Retroactive or prospective? Determining the scope of Hong Kong's new insolvency law

• Published in: International insolvency review Vol. 8; no. 1; pp. 27 - 37
• Main Authors: Booth, Charles D., Smart, Philip St J.
• Format: Journal Article
• Language: English
• Published: Chichester, UK John Wiley & Sons, Ltd 1999; Wiley Periodicals Inc
• Subjects: Amendments; Bankruptcy; College professors; Court decisions; Debt; Insolvency; Legislation; Hong Kong China; China
• ISSN: 1180-0518; 1099-1107
• DOI: 10.1002/(SICI)1099-1107(199921)8:1<27::AID-IIR47>3.0.CO;2-9

This article discusses the recent decision by the Court of First Instance in Re Setaffa Investments Ltd (1998). It also addresses more general retroactivity issues that arise with regard to the amendments made by the Bankruptcy (Amendment) Ordinance (BAO) to both the Bankruptcy and Companies Ordinances. It is clear from an analysis of the transitional provisions in the recent Hong Kong insolvency enactments that not enough attention has been given to the question of retroactivity. The unintended result is that some of the old insolvency provisions will continue to apply for almost another decade. It is crucial that the legal draftsmen focus on transitional issues when the new companies winding-up legislation is enacted, as is expected in the next year or two.