As posted by our Head of Insurance in Hong Kong, Will Harrison on 13 January 2012, the High Court of Hong Kong's recent decision in Hobbins v Royal Skandia Life Assurance & Clearwater International  has provided some much needed clarity in an area that has been fraught with uncertainty over the last few years. In his judgment, Reyes J determined that an insurance broker's commission is not a secret profit and not a breach of section 9 of the Prevention of Bribery Ordinance (PBO), if the commission is at a 'normal' level and within a typical placing situation.  His Lordship left open the question what disclosure would be necessary if the commission and circumstances were outside of the norm.[Read More]

Posted by Ann Leung on Wednesday 01 Feb 2012

Company directors and their insurers will welcome the proposed reforms announced by the Federal Government on 27 January 2012.  The exposure draft of the Personal Liability for Corporate Fault Reform Bill 2012 (Cth) (Reform Bill) addresses the mischief of derivative liability whereby directors can suffer personal criminal liability in circumstances where they may not be aware of, or don't have the ability to prevent, the commission of an offence by the company.  

Among the key changes proposed in the Reform Bill are that companies should be liable in the first instance and directors should not be liable for corporate fault “as a matter of course or by blanket imposition of liability across an entire act.”[Read More]

Posted by Jacques Jacobs on Wednesday 01 Feb 2012