Knowing receipt and apparent authority

Abstract

Discusses the implications of the Hong Kong Court of Final Appeal decision in Thanakharn v Akai Holdings Ltd on the correct approach to the determination of whether a third party's reliance on an agent's apparent authority was justifiable in circumstances concerning claims in the tort of conversion and for knowing receipt where a director had wrongly claimed to be entitled to give a lender security over company shares that were then disposed of in exercise of the lender's purported security rights.