RE ACTION INDUSTRIAL (INTERNATIONAL) LTD

RE ACTION INDUSTRIAL (INTERNATIONAL) LTD

The respondents were removed because they made false declarations in tender documents, failed to remit and unlawfully deducted part of the surplus proceeds of $387,891.37 contrary to statutory duty, failed to report the realisation, and failed to provide required security — conduct demonstrating they are not fit and proper persons to continue as liquidators under sections 196(1) and 202(2A) of the Companies Ordinance.

Citation
RE ACTION INDUSTRIAL (INTERNATIONAL) LTD
Parties
Applicant (official Receiver): Official Receiver; Respondent, Liquidator: Chan Kin Hang Danvil; Respondent, Liquidator: Chan Man Yiu; Tenderer / Accounting Firm (interested Party): Honest Joy Accounting Service Co Ltd
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
2 December 2009
Case Number
HCCW35/2007
Procedural Posture
Company Liquidation — Removal of Liquidators / Chambers Application/summons for Removal of Liquidators (uncontested)
Outcome
Respondents Chan Kin Hang Danvil and Chan Man Yiu removed as liquidators; replacement liquidators to be appointed; consequential orders made; costs awarded to Official Receiver.
Legal Topics
Removal of Liquidators, Misconduct of Liquidators, Payment of Surplus Proceeds to Companies Liquidation Account, Tender Misrepresentation, Security for Appointment, Costs Assessment
Source Language
EN
Company Law Insolvency Professional Conduct Civil Procedure Removal of Liquidators Misconduct of Liquidators Payment of Surplus Proceeds to Companies Liquidation Account Tender Misrepresentation +2 more

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Parties

Official Receiver

Applicant (official Receiver)

Chan Kin Hang Danvil

Respondent, Liquidator

Chan Man Yiu

Respondent, Liquidator

Honest Joy Accounting Service Co Ltd

Tenderer / Accounting Firm (interested Party)

Procedural Posture

Company Liquidation — Removal of Liquidators / Chambers Application/summons for Removal of Liquidators (uncontested)

Legal Issues

  1. 1 Whether the respondents are fit and proper persons to act as liquidators
  2. 2 Whether respondents breached section 202 by retaining surplus proceeds and failed to remit them forthwith
  3. 3 Whether false declarations in tender documents amount to serious professional misconduct

Ratio Decidendi

The respondents were removed because they made false declarations in tender documents, failed to remit and unlawfully deducted part of the surplus proceeds of $387,891.37 contrary to statutory duty, failed to report the realisation, and failed to provide required security — conduct demonstrating they are not fit and proper persons to continue as liquidators under sections 196(1) and 202(2A) of the Companies Ordinance.

Court Disposition

Respondents Chan Kin Hang Danvil and Chan Man Yiu removed as liquidators; replacement liquidators to be appointed; consequential orders made; costs awarded to Official Receiver.

Orders

  • Remove Chan Kin Hang Danvil as liquidator of Action Industrial (International) Limited
  • Remove Chan Man Yiu as liquidator of Action Industrial (International) Limited