In the recent decision of Re Po Yuen (To's) Machine Factory Limited [2012] HKCU 816, the Honourable Mr. Justice Harris confirmed that the liquidators of a company in liquidation may enter into a litigation funding arrangement with a third party and that the funding may come in the form of a contingency fee arrangement with the third party. This endorsement and application of an exemption in Hong Kong to champerty and maintenance adds an interesting PRC dimension to the developing body of case law in Hong Kong allowing litigation funding for liquidators.

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