7 August 2020
Mr Christopher Hui Ching-yu, JP
Secretary for Financial Services & the Treasury
Financial Services and the Treasury Bureau
24/F, Central Government Offices
2 Tim Mei Avenue, Tamar
Dear Mr Hui
The Hong Kong General Chamber of Commerce is pleased to submit our views in response to the government’s latest proposals to introduce a statutory corporate rescue procedure and insolvent trading provisions in Hong Kong.
Given today’s difficult operating conditions, we believe there is a pressing need to provide companies in financial difficulties with an alternative to liquidation. The latest proposals are therefore very timely, and if passed, could also save jobs and put our economy on more solid footing in weathering future challenges.
We hope you will find our comments useful and look forward to the government’s final proposals in due course.
cc: Mr Billy Au, Principal Assistant Secretary (Financial Services), Financial Services Branch, Financial Services and the Treasury Bureau
Financial Services and the Treasury Bureau’s “Companies (Corporate Rescue) Bill Proposals” (June 2020)
Response by The Hong Kong General Chamber of Commerce (HKGCC)
HKGCC welcomes this opportunity to comment on the Government’s latest proposals to introduce a statutory corporate rescue procedure (CRP) and insolvent trading provisions in Hong Kong.
As we stated in our submission to the Government on 12 February 2012, in response to the Government’s earlier proposals on this matter, a CRP would provide a useful option for companies that would otherwise resort to liquidation proceedings, resulting in a loss of jobs which might have been saved, and substantially reducing the amounts which banks and creditors could otherwise recover in due course.
In today’s difficult and challenging economic environment, the need for a CRP is particularly pressing, and the latest proposals are therefore very timely.
We set out below our comments to the proposals, as summarised in the Bureau’s paper of June 2020. We look forward to having the opportunity to review the full text of the legislative proposals in due course. Our comments below are therefore subject to any views we may have on the full text.
We hope that these comments are useful, and look forward to having the opportunity to review and comment on the full text of the legislative proposals.
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