognition and assistance to the Hong Kong courts.

The Department of Justice will also hold an online forum on "Why Use Hong Kong Laws" on the 31st of this month to invite representatives from the legal profession to analyze and exchange objectively.

01News

Zheng Ruohua Judicial Institution China Judicial Reform

Source: hk1

All news articles on 2021-05-22

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