RE CONSTELLATION HOLDINGS LTD

RE CONSTELLATION HOLDINGS LTD

The petition to confirm the reduction of share capital was granted because the reduction reflected the true financial position, both shareholders consented, there were no creditors or outstanding liabilities to be prejudiced, auditors confirmed the position and statutory requirements under section 58 were met.

Citation
RE CONSTELLATION HOLDINGS LTD
Parties
Petitioner: Constellation Holdings Limited; Shareholder: Lau Kai Chi; Shareholder: Wong Wing Cheong
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
9 December 2003
Case Number
HCMP4160/2003
Procedural Posture
Companies Ordinance Petition to Confirm Reduction of Share Capital / Judgment (court of First Instance)
Outcome
Petition granted; order confirming reduction of share capital
Legal Topics
Reduction of Share Capital, Section 58 Companies Ordinance, Confirmation of Capital Reduction, Shareholder Consent
Source Language
EN
Company Law Corporate Finance Reduction of Share Capital Section 58 Companies Ordinance Confirmation of Capital Reduction Shareholder Consent

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Parties

Constellation Holdings Limited

Petitioner

Lau Kai Chi

Shareholder

Wong Wing Cheong

Shareholder

Procedural Posture

Companies Ordinance Petition to Confirm Reduction of Share Capital / Judgment (court of First Instance)

Legal Issues

  1. 1 Whether the reduction of share capital under section 58 of the Companies Ordinance should be confirmed
  2. 2 Whether the reduction prejudices creditors or third parties
  3. 3 Whether there is a legitimate purpose and proper compliance with statutory and procedural requirements

Ratio Decidendi

The petition to confirm the reduction of share capital was granted because the reduction reflected the true financial position, both shareholders consented, there were no creditors or outstanding liabilities to be prejudiced, auditors confirmed the position and statutory requirements under section 58 were met.

Court Disposition

Petition granted; order confirming reduction of share capital

Orders

  • Order confirming reduction of share capital from HK$10,000,000 divided into 10,000,000 ordinary shares of HK$1.00 each to HK$1,000 divided into 1,000 ordinary shares of HK$1.00 each
  • Approval of the minutes proposed to be registered as set out in the petition