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08 Jun 2021

The Court of Final Appeal's decision on void disposition

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Hsin Chong Construction Company Limited (in liquidation) v Build King Construction Limited [2021] HKCFA 14 (judgment dated 13 May 2021)

When a company is presented with a winding up petition, its contracting parties may be asked to make payments to a different entity in the same group as the company.  Section 182 of Cap 32 voids such payments unless they are validated by the Court. In this case, the Court of Final Appeal considered the application of section 182 on payments arising from a joint venture construction project.

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