WONG CHUNG HON AND ANOTHER v. TSE WAI SHUM AND OTHERS

WONG CHUNG HON AND ANOTHER v. TSE WAI SHUM AND OTHERS

The 1st Petitioner objectively manifested a considered resignation and therefore lacked locus standi; independently, even if all factual allegations were true there was no real prospect of a winding-up order because the Association was solvent, charitable, had a large membership and adequate alternative remedies...

Source-derived case information.

Citation
[2021] HKCFI 313
Parties
1st Petitioner: WONG CHUNG HON; 2nd Petitioner: LIM KWOK KUEN; 1st Respondent: TSE WAI SHUM; 2nd Respondent: WONG WAH KWOK; 3rd Respondent: CHUNGSHAN COMMERCIAL ASSOCIATION HONG KONG
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
10 February 2021
Case Number
HCCW181/2020
Procedural Posture
Companies (winding Up) Proceedings / Striking Out Summons (decision)
Outcome
Striking out summons granted; petition struck out insofar as presented by the 1st Petitioner and struck out for lack of realistic prospect of a winding-up order
Legal Topics
Locus Standi, Winding Up as Last Resort, Alternative Remedies to Winding Up, Resignation of Member, Derivative Action, Unfair Prejudice
Source Language
en
Company Law Insolvency Charity/not for Profit Law Locus Standi Winding Up as Last Resort Alternative Remedies to Winding Up Resignation of Member Derivative Action +1 more

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Parties

WONG CHUNG HON

1st Petitioner

LIM KWOK KUEN

2nd Petitioner

TSE WAI SHUM

1st Respondent

WONG WAH KWOK

2nd Respondent

CHUNGSHAN COMMERCIAL ASSOCIATION HONG KONG

3rd Respondent

Procedural Posture

Companies (winding Up) Proceedings / Striking Out Summons (decision)

Legal Issues

  1. 1 Whether the 1st Petitioner effectively resigned and thus lacked locus standi to present a contributory winding-up petition
  2. 2 Whether the petition should be struck out because there is no realistic prospect of a winding-up order given alternative remedies and the Association's solvency and charitable character

Ratio Decidendi

The 1st Petitioner objectively manifested a considered resignation and therefore lacked locus standi; independently, even if all factual allegations were true there was no real prospect of a winding-up order because the Association was solvent, charitable, had a large membership and adequate alternative remedies existed; accordingly the striking out summons was granted and the petition struck out as having no realistic prospect.

Court Disposition

Striking out summons granted; petition struck out insofar as presented by the 1st Petitioner and struck out for lack of realistic prospect of a winding-up order

Orders

  • Order in terms of paragraphs 1 and 4 of the Striking Out Summons
  • Costs order nisi: costs of and occasioned by the Striking Out Summons to be paid by the Petitioners to the 1st and 2nd Respondents forthwith, to be taxed on a party to party basis if the parties cannot agree; costs order nisi to be made absolute within 14 days unless varied on application within that period