Re C.A. PACIFIC FINANCE LTD & C.A. PACIFIC SECURITIES LTD

Re C.A. PACIFIC FINANCE LTD & C.A. PACIFIC SECURITIES LTD

The Court ordered distribution of client shares to proceed upon payment of a provisional processing fee fixed at 14% of the value of each client's portfolio as at the liquidation date, to be held in a separate interest-bearing account pending taxation of legal costs and an independent examination and assessment of the liquidators' remuneration and expenses; the examination is to be conducted by a taxing master with accountancy/insolvency qualifications or by the Court sitting with an assessor under s.53 High Court Ordinance; costs of that examination are to be allocated by the Court at the assessment stage according to the propriety, reasonableness and proportionality of the claims;...

Citation
Re C.A. PACIFIC FINANCE LTD & C.A. PACIFIC SECURITIES LTD
Parties
Company (in Liquidation): C.A. Pacific Finance Limited (in Liquidation); Company (in Liquidation): C.A. Pacific Securities Limited (in Liquidation); Liquidators / Applicants: The Liquidators; Intervener / Largest Creditor: Securities and Futures Commission; Interested Supervisory Authority: Official Receiver's Office
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
27 November 2001
Case Number
HCCW37/1998
Procedural Posture
Companies (winding Up) Actions / Decision on Distribution and Assessment of Liquidators' Remuneration (reasons Handed Down 27 November 2001)
Outcome
Court directed distribution of shares subject to payment and procedural conditions and ordered independent assessment of liquidators' claims.
Legal Topics
Liquidators' Remuneration, Berkeley Applegate Order, Distribution of Trust Assets, Assessment and Taxation of Costs, Allocation and Delivery of Shares, Processing Fee
Source Language
EN
Company Law Insolvency Trusts Civil Procedure Liquidators' Remuneration Berkeley Applegate Order Distribution of Trust Assets Assessment and Taxation of Costs +2 more

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Parties

C.A. Pacific Finance Limited (in Liquidation)

Company (in Liquidation)

C.A. Pacific Securities Limited (in Liquidation)

Company (in Liquidation)

The Liquidators

Liquidators / Applicants

Securities and Futures Commission

Intervener / Largest Creditor

Official Receiver's Office

Interested Supervisory Authority

Procedural Posture

Companies (winding Up) Actions / Decision on Distribution and Assessment of Liquidators' Remuneration (reasons Handed Down 27 November 2001)

Legal Issues

  1. 1 Proper mode of distribution of client shares (sale v delivery)
  2. 2 Whether a provisional processing fee may be required prior to delivery
  3. 3 Appropriate level of provisional processing fee

Ratio Decidendi

The Court ordered distribution of client shares to proceed upon payment of a provisional processing fee fixed at 14% of the value of each client's portfolio as at the liquidation date, to be held in a separate interest-bearing account pending taxation of legal costs and an independent examination and assessment of the liquidators' remuneration and expenses; the examination is to be conducted by a taxing master with accountancy/insolvency qualifications or by the Court sitting with an assessor under s.53 High Court Ordinance; costs of that examination are to be allocated by the Court at the assessment stage according to the propriety, reasonableness and proportionality of the claims;...

Court Disposition

Court directed distribution of shares subject to payment and procedural conditions and ordered independent assessment of liquidators' claims.

Orders

  • Each client to be permitted delivery of shares only upon payment of a provisional processing fee of 14% of the value of the client's portfolio as at the Value Date.
  • Provisional processing fees received to be placed in a separate interest-bearing bank account; Liquidators to report receipts and payments to the Official Receiver and Committees of Inspection at intervals determined by the Official Receiver.