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

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

Given the evidence of continued and flagrant breaches of the Mareva/disclosure Order, the demonstrable substantive control by Mr Ho over assets held in trusts and corporate entities, and the real and urgent risk of further dissipation which cannot be remedied satisfactorily by less intrusive measures, the court held that the appointment of receivers was just, convenient and proportionate as ancillary relief to the Mareva Order; accordingly the receivership order was granted with targeted amendments and limited interim relief only by way of a short stay pending appellate arrangements.

Citation
AKAI HOLDINGS LTD (IN COMPULSORY LIQUIDATION) AND OTHERS v. HO WING ON, CHRISTOPHER
Parties
Plaintiffs (liquidators): Akai Holdings Limited and 2nd-17th Plaintiffs; 1st Defendant: Ho Wing On, Christopher; Intervener (trustee of the Ho Family Trust): Accolade, Inc
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
1 September 2009
Case Number
HCCL40/2005
Procedural Posture
Commercial Action (receivership/asset Preservation) / Interlocutory Application for Appointment of Receiver Following Alleged Breaches of Mareva Injunction and Disclosure Orders
Outcome
Receivership order granted (in terms of amended draft). Leave to appeal refused. Interim stay granted until 5pm on 4 September 2009. Costs of the receivership application to be paid forthwith by the 1st defendant to the plaintiffs and, if not agreed, to be taxed on a common fund basis. No costs order against the...
Legal Topics
Mareva Injunction, Disclosure Orders, Appointment of Receiver, Control of Discretionary Trusts, Piercing/control/substantive Reality, Third Party Litigation Funding, Leave to Appeal and Interim Stay, Costs (common Fund)
Source Language
EN
Equity Trusts Company Law Civil Procedure Injunctions Receivership International Asset Preservation Mareva Injunction +7 more

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Parties

Akai Holdings Limited and 2nd-17th Plaintiffs

Plaintiffs (liquidators)

Ho Wing On, Christopher

1st Defendant

Accolade, Inc

Intervener (trustee of the Ho Family Trust)

Procedural Posture

Commercial Action (receivership/asset Preservation) / Interlocutory Application for Appointment of Receiver Following Alleged Breaches of Mareva Injunction and Disclosure Orders

Legal Issues

  1. 1 Whether the February 2009 Mareva/disclosure Order extended to assets held in trusts (Ho Family Trust)
  2. 2 Whether the 1st defendant controls assets held in third parties/trusts such that those assets are effectively his
  3. 3 Whether there have been breaches and active dissipation of assets post-Mareva Order

Ratio Decidendi

Given the evidence of continued and flagrant breaches of the Mareva/disclosure Order, the demonstrable substantive control by Mr Ho over assets held in trusts and corporate entities, and the real and urgent risk of further dissipation which cannot be remedied satisfactorily by less intrusive measures, the court held that the appointment of receivers was just, convenient and proportionate as ancillary relief to the Mareva Order; accordingly the receivership order was granted with targeted amendments and limited interim relief only by way of a short stay pending appellate arrangements.

Court Disposition

Receivership order granted (in terms of amended draft). Leave to appeal refused. Interim stay granted until 5pm on 4 September 2009. Costs of the receivership application to be paid forthwith by the 1st defendant to the plaintiffs and, if not agreed, to be taxed on a common fund basis. No costs order against the...

Orders

  • Appointment of receivers substantially in terms of the draft handed to the court, as amended
  • Modify draft: paragraph 10 security figure HK$300,000 and paragraph 12 figure HK$50,000