RE KOKIN LTD

RE KOKIN LTD

The court appointed the existing joint and several provisional liquidators as liquidators because there was at least a perceived conflict of interest if the Ernst & Young trustees (also trustees in the bankruptcy of Woo Koo-ping) were appointed, the appointment of the provisional liquidators was in the best interests of the winding up given continuity and cost-effectiveness, and there was no opposition sufficient to displace that conclusion.

Citation
[2019] HKCFI 1062
Parties
Company (subject): Easy Carry Limited; Company (subject): Kokin Limited (高建企業有限公司); Company (subject): Long Profit International Limited (利長國際有限公司); Company (subject): K.C.K. Garment Factory Limited (立基製衣廠有限公司); Company (subject): AP Procurement Macao Commercial Offshore Limited (AP Procurement澳門離岸商業服務有限公司); Applicants: Joint and Several Provisional Liquidators (applicants); Trustees in Bankruptcy / Interested Party: Stephen Liu Yiukeung and Yen Chingwai David, Joint and Several Trustees of Mr Woo Koo-ping (Bankrupt) c/o Ernst & Young Transaction Limited; Interested Party / Creditor: Diamond Force Limited; Interested Party / Creditor: Oriented Prosperity Co Limited; Official Receiver / Interested Party: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
27 March 2019
Case Number
HCCW298/2014
Procedural Posture
Companies (winding Up) Proceedings Under Cap 32 / Application for Appointment of Liquidators (final Appointment Following Provisional Liquidation)
Outcome
Order granted in terms of the summonses appointing the joint and several provisional liquidators as liquidators
Legal Topics
Liquidators Appointment, Conflict of Interest, Winding Up, Creditor and Contributory Meetings
Source Language
EN
Company Law Insolvency Bankruptcy Civil Procedure Liquidators Appointment Conflict of Interest Winding Up Creditor and Contributory Meetings

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Parties

Easy Carry Limited

Company (subject)

Kokin Limited (高建企業有限公司)

Company (subject)

Long Profit International Limited (利長國際有限公司)

Company (subject)

K.C.K. Garment Factory Limited (立基製衣廠有限公司)

Company (subject)

AP Procurement Macao Commercial Offshore Limited (AP Procurement澳門離岸商業服務有限公司)

Company (subject)

Joint and Several Provisional Liquidators (applicants)

Applicants

Stephen Liu Yiukeung and Yen Chingwai David, Joint and Several Trustees of Mr Woo Koo-ping (Bankrupt) c/o Ernst & Young Transaction Limited

Trustees in Bankruptcy / Interested Party

Diamond Force Limited

Interested Party / Creditor

Oriented Prosperity Co Limited

Interested Party / Creditor

Official Receiver

Official Receiver / Interested Party

Procedural Posture

Companies (winding Up) Proceedings Under Cap 32 / Application for Appointment of Liquidators (final Appointment Following Provisional Liquidation)

Legal Issues

  1. 1 Whether the provisional liquidators should be appointed as the liquidators of the five companies
  2. 2 Whether Ernst & Young trustees (trustees in bankruptcy of Woo Koo-ping) have a conflict of interest that disqualifies them from appointment as liquidators
  3. 3 Whether votes allegedly cast by authority of Mastery Gain on behalf of Woo Koo-ping were valid

Ratio Decidendi

The court appointed the existing joint and several provisional liquidators as liquidators because there was at least a perceived conflict of interest if the Ernst & Young trustees (also trustees in the bankruptcy of Woo Koo-ping) were appointed, the appointment of the provisional liquidators was in the best interests of the winding up given continuity and cost-effectiveness, and there was no opposition sufficient to displace that conclusion.

Court Disposition

Order granted in terms of the summonses appointing the joint and several provisional liquidators as liquidators

Orders

  • Order appointing the joint and several provisional liquidators as liquidators of Easy Carry Limited
  • Order appointing the joint and several provisional liquidators as liquidators of Kokin Limited (高建企業有限公司)