HKSI Paper 1 Hong Kong law and the Companies Ordinance question: Civil jurisdiction limits of Hong Kong courts

HKSI Paper 1Hong Kong law and the Companies Ordinance

Cheung Ka Wai claims HK$2.4 million from a former business partner for breach of a share sale agreement. There is no counterclaim. Which court has jurisdiction to hear the claim at first instance under the current civil limits?

A The Small Claims Tribunal, because the claim is for a fixed sum of money owed under a contract
B The Court of Appeal, because claims above HK$1 million under share agreements start there
C A Magistrates' Court, because breach of a share sale agreement is dealt with summarily
D The District Court, which hears contract claims over HK$75,000 and up to HK$3 million

Show the answer and explanation

Answer: D. The District Court, which hears contract claims over HK$75,000 and up to HK$3 million

The Judiciary's guide states that a contract, quasi-contract or tort claim belongs in the District Court if it is over HK$75,000 but not more than HK$3 million (limits raised in December 2018). HK$2.4 million is within that band. The Small Claims Tribunal is limited to HK$75,000. The Court of Appeal is an appellate court and does not hear claims at first instance; claims above HK$3 million go to the Court of First Instance. Magistrates' Courts deal with criminal matters, not civil contract claims. Source: Judiciary, Guide to Court Services - District Court (judiciary.hk); District Court Ordinance (Cap. 336) (as at October 2026).

Common mistake

Candidates send any large claim to the High Court; the District Court ceiling is HK$3 million, so many sizeable investor disputes start there.

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Original study material mapped to the public HKSI Paper 1 syllabus. Unofficial, not endorsed by HKSI Institute or the SFC. Verify figures and rules against current guidance before relying on them.