Rather belatedly, I note a significant decision of the Court of Final Appeal from earlier this year - Hsin Chong Construction Company Ltd v Build King Construction Ltd [2021] HKCFA 14 - which provides important guidance on the operation of section 182 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance. Section 182 provides that "In a winding up by the court, any disposition of the property of the company, including things in action, and any transfer of shares, or alteration in the status of the members of the company, made after the commencement of the winding up, shall, unless the court otherwise orders, be void". The Court of Final Appeal held, amongst other things, that the section's purpose was to preserve the company's property for distribution and, in deciding whether a disposition should be validated, the interests of the general body of creditors was of central importance. The analysis of the trial judge and Court of Appeal was rejected. A summary of the decision, in English, is available here.
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