Who has the last word? The effect of an exclusive jurisdiction clause on insolvency proceedings -

On 4 May 2023, the Court of Final Appeal (CFA) handed down its much-awaited judgment in Re Guy Kwok Hung Lam [2023] HKCFA 9. This decision is significant. It clarifies the proper approach in deciding whether to dismiss or stay a creditor’s bankruptcy petition before Hong Kong courts, where the underlying petition debt arises from an agreement containing an exclusive jurisdiction clause (EJC) in favour of a foreign court. In this article, our insolvency, litigation and arbitration specialists consider the practical implications of this decision.