• CEFC Shanghai  was a PRC company in Administration. The Administrators sought common law recognition in Hong Kong in order to stop a garnishee order nisi  from being made final.
• The House of Lords decision of Galbraith v Grimshaw  [1910] AC 508 not followed, but obiter dicta  in Privy Council decision of Grupo Torras SA v Al-Sabah  [2014] 2 CLC 636 followed.
• The decision in CEFC Shanghai  was consistent with established principles of common law recognition.

• In the BVI, Part XIX of the BVI Insolvency Act permits orders in aid of foreign insolvency proceedings at the request of a foreign liquidator, but only to representatives appointed in 9 specific jurisdictions, of which the PRC is not included.
• Could the common law power of recognition be relied upon by PRC Administrators instead? The answer is: “maybe”, but the BVI Court of Appeal will have to clarify some conflicting first instance decisions.
• The Cayman Islands does have a statutory provision for recognition of foreign companies under Part XVII of the Cayman Islands Companies Law.

Click here to subscribe to the Take 10 podcast. Choose your preferred platform from the list presented and click subscribe or follow once logged in.

Visit our Take 10 podcast page to catch up on all Take 10 episodes.