CONVOY GLOBAL HOLDINGS LTD AND OTHERS v. CHO KWAI CHEE ROY AND OTHERS

CONVOY GLOBAL HOLDINGS LTD AND OTHERS v. CHO KWAI CHEE ROY AND OTHERS

The court struck out the claim against the 26th defendant insofar as it related to the Circular Financing Arrangement because the pleading lacked necessary particulars, was speculative and embarrassing and there was no realistic prospect that the pleaded facts could support the requisite knowledge or loss; other claims (including the claim to rescind the allotment and claims dependent on findings at trial) were not struck out and remain for trial.

Citation
[2018] HKCFI 2111
Parties
Plaintiffs (1st to 3rd): Convoy Global Holdings Limited, Convoy Collateral Limited and CSL Securities Limited; 26th Defendant: Cho Kwai Yee Kevin
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
19 September 2018
Case Number
HCA2922/2017
Procedural Posture
Commercial/company Action Concerning Share Placement and Collateral Finance / Interlocutory Strike‑out Application
Outcome
Claim against 26th defendant concerning the Circular Financing Arrangement struck out; remaining claims against him not struck out; costs nisi ordering no order as to costs.
Legal Topics
Rescission, Dishonest Assistance, Unlawful Means Conspiracy, Lawful Means Conspiracy, Margin Financing, Particularity of Pleading, Strike Out
Source Language
EN
Company Law Equity Trusts Civil Procedure Securities Law Conspiracy Rescission Dishonest Assistance +5 more

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Parties

Convoy Global Holdings Limited, Convoy Collateral Limited and CSL Securities Limited

Plaintiffs (1st to 3rd)

Cho Kwai Yee Kevin

26th Defendant

Procedural Posture

Commercial/company Action Concerning Share Placement and Collateral Finance / Interlocutory Strike‑out Application

Legal Issues

  1. 1 Whether the pleadings against the 26th defendant disclose a realistic prospect of liability for dishonest assistance or conspiracy
  2. 2 Whether the claim relating to the Circular Financing Arrangement is sufficiently pleaded and particularised
  3. 3 Whether rescission relief is academic given sale of shares by the defendant

Ratio Decidendi

The court struck out the claim against the 26th defendant insofar as it related to the Circular Financing Arrangement because the pleading lacked necessary particulars, was speculative and embarrassing and there was no realistic prospect that the pleaded facts could support the requisite knowledge or loss; other claims (including the claim to rescind the allotment and claims dependent on findings at trial) were not struck out and remain for trial.

Court Disposition

Claim against 26th defendant concerning the Circular Financing Arrangement struck out; remaining claims against him not struck out; costs nisi ordering no order as to costs.

Orders

  • Strike out the claim against the 26th Defendant insofar as it concerns the Circular Financing Arrangement for lack of particularity and realistic prospect of success
  • Costs order nisi: no order as to costs