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This note considers the current state of the law in Hong Kong with respect to foreign illegality and whether it can set aside defences of bona fide purchaser for value without notice or change of position, in the context of fraud schemes where the fraud proceeds in one way or another were transferred to the recipient by way of currency exchange arrangements.

In W v Contractor [2024] HKCFI 1452, the Hong Kong High Court dismissed an application for leave to appeal against the interim measures granted by an arbitrator to restrain an employer from calling on a bond in relation to a construction contract. The key issue was whether the arbitrator’s ruling was an “award” (for which leave to appeal on questions of law can be sought under Schedule 2 to the Arbitration Ordinance) or not an award (for which leave to appeal cannot be sought). In gist, the court was of the view that, although the arbitrator had expressed his ruling and decision to be an “award”, in substance it was an interlocutory decision and therefore was not an “award” for which leave to appeal can be sought. This decision is consistent with the court’s decision in G v N [2024] HKCFI 721 (handed down on 11 March 2024), in which the court found that the arbitrator’s interim order was not an “award” which could be set aside under section 81 of the Arbitration Ordinance. See our summary of G v N [2024] HKCFI 721 (handed down on 11 March 2024).

Manufacturers, distributors, and retailers of consumer products across a broad spectrum of industries are being impacted by laws regulating the presence of per- and polyfluoroalkyl substances (“PFAS”) in their products. This area is rapidly developing as states create new laws or amend existing ones, and the penalties and litigation risks for non-compliance can be significant.

Welcome to the Corporate Briefing, where we review the latest developments in UK corporate law that you need to know about. In this month’s issue we discuss: Listing Rules reform The FCA has provided an update on timings for publishing final rules during the election period. IoD consultation on Director Code of Conduct The Institute of Directors has initiated a consultation on a proposed new voluntary Code of Conduct for Directors. Appointing directors, amending articles by conduct and refusing to register share transfers This recent case has points to note concerning the appointment of directors, amending articles of association by conduct and losing the power to refuse to register a share transfer. W&I policies: check the exclusions very carefully This recent case highlights the need to check W&I policy terms – particularly the exclusions - very carefully.