RE THE INCORPORATED OWNERS OF TAI CHI FACTORY BUILDING (IN LIQUIDATION)

RE THE INCORPORATED OWNERS OF TAI CHI FACTORY BUILDING (IN LIQUIDATION)

The court held that it could, in exceptional circumstances and where adequate safeguards exist and parties consent, exercise its inherent jurisdiction to dispense with the statutory meeting and taxation procedures and approve an alternative arrangement whereby the Owners agree to pay and approve the Liquidators' professional fees and the assignment may proceed.

Citation
[2020] HKCFI 371
Parties
Company (in Liquidation): The Corporation; Owner: Ray Bright Enterprises Ltd; Applicants: Liquidators
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
5 March 2020
Case Number
HCCW458/2016
Procedural Posture
Companies Liquidation — Application for Directions and Approval of Assignment and Fees / Interlocutory Application for Dispensation From Statutory Meeting Requirement and Approval of Fee Arrangement
Outcome
Application granted to the extent that the court exercised its inherent jurisdiction to dispense with the statutory meeting requirement and approved the agreed fee and assignment procedures subject to safeguards.
Legal Topics
Liquidation, Meeting of Contributories, Inherent Jurisdiction to Dispense With Statutory Requirements, Approval of Liquidator's Fees and Disbursements, Assignment of Company Property
Source Language
EN
Company Law Insolvency Civil Procedure Liquidation Meeting of Contributories Inherent Jurisdiction to Dispense With Statutory Requirements Approval of Liquidator's Fees and Disbursements Assignment of Company Property

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Parties

The Corporation

Company (in Liquidation)

Ray Bright Enterprises Ltd

Owner

Liquidators

Applicants

Procedural Posture

Companies Liquidation — Application for Directions and Approval of Assignment and Fees / Interlocutory Application for Dispensation From Statutory Meeting Requirement and Approval of Fee Arrangement

Legal Issues

  1. 1 Whether the court has power to dispense with the statutory requirement to summon a meeting of contributories
  2. 2 Whether the court should exercise its inherent jurisdiction to dispense with statutory procedures in the present circumstances
  3. 3 Whether the Owners may be permitted to agree to and bear the Liquidators' professional fees in lieu of taxation under the Ordinance

Ratio Decidendi

The court held that it could, in exceptional circumstances and where adequate safeguards exist and parties consent, exercise its inherent jurisdiction to dispense with the statutory meeting and taxation procedures and approve an alternative arrangement whereby the Owners agree to pay and approve the Liquidators' professional fees and the assignment may proceed.

Court Disposition

Application granted to the extent that the court exercised its inherent jurisdiction to dispense with the statutory meeting requirement and approved the agreed fee and assignment procedures subject to safeguards.

Orders

  • Dispensed with the requirement to summon a meeting of contributories under the Companies Ordinance in the circumstances of this case
  • Approved that the Owners may agree to and bear the Liquidators' reasonable professional fees and disbursements in lieu of taxation notwithstanding Companies Ordinance s196(2)(b)