Bankrupt companies in Hong Kong
The main goal of the bankruptcy procedure in Hong Kong is to satisfy all the claims of the creditors. The assets of the bankrupt company or individual are gathered and distributed accordingly among the creditors. The bankrupt company in Hong Kong must observe the provisions of the Bankruptcy Ordinance and such a company will have to comply with the duties that arise during this procedure.
The main stages of bankruptcy in Hong Kong
The first stage of the bankruptcy procedure begins with the bankruptcy petition. This can be filed by the creditor who is owed an amount of money by the company that can no longer pay its debts or by the company itself if its members believe that the corporation will be unable to make any more payments to third parties.
The bankruptcy petition is presented to a court in Hong Kong and a court hearing follows afterwards. The Court issues a bankruptcy order and following this stage the company will have to allow its assets to be collected by an appointed individual, the appointed Trustee and then distributed to its creditors.
Assistance during the bankruptcy procedure in Hong Kong
A bankrupt company in Hong Kong
will have to fully comply with the requirements of the Trustee. The bankrupt must disclose all information regarding its assets, liabilities, financial issues and other relevant information. The company is to cooperate with the Trustee during the investigation of the bankruptcy
and the distribution of the assets.
Creditors that want to receive their payments from a bankrupt company must complete a Proof of Debt Form to prove that the bankrupt has due payments and they must submit this proof to the Trustee. Our company registration experts in Hong Kong can give you more details about the rights of the creditors.