Will the Chinese courts grant "back door recognition" to overseas insolvency practitioners?
27 January 2015
A recent decision of the Supreme People’s Court of the People’s Republic of China sends a clear signal from the highest level of the PRC judiciary that it recognises the powers and role of offshore shareholders under local law in the jurisdiction of appointment and will respect those powers.
However, this not likely to result in an overnight sea change in the PRC and does not mean the PRC authorities will start recognising the authority of offshore insolvency appointees of shareholders to the point where they can routinely remove recalcitrant legal representatives and exert control over their onshore subsidiaries.
Despite this bold step in the right direction, certain legal and practical limitations will continue to affect offshore creditors and investors seeking to enforce their rights in the PRC.
Click here to read the full article, as published in Corporate Rescue and Insolvency journal.