RE GOLDLORY RESTAURANT LTD

Parties

Procedural Posture

Companies Winding Up (summary Procedure) Reference on Statutory Construction / Hearing for Determination of Legal Issue; Judgment on Practice and Construction Delivered

Legal Issues

1. 1 Whether remuneration of liquidators appointed under s227F of the Companies Ordinance should be assessed on a percentage basis or a time cost basis pursuant to s196(2) and Companies (Winding-up) Rules r146(2) and whether a default percentage applies

Ratio Decidendi

The court holds that s196(2) and r146(2) confer an unfettered discretion on the court to fix liquidator remuneration in summary cases; the percentage basis applicable to the Official Receiver is not the default and, as a matter of practice, the time cost basis should be adopted in summary winding-up cases and provided for when the summary procedure order is made.

Court Disposition

Issue determined: court affirms its discretion under s196(2) and rules r146(2) and adopts time cost basis as the practice for remunerating liquidators in summary winding-up cases under s227F; percentage under Fees and Percentages Order is not the default.

Orders

• Time cost basis to be adopted as the basis of remuneration in summary procedure winding-up orders and provided for when such orders are made
• Parties who took part to inform the court by letter within 7 days what order as to costs they would seek; costs of earlier hearing reserved