As one of the first batch of Guangdong-Hong Kong-Macao Greater Bay Area (“GBA”) lawyers, our Partner Mr. Roy Leung attended the first ever course titled “Practical Legal Training for GBA Lawyers” co-organized by the Supreme People’s Court and the Ministry of Justice of the People’s Republic China at the National Judges College (Guangdong) in this mid-July.
This course was delivered by distinguished legal practitioners, including presiding judges of the People’s Courts, mainland legal experts, and specialists from arbitration and commercial mediation institutions. The course features important topics on civil and commercial litigation, arbitration, and mediation, including:
- “Judicial Thinking in Foreign-Related Civil and Commercial Cases Involving Hong Kong and Macao”
- “Rules of Evidence in Civil Litigation”
- “Practical Conduct in Litigation Services”
- “Practical Issues in Representing Civil and Commercial Litigation”
- “Enhancing Corporate Legal Systems to Support High-Quality Development: An Overview of the Sixth Amendment to the Company Law”
- “The Integration and Development of Arbitration Practices in the GBA: Issues and Recommendations”
- “Mediation Systems and Practices in the GBA”
The course is highly informative of extensive practical discussions, which will surely benefit our China Practice team inproviding clients with sound legal advice and practical solutions for handling issues arising in civil and commercial matters in China.
On 12 July 2024, we are delighted to receive a visit of honourable guests from Yingke Law Firm Guangzhou Office. We had valuable exchange on legal services and developments in Mainland China and Hong Kong.
We are acting for a reputable entrepreneur in Mainland and successfully obtained an order from the High Court of Hong Kong to set aside a Bankruptcy Statutory Demand issued against our client by a prominent venture capital fund with costs awarded in favour of our client.
Upon being instructed by our client who had received the Bankruptcy Statutory Demand which concerned an alleged debt of almost USD13 million arising from a share sale and purchase agreement and may lead to her bankruptcy, we made urgent efforts to make an application to the Court to set aside the subject Bankruptcy Statutory Demand including preparing all necessary papers on an urgent basis as well as liaising with Senior Counsel and Counsel. Right at the first court hearing, we successfully resisted the Petitioner’s attempt to seek a Bankruptcy Order summarily, and made out a cogent case for substantive arguments. In the substantive hearing of the said application this week, we ran multiple lines of arguments and meticulously articulated to the Court that the subject Bankruptcy Statutory Demand should be set aside on three grounds, namely (1) defence of non est factum, (2) that the subject Bankruptcy Statutory Demand was not founded upon a valid liquidated debt as parties’ obligation under the agreement are dependent, and (3) that parties should resort to arbitration pursuant to the arbitration clause in the agreement. The Court agreed with the forceful submissions put forward on behalf of our client that the alleged debt relied on by the subject Bankruptcy Statutory Demand is subject to a bona fide dispute on substantial grounds, and therefore set aside the subject Bankruptcy Statutory Demand pursuant to r. 48(5)(b) of the Bankruptcy Rules (Cap 6A).
The aforesaid services are handled by our Senior Partner Mr. Peter Sit and our Litigation Partner Mr. Roy Leung, assisted by Senior Associate Ms. Theresa Law and Trainee Solicitor Ms. Shirley Yu. Lawyers of our Litigation Department are well versed in the law and procedures of insolvency proceedings, including personal bankruptcy and company winding-up matters, and are determined to assist our clients in tackling legal problems in urgent situations.
Our Partners Mr. Roy Leung and Ms. Jenny Wong have been leading the litigation team of our firm since the end of 2020, representing China CITIC Bank Corporation Limited Tianjin Branch, China CITIC Bank International (China) Limited Beijing Branch, and China CITIC Bank International Limited (collectively “CITIC”) in multiple litigations before the High Court of Hong Kong involving an HK$8 billion syndicated loan and related mortgages and guarantees with tycoon Mr. Pan Sutong and his controlled company Silver Starlight Limited, including proceedings to resist injunction application and the corresponding appeal (Case Nos. HCMP222/2021 and CACV301/2021), his application to set aside statutory demand (Case No. HCSD3/2021), company winding-up petition (Case No. HCCW295/2021), and bankruptcy petition against him personally (Case No. HCB6548/2021).
Amid rounds of highly contested legal battles, our firm had already successfully obtained judgments in favour of CITIC at the High Court and Court of Appeal hearings. Subsequently, we proceeded to file bankruptcy and winding-up petitions against Pan Sutong and Silver Starlight Limited swiftly. The series of proceedings moved at a cracking pace. Even after the heard-together hearing for bankruptcy petition and winding-up petition, Pan Sutong and Silver Starlight Limited still fought relentlessly and made last-minute attempt to seek postponement for the determination of the petitions, which were all dismissed by the Honourable Madam Justice Linda Chan of the High Court. Ultimately, the Court ruled in our favour and granted bankruptcy order against Pan Sutong and winding-up order against Silver Starlight Limited on 8 July 2022.
Pan Sutong and Silver Starlight Limited subsequently appealed to the Court of Appeal against the bankruptcy order and winding-up order (Case Nos. CACV266/2022 and CACV265/2022). Additionally, Pan Sutong and Silver Starlight Limited respectively appealed to the Court of Appeal and applied for leave to appeal against the decision of the Honourable Madam Justice Linda Chan of the High Court to refuse the postponement for the determination of the petitions (Case Nos. CACV261/2022 and CAMP294/2022). Along with Pan Sutong’s earlier appeal to the Court of Appeal against the decision of Deputy High Court Judge Le Pichon to dismiss his application to set aside statutory demand (Case Number: CACV525/2021), Pan Sutong and Silver Starlight Limited have collectively lodged a total of five appeals with the Court of Appeal.
The five appeals involve different legal and factual disputes, including: (1) Whether Pan Sutong and Silver Starlight Limited are bound by the previous judgments in HCMP222/2021, CACV301/2021, and HCSD3/2021 and are precluded from re-litigating several issues by doctrine of res judicata; (2) Whether the Court should consider and admit new evidence sought to be adduced by Pan Sutong and Silver Starlight Limited in handling HCSD3/2021, HCCW295/2021, and HCB6548/2021; (3) Whether the Court should dismiss the application by Pan Sutong and Silver Starlight Limited for postponement of the determination of petitions; (4) The jurisdiction of the Hong Kong court to wind up the overseas company Silver Starlight Limited; and (5) Whether there is a bona fide dispute by Pan Sutong and Silver Starlight Limited regarding the debts in question. The issues involved in the case are intricate and intertwined. Given the complexity of the case, the Court of Appeal directed that the five appeal proceedings be heard together and dealt with at a combined hearing.
The appeal proceedings lasted for over a year. During the complex appeal process, our firm took the initiative to apply to the Court of Appeal and successfully obtained leave to adduce new evidence which strengthens CITIC’s case in opposition to the appeals made by Pan Sutong and Silver Starlight Limited. Furthermore, we advanced further protective measures to safeguard our client’s best interest. Considering the dire financial situation of Pan Sutong and Silver Starlight Limited and the apparent risk that they may not be able to bear the legal costs incurred by our client during the appeal proceedings, we applied to the Court of Appeal for security for costs from Pan Sutong and Silver Starlight Limited. We requested Pan Sutong and Silver Starlight Limited to first pay a sum of money as security for costs to the Court, or else the entire appeal proceedings would be dismissed. Our firm successfully obtained a security for costs order for the client, compelling Pan Sutong and Silver Starlight Limited to pay the security for costs to the Court before the appeal hearing.
Meanwhile, our firm collaborated closely with the counsel team, engaging in thorough communication, studying and analyzing the grounds for appeal, skeleton submissions and list of authorities of Pan Sutong and Silver Starlight Limited meticulously. The aim was to enhance our grounds for opposition, present a strong case before the Court of Appeal, and refute the appeal grounds put forward by Pan Sutong and Silver Starlight Limited. Ultimately, the Court of Appeal accepted our arguments and evidence in relation to the legal and factual disputes, upheld the decisions of lower court, and dismissed all five appeals. The summary of the judgment is as follows:
The Court of Appeal dismissed all five appeals. Along with two new evidence applications taken out by our firm, the Court of Appeal granted costs orders for all seven proceedings in favour of CITIC and, extraordinarily, with 3 Certificates of Counsel.
The series of cases are led by our partners Mr. Roy Leung and Ms. Jenny Wong, with the assistance of our litigation solicitors including Ms. Winnie Hui. Our firm has extensive experience in actions for recovery of substantial debts, company winding-up proceedings, and personal bankruptcy proceedings. We strive to prioritize clients, assist and support clients in proposing comprehensive legal actions, and spare no effort to safeguard clients’ interests.
On 20 June 2024,our firm was honored to receive a visit from 5 partners of Beijing Dacheng(Shenzhen) Law Office. During the visit, there was an exchange of ideas withour partners on legal services in Hong Kong and Mainland China.
We obtained an urgent anti suit injunction for a listed company (the “Company”) in the Hong Kong Court (the “Anti Suit Injunction”), restraining the defendants, being former directors of the Company (the “Defendants”), from interfering with the Company’s ongoing application in the Bermuda Court pending further determination of the Originating Summons filed by us on the same date by the Hong Kong Court.
The Anti Suit Injunction is a remarkable protection to the Company, over which joint provisional liquidators had been appointed by the Bermuda Court following an ex parte application by the Defendants without prior notice to the Hong Kong Court or the parties concerned (the “Appointment Order”). Trading of listed shares was then put to halt. In compliance with the Resumption Guidance by the Stock Exchange of Hong Kong, the Company through its newly appointed directors applied to the Bermuda Court for setting aside and/or discharge of the Appointment Order (the “Set Aside Application”). While the joint provisional liquidators remained neutral, the 1st Defendant being the main protagonist attempted to resist and stall the Set Aside Application.
In granting the Anti Suit Injunction, the Hong Kong Court heavily criticized the Defendants’ conduct in obtaining the Appointment Order being an abuse of process in engaging with forum shopping in Bermuda despite that the Company is listed in Hong Kong and that the parties had already engaged in protracted litigation in Hong Kong Court. Specifically, the conduct of applying for the Appointment Order was described as a calculated abuse of process for frustrating the effect of an earlier order granted by the Hong Kong Court in facilitating the conduct of a special general meeting of the Company.
Having worked over a weekend, we are pleased that our firm’s beat-the-clock efforts in working with a Senior Counsel and a learned junior counsel in Hong Kong and the Company’s legal team in Bermuda have yielded judicial success. It proves that our ample experience and expertise in cross-jurisdictional commercial and corporate disputes and liquidation matters play a pivotal role in critical moments.
We also assist the Company in dealing with corporate and compliance matters amidst ongoing litigations. Our diversity of practices and strong inter-departmental coordination enable corporate clients to receive one-stop legal services, in favour of business efficacy.
The aforesaid services are handled by our Litigation Partner Mr. Roy Leung, assisted by Senior Associate Mr. Olson Lai and Mr. Mathew Liu, Trainee Solicitor Ms. Sherrie Ma, Mr. Manson Chan and Mr. Andes Leung.
In a heartwarming reunion, our firm had the pleasure of welcoming the visit of ourold friend on 8 May 2024. Mr. Henry Mao, once a former PRC colleague joining our firm through the Law Society secondment program, recently paid us a visit bringing with him a flood of memories and nostalgia. His return was met with excitement and enthusiasm, as our partners eagerly gathered to reconnect with their former teammate.
Since leaving our firm and returning to his hometown, Henry has made remarkable strides in his legal career specializing in arbitration and dispute resolutions. His dedication and hard work propelled him to become a partner in charge of a respected and prominent PRC law firm headquartered in Shanghai.
Henry’s visit also provided an opportunity for knowledge exchange and collaboration. We shared experiences about challenging cases, market trends as well as the growth we both encountered along the way. Moving forward, we are excited about the potential for future cooperation and look forward to exploring areas of cooperation and leveraging our collective strengths to achieve even greater success.
Our Senior Partner, Mr Peter Sit, was conferred University Fellowship 2023/2024 by The Hong Kong Polytechnic University on 26 April 2024 to honour his longstanding commitment to PolyU.
The citation read out at the Conferment Ceremony states:
“Mr Peter Sit Kien-ping, Senior Partner of the highly-regarded law firm Sit, Fung, Kwong & Shum, has been serving the legal sector for over 40 years. Abided by the motto ‘quantum potes, tantum aude’, or ‘do as much as you are able’ in English, Mr Sit has spared no effort in any endeavour, both as a solicitor and as an advocate for progressive reforms in legal practice.
In 2018, Mr Sit was inducted into the Roll of Honour of the Law Society of Hong Kong in recognition of his distinguished contribution to the legal sector, the development of the legal profession, and the practice of law in Hong Kong. This prestigious list celebrates the outstanding achievement of solicitors. Only 40-odd practitioners have made it to the list since the Society was founded in 1907. Serving on the Council of the Law Society from 1995 to 2000, Mr Sit contributed his valuable time and expertise to the Society by joining numerous committees over the years including chairing the Hong Kong Lawyer Editorial Board, and the Standing Committee on Compliance. Highly optimistic about the future of the Greater Bay Area (GBA), Mr Sit is among the second cohort of Hong Kong lawyers qualified to practice in GBA.
Once an examiner and a part-time lecturer, Mr Sit is enthusiastic about educating the next generations of professionals. His dedication to this cause is evident in his longstanding commitment to PolyU. Having served as a Council Member from 2015 to 2021, and as a Court Member from 2021, he actively contributes to steering the University towards continuous advancement. Throughout his tenure, Mr Sit has provided invaluable legal advice to the University, he also played a crucial role in various committees including the Governance Committee, Campus Development Committee, Task Force on Governance Report of UGC, and several search committees for senior management of the University.
Mr Sit believes in an “industry approach” to legal practice in a bid to improve efficiency and uncork the bottlenecks in the judiciary system, as well as to recruit more practitioners and attract more students to pursue an education and a career in law-related sectors. He also believes the education sector may benefit from an industry-university-research approach where the contents of curricula and knowledge align with evolving social needs and contexts.”
Our Senior Partner Mr. Peter Sit, our Partners Mr. Joseph Wong and Ms. Jenny Wong have been presented with the practice licenses as lawyer in the Guangdong-Hong Kong-Macao Greater Bay Area (“GBA”), and will formally practise in their capacity as a GBA lawyer for civil and commercial matters relating to the PRC laws.
SFKS’s China Practice Group has a long history of providing legal supports to clients on a wide spectrum of civil and commercial matters. The GBA qualification of 4 lawyers in total will further enhance our capability in providing quality services to clients in an efficient manner. We are committed to strengthening our communication with the legal professionals in Mainland China, and contributing to the modernisation and development of the legal profession in GBA.
Recently, 6 lawyers of our firm were honoured to visit Jiangmen, Guangdong.
On 21 March 2024, our lawyers attended The Rule of Law Convention, where officials of Jiangmen city and its Department of Justice, Jiangmen Lawyers Association, representatives of law firms, corporates, commercial associations and representatives of associations shared directions and experience in enhancing business environment through the rule of law.
On 22 March 2024, our lawyers visited Shenzhen Court of International Arbitration Jiangmen (Jiangmen Arbitration Commission). Together with representatives of arbitration, law firms, investment banks and overseas Chinese business communities, we exchanged prospective views on the development of the Guangdong-Hong Kong-Macao Greater Bay Area (“GBA”) through cross-sector cooperation.
On the same day, our lawyers visited 廣東法匠律師事務所 and 廣東弘新君睿律師事務所 and had valuable discussions with Mainland lawyers on the great business potential of GBA, strong and sustainable development of law firms and a variety of legal practices.
We express our sincere gratitude to the officials of Jiangmen Municipal Judicial Bureau and the Jiangmen Lawyers Association respectively, for their invitations, arrangements and hospitality.
Our lawyers attending Jiangmen include Senior Partner Mr. Peter Sit, Partners Mr. Joseph Wong, Mr. Roy Leung, Mr. Simon Siu, Ms. Jenny Wong, and Senior Associate Mr. Mathew Liu.
Our Partner Mr. Roy Leung and Senior Associate Ms. Theresa Law were invited to give a CPD seminar to the members of the Professional Insurance Brokers Association (“PIBA”) on 4 March 2024, on the theme of “Trust & Family Office” within the realm of wealth management and investment services.
During the seminar, Mr. Leung and Ms. Law, with the support of our Trainee Solicitor Mr. Andes Leung, introduced the elementary legal concept, history, development, functions, common issues, etc. of trust and family office, which have been hot topics in and beyond the insurance industry in recent years. The CPD seminar received positive response with attendance of almost 90 PIBA members.
At the seminar, the attending PIBA members also engaged in enlightening discussions with Mr. Leung and Ms. Law on the significance of trust and the evolving roles and regulations of family offices in Hong Kong. The valuable insights of Mr. Leung and Ms. Law enriched the knowledge base of the attendees and facilitated the commitment of the insurance industry to staying abreast of these pertinent topics.
The discussion on trust delved into its unique principles and its pivotal role in property holding and wealth management. Simultaneously, the exploration of family offices shed light on their unique role in succession planning, customized lifestyle management services, and the professional management of the wealth of high-net-worth individuals (HNWI) and their beloved family members amid the provision of incentives, including among others, a new tax concession regime, by the Hong Kong Government endeavoring for the development of family offices in Hong Kong.
Our firm provides a wide range of services to private clients including family wealth management. Our Trust Team provides legal services to clients on trust-related matters, including the establishment of private trusts for tax planning, assets protection, and estate and succession planning. This ranges from the trust structure before establishment to the management of the underlying assets and business after settlement. Our firm has acted for and advised leading insurance companies and family office. Besides trusts and estates, assistance on real property successions and solutions is joined by our Conveyancing Department. Our Dispute Resolution Department has substantial experience in contentious disputes over trusts, sharing valuable insights on risk factors. We are dedicated to establishing long-term relationships with both corporate and individual clients to provide indispensable support to their businesses and lives across different stages.
We are honoured to be invited to visit various organisations in Jiangmen of the Greater Bay Area!
On 29 December 2023, our Senior Partner Mr. Peter Sit, together with Partners Mr. Roy Leung, Mr. Simon Siu, and Ms. Jenny Wong, visited the Jiangmen Lawyers Association. They had in-depth discussions and exchanges with Mr. Peng Gaoyan, a member of the Party Group of the Jiangmen Municipal Bureau of Justice, Mr. Li Jingran, Deputy Secretary and President of the Jiangmen Lawyers Industry Party Committee, Mr. Liu Qinghua, Director of the Legal Affairs Department of the Jiangmen Municipal Bureau of Justice and Secretary General of the Jiangmen Lawyers Association, and other vice presidents and directors on matters relating to lawyers from the Guangdong-Hong Kong-Macao Greater Bay Area practicing in Jiangmen.
During this trip, we had the honour to visit the Jiangmen Chamber of Commerce for Import and Export to learn more about the foreign-related legal service needs of enterprises in Jiangmen. With our own strengths, we are willing to work closely with the Jiangmen Chamber of Commerce for Import and Export through quality legal services to jointly promote the high-quality development of enterprises in Jiangmen.
We, together with Mr. Li Jingran, President of the Jiangmen Lawyers Association, visited the Guangdong Liangjiang Law Firm, and with Mr. Xu Bingquan, Vice President, visited the Guangdong Yuanhao (Jiangmen) Law Firm to learn more about the development history, scale, and business scope of the respective law firms. We hope to deepen our cooperation with Jiangmen lawyers in the future, and provide high-level cross-border legal services for Jiangmen enterprises and overseas compatriots, to create a new landscape for legal services in the Guangdong-Hong Kong-Macao Greater Bay Area.
We would like to extend our sincere gratitude to the Jiangmen Municipal Bureau of Justice, Jiangmen Lawyers Association, and Jiangmen Chamber of Commerce for Import and Export for their warm hospitality and excellent arrangements!
News report of Jiangmen Lawyers Association can be found at:
