RE FIVE LAKES INVESTMENT CO LTD

RE FIVE LAKES INVESTMENT CO LTD

Because Gala Land established a credible prima facie case under the just and equitable provision (loss of mutual trust, deadlock, alleged payments to interests of the other director and obstruction to inspection) and the companies' affairs were paralysed with risk to assets and management, the court was justified in appointing provisional liquidators to protect the companies pending the hearing; consequently the section 182 application was dismissed as unnecessary.

Citation
RE FIVE LAKES INVESTMENT CO LTD
Parties
Petitioner: Gala Land Investment Company Ltd.; Opposing Contributory / Respondent: Octaland Holdings (H.K.) Ltd.; Company (subject of Winding Up Petition): Five Lakes Investment Company Limited; Company (subject of Winding Up Petition): Multiford Company Limited; Intervener / Official Receiver: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
26 October 1983
Case Number
HCCW79/1983
Procedural Posture
Companies (winding Up) Petition / Interlocutory Hearing on Appointment of Provisional Liquidator and Section 182 Application
Outcome
Provisional liquidators appointed for Five Lakes Investment Company Limited and Multiford Company Limited; application under section 182 dismissed
Legal Topics
Provisional Liquidator Appointment, Winding Up Petition (just and Equitable Ground), Directors Duties and Inspection of Books, Section 182 Exoneration of Dispositions, Deadlock Between Directors
Source Language
EN
Company Law Insolvency Law Equity and Trusts Corporate Governance Provisional Liquidator Appointment Winding Up Petition (just and Equitable Ground) Directors Duties and Inspection of Books Section 182 Exoneration of Dispositions +1 more

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Parties

Gala Land Investment Company Ltd.

Petitioner

Octaland Holdings (H.K.) Ltd.

Opposing Contributory / Respondent

Five Lakes Investment Company Limited

Company (subject of Winding Up Petition)

Multiford Company Limited

Company (subject of Winding Up Petition)

Official Receiver

Intervener / Official Receiver

Procedural Posture

Companies (winding Up) Petition / Interlocutory Hearing on Appointment of Provisional Liquidator and Section 182 Application

Legal Issues

  1. 1 Whether petitioner established a prima facie case for winding-up under the just and equitable provision
  2. 2 Whether circumstances justify appointment of provisional liquidator under section 193
  3. 3 Whether application under section 182 to authorise management outgoings should be granted

Ratio Decidendi

Because Gala Land established a credible prima facie case under the just and equitable provision (loss of mutual trust, deadlock, alleged payments to interests of the other director and obstruction to inspection) and the companies' affairs were paralysed with risk to assets and management, the court was justified in appointing provisional liquidators to protect the companies pending the hearing; consequently the section 182 application was dismissed as unnecessary.

Court Disposition

Provisional liquidators appointed for Five Lakes Investment Company Limited and Multiford Company Limited; application under section 182 dismissed

Orders

  • Petitions consolidated for hearing
  • Appointment of provisional liquidator for Five Lakes Investment Company Limited pursuant to s193 until determination of petitions