Chu Chung Tin Securities Ltd. ("the Company")

Chu Chung Tin Securities Ltd. ("the Company")

The court granted confirmation of the reduction because the company's articles permitted it, a proper unanimous special resolution had been passed, the accounts showed assets substantially in excess of liabilities so creditors would not be prejudiced, and the reduction met regulatory capital requirements for the company's current activities.

Citation
Chu Chung Tin Securities Ltd. ("the Company")
Parties
Applicant/petitioner: Chu Chung Tin Securities Limited; Shareholder: Mr Chu Chung Tin; Shareholder: Mr Chu Wing Man Raymond
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
15 May 2001
Case Number
HCMP947/2001
Procedural Posture
Application Under Companies Ordinance for Confirmation of Reduction of Capital / Hearing and Judgment on Summons Under S.59(3) (court of First Instance)
Outcome
Order made confirming reduction of share capital from $10,000,000 to $5,000,000 and approving minute of reduction with a specified amendment; affirmation to be filed by director; notices published.
Legal Topics
Reduction of Capital, Company Articles and Corporate Procedure, Creditors' Interests, Regulatory Capital Requirements
Source Language
EN
Company Law Securities Regulation Insolvency/creditor Protection Reduction of Capital Company Articles and Corporate Procedure Creditors' Interests Regulatory Capital Requirements

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Parties

Chu Chung Tin Securities Limited

Applicant/petitioner

Mr Chu Chung Tin

Shareholder

Mr Chu Wing Man Raymond

Shareholder

Procedural Posture

Application Under Companies Ordinance for Confirmation of Reduction of Capital / Hearing and Judgment on Summons Under S.59(3) (court of First Instance)

Legal Issues

  1. 1 Whether the company is authorised by its articles to reduce capital
  2. 2 Whether a proper special resolution was passed
  3. 3 Whether creditors' interests would be affected by the reduction

Ratio Decidendi

The court granted confirmation of the reduction because the company's articles permitted it, a proper unanimous special resolution had been passed, the accounts showed assets substantially in excess of liabilities so creditors would not be prejudiced, and the reduction met regulatory capital requirements for the company's current activities.

Court Disposition

Order made confirming reduction of share capital from $10,000,000 to $5,000,000 and approving minute of reduction with a specified amendment; affirmation to be filed by director; notices published.

Orders

  • Order confirming reduction of capital from $10,000,000 to $5,000,000 by reducing nominal amount of each of 100 shares from $100,000 to $50,000 and returning $50,000 per share
  • Minute of order to state: at the date of registration of this minute, all of the 100 shares of $50,000 each have been issued and are deemed to be fully paid up