MICHEL HAZAN v. HK SINDY FOOTWEARS LTD AND OTHERS

MICHEL HAZAN v. HK SINDY FOOTWEARS LTD AND OTHERS

The court found there is a serious question to be tried on beneficial ownership and unfair prejudice, a real risk of dissipation and insufficient protection from respondents' undertakings; the balance of convenience favours appointment of interim receivers provided the petitioner gives an undertaking as to damages and reasonable fortification (accepted: retention of US$200,000 and a US$200,000 bank guarantee), therefore relief to appoint interim receivers is granted in principle with a further hearing to fix terms and costs.

Citation
MICHEL HAZAN v. HK SINDY FOOTWEARS LTD AND OTHERS
Parties
Petitioner / Plaintiff: Michel Hazan; 1st Respondent / Company: HK Sindy Footwears Limited; 2nd Respondent / 1st Defendant: Han Qiong Jane; 3rd Respondent / 3rd Defendant: HK Sindy Group Ltd; 2nd Defendant: Han Ming Steven
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
1 August 2006
Case Number
HCMP1240/2006
Procedural Posture
Companies Petition Under S.168 a Companies Ordinance Cap.32 (hcmp 1240/2006) and Related Writ Action (hca 1337/2006) / Inter Partes Hearing on Summonses for Appointment of Interim Receivers; Relief Granted in Principle and Parties to Be Heard on Terms of Appointment and Costs
Outcome
Relief sought granted in principle: interim receivers to be appointed; parties to be heard on precise terms of appointment and on costs.
Legal Topics
Interim Receivers, Unfairly Prejudicial Conduct, Share Buy Out, Rectification of Register, Preservation of Assets, Undertaking as to Damages, Quasi Partnership, Interim Injunctive Relief
Source Language
EN
Company Law Equity Civil Procedure Insolvency/remedies Interim Receivers Unfairly Prejudicial Conduct Share Buy Out Rectification of Register +4 more

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Parties

Michel Hazan

Petitioner / Plaintiff

HK Sindy Footwears Limited

1st Respondent / Company

Han Qiong Jane

2nd Respondent / 1st Defendant

HK Sindy Group Ltd

3rd Respondent / 3rd Defendant

Han Ming Steven

2nd Defendant

Procedural Posture

Companies Petition Under S.168 a Companies Ordinance Cap.32 (hcmp 1240/2006) and Related Writ Action (hca 1337/2006) / Inter Partes Hearing on Summonses for Appointment of Interim Receivers; Relief Granted in Principle and Parties to Be Heard on Terms of Appointment and Costs

Legal Issues

  1. 1 Whether interim receivers should be appointed over HK Sindy Footwears Ltd and HK Sindy Group Ltd to preserve assets pending resolution of disputes
  2. 2 Whether there is a serious question to be tried regarding beneficial ownership of 50% of shares in HK Sindy Group Ltd and rectification of the register
  3. 3 Whether monetary compensation or a buy-out is an adequate remedy absent receivers

Ratio Decidendi

The court found there is a serious question to be tried on beneficial ownership and unfair prejudice, a real risk of dissipation and insufficient protection from respondents' undertakings; the balance of convenience favours appointment of interim receivers provided the petitioner gives an undertaking as to damages and reasonable fortification (accepted: retention of US$200,000 and a US$200,000 bank guarantee), therefore relief to appoint interim receivers is granted in principle with a further hearing to fix terms and costs.

Court Disposition

Relief sought granted in principle: interim receivers to be appointed; parties to be heard on precise terms of appointment and on costs.

Orders

  • Appointment of interim receivers over HK Sindy Footwears Ltd and HK Sindy Group Ltd granted in principle
  • Petitioner to give undertaking as to damages