RE SUN HUNG KAI BANK LIMITED

RE SUN HUNG KAI BANK LIMITED

The court confirmed the reduction of share capital because the special resolution was intra vires, shareholder approval by consent by signature complied with the Companies Ordinance, creditors had been protected pursuant to prior directions, and the practice of making a resolution contingent upon or preceding an...

Source-derived case information.

Citation
RE SUN HUNG KAI BANK LIMITED
Parties
Petitioner: Sun Hung Kai Bank Limited; Interested Parties: Creditors of Sun Hung Kai Bank Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
25 July 1985
Case Number
HCMP1343/1985
Procedural Posture
Companies Ordinance Petition for Reduction of Share Capital / Judgment/confirmation Hearing
Outcome
Reduction of share capital confirmed.
Legal Topics
Reduction of Share Capital, Share Allotment, Creditor Protection, Companies Ordinance Consent by Signature, Contingent Resolutions
Source Language
en
Company Law Civil Procedure Reduction of Share Capital Share Allotment Creditor Protection Companies Ordinance Consent by Signature Contingent Resolutions

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 1 Party arguments 2
Sign in to unlock

Parties

Sun Hung Kai Bank Limited

Petitioner

Creditors of Sun Hung Kai Bank Limited

Interested Parties

Procedural Posture

Companies Ordinance Petition for Reduction of Share Capital / Judgment/confirmation Hearing

Legal Issues

  1. 1 Whether the special resolution was intra vires
  2. 2 Whether consent by signature under the Companies Ordinance validly evidenced shareholder approval
  3. 3 Whether creditors were adequately protected

Ratio Decidendi

The court confirmed the reduction of share capital because the special resolution was intra vires, shareholder approval by consent by signature complied with the Companies Ordinance, creditors had been protected pursuant to prior directions, and the practice of making a resolution contingent upon or preceding an allotment is acceptable; accordingly the reduction was confirmed and the draft order made.

Court Disposition

Reduction of share capital confirmed.

Orders

  • Order made in terms of the draft order handed up confirming the reduction of share capital