Harneys advises INSOL International on standard directions for insolvent trusts

Harneys has partnered with INSOL International to publish draft case management directions (CMDs) for insolvent trusts, with the objective of encouraging legislators in different common law jurisdictions around the globe to adopt these proposals. Partner and head of the offshore litigation and restructuring department of Harneys in Hong Kong, Ian Mann, has been leading the project with Lucy Hickmet, an associate.

The CMDs are intended to apply in the variety of different trust structures found in common law jurisdictions. The directions are expected to be used in instances where the trustee is entitled to rely on a cap of indemnity and in cases where there are jurisdictional challenges, as well as in situations where the parties to the insolvent trust are subject to the UNCITRAL model law.

The team at Harneys also worked with academics and professionals in a variety of jurisdictions to gather their comments in crafting the directions, which were finalised and approved in April 2017.

Ian Mann, partner at Harneys in Hong Kong, commented: “We have been working with the INSOL Technical Research Committee to develop the case management directions for the last two years with the aim of making insolvency procedures more universal and efficient”.

Lucy Hickmet, associate at Harneys who co-wrote the proposals with Mann added: “The case management directions are intended to provide a flexible framework for the best practice to enhance the key aspects of communication and cooperation among courts, insolvency representatives, and liquidation stakeholders”.