Hong Kong

As Hong Kong works towards becoming a more inclusive society, initiatives like The Ability Bridges play a crucial role in ensuring that legal protection and knowledge are accessible to all members of the community. Through this comprehensive approach, Hugill & II and its partners are not just providing services – they’re building bridges to a more equitable future. In a significant move towards inclusive legal services, Hugill & Ip has launched “The Ability Bridges”, a six-month corporate social responsibility campaign designed to address critical legal needs within Hong Kong’s disability community. The initiative, launching on the United Nations International Day of Persons with Disabilities (3 December 2025), represents a coordinated response to the complex challenges faced by individuals with disabilities and their families. Global context and local challenges The campaign launches against a backdrop of pressing global disability issues. According to recent World Health Organization data, approximately 1.3 billion people – or 1 in 6 people globally – experience significant disability. More alarmingly, persons with disabilities face considerably shorter life expectancies, with some dying up to 20 years earlier than those without disabilities. They also experience twice the risk of developing conditions such as depression, asthma, diabetes, stroke-risk, and obesity. In Hong Kong, the landscape presents its own unique challenges. The Census and Statistics Department’s 2023 Special Topics Report revealed that 534,200 people, representing 7.1% of the city’s population, live with disabilities. Under broader definitions, this number increases to 866,500 people (11.6% of the population). Employment remains a critical issue, with only 40% of working-age persons with disabilities being economically active, highlighting significant barriers to workplace inclusion. A collaborative framework Ability Bridges brings together three prominent NGOs – Love 21 Foundation, The Nesbitt Centre, and Sensational Foundation – in a unique collaborative model. The campaign operates through four strategic pillars: The Justice Bridge: Providing direct pro bono legal representation and advice The Knowledge Bridge: Delivering accessible legal education to families and employers The Support Bridge: Training NGO workers in legal issue identification The Future Bridge: Facilitating future planning through an innovative fundraising model “What makes this campaign unique is its holistic approach,” explains Adam Hugill, Partner at Hugill & Ip. “We’re not just offering legal services; we’re building a sustainable ecosystem of support that will continue benefiting the community long after the campaign ends.” Innovative fundraising model The campaign introduces a groundbreaking “Secure a Future” fundraising initiative. Donors contributing HK$8,000 or more to partner NGOs receive complimentary legal services, including Will drafting (HK$12,000 for Mirror Wills), Enduring Power of Attorney (HK$6,000), or Deed of Guardianship (HK$4,000). This model ensures that 100% of donations directly support NGO programs while providing essential legal planning services to donors. Campaign milestones and activities The six-month campaign features several key initiatives. The campaign addresses critical challenges facing Hong Kong’s disability community through three strategic phases. Beginning with several legal workshops on estate planning, the initiative progresses to comprehensive training sessions and educational resources for families and NGO staff. The final phase delivers workplace inclusion programs and community legal clinics, while tackling fundamental issues such as inadequate legal planning, limited rights awareness, restricted access to services, and employment discrimination barriers. All activities support the campaign’s core mission of building a more inclusive and legally empowered community. “The statistics are clear – persons with disabilities face significant barriers in accessing legal services and understanding their rights,” notes Alfred Ip, Partner at Hugill & Ip. “This campaign provides practical solutions while building long-term capacity within the community.” Community impact and future vision The Ability Bridges campaign aims to achieve several measurable outcomes during its six-month run: Handling a significant number of pro bono cases for individuals and families that would not be able to otherwise afford legal representation Training families and individuals through educational workshops Establishing a sustainable framework for ongoing legal support Generating funding for partner NGOs’ programs The campaign’s impact extends beyond immediate legal services. By building knowledge and capacity within NGOs and the broader community, it creates a foundation for long-term change in how legal services are delivered to persons with disabilities. Getting involved Families seeking support can access services through partner NGOs, while legal professionals interested in volunteering and members of the public wishing to contribute can contact the campaign team at [email protected] or +852 2861 1511.

The Hong Kong government has launched a public consultation on enhancements to regulate licensed money lenders. Currently, any entity or person carrying on a business as a money lender in Hong Kong must obtain a money lender’s licence. The licensing of money lenders and regulation of money-lending activities are governed by the Money Lenders Ordinance (Chapter 163 of the Laws of Hong Kong) and implemented by the Licensing Court, the Companies Registry (CR) and the Police, each playing different roles and functions within the money lenders regulatory regime. In recent years, the community has become increasingly concerned about excessive personal borrowing, especially by foreign domestic helpers (FDHs) and other low-income earners. Statistics reveal that unsecured personal loans granted by licensed money lenders reached a high level of 9.3% in 2024. Larger money lenders reflected that the default rate for borrowers with monthly income of HKD10,000 or less was 9.4%, and the rate for FDHs was 9.9% in 2023. The Hong Kong government is proposing the following measures, which mainly focus on unsecured personal loans: Enhancing regulation of unsecured person loans It is proposed that a cap be set on (a) the aggregate amount of unsecured personal loans or (b) the “debt servicing ratio”. If the borrower’s monthly income is HKD5,000 or less, (a) the aggregate unsecured personal loan cap is one month’s income and (b) the “debt servicing ratio” cap is 35%.  Where the monthly income is between HKD5,001 and HKD10,000, (a) the aggregate unsecured personal loan cap is two months’ income and (b) the “debt servicing ratio” cap is 40%. For example, if a borrower’s monthly income is HKD5,000, his debt servicing amount is capped at HKD1,750 (35% of HKD5,000). If he takes a personal loan with an annual interest rate of 30% to be repaid in 12 monthly instalments, then the maximum principal amount will be HKD18,000. Further, to prevent situations where borrowers take large loans before disappearing when their employment contracts end, the government proposes that repayment periods for unsecured personal loans shall not exceed the remaining term of the borrowers’ employment contracts. Strengthening protection of public interest Under the current regime, an intending borrower may provide a referee to the money lender if the referee has given written consent to act in respect of the loan application. The role of a referee is confined to the provision of information about an intending borrower, and the referee should not be required to repay the loan. Yet, employers of certain defaulting borrowers, including those employing FDHs who reside with them, and non-debtors are harassed by money lenders and debt collectors, causing social problems. To further protect public interest, including the interests of FDH employers, the government proposes that when borrowers provide referees in their loan applications, money lenders must proactively send a letter to the referee to verify the authenticity of the written consent, or else, the referee must sign the written consent in person at the money lender’s premises. As an alternative, the government proposes prohibiting money lenders from requiring borrowers to provide referees when applying for unsecured personal loans. Optimising the borrower affordability assessment The “Credit Data Smart” (CDS) was introduced in April 2024 by the Hong Kong Monetary Authority together with industry associations of banks, money lenders and deposit-taking companies. The CDS enhances protection of consumer credit data and also provides more choices of consumer credit reference service providers.  As in May 2025, 36 money lenders (accounting for about 64% of the loan business of all licensed money lenders) have joined the CDS. The government proposes to require all licensed money lenders to regularly submit personal credit information of their borrowers to the CDS, including loan applications, terms of approved loans and repayment records, to complete the database of the CDS. It also proposes requiring money lenders with a certain scale of unsecured personal loan business to, before approving loans, assess the affordability of intending borrowers based on their personal credit reports under the CDS, in order to enhance their application assessments. Enhancing complaint handling process The government will mandate the CR to enhance the transparency in handling complaints against money lenders and to strengthen communication and exchange of intelligence with the Police. Also, the CR is expected to reinforce the system for supervising money lenders in handling complaints. It is to regularly collect and analyse statistics from money lenders on complaints received by them. It will also monitor whether money lenders with persistently high complaint figures have established procedures to ensure proper handling of customer complaints, to take appropriate remedial actions and to ensure their employees and agents can provide complainants with correct information. Stepping up publicity and education The Government will increase awareness and education targeting FDH communities, young people, and low-income earners to help them better understand the risks of excessive borrowing. To spread the messages effectively, the campaign will use multiple languages and different methods, and the messages will also be conveyed by the Labour Department, the Investor and Financial Education Council, and non-governmental organisations. For FDHs in particular, the government will remind them not to use their employers as loan referees or give their employers’ home addresses as their own contact details when applying for personal loans. It will provide more accessible channels for FDH employers to report money lenders that violate licensing conditions. Enhancing money lender regulatory regime The government proposes the licensing and supervision of money lenders should be handled centrally by a government department (i.e. CR), including reviewing and approving applications, monitoring compliance and prosecuting violations. Details of money lenders with repeated offences will be published on the government’s website for public reference. These measures will require amendments of relevant provisions of the Money Lenders Ordinance. Rossana Chu is a partner and Beverly Fu is an associate at YYC Legal [email protected] [email protected]

Hugill & Ip, renowned for its comprehensive corporate, family and private client services, is pleased to announce the appointment of Polly Chu as Partner, effective mid-October 2025. Polly Chu’s arrival marks the strategic launch of the firm’s dedicated Real Estate and Conveyancing practice, significantly enhancing Hugill & Ip’s ability to provide seamless, end-to-end legal solutions for both corporate entities and private individuals navigating Hong Kong’s property market. Polly Chu is a highly respected practitioner with over two decades of experience in all aspects of Hong Kong property law. Her expertise spans residential and commercial conveyancing, leasing, property financing (including mortgages and refinancing), and handling complex property-related disputes. Her appointment underscores Hugill & Ip’s commitment to expanding its core service offerings in response to growing client demand for integrated legal support across their most valuable assets. In her new role, Polly will lead the development of the new practice area, focusing on streamlining property transactions, providing robust due diligence for commercial acquisitions, and advising on complex land matters in the context of wealth management and corporate restructuring. Strategic expansion and partner commentary The addition of the Real Estate and Conveyancing practice is a strategic move designed to integrate property expertise directly into the firm’s existing strengths in litigation, private client, and corporate law. Caroline McNally commented on the strategic advantage Polly Chu brings to dispute resolution: "Polly’s expertise is a vital addition. In complex commercial and family disputes, property assets are frequently central. Whether it involves enforcing a contract for sale, managing landlord-tenant litigation, or dealing with adverse possession claims, her ability to provide immediate, precise real estate advice will significantly strengthen our advisory and litigation strategies. This ensures our clients receive seamless, end-to-end solutions, whether they are buying, selling, or fighting to protect their assets. Her presence allows us to manage property-related risks proactively from the outset of any dispute." Alfred Ip highlighted the importance of real estate expertise for private clients and wealth management: "For our private clients, real estate often forms the cornerstone of their wealth and estate planning, whether it’s a family home or an investment portfolio. Polly’s deep knowledge of Hong Kong conveyancing procedures allows us to integrate property structuring flawlessly into our trust and succession planning services. This ensures generational wealth transfer is handled efficiently, securely, and in full compliance with complex land registration requirements. This expansion is essential for holistic private client care, safeguarding our clients' most valuable physical assets." Adam Hugill emphasised the benefit to the firm’s client base: "The launch of the Real Estate practice is a game-changer for many of our clients, who require swift and accurate advice when dealing with property. Whether they are disposing of matrimonial properties, conducting property due diligence for M&A transactions, or managing large-scale corporate relocations, Polly provides the necessary specialist insight. This integration allows us to offer a truly comprehensive service, managing both the corporate structure and the underlying assets with expert precision." About Polly Chu Polly Chu holds extensive experience advising high-net-worth individuals, property developers, and institutional investors on diverse property portfolios. She is known for her meticulous attention to detail and her ability to navigate the complex regulatory environment of Hong Kong’s land and property laws. Polly is dedicated to providing practical, commercially sensible advice that achieves client objectives efficiently.

In Re Success Lane Development Limited [2025] HKCFI 1121, the Companies Court considered whether a company could resist a winding-up petition presented based on outstanding interlocutory costs orders (payable forthwith or within 14 days upon summary assessment) by relying on a cross-claim for damages in ongoing legal proceedings. Background The dispute between the Petitioner and the debtor Company  arose over a "Long Stay Room Contract" under which the Company rented a hotel room for storage purposes.  In the District Court, the Petitioner alleged that the Company had damaged various items stored in the hotel room, and claimed against the Petitioner for damages in the sum of at least HK$3,000,000. The Petitioner had obtained various costs orders against the Company as a result of interlocutory applications in the District Court proceedings.  The costs orders are all payable forthwith in the total sum of HK$697,534.66 plus judgment interest (the “Costs Orders”). Based on the unpaid Costs Orders, the Petitioner served a Statutory Demand on the Company.  Shortly after the expiry of the Statutory Demand, the Company applied to set aside and stay the Costs Orders by commencing a separate set of District Court proceedings.  Yet, the said applications were also dismissed. As of the date of the Petition hearing, the Costs Order were either orders not appealed against, or orders against which leave to appeal had been refused by the Court of Appeal.  The main issue at the hearing was whether the Company could resist the Petition (based on Costs Orders payable forthwith) with a cross-claim (for damages in the sum of at least HK$3,000,000 in the ongoing District Court proceedings, the “Cross-claim”). The Court’s Reasons The Companies Court held that the Company could not resist the Petition with the Cross-claim for the following reasons:- (1) The underlying policy of making costs orders payable forthwith is to deter parties from commencing unmeritorious interlocutory applications. To uphold this policy, the Court should regard such costs orders as free-standing, and though such costs orders are not equivalent of cash, it should be as readily enforceable almost as readily cash-able as cheques. In this case, the Company should not be allowed to use the Cross-claim to resist the Petition. (2) There could be no injustice done to the Company if it is to be wound up, because if the Company has a valid claim against the Petitioner, the Company in liquidation could still pursue it. (3) On the contrary, it would be unjust if the Company could resist the Petition based on the Corss-clam, as (a) it would in effect confer a right on the Company to retain the Petitioner’s money as a security for its Cross-claim, and (b) the Costs Orders, being free-standing and supposed to be readily enforceable, have nothing to do with the Cross-claim, in the sense that even if the Company eventually succeeds in its claim in the District Court, the Company would still have to pay the Costs Orders. Having said that, the Companies Court also indicated that its decision was made based on the present facts, and that there may be different considerations if, e.g. the District Court main proceedings are not ongoing but finally concluded, or the receiving party may be to blame for not enforcing any immediately payable costs orders earlier. In view of this case, company debtors should note that the existence of a cross-claim against the petitioner generally would not constitute a valid ground to oppose a winding-up petition presented based on costs orders payable forthwith.  As such, it is advisable for company debtors to settle any costs orders payable forthwith as soon as possible to avoid winding-up petitions being presented against them.  In case of any doubt, legal advice should be sought. If you have any inquiries, please feel free to contact us for more information. Managing Partner: Ian Lo Email: [email protected] Partner: Anderson Siu Email: [email protected]