On 23 December 2015, our partner Mr. Eric Lui attended a legal forum in Jinan which focused on corporate finance matters. More than 70 corporate lawyers from the Shangdong province attended the forum.

Mr. Lui delivered a presentation titled “The key points for overseas IPOs and Merger and Acquisitions transactions”. The presentation covered the basic requirements for listing in Hong Kong, reorganisation of red-chip companies and stamp duty implications for M&A deals.

Please contact our Mr. Eric Lui for any enquiries or further information about this event.

On 11 November 2015, the Court of Final Appeal (CFA) allowed the appeal in Kam Leung Sui Kwan, Personal Representative of the Estate of Kam Kwan Sing, The Deceased v Kam Kwan Lai (FACV 4/2015), and ordered to wind up Yung Kee Holdings Limited (the Company), a company incorporated in the British Virgin Islands (BVI) and the ultimate holding company of the Yung Kee Restaurant.

During his lifetime, the late Mr Kam Kwan Sing (the older brother) accused Mr Kam Kwan Lai (the younger brother) of arrogating power to himself, which is contrary to the intention of their father, the late Kam Shui Fai (the founder of the Restaurant), to allow the brothers to co-manage the Restaurant. As such, in 2010 the older brother initiated proceedings in the Hong Kong court to wind up the Company. Both the Court of First Instance and Court of Appeal ruled that, since the Company is registered overseas, the Hong Kong court has no jurisdiction over the dispute. The older brother’s widow, Madam Kam Leung Siu Kwan, appealed to the CFA on his behalf.

Since the shareholders of the Company and its subsidiaries are based in, the businesses are located in, the income are generated in, and the events that led to the dispute occurred in Hong Kong, pursuant to section 327(c) of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap.32), the CFA took the view that the Company satisfies the requirement of a sufficient connection with Hong Kong, such that the Hong Kong court has jurisdiction to hear the petition. The CFA endorsed the trial judge’s view that there existed a mutual understanding that each brother was entitled to participate in the business and had to be properly consulted. The breach by the younger brother of such understanding, which is contrary to the founder’s intention, prevented the old brother from managing the business. As a result, the CFA concluded that it is just and equitable to wind up the Company.

Meanwhile, the CFA ordered that the winding up order be stayed for 28 days to allow the parties to agree the terms on which the older brother’s shares in the Company might be purchased in the event that agreement could be reached. On 9 December, the parties agreed to apply for a 7-day extension in order to reach a consensus on the purchase price. If no such agreement is concluded before the deadline, the Company will be wound up automatically.

On 9 December 2015, SW Head of Business Development (China) Ms. Connie Yeung was invited to be a guest speaker at the Legal Services Sharing Seminar on the topic of Offshore Trusts and Family Assets, Protection and Succession. A number of professionals, including lawyers and experts from the financial sector coming from Beijing and Shanghai attended this event. Connie gave a detailed explanation on this interesting topic. The audience commented that they found the session very useful and informative.

On 8 December 2015, our partners Mr Eric Lui, Ms Heidi Chui, Mr Stephen Wong, associate Ms Katy Lai, Head of Business Development (China) Ms Connie Yeung and Business Development Manager (China) Ms Zita Huang attended the Commercial Litigation Forum on Settlement of International Disputes co-organised with AllBright Law Offices and Thomson Reuters held at the Ritz-Carlton Shanghai.

Photograph of Mr Eric Lui (second from right), Ms Heidi Chui (in the middle), Mr Stephen Wong (second from left), Ms Katy Lai (on the left), and Ms Connie Yeung (on the right)

Our team, together with other top-notch professionals in corporate law, explored issues related to international dispute resolution and explained the importance of seizing the initiative during disputes. In particular, Ms Chui provided tips to participants at the Forum on how to triumph in cross-border arbitrations including, how to avoid pathological arbitration clauses, preservation of assets and evidence prior to arbitration, the role of anti-suit injunctions during arbitration and recognition and enforcement of arbitral awards.

In addition, speakers conducted an in-depth analysis on the “Shanghai Bund Land Case” and ways to successfully settle international disputes.

Mr Eric Lui (on the right), Mr Guo Rui (second from right) and Mr Lawrence Zhu (second from left), partners of AllBright Law Offices, and Ms Li Shangjing, ALB China Journalist conducting an analysis on the “Shanghai Bund Land Case”

Please contact our Mr Eric Lui or Ms Heidi Chui for any enquiries or further information about this event.

On 5 December 2015, SW Head of Business Development (China) Ms. Connie Yeung and Business Development Manager (China) Ms. Zita Huang attended the 6th session forum on Trusts which was held at the Shanghai University of International Business and Economics. A number of professionals, including lawyers and experts on Trusts from Beijing and Shanghai attended this event.

Stevenson, Wong & Co. assisted Creative China Holdings Limited (8368.hk) in its placing on HKEx

SW acted as legal advisers to Creative China Holdings Limited (Stock Code: 8368) a company principally engaged in the business of program production and event organisation in the PRC, to list on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited (“The Stock Exchange”) by way of placing.

The shares were listed on The Stock Exchange on 18 November 2015. 330 million shares were placed and the final placing price was HK$0.39 per placing share.

Mr. Philip Jian Yang (right), Chairman and Executive Director of the Creative China Holdings Limited and Zhao Wei (left), Cornerstone Investor of the Company

(Source: http://big5.asean-china-center.org/gate/big5/www.fj.xinhuanet.com/2015-11/19/c_1117200640.htm)

Please contact our Hank Lo for any enquiries or further information about this transaction.