RE SUM CHUN HIGH QUALITY SHOES FACTORY LTD.

RE SUM CHUN HIGH QUALITY SHOES FACTORY LTD.

Allegations of misfeasance cannot be left unparticularised and inferred from affidavit material; where such allegations are made the Official Receiver must either commence formal proceedings (eg under s.276) or withdraw the allegations before the Court will determine the basis of remuneration. The assessment of remuneration cannot properly proceed while unresolved serious allegations remain outstanding; if the Official Receiver neither issues proceedings nor withdraws the allegations he is barred from raising them at the adjourned hearing.

Citation
RE SUM CHUN HIGH QUALITY SHOES FACTORY LTD.
Parties
Company (in Creditors Voluntary Liquidation): Millie's Shoes Factory Ltd.; Company (in Creditors Voluntary Liquidation): Millie's Property Management Co. Ltd.; Company (in Creditors Voluntary Liquidation): Sum Chun High Quality Shoes Factory Ltd.; Company (in Creditors Voluntary Liquidation): Millie's Handbag and Shoes Factory Ltd.; Company (in Creditors Voluntary Liquidation): Millie's Wholesale Centre Ltd.; Company (in Creditors Voluntary Liquidation): Millie's Trading Co. Ltd.; Provisional Liquidator / Applicant: W.K. Timso; Provisional Liquidator / Applicant: T. B. Stevenson; Official Receiver / Respondent: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
21 November 1985
Case Number
HCMP92/1985
Procedural Posture
Companies Winding Up / Provisional Liquidation Under Companies Ordinance (cap.32) / Directions Hearing Adjourned to Date to Be Fixed (two Days Reserved)
Outcome
Summonses adjourned to a date to be fixed with two days reserved; Official Receiver ordered to attend and lodge report; Official Receiver ordered to either commence proceedings under s.276 or withdraw allegations; if he does neither he is barred from raising the allegations at the adjourned hearing; costs ordered...
Legal Topics
Provisional Liquidator Remuneration, Misfeasance, Taxation of Costs, Court Directions Under Companies Ordinance
Source Language
EN
Company Law Insolvency Civil Procedure Provisional Liquidator Remuneration Misfeasance Taxation of Costs Court Directions Under Companies Ordinance

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Parties

Millie's Shoes Factory Ltd.

Company (in Creditors Voluntary Liquidation)

Millie's Property Management Co. Ltd.

Company (in Creditors Voluntary Liquidation)

Sum Chun High Quality Shoes Factory Ltd.

Company (in Creditors Voluntary Liquidation)

Millie's Handbag and Shoes Factory Ltd.

Company (in Creditors Voluntary Liquidation)

Millie's Wholesale Centre Ltd.

Company (in Creditors Voluntary Liquidation)

Millie's Trading Co. Ltd.

Company (in Creditors Voluntary Liquidation)

W.K. Timso

Provisional Liquidator / Applicant

T. B. Stevenson

Provisional Liquidator / Applicant

Official Receiver

Official Receiver / Respondent

Procedural Posture

Companies Winding Up / Provisional Liquidation Under Companies Ordinance (cap.32) / Directions Hearing Adjourned to Date to Be Fixed (two Days Reserved)

Legal Issues

  1. 1 Whether provisional liquidators appointed under s.228A are entitled to remuneration assessed on a time basis at reasonable rates
  2. 2 Whether a taxing Master should assess remuneration on a percentage basis or exclude non-preservation/non-urgent work
  3. 3 Whether allegations of misfeasance may be raised without strict particularisation or must be pursued by separate s.276 proceedings

Ratio Decidendi

Allegations of misfeasance cannot be left unparticularised and inferred from affidavit material; where such allegations are made the Official Receiver must either commence formal proceedings (eg under s.276) or withdraw the allegations before the Court will determine the basis of remuneration. The assessment of remuneration cannot properly proceed while unresolved serious allegations remain outstanding; if the Official Receiver neither issues proceedings nor withdraws the allegations he is barred from raising them at the adjourned hearing.

Court Disposition

Summonses adjourned to a date to be fixed with two days reserved; Official Receiver ordered to attend and lodge report; Official Receiver ordered to either commence proceedings under s.276 or withdraw allegations; if he does neither he is barred from raising the allegations at the adjourned hearing; costs ordered...

Orders

  • Summonses adjourned to a date to be fixed in consultation with counsel with two days reserved
  • Official Receiver ordered to attend and to lodge a report (report filed in compliance)