SECURITIES AND FUTURES COMMISSION v. MANDARIN RESOURCES CORPORATION LTD. AND ANOTHER

SECURITIES AND FUTURES COMMISSION v. MANDARIN RESOURCES CORPORATION LTD. AND ANOTHER

Because the court found the 2nd respondent had exhibited an unacceptably low standard of commercial morality and there was a real risk he could dissipate or conceal assets, and because the balance of convenience favoured protecting the minority shareholders represented by the petitioner with minimal prejudice to the respondent, the existing Mareva/freezing injunction was continued in its original terms and the respondent was ordered to attend for evidence at the quantum hearing.

Citation
SECURITIES AND FUTURES COMMISSION v. MANDARIN RESOURCES CORPORATION LTD. AND ANOTHER
Parties
Petitioner: SECURITIES AND FUTURES COMMISSION; 1st Respondent: MANDARIN RESOURCES CORPORATION LIMITED; 2nd Respondent: CHIM PUI CHUNG
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
26 January 2000
Case Number
HCCW348/1996
Procedural Posture
Companies Winding Up; Mareva Injunction (freezing) Application Under Securities & Futures Commission Ordinance and Companies Ordinance / Interim Injunction Continuation/variation Hearing After Liability Judgment; Quantum Pending (hearing Listed 25 February 2000)
Outcome
Mareva/freezing injunction continued in original terms until delivery of the quantum judgment; variation requests refused; disclosure and attendance for cross‑examination ordered.
Legal Topics
Mareva Injunction, Freezing Order, Disclosure, Asset Dissipation, Quantum of Damages, Costs
Source Language
EN
Company Law Injunctions and Freezing Orders Securities Regulation Civil Procedure Mareva Injunction Freezing Order Disclosure Asset Dissipation +2 more

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Parties

SECURITIES AND FUTURES COMMISSION

Petitioner

MANDARIN RESOURCES CORPORATION LIMITED

1st Respondent

CHIM PUI CHUNG

2nd Respondent

Procedural Posture

Companies Winding Up; Mareva Injunction (freezing) Application Under Securities & Futures Commission Ordinance and Companies Ordinance / Interim Injunction Continuation/variation Hearing After Liability Judgment; Quantum Pending (hearing Listed 25 February 2000)

Legal Issues

  1. 1 Whether to continue, vary or discharge the ex parte Mareva/freezing injunction
  2. 2 Whether there is a real risk the 2nd respondent will dissipate or conceal assets
  3. 3 Proper balance of convenience between public petitioner and respondent

Ratio Decidendi

Because the court found the 2nd respondent had exhibited an unacceptably low standard of commercial morality and there was a real risk he could dissipate or conceal assets, and because the balance of convenience favoured protecting the minority shareholders represented by the petitioner with minimal prejudice to the respondent, the existing Mareva/freezing injunction was continued in its original terms and the respondent was ordered to attend for evidence at the quantum hearing.

Court Disposition

Mareva/freezing injunction continued in original terms until delivery of the quantum judgment; variation requests refused; disclosure and attendance for cross‑examination ordered.

Orders

  • Continue freezing order in existing terms until handing down of the quantum hearing in the winding‑up proceedings
  • Maintain frozen sum at $184,000,000 (no increase to $232,000,000 and no reduction to $108,000,000)