CHEN HA PING HEPBURN AND ANOTHER v. CHEN TING SAN DANIEL AND ANOTHER

CHEN HA PING HEPBURN AND ANOTHER v. CHEN TING SAN DANIEL AND ANOTHER

The applicants established a justified suspicion of wrongful dealing and accounting irregularities; the statutory and common law rights of directors and shareholders to inspect company documents applied, and the respondent failed to prove that inspection would be abused to materially injure the companies; accordingly the applications for production and inspection were allowed.

Citation
CHEN HA PING HEPBURN AND ANOTHER v. CHEN TING SAN DANIEL AND ANOTHER
Parties
Plaintiff (director and Shareholder): Ms Chen Ha Ping Hepburn; Plaintiff (director and Shareholder): Mr Chen Tsing Kwan; Plaintiff (shareholder): Mr Chen Ting Hoi; 1st Defendant (respondent): Mr Chen Ting San (Daniel); 2nd Defendant (in Person, Absent): 2nd Defendant (unnamed)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
4 June 2012
Case Number
HCMP2062/2011
Procedural Posture
Applications for Production and Inspection of Company Documents Under Companies Ordinance / Hearing and Decision on Interlocutory Applications
Outcome
Applications for production and inspection of documents allowed
Legal Topics
Inspection of Company Documents, Directors' Right of Inspection, Shareholder Inspection Under S152 FA, Alleged Misappropriation and False Accounting, Forensic Accounting Evidence
Source Language
EN
Company Law Trusts and Equity Civil Procedure Inspection of Company Documents Directors' Right of Inspection Shareholder Inspection Under S152 FA Alleged Misappropriation and False Accounting Forensic Accounting Evidence

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 4 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Ms Chen Ha Ping Hepburn

Plaintiff (director and Shareholder)

Mr Chen Tsing Kwan

Plaintiff (director and Shareholder)

Mr Chen Ting Hoi

Plaintiff (shareholder)

Mr Chen Ting San (Daniel)

1st Defendant (respondent)

2nd Defendant (unnamed)

2nd Defendant (in Person, Absent)

Procedural Posture

Applications for Production and Inspection of Company Documents Under Companies Ordinance / Hearing and Decision on Interlocutory Applications

Legal Issues

  1. 1 Whether directors and shareholders were entitled to production and inspection of company documents under section 121 and/or section 152FA of the Companies Ordinance
  2. 2 Whether the applicants acted in bad faith such that inspection should be denied
  3. 3 Whether inspection would be abused to injure the company or misuse confidential information

Ratio Decidendi

The applicants established a justified suspicion of wrongful dealing and accounting irregularities; the statutory and common law rights of directors and shareholders to inspect company documents applied, and the respondent failed to prove that inspection would be abused to materially injure the companies; accordingly the applications for production and inspection were allowed.

Court Disposition

Applications for production and inspection of documents allowed

Orders

  • Production and inspection of the companies' documents granted pursuant to section 121 or alternatively section 152FA of the Companies Ordinance
  • Costs awarded to the plaintiffs