CHINACULTURE.COM LTD v. PRIME SURPLUS LTD AND ANOTHER

CHINACULTURE.COM LTD v. PRIME SURPLUS LTD AND ANOTHER

Leave to commence the derivative action was granted because the Company agreed to leave being granted to enable the substantive disputes to be resolved expeditiously; the court exercised its case management powers to set a full timetable leading to trial and reserved costs to be dealt with at trial.

Citation
CHINACULTURE.COM LTD v. PRIME SURPLUS LTD AND ANOTHER
Parties
Petitioner in HCMP 1454/2017 and Plaintiff in HCMP 2548/2017: CHINACULTURE.COM LIMITED; 1st Respondent in HCMP 1454/2017: PRIME SURPLUS LIMITED; 2nd Respondent in HCMP 1454/2017 and Defendant in HCMP 2548/2017: CNT GROUP LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
13 December 2017
Case Number
HCMP1454/2017
Procedural Posture
Leave to Commence Derivative Action and Associated Petition Under the Companies Ordinance (s724 and S733) / Case Management Conference; Directions Issued; Leave Granted; Petition to Be Withdrawn and Substantive Trial Scheduled for June 2018
Outcome
Leave granted; petition to be withdrawn; directions for pleadings, discovery, experts and trial fixed; costs reserved to trial
Legal Topics
Derivative Action, Companies Ordinance S724, Companies Ordinance S733, Case Management, Leave to Sue on Behalf of Company, Discovery and Expert Evidence Directions
Source Language
EN
Company Law Civil Procedure Derivative Action Companies Ordinance S724 Companies Ordinance S733 Case Management Leave to Sue on Behalf of Company Discovery and Expert Evidence Directions

Case Brief

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Parties

CHINACULTURE.COM LIMITED

Petitioner in HCMP 1454/2017 and Plaintiff in HCMP 2548/2017

PRIME SURPLUS LIMITED

1st Respondent in HCMP 1454/2017

CNT GROUP LIMITED

2nd Respondent in HCMP 1454/2017 and Defendant in HCMP 2548/2017

Procedural Posture

Leave to Commence Derivative Action and Associated Petition Under the Companies Ordinance (s724 and S733) / Case Management Conference; Directions Issued; Leave Granted; Petition to Be Withdrawn and Substantive Trial Scheduled for June 2018

Legal Issues

  1. 1 Whether leave should be granted to commence a derivative action under the Companies Ordinance
  2. 2 Appropriate timetable and directions for pleadings, discovery, experts and trial
  3. 3 Allocation of costs arising from the originating summons, petition and derivative action

Ratio Decidendi

Leave to commence the derivative action was granted because the Company agreed to leave being granted to enable the substantive disputes to be resolved expeditiously; the court exercised its case management powers to set a full timetable leading to trial and reserved costs to be dealt with at trial.

Court Disposition

Leave granted; petition to be withdrawn; directions for pleadings, discovery, experts and trial fixed; costs reserved to trial

Orders

  • Assumption that the writ will be issued by 4:30pm on 15 December 2017
  • Defence to be filed and served by 5 pm on 5 January 2018