RE THE LIQUIDATOR OF SHENZHEN EVERICH SUPPLY CHAIN CO, LTD

RE THE LIQUIDATOR OF SHENZHEN EVERICH SUPPLY CHAIN CO, LTD

The Mainland winding-up and the Mainland-appointed liquidator are recognised because the proceedings are collective and were opened in the company’s place of incorporation; accordingly the Court will grant ancillary assistance under Hong Kong insolvency law limited to what is necessary for the liquidator to perform its functions and consistent with Hong Kong substantive law and public policy, which includes the specific powers ordered (document production, asset and book control, bank account operation, litigation powers and express control over subsidiaries) and recognition of Mr Yao Kun as the authorised representative.

Citation
[2020] HKCFI 965
Parties
Applicant (liquidator): Shenzhen Zhengyuan Liquidation Co, Ltd (authorised representative Mr Yao Kun); Company (in Liquidation in the Mainland of the Prc): Shenzhen Everich Supply Chain Co, Ltd
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
4 June 2020
Case Number
HCMP708/2020
Procedural Posture
Recognition of Foreign Insolvency Proceedings and Assistance / Decision on Application for Recognition and Ancillary Relief
Outcome
Winding-up and Liquidator recognised; ancillary assistance orders granted
Legal Topics
Recognition of Foreign Liquidation, Assistance to Foreign Liquidator, Powers Over Subsidiaries, Stay of Proceedings, Disclosure and Ancillary Relief
Source Language
EN
Insolvency Cross Border Insolvency Company Law Private International Law Civil Procedure Recognition of Foreign Liquidation Assistance to Foreign Liquidator Powers Over Subsidiaries +2 more

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Parties

Shenzhen Zhengyuan Liquidation Co, Ltd (authorised representative Mr Yao Kun)

Applicant (liquidator)

Shenzhen Everich Supply Chain Co, Ltd

Company (in Liquidation in the Mainland of the Prc)

Procedural Posture

Recognition of Foreign Insolvency Proceedings and Assistance / Decision on Application for Recognition and Ancillary Relief

Legal Issues

  1. 1 Whether the Mainland winding-up is a collective insolvency proceeding in the company’s place of incorporation
  2. 2 Whether the Mainland liquidator and its authorised representative should be recognised in Hong Kong
  3. 3 What ancillary powers the Hong Kong court may grant to assist the foreign liquidator consistent with Hong Kong law and public policy

Ratio Decidendi

The Mainland winding-up and the Mainland-appointed liquidator are recognised because the proceedings are collective and were opened in the company’s place of incorporation; accordingly the Court will grant ancillary assistance under Hong Kong insolvency law limited to what is necessary for the liquidator to perform its functions and consistent with Hong Kong substantive law and public policy, which includes the specific powers ordered (document production, asset and book control, bank account operation, litigation powers and express control over subsidiaries) and recognition of Mr Yao Kun as the authorised representative.

Court Disposition

Winding-up and Liquidator recognised; ancillary assistance orders granted

Orders

  • The liquidation of Shenzhen Everich Supply Chain Co, Ltd and the appointment of Shenzhen Zhengyuan Liquidation Co, Ltd (with Mr Yao Kun as authorised representative) are recognised by this Court
  • The Liquidator may request and receive from third parties documents and information concerning the Company, its business, accounts, assets, liabilities or affairs