AKAI HOLDINGS LTD (IN COMPULSORY LIQUIDATION) AND OTHERS v. HO WING ON, CHRISTOPHER AND OTHERS

AKAI HOLDINGS LTD (IN COMPULSORY LIQUIDATION) AND OTHERS v. HO WING ON, CHRISTOPHER AND OTHERS

The court found sufficient basis to order specified discovery and an affidavit from Mr Ho because the publicly announced sale of Grande's Singapore headquarters, inconsistencies in public filings and the defendants' abrupt denial of beneficial ownership raised serious concerns of non-compliance and possible dissipation; the sale was not in the ordinary course of business and disclosure orders were necessary to police the Mareva injunction. The court therefore granted the discovery and ordered Mr Ho to file a detailed affidavit by 4pm on 7 August, varied the relevant disclosure period to since 9 February 2009, and ordered costs to the plaintiffs payable forthwith and taxed on a common fund...

Citation
AKAI HOLDINGS LTD (IN COMPULSORY LIQUIDATION) AND OTHERS v. HO WING ON, CHRISTOPHER AND OTHERS
Parties
Plaintiff (in Compulsory Liquidation): Akai Holdings Limited; 1st Defendant: Ho Wing On, Christopher; 2nd Defendant: The Grande Holdings Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
23 July 2009
Case Number
HCCL40/2005
Procedural Posture
Commercial Action (consolidated) / Interlocutory Discovery Application (chambers Summons)
Outcome
Summons partly granted; specified discovery and affidavit orders made against the 1st and 2nd defendants; costs awarded to plaintiffs on a common fund basis payable forthwith; indemnity costs refused.
Legal Topics
Mareva Injunction, Freezing Order, Disclosure Obligations, Asset Tracing, Breach of Injunction, Costs
Source Language
EN
Commercial Law Injunctions Insolvency Civil Procedure Company Law Trusts and Beneficial Ownership Mareva Injunction Freezing Order +4 more

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Parties

Akai Holdings Limited

Plaintiff (in Compulsory Liquidation)

Ho Wing On, Christopher

1st Defendant

The Grande Holdings Limited

2nd Defendant

Procedural Posture

Commercial Action (consolidated) / Interlocutory Discovery Application (chambers Summons)

Legal Issues

  1. 1 Whether the sale of Grande Building and disposition of Sansui proceeds were disclosed in compliance with the Mareva asset disclosure orders
  2. 2 Whether the 1st and 2nd defendants must provide detailed discovery and an affidavit of asset dealings and the relevant time period for disclosure
  3. 3 Whether the court may order disclosure to police or monitor compliance with a Mareva injunction

Ratio Decidendi

The court found sufficient basis to order specified discovery and an affidavit from Mr Ho because the publicly announced sale of Grande's Singapore headquarters, inconsistencies in public filings and the defendants' abrupt denial of beneficial ownership raised serious concerns of non-compliance and possible dissipation; the sale was not in the ordinary course of business and disclosure orders were necessary to police the Mareva injunction. The court therefore granted the discovery and ordered Mr Ho to file a detailed affidavit by 4pm on 7 August, varied the relevant disclosure period to since 9 February 2009, and ordered costs to the plaintiffs payable forthwith and taxed on a common fund...

Court Disposition

Summons partly granted; specified discovery and affidavit orders made against the 1st and 2nd defendants; costs awarded to plaintiffs on a common fund basis payable forthwith; indemnity costs refused.

Orders

  • 2nd defendant (Grande) to disclose documents and information relating to the disposal of the Grande Building in Singapore in accordance with Schedule A as ordered (including Schedule A paragraphs 1,2,3,4,5,6,8,9,10,11 as applicable)
  • 2nd defendant to disclose details of disposal of shares in Sansui Acoustics Research Corporation and disposition of US$59.2 million as per Schedule B (paragraphs 1-7)