RE GREAT HONEST INVESTMENT CO LTD (IN COMPULSORY LIQUIDATION)

RE GREAT HONEST INVESTMENT CO LTD (IN COMPULSORY LIQUIDATION)

Given the evidence that tracing was impractical, the private examinations and investigations indicating the securities did not beneficially belong to the registered holders, and the respondents failure to respond or appear, the court declared the securities not beneficially owned by those individuals and granted the liquidators liberty to sell the securities for the benefit of the companys estate under s200(3) Cap 32.

Citation
RE GREAT HONEST INVESTMENT CO LTD (IN COMPULSORY LIQUIDATION)
Parties
Company (in Compulsory Liquidation): Great Honest Investment Company Limited (in compulsory liquidation); Liquidators / Applicants: The liquidators (applicants); Registered Account Holder / Registered Shareholder: Chung Yuet Sheung, Lorrain; Registered Account Holder / Registered Shareholder: Mo Kwong Wai; Registered Account Holder / Registered Shareholder: Li Wai Huck; Registered Account Holder / Registered Shareholder: Siu Yun Piu
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
26 March 2015
Case Number
HCCW102/2009
Procedural Posture
Companies (winding Up) Compulsory Liquidation / Application for Declaration and Liberty to Sell Securities (chambers Hearing)
Outcome
Application granted.
Legal Topics
Liquidation, Sale of Assets by Liquidator, Tracing of Assets, Beneficial Ownership of Securities, Private Examination (s221), Section 200(3) Application
Source Language
EN
Company Law Insolvency Law Trusts and Proprietary Rights Civil Procedure Liquidation Sale of Assets by Liquidator Tracing of Assets Beneficial Ownership of Securities +2 more

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Parties

Great Honest Investment Company Limited (in compulsory liquidation)

Company (in Compulsory Liquidation)

The liquidators (applicants)

Liquidators / Applicants

Chung Yuet Sheung, Lorrain

Registered Account Holder / Registered Shareholder

Mo Kwong Wai

Registered Account Holder / Registered Shareholder

Li Wai Huck

Registered Account Holder / Registered Shareholder

Siu Yun Piu

Registered Account Holder / Registered Shareholder

Procedural Posture

Companies (winding Up) Compulsory Liquidation / Application for Declaration and Liberty to Sell Securities (chambers Hearing)

Legal Issues

  1. 1 Whether securities registered in the names of the four individuals were beneficially owned by them
  2. 2 Whether, given inability to trace beneficial ownership, the court should declare the securities not beneficially owned by those individuals and permit the liquidators to sell them under s200(3) Cap 32
  3. 3 Whether notice and absence of opposition by the registered holders sufficed to grant the order

Ratio Decidendi

Given the evidence that tracing was impractical, the private examinations and investigations indicating the securities did not beneficially belong to the registered holders, and the respondents failure to respond or appear, the court declared the securities not beneficially owned by those individuals and granted the liquidators liberty to sell the securities for the benefit of the companys estate under s200(3) Cap 32.

Court Disposition

Application granted.

Orders

  • Declaration that the securities apparently held to the account of Chung Yuet Sheung, Lorrain, Mo Kwong Wai, Li Wai Huck and Siu Yun Piu are not beneficially owned by any of them
  • Liquidators granted liberty to sell those securities in such manner as the liquidators in their discretion think fit for the benefit of the companys estate