CHEN YUNG NGAI KENNETH v. TANG CHUNG WAH ALAN

CHEN YUNG NGAI KENNETH v. TANG CHUNG WAH ALAN

Given the irretrievable breakdown in the working relationship and the shareholders' resolution, Mr Tang should have stepped down and his resistance to removal was unjustified; accordingly removal need not have been resisted and indemnity costs are appropriate for the removal application. For the production application, although SWSAS had asserted unpaid and unbilled fees, the agreed settlement and the need to progress the liquidations meant SWSAS should bear 100% of the costs but on a party and party basis; the 27 August 2013 order should be amended under the slip rule to record consent.

Citation
CHEN YUNG NGAI KENNETH v. TANG CHUNG WAH ALAN
Parties
Applicant; One of Two Joint and Several Liquidators of Senrich Industries Ltd (in Creditors Voluntary Liquidation) and Liquidator of Hempstone Limited (in Compulsory Liquidation): Chen Yung Ngai Kenneth; Respondent; Joint and Several Liquidator of Senrich Industries Ltd (in Creditors Voluntary Liquidation): Tang Chung Wah Alan; Respondent; Holder of Books and Records of the Hempstone Group and Employer/associated Firm of Tang: Shinewing Specialist Advisory Services Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
14 March 2014
Case Number
HCMP113/2013
Procedural Posture
Removal of Liquidator (hcmp 113/2013) and Production of Books/records (hccw 279/2010) / Costs Decision Following Settlement and Hearing; Interlocutory Applications Resolved With Orders and Costs Determined
Outcome
Removal application: Mr Tang to resign and indemnity costs awarded to Chen; Production application: SWSAS to produce books and records under the terms of the settlement order of 27 August 2013 (amended under slip rule) and to pay 100% of costs on a party and party basis; settlement terms (production, appointment of...
Legal Topics
Removal of Liquidator, Production of Books and Records, Costs Orders (indemnity Vs Party and Party), Taxation of Costs, Slip Rule Amendment
Source Language
EN
Companies Law Insolvency Law Civil Procedure (costs) Removal of Liquidator Production of Books and Records Costs Orders (indemnity Vs Party and Party) Taxation of Costs Slip Rule Amendment

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Parties

Chen Yung Ngai Kenneth

Applicant; One of Two Joint and Several Liquidators of Senrich Industries Ltd (in Creditors Voluntary Liquidation) and Liquidator of Hempstone Limited (in Compulsory Liquidation)

Tang Chung Wah Alan

Respondent; Joint and Several Liquidator of Senrich Industries Ltd (in Creditors Voluntary Liquidation)

Shinewing Specialist Advisory Services Limited

Respondent; Holder of Books and Records of the Hempstone Group and Employer/associated Firm of Tang

Procedural Posture

Removal of Liquidator (hcmp 113/2013) and Production of Books/records (hccw 279/2010) / Costs Decision Following Settlement and Hearing; Interlocutory Applications Resolved With Orders and Costs Determined

Legal Issues

  1. 1 Whether Mr Tang should be removed/should resign as joint and several liquidator of Senrich following breakdown with co-liquidator
  2. 2 Whether SWSAS must produce the books and records of the Hempstone Group to the liquidator
  3. 3 Appropriate costs orders for the removal application and for the production application (indemnity costs vs party and party)

Ratio Decidendi

Given the irretrievable breakdown in the working relationship and the shareholders' resolution, Mr Tang should have stepped down and his resistance to removal was unjustified; accordingly removal need not have been resisted and indemnity costs are appropriate for the removal application. For the production application, although SWSAS had asserted unpaid and unbilled fees, the agreed settlement and the need to progress the liquidations meant SWSAS should bear 100% of the costs but on a party and party basis; the 27 August 2013 order should be amended under the slip rule to record consent.

Court Disposition

Removal application: Mr Tang to resign and indemnity costs awarded to Chen; Production application: SWSAS to produce books and records under the terms of the settlement order of 27 August 2013 (amended under slip rule) and to pay 100% of costs on a party and party basis; settlement terms (production, appointment of...

Orders

  • Mr Tang to resign voluntarily as joint and several liquidator (as agreed) and to submit his resignation within the agreed period
  • Order of 27 August 2013 amended under the slip rule to record that it was by consent and to give effect to the settlement terms