MACAU SAR, CHINA Law and Practice Contributed by: Calvin Tinlop Chui and Carla Veiga, Lektou
6.2 Jurisdiction The courts of Macau shall have jurisdiction to hear an action for the declaration of bankruptcy provided that the domicile or the principal administrative organ of the commercial entrepreneur is in Macau, or that nei - ther of the above is in Macau, but that the action arises from a debt incurred in Macau or due to be performed in Macau, and the commercial entrepreneur maintains a branch, agency, sub-office, sub-sub-agency, agent or representative office in Macau. However, the liqui - dation is limited to property located in Macau. 6.3 Applicable Law Macau bankruptcy rules are subject to the principle of territoriality – ie, foreign bankruptcy/insolvency proceedings will not have effect in Macau unless the foreign insolvency is recognised under the relevant provision of the Macau Civil Procedure Code. 6.4 Recognition and Enforceability Macau courts may recognise foreign insolvency pro - ceedings if certain conditions are met. • Reciprocity: The foreign country must have a recip - rocal arrangement with Macau for the recognition of insolvency proceedings. This means that Macau will only recognise and provide assistance to for - eign proceedings if the foreign country also recog - nises and provides assistance to Macau insolvency proceedings. • Jurisdiction: The foreign insolvency proceedings must have been commenced in a country where the debtor has its centre of main interests, which is generally the place where the debtor conducts its main business activities or where its main assets are located. Please note that if the company has its registered office located in Macau, the Macau courts consider themselves to have exclusive jurisdiction over bankruptcy and insolvency pro - ceedings. • Public policy: The recognition and assistance must not be contrary to Macau’s public policy. Macau courts may refuse to recognise or provide assis - tance if the foreign proceedings are deemed to be inconsistent with Macau’s fundamental principles of justice or public order.
Foreign insolvency judgements are only enforceable in Macau through a special procedure for the recognition and revision of foreign judgments. It should be noted, however, that the Macau courts have exclusive juris - diction over bankruptcy and insolvency proceedings involving companies incorporated in Macau. Other - wise, judgments will be revised and confirmed by the Macau Intermediate Court, provided that: • the judgment is intelligible, final and conclusive; • there was no fraud in the course of the relevant proceedings, and it is not a matter of the exclusive competence of the courts of Macau, such as pro - ceedings relating to real estate rights of properties located in Macau and matters of insolvency and bankruptcy; • the matter of the judgment is not the subject of a case pending in the court of Macau or a case that is res judicata according to the laws of Macau, except in cases where the action commenced in the foreign court or arbitral tribunal before action was instituted in the court of Macau; • the defendant was regularly summoned to the proceedings of the foreign court or tribunal and the adversary system and principle of equal standing of the parties were observed in the proceedings; and • the enforcement of the judgment would not result in a clear violation of public policy in Macau. 6.5 Co-Ordination in Cross-Border Cases As per the information available, no protocols or oth - er arrangements have been entered into with foreign courts to co-ordinate proceedings. 6.6 Foreign Creditors Creditors in Macau will be paid first in proportion to the debtor’s assets (representation) in Macau. This is guaranteed by provisions in both banking law and the commercial code.
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