張才奎所託管中國山水投資有限公司股份 AND ANOTHER v. 張才奎 AND ANOTHER

張才奎所託管中國山水投資有限公司股份 AND ANOTHER v. 張才奎 AND ANOTHER

The application for leave to appeal was dismissed because the court was entitled to extend receivers' powers in light of materially deteriorated circumstances to preserve trust assets; the 1st defendant's application was repetitive, obstructive and an abuse of process, and there was no convincing prospect that further affirmation evidence would alter that conclusion; accordingly leave was refused and indemnity costs awarded to the other parties.

Citation
張才奎所託管中國山水投資有限公司股份 AND ANOTHER v. 張才奎 AND ANOTHER
Parties
Plaintiffs: 1st Group Plaintiffs (employees whose China Shanshui Investment Co Ltd shares were held by Zhang Caikui on trust); Plaintiffs: 2nd Group Plaintiffs (employees whose China Shanshui Investment Co Ltd shares were held by Li Yanmin on trust); 1st Defendant: Zhang Caikui; 2nd Defendant: Li Yanmin; Court‑appointed Receivers: Receivers
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
18 November 2015
Case Number
HCA1564/2015
Procedural Posture
Shareholder Dispute Interlocutory Receivership and Applications for Leave to Appeal / Chambers Decision on Second Application for Leave to Appeal and Receivers' Summons (interlocutory)
Outcome
Application for leave to appeal dismissed; application found misconceived, abusive and a waste of time and costs; indemnity costs awarded against the 1st defendant.
Legal Topics
Receivership Powers, Preservation of Assets, Abuse of Process, Leave to Appeal, Interim Relief, Vexatious Interlocutory Litigation, Indemnity Costs
Source Language
EN
Company Law Equity Civil Procedure Injunctions and Receivership Costs and Litigation Conduct Receivership Powers Preservation of Assets Abuse of Process +4 more

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Parties

1st Group Plaintiffs (employees whose China Shanshui Investment Co Ltd shares were held by Zhang Caikui on trust)

Plaintiffs

2nd Group Plaintiffs (employees whose China Shanshui Investment Co Ltd shares were held by Li Yanmin on trust)

Plaintiffs

Zhang Caikui

1st Defendant

Li Yanmin

2nd Defendant

Receivers

Court‑appointed Receivers

Procedural Posture

Shareholder Dispute Interlocutory Receivership and Applications for Leave to Appeal / Chambers Decision on Second Application for Leave to Appeal and Receivers' Summons (interlocutory)

Legal Issues

  1. 1 Whether court could extend receivers' powers notwithstanding a previous judge's direction limiting receivers from altering board composition
  2. 2 Whether the 1st defendant should be permitted to file further affirmation evidence
  3. 3 Whether the application for leave to appeal was an abuse of process and should be dismissed

Ratio Decidendi

The application for leave to appeal was dismissed because the court was entitled to extend receivers' powers in light of materially deteriorated circumstances to preserve trust assets; the 1st defendant's application was repetitive, obstructive and an abuse of process, and there was no convincing prospect that further affirmation evidence would alter that conclusion; accordingly leave was refused and indemnity costs awarded to the other parties.

Court Disposition

Application for leave to appeal dismissed; application found misconceived, abusive and a waste of time and costs; indemnity costs awarded against the 1st defendant.

Orders

  • Application dismissed
  • Application entirely misconceived