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Legal Updates
Legal update: Law Reform Commission public consultation on new cyber-crimes
In this snapshot legal update, we report that on 20 July 2022, the cybercrime sub-committee of the Law Reform Commission published a consultation paper with its recommendations to introduce five new cyber crimes into law in Hong Kong. The consultation paper followed a comparative and…Read More
Agreeing to be unfair: Can shareholders agree to oust the right to petition to wind up a company?
Establishing a new company can be nerve-racking. A well-drafted shareholders’ agreement ensures that everyone’s respective rights and obligations are clear, helping to minimise potential future disputes. But what are the limits of these agreements; can a shareholder agree that it will not present an “unfair…Read More
Approaching investors with confidence
Before approaching an investor, remember the five P’s: Proper Preparation Prevents Poor Performance. We recommend conducting background due diligence on the potential investor before meeting to see if the investor is suitable for your business. Here are a few topics to explore: 1. The investment…Read More
Data Breach Case Study: Data loss risk in our physical environment
“Human factors always play a significant role in data breaches.” These simple but wise words resonated in our review of a recent investigation report published by the Privacy Commissioner in Hong Kong on 13 June 2022 regarding the loss of physical files containing sensitive personal…Read More
Legal update: Dismissal of alleged sexual harasser held unlawful under Sex Discrimination Ordinance
Introduction Many employers may be aware of the risk of claims under the Sex Discrimination Ordinance (“SDO”) by employees who are subject to sexual harassment during their employment. In contrast, the legal risk that may arise due to any action taken by an employer against…Read More
Due Diligence Tips
Why should you prepare for Due Diligence? It is important to have all the materials concerning due diligence prepared and organised prior to approaching an investor. This will allow you to keep the focus on the actual funding process and transaction documents, rather than responding defensively…Read More
Legal update: SFC Consultation on clarification to offering document exemptions
In this snapshot legal update, we report that on 10 June 2022, the SFC launched a public consultation exercise that includes a proposed clarification to an exemption from SFC authorisation for offering documents for securities. The Securities and Futures Ordinance prohibits the issue of advertisements…Read More
Legal update: Legislative proposal to amend the Electronic Transactions Ordinance
In this snapshot legal update, we report that on 13 June 2022, in a panel on information technology and broadcasting, members of the Legislative Council were briefed on the legislative proposal to amend the Electronic Transactions Ordinance (“ETO”). The proposals will support further implementation of…Read More
Term Sheets for Investment
1. What is a Term Sheet? A Term Sheet is a summary of the business, finance and legal terms that will apply to an investment round. Usually it is a not a legally binding document, except for a few provisions such as confidentiality, costs or…Read More
Legal update: Review and public consultation on cybersecurity law in 2022
In this snapshot legal update, we report that on 25 May 2022, in a written reply by Mr. Alfred Sit, the Secretary for Innovation and Technology, to Legislative Council questions on cybersecurity standards in Hong Kong, Mr. Sit confirmed that the Hong Kong Government is…Read More
You Only Liquidate Twice
Can a winding-up petition be presented when a company is being wounded up voluntarily? The relevant law (the Companies Winding Up and Miscellaneous Provisions Ordinance) states clearly that the winding up of a company shall not bar the right of any creditor (or contributory) to…Read More
The new licensing regime for Virtual Asset Service Providers: The Amendment Bill
The long-awaited Virtual Asset Service Providers (“VASP”) licence regime is coming closer with the Hong Kong government gazetting the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Bill 2022 on 24 June 2022 (“Bill”). We reported on the key points of the consultation and the conclusion (collectively,…Read More
