Document background
The Company Disclosure Letter is a crucial document in Hong Kong corporate transactions, typically used in conjunction with share purchase agreements, investment agreements, or other major corporate deals. It serves as the primary mechanism for a selling company to disclose exceptions to warranties and provide detailed information about its business, assets, liabilities, and operations. The document is particularly important under Hong Kong law as it can protect the disclosing party from warranty breach claims and helps allocate risk between transaction parties. The letter usually references publicly available information, matters in the disclosure bundle, and specific disclosures against warranties in the main agreement. It requires input from various departments and careful review by legal counsel to ensure comprehensive and accurate disclosures.
