RE YIU WING CONSTRUCTION COMPANY LTD.

RE YIU WING CONSTRUCTION COMPANY LTD.

In the absence of any demonstrated serious or actual conflict arising from inter-company debts or related litigation, the court will exercise its discretion to appoint the same liquidators for the parent and subsidiary for reasons of convenience and the best interests of creditors; if conflict later arises the liquidator must seek directions from the court. Accordingly Messrs Lai and Haughey were appointed as joint and several liquidators and the committee of inspection was reduced and constituted to be representative.

Citation
RE YIU WING CONSTRUCTION COMPANY LTD.
Parties
Company: Yiu Wing Construction Company Limited; Creditor: Zhejiang Yi Cheng Industry Company Limited; Creditor: American Home Assurance Company; Creditor: Hong Kong Housing Society; Creditor: Hong Kong Housing Authority; Official Receiver: Official Receiver; Nominee Liquidators (creditors' Candidates): Messrs Kennic L H Lui and Co.; Appointed Liquidator: Mr Lai Kar Yan Derek (Deloitte Touche Tohmatsu); Appointed Liquidator: Mr Darach E Haughey (Deloitte Touche Tohmatsu); Committee Member (appointed): Mr Chan Sei Leung, Edward
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
22 November 2002
Case Number
HCCW202/2002
Procedural Posture
Companies (winding Up) / Determination Hearing Under S.206 of the Companies Ordinance
Outcome
Messrs Lai Kar Yan Derek and Darach E Haughey (Deloitte Touche Tohmatsu) appointed joint and several liquidators; committee of inspection reduced and constituted; ancillary orders as below.
Legal Topics
Liquidator Appointment, Committee of Inspection, Conflict of Interest, Winding Up Procedure
Source Language
EN
Company Law Insolvency Law Civil Procedure Liquidator Appointment Committee of Inspection Conflict of Interest Winding Up Procedure

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Parties

Yiu Wing Construction Company Limited

Company

Zhejiang Yi Cheng Industry Company Limited

Creditor

American Home Assurance Company

Creditor

Hong Kong Housing Society

Creditor

Hong Kong Housing Authority

Creditor

Official Receiver

Official Receiver

Messrs Kennic L H Lui and Co.

Nominee Liquidators (creditors' Candidates)

Mr Lai Kar Yan Derek (Deloitte Touche Tohmatsu)

Appointed Liquidator

Mr Darach E Haughey (Deloitte Touche Tohmatsu)

Appointed Liquidator

Mr Chan Sei Leung, Edward

Committee Member (appointed)

Procedural Posture

Companies (winding Up) / Determination Hearing Under S.206 of the Companies Ordinance

Legal Issues

  1. 1 Whether to appoint liquidators nominated by a creditor or those appointed for the ultimate holding company
  2. 2 Whether inter-company debts and related litigation create an actual conflict disqualifying the holding company liquidators
  3. 3 Proper size and composition of the committee of inspection

Ratio Decidendi

In the absence of any demonstrated serious or actual conflict arising from inter-company debts or related litigation, the court will exercise its discretion to appoint the same liquidators for the parent and subsidiary for reasons of convenience and the best interests of creditors; if conflict later arises the liquidator must seek directions from the court. Accordingly Messrs Lai and Haughey were appointed as joint and several liquidators and the committee of inspection was reduced and constituted to be representative.

Court Disposition

Messrs Lai Kar Yan Derek and Darach E Haughey (Deloitte Touche Tohmatsu) appointed joint and several liquidators; committee of inspection reduced and constituted; ancillary orders as below.

Orders

  • Mr Lai Kar Yan Derek and Mr Darach E Haughey of Messrs Deloitte Touche Tohmatsu be appointed joint and several liquidators of the Company
  • Remuneration of the joint and several liquidators to be charged on a time cost basis at the standard scale of fees as agreed between the Official Receiver and the Hong Kong Society of Accountants and be paid out of the assets of the Company