RE FORLUXE SECURITIES LTD.

RE FORLUXE SECURITIES LTD.

The court directed that liquidators' fees and expenses be allocated by (a) charging costs to the specific company where the work can be designated, (b) apportioning between companies equally where designation is impossible, and (c) apportioning between trust and general assets generally in proportion to the value of those assets (with specified exceptions for particular categories), and made specific allocations for seven cost categories and directions on distribution of shares.

Citation
RE FORLUXE SECURITIES LTD.
Parties
Company in Liquidation / Plaintiff: Forluxe Securities Limited; Company in Liquidation / Plaintiff: Forluxe Finance Limited; Defendant (former Director): James Mui Kwong-ngok; Defendant (former Director): Gordon Mui Kwong-yin; Defendant (former Director): Peggy Lee Pui-yin
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
7 July 2001
Case Number
HCCW311/1998
Procedural Posture
Companies (winding Up) Action / Post Provisional Liquidation Directions Hearing (allocation of Liquidators' Fees and Implementation of Earlier Order)
Outcome
Directions issued allocating liquidators' fees and expenses across seven categories and ordering procedures for disposal or delivery of shares; costs of present summons to be dealt with as directed.
Legal Topics
Liquidation, Apportionment of Costs, Trust Assets Vs General Assets, Berkeley Applegate Order, Brokers' Fidelity Insurance Claim
Source Language
EN
Company Law Insolvency Law Trust Law Civil Procedure Liquidation Apportionment of Costs Trust Assets Vs General Assets Berkeley Applegate Order +1 more

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Parties

Forluxe Securities Limited

Company in Liquidation / Plaintiff

Forluxe Finance Limited

Company in Liquidation / Plaintiff

James Mui Kwong-ngok

Defendant (former Director)

Gordon Mui Kwong-yin

Defendant (former Director)

Peggy Lee Pui-yin

Defendant (former Director)

Procedural Posture

Companies (winding Up) Action / Post Provisional Liquidation Directions Hearing (allocation of Liquidators' Fees and Implementation of Earlier Order)

Legal Issues

  1. 1 How to apportion liquidators' fees and expenses between Forluxe Securities Ltd and Forluxe Finance Ltd
  2. 2 How to apportion costs between trust assets and general assets
  3. 3 Allocation of costs for specific categories: general liquidation, share portfolio management, brokers' fidelity insurance claim, sale of stock exchange seat, litigation (HCA 7543/1998), tracing/examinations, Berkeley Applegate application

Ratio Decidendi

The court directed that liquidators' fees and expenses be allocated by (a) charging costs to the specific company where the work can be designated, (b) apportioning between companies equally where designation is impossible, and (c) apportioning between trust and general assets generally in proportion to the value of those assets (with specified exceptions for particular categories), and made specific allocations for seven cost categories and directions on distribution of shares.

Court Disposition

Directions issued allocating liquidators' fees and expenses across seven categories and ordering procedures for disposal or delivery of shares; costs of present summons to be dealt with as directed.

Orders

  • General liquidation/statutory work: allocate to FSL or FFL where possible; where not possible apportion equally between companies; apportion between trust and general assets in proportion to value of respective assets.
  • Share portfolio management/administration: allocate to FSL or FFL according to which company held the shares; apportion between trust and general assets by value; surplus Category D and Category E shares treated as general assets.