<p><i> 11 minutes </i></p><p>In Hong Kong, a foreign company can be wound up via the "recognition route" (whereby a winding-up order is obtained from the company's place of incorporation then enforced in Hong Kong) or the "direct route" (whereby the Hong Kong Companies Court has the power to directly make a winding-up order against a non-Hong Kong company). A recent decision consolidates the previous line of cases that have preferred the direct route and reflects a shift in the courts' attitude.</p>
It is trite law that the Hong Kong courts will not enforce a foreign arbitral award if it amounts to indirect enforcement of foreign laws. In the context of tax law, a defence known as the 'tax gathering' defence exists, under which a foreign award will not be enforced if it would, in effect, help foreign states to collect taxes. However, the requirements of this defence have been unclear. Now, a recent case has affirmed that an unsatisfied tax claim is a prerequisite for the tax gathering defence.