HONG KONG SAR, CHINA Law and Practice Contributed by: George Lamplough, Vanessa Cheng and Curtis Pak, Holman Fenwick Willan
issue to be tried in relation to the assets that are in dispute. There is no need to prove that there is a real risk of dissipation of assets (Pacific Rainbow International Inc v Shenzhen Wolverine Tech Ltd [2017] HKEC 869). Court Fees Court fees are inexpensive in Hong Kong. For High Court proceedings, the cost of issuing a writ or originating summons is only HKD1,045. Cross-Undertakings in Damages A plaintiff who seeks injunctive relief must give an undertaking to pay the defendant any dam - ages the defendant might suffer if it later tran - spires that the injunction should not have been granted. This is known as a cross-undertaking in damages. As a condition of granting an injunction, the courts may ask that the plaintiff “fortify” the cross-undertaking (ie, provide a bank guarantee or make a payment into court). Where there is a strong prima facie case of fraud, the courts do not always order the plaintiff to fortify its undertaking as to damages until after the defendant appears before the court and requests fortification. The Effect on Third Parties It is a contempt of court for any person notified of an injunction knowingly to assist in or permit a breach of the order. Any person doing so may be imprisoned, fined or have their assets seized. Prohibition Against Debtors Leaving Hong Kong RHC Order 44A enables a plaintiff or a judgment creditor to apply to courts, ex parte, seeking an order prohibiting a debtor from leaving Hong Kong for “judgment-proof” jurisdiction.
The applicant must show that there is reason to believe that the debtor is about to leave Hong Kong and the debtor’s departure will likely obstruct or delay judgment or satisfaction thereof. 2. Procedures and Trials 2.1 Disclosure of Defendants’ Assets Mareva Injunctions A Mareva injunction may also require defendants to disclose what has become of the plaintiff’s property, and to disclose details of all assets owned or controlled by them, whether in their own name or not. The Hong Kong courts have the power to grant Mareva injunctions on a worldwide basis and require defendants to disclose the nature and value of their worldwide assets. Ancillary Disclosure Orders The court has inherent jurisdiction to order defendants to: • provide a statement of their assets; and • give discovery of documents or answer inter - rogatories for the purpose of ascertaining the existence, nature and location of those assets. The disclosure order would include assets held in the name of the defendant, assets held jointly with other person(s), as well as those held by nominees on the defendant’s behalf. If defendants fail to comply with a disclosure order, they may be liable for contempt of court.
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