CHEN YUNG NGAI KENNETH v. SHINEWING SPECIALIST ADVISORY SERVICES LTD

CHEN YUNG NGAI KENNETH v. SHINEWING SPECIALIST ADVISORY SERVICES LTD

The court held that, given the breakdown in the working relationship, the practical realities and the shareholders' resolution, Mr Tang should have stepped down and his resistance was unnecessary; accordingly indemnity costs were ordered in favour of the applicant in the removal application as a special circumstance, while SWSAS was ordered to bear 100% of the costs of the production application on a party-and-party basis; the settlement order of 27 August 2013 was to be amended under the slip rule to record the parties' agreement and to effect production and related arrangements.

Citation
CHEN YUNG NGAI KENNETH v. SHINEWING SPECIALIST ADVISORY SERVICES LTD
Parties
Applicant (joint and Several Liquidator): Chen Yung Ngai Kenneth; Respondent (joint and Several Liquidator): Tang Chung Wah Alan; Respondent (firm in Possession of Books and Records): Shinewing Specialist Advisory Services Limited; Company (in Creditors Voluntary Liquidation): Senrich Industries Limited; Company (in Compulsory Liquidation): Hempstone Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
14 March 2014
Case Number
HCCW279/2010
Procedural Posture
Applications in Company Insolvency: Removal of a Liquidator and Production of Company Books and Records / Costs Decision Following Settlement of Substantive Disputes; Court Dealt With Slip Rule Amendment and Costs Allocation
Outcome
Removal application: resolved by voluntary resignation of Mr Tang; court found removal application should not have been resisted and awarded indemnity costs to the applicant. Production application: settlement order of 27 August 2013 to be amended under the slip rule; SWSAS to produce books and records and comply...
Legal Topics
Removal of Liquidator, Production of Books and Records, Costs: Indemnity Vs Party and Party, Taxation of Bills, Slip Rule Amendment
Source Language
EN
Company Law Insolvency Civil Procedure Costs Removal of Liquidator Production of Books and Records Costs: Indemnity Vs Party and Party Taxation of Bills +1 more

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Parties

Chen Yung Ngai Kenneth

Applicant (joint and Several Liquidator)

Tang Chung Wah Alan

Respondent (joint and Several Liquidator)

Shinewing Specialist Advisory Services Limited

Respondent (firm in Possession of Books and Records)

Senrich Industries Limited

Company (in Creditors Voluntary Liquidation)

Hempstone Limited

Company (in Compulsory Liquidation)

Procedural Posture

Applications in Company Insolvency: Removal of a Liquidator and Production of Company Books and Records / Costs Decision Following Settlement of Substantive Disputes; Court Dealt With Slip Rule Amendment and Costs Allocation

Legal Issues

  1. 1 Whether Mr Tang should be removed or must resign as joint and several liquidator of Senrich
  2. 2 Whether SWSAS must produce the Hempstone Group books and records to the liquidator
  3. 3 Appropriate basis and allocation of costs for the removal application (indemnity sought) and the production application (party and party sought)

Ratio Decidendi

The court held that, given the breakdown in the working relationship, the practical realities and the shareholders' resolution, Mr Tang should have stepped down and his resistance was unnecessary; accordingly indemnity costs were ordered in favour of the applicant in the removal application as a special circumstance, while SWSAS was ordered to bear 100% of the costs of the production application on a party-and-party basis; the settlement order of 27 August 2013 was to be amended under the slip rule to record the parties' agreement and to effect production and related arrangements.

Court Disposition

Removal application: resolved by voluntary resignation of Mr Tang; court found removal application should not have been resisted and awarded indemnity costs to the applicant. Production application: settlement order of 27 August 2013 to be amended under the slip rule; SWSAS to produce books and records and comply...

Orders

  • Amend the order dated 27 August 2013 under the slip rule to record the parties' agreed terms for production and related arrangements
  • Mr Tang's voluntary resignation as joint and several liquidator to be given effect (he had agreed to submit his resignation within seven days)