RE PUBLIC FUTURES LTD

RE PUBLIC FUTURES LTD

The petitions were granted because the statutory requirements for reduction were satisfied, the reductions served a legitimate and discernible corporate purpose, the shareholders were treated equitably, and there was no evidence that creditors would be prejudiced.

Citation
RE PUBLIC FUTURES LTD
Parties
Petitioner: Public Futures Limited; Petitioner: Public Investments Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
19 February 2009
Case Number
HCMP2472/2008
Procedural Posture
Company Petition Reduction of Capital / Judgment (reasons for Judgment Handed Down)
Outcome
Petitions for confirmation of reduction of capital granted for both companies.
Legal Topics
Capital Reduction, Share Capital, Creditor Protection, Court Confirmation, Procedural Directions
Source Language
EN
Company Law Corporate Restructuring Companies Ordinance (cap. 32) Capital Reduction Share Capital Creditor Protection Court Confirmation Procedural Directions

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Parties

Public Futures Limited

Petitioner

Public Investments Limited

Petitioner

Procedural Posture

Company Petition Reduction of Capital / Judgment (reasons for Judgment Handed Down)

Legal Issues

  1. 1 Whether the proposed reductions of share capital for PFL and PIL comply with statutory requirements
  2. 2 Whether creditors would be prejudiced by the reductions
  3. 3 Whether settlement of list of creditors and application of section 59 may be dispensed with

Ratio Decidendi

The petitions were granted because the statutory requirements for reduction were satisfied, the reductions served a legitimate and discernible corporate purpose, the shareholders were treated equitably, and there was no evidence that creditors would be prejudiced.

Court Disposition

Petitions for confirmation of reduction of capital granted for both companies.

Orders

  • Confirmation of reduction of capital of Public Futures Limited from HKD 20,000,000 divided into 20,000,000 shares of HKD1 each to HKD 2 divided into 20,000,000 shares of HKD0.0000001 each and that HKD 19,999,998 be paid off to the shareholders.
  • Confirmation of reduction of capital of Public Investments Limited from HKD 5,000,000 divided into 50,000 shares of HKD100 each to HKD 200 divided into 50,000 shares of HKD0.004 each and that HKD 4,999,800 be paid off to the shareholders.