Earlier this month, judgment was given by the Court of Appeal in Chung v Soka Gakkai International of Hong Kong Ltd [2022] HKCA 480. The decision is an important one because the court has confirmed that a member of a charitable company has standing to bring a statutory derivative claim under sections 732 and 733 of the Companies Ordinance (Cap 622).
Monday, 11 April 2022
Hong Kong: the statutory derivative action and charitable companies
Friday, 8 April 2022
Australia: Treasury consults on corporate control transactions and the role of the Takeovers Panel
UK: Consultation outcome - insolvency arrangements for insurers
In May 2021 the Treasury consulted on proposed amendments to the insolvency framework governing insurers: see here (pdf). The consultation outcome has now been published: see here (pdf). The Treasury has said that it will continue to consult with the PRA, FCA and FSCS, before introducing legislation when parliamentary time allows.
Monitoring Group paper - the value of high quality audits
Wednesday, 6 April 2022
Singapore: Court of Appeal on transactions at an undervalue and the principle in MC Bacon
ISSB consults on its first two standards - sustainability related financial information and climate-related disclosures
UK: FRC publishes three year plan (2022-2025)
The Financial Reporting Council has published its three year plan for 2022-2025: see here (pdf). The plan has been produced on the assumption that, during the three year period, the FRC will become the Audit, Reporting and Governance Authority, with new statutory powers (as set out in the 2021 white paper, Restoring Trust in Audit and Governance).
UK: England and Wales: restitution orders and company directors
The ICLR has published a summary for the recent Court of Appeal decision Financial Conduct Authority v Ferreira [2022] EWCA Civ 397: see here. To quote from the summary:
"A defendant could only be liable under section 382 [(restitution orders)] of the Financial Services and Markets Act 2000 if they had knowledge of the facts which made the act complained of a contravention of the statute, which included knowledge of the factual circumstance that prevented a potentially relevant disapplication from operating ... Further, interpreting section 382 in a way that imputed to the legislature an intention to impose personal liability on directors (or others) simply on the basis that they knew of the actions that the company was taking in the course of its business would be a far-reaching step and would introduce such a radical departure from the principles of limited liability in the financial service field that such an intention should not be attributed to the legislature in the absence of some very clear indication, of which there was none"
UK: The regulatory approach to cryptoassets, stablecoins, and distributed ledger technology in financial markets
Following a consultation last year, the Government has published further details in respect of its planned regulatory approach to cryptoassets, stablecoins, and distributed ledger technology in the financial markets: see here (pdf). It is proposed, amongst other things, to bring within the regulatory perimeter activities facilitating the use of certain stablecoins when used as a payment method.