RE THE JOINT LIQUIDATORS OF SUPREME TYCOON LIMITED (IN LIQUIDATION IN THE BRITISH VIRGIN ISLANDS)

RE THE JOINT LIQUIDATORS OF SUPREME TYCOON LIMITED (IN LIQUIDATION IN THE BRITISH VIRGIN ISLANDS)

A foreign liquidation that is collective in nature and is an insolvent, court‑supervised proceeding — even if commenced by a shareholders' resolution — is eligible for common law recognition and assistance in Hong Kong under the principle of modified universalism; the voluntary/compulsory distinction is one of degree not of kind and does not preclude assistance where the officeholders need help to perform their functions.

Citation
[2018] HKCFI 277
Parties
Applicant; Joint Liquidator of Supreme Tycoon Limited: Paul Pretlove; Applicant; Joint Liquidator of Supreme Tycoon Limited: Bruno Arboit; Subject Company (in Liquidation in the British Virgin Islands): Supreme Tycoon Limited; Sole Shareholder of Supreme Tycoon Limited; in Liquidation in the British Virgin Islands: China Culture Media International Holdings Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
8 February 2018
Case Number
HCMP833/2017
Procedural Posture
Application for Recognition and Assistance of Foreign Liquidation Under the Common Law / Decision on Application (written Reasons)
Outcome
Recognition order granted
Legal Topics
Recognition of Foreign Liquidation, Common Law Assistance to Foreign Officeholders, Modified Universalism, Voluntary Versus Compulsory Liquidation, Status of Foreign Officeholders
Source Language
EN
Cross Border Insolvency Insolvency Law Company Law Private International Law Civil Procedure Recognition of Foreign Liquidation Common Law Assistance to Foreign Officeholders Modified Universalism +2 more

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Parties

Paul Pretlove

Applicant; Joint Liquidator of Supreme Tycoon Limited

Bruno Arboit

Applicant; Joint Liquidator of Supreme Tycoon Limited

Supreme Tycoon Limited

Subject Company (in Liquidation in the British Virgin Islands)

China Culture Media International Holdings Limited

Sole Shareholder of Supreme Tycoon Limited; in Liquidation in the British Virgin Islands

Procedural Posture

Application for Recognition and Assistance of Foreign Liquidation Under the Common Law / Decision on Application (written Reasons)

Legal Issues

  1. 1 Whether a foreign insolvent liquidation commenced by a shareholders' resolution is eligible for common law recognition and assistance in Hong Kong
  2. 2 Whether the fact that liquidators were not appointed by the foreign court (but act as officers of that court) precludes recognition
  3. 3 Whether a voluntary liquidation that is collective and insolvent falls within the scope of modified universalism and the common law power to assist

Ratio Decidendi

A foreign liquidation that is collective in nature and is an insolvent, court‑supervised proceeding — even if commenced by a shareholders' resolution — is eligible for common law recognition and assistance in Hong Kong under the principle of modified universalism; the voluntary/compulsory distinction is one of degree not of kind and does not preclude assistance where the officeholders need help to perform their functions.

Court Disposition

Recognition order granted

Orders

  • Order recognising Mr Paul Pretlove and Mr Bruno Arboit as joint liquidators of Supreme Tycoon Limited for the purposes of obtaining common law assistance in Hong Kong and granting the recognition relief sought