Clifford Chance

A recent Hong Kong Court reminder to non-executive directors regarding their duty to enquire and investigate in the face of red flags

27 August 2019

The recent Hong Kong judgment of Moulin Global Eyecare Holdings Limited (in liquidation) v Olivia Lee Sin Mei [2019] HKCFI 1715 reminds non-executive directors (NEDs), in particular those with a professional background, of their duty to exercise care and skill in performing their roles, and the potential consequences they may face if they fail to do so. This is in line with existing English and Australian case law on duties of NEDs. 

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