Partner Heidi Chui Moderated a Panel at the “Asia Forum: 4th International Arbitration & Competition Law Summit – Hong Kong”

Ms Chui moderated the panel titled “Shareholders, Stakeholders & Director Disputes with Hong Kong & Foreign Companies: Best Practices to Protect the Company”. The distinguished panel featured Jeremy Bartlett SC, a Barrister at Princes Chambers; James Kwan and Jon Nicklin, a Director at Accuracy Beijing.

During the session, the panel highlighted industry trends in shareholder and joint venture disputes, especially in renewable energy, new energy vehicles, batteries, and life sciences. The discussions emphasised the complexity of these disputes, often involving multiple layers of holding companies in offshore jurisdictions like the BVI and the Cayman Islands.

The panel also explored the challenges posed by the economic downturn in the People’s Republic of China, which has led to a rise in share redemption disputes as start-ups struggle to go public through IPOs. They stressed the necessity of precise mechanisms in shareholder agreements to address redemption prices and prevent prolonged disputes. Additionally, they highlighted the importance of clauses to manage deadlock situations and unfair prejudice as essential for mitigating potential conflicts.

Another significant topic covered was investor-state dispute settlement (ISDS) complexities in shareholder disputes. The panel discussed the contrasting approaches to reflective loss in national company law versus ISDS, raising concerns about the potential undermining of national legal principles by allowing such claims under many bilateral investment treaties.

For further inquiries, please contact Partner Heidi Chui.