RE CRESVALE FAR EAST NOMINEES LTD (IN CREDITORS VOLUNTARY LIQUIDATION)

RE CRESVALE FAR EAST NOMINEES LTD (IN CREDITORS VOLUNTARY LIQUIDATION)

The court granted an order permitting the liquidators' remuneration, fees, expenses and costs incurred in investigating and ascertaining entitlement to the specified Trust Assets, and any necessary related court applications, to be paid from those Trust Assets to the extent not payable from the company's assets, but expressly excluding costs of hostile litigation, subject to service and temporal rights for interested third parties to apply to vary or discharge the order.

Citation
RE CRESVALE FAR EAST NOMINEES LTD (IN CREDITORS VOLUNTARY LIQUIDATION)
Parties
Company (in Creditors' Voluntary Liquidation): Cresvale Far East Nominees Limited; Applicants: Joint and Several Liquidators; Interested Parties/claimants: Third parties asserting claims
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
30 November 2004
Case Number
HCMP3019/2004
Procedural Posture
Companies Matter: Creditors' Voluntary Liquidation / Ex Parte Application on Notice; Interim Order Made
Outcome
Order granted in modified form
Legal Topics
Liquidator Remuneration, Payment of Costs From Trust Assets, Investigation of Beneficial Ownership, Inherent Jurisdiction
Source Language
EN
Company Law Insolvency Law Trusts and Equity Civil Procedure Liquidator Remuneration Payment of Costs From Trust Assets Investigation of Beneficial Ownership Inherent Jurisdiction

Case Brief

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Parties

Cresvale Far East Nominees Limited

Company (in Creditors' Voluntary Liquidation)

Joint and Several Liquidators

Applicants

Third parties asserting claims

Interested Parties/claimants

Procedural Posture

Companies Matter: Creditors' Voluntary Liquidation / Ex Parte Application on Notice; Interim Order Made

Legal Issues

  1. 1 Whether liquidators' costs of investigating beneficial ownership of doubtful assets may be paid from those assets to the extent not covered by the company's free assets
  2. 2 What scope such an order should have and whether it may include costs of hostile litigation
  3. 3 Whether adequate notice and opportunity to apply has been afforded to interested third parties

Ratio Decidendi

The court granted an order permitting the liquidators' remuneration, fees, expenses and costs incurred in investigating and ascertaining entitlement to the specified Trust Assets, and any necessary related court applications, to be paid from those Trust Assets to the extent not payable from the company's assets, but expressly excluding costs of hostile litigation, subject to service and temporal rights for interested third parties to apply to vary or discharge the order.

Court Disposition

Order granted in modified form

Orders

  • Liquidators' remuneration, fees, expenses, costs, disbursements and liabilities in investigating and ascertaining entitlement to the Trust Assets and any necessary court applications for that purpose to be paid from the Trust Assets to the extent not payable out of the company's assets, in such sums as the court...
  • Exclusion: costs incurred in hostile litigation are not to be paid from the Trust Assets