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Hong Kong minority protectionpure economic loss

Power Securities Co Ltd v Sin Kwok Lam

[2023] HKCA 594
JurisdictionHong Kong
CourtHK Court of Appeal
Year2023
StatusBinding authority

Summary

Court of Appeal elucidated the reflective loss principle, clarifying when a shareholder cannot recover loss that merely reflects loss suffered by the company.

Key Principle

The Court of Appeal elucidated the law on reflective loss in company law disputes.

Area of Law

company

Related Cases

Shafron v Australian Securities and Investments Commission (2012) 247 CLR 465

A company secretary is an 'officer' under the Corporations Act and owes a duty of care and diligence under s 180 in performing their functions.

Bell Group Ltd (in liq) v Westpac Banking Corporation [2012] WASCA 157

Directors of an insolvent company owe duties to creditors, and bank claims may be subordinated where unconscionable conduct is established in dealings with the insolvent company.

Barclay v Penberthy (2012) 246 CLR 258

The standard of care under s 180 of the Corporations Act is that of a reasonable person in the director's position, having regard to the corporation's circumstances and the director's office.

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