LEUNG CHI TUNG v. AU YEUNG FAN AND OTHERS

LEUNG CHI TUNG v. AU YEUNG FAN AND OTHERS

Because the prior appointment and order of 14 October 2010 specifically limited the joint valuer and valuation to the Petitioner and the 1st Respondent, the court was entitled to determine the value of the Petitioner’s shares only as between those two parties and to order release of stakeholder funds to the Petitioner; the court declined to extend the valuation to the 2nd Respondent but ordered costs of the application to be paid by the 1st and 2nd Respondents to the Petitioner and adjourned the application sine die.

Citation
LEUNG CHI TUNG v. AU YEUNG FAN AND OTHERS
Parties
Petitioner: LEUNG CHI TUNG; 1st Respondent: AU YEUNG FAN aka FAN AO IEONG; 2nd Respondent: WONG KA MAN; 3rd Respondent: FANSWAY INTERNATIONAL LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
30 September 2011
Case Number
HCCW504/2005
Procedural Posture
Companies Ordinance S168 a and S177(1)(f) Application for Share Valuation and Related Relief / Judgment on Application (court of First Instance)
Outcome
Court granted valuation as between Petitioner and 1st Respondent, ordered release of stakeholder funds to Petitioner, ordered costs against 1st and 2nd Respondents (to be taxed if not agreed), adjourned application sine die and made no order as to costs of today.
Legal Topics
Share Valuation, Stakeholder Funds, Costs, Appointment of Joint Valuer, Adjournment
Source Language
EN
Company Law Civil Procedure Equity Share Valuation Stakeholder Funds Costs Appointment of Joint Valuer Adjournment

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Parties

LEUNG CHI TUNG

Petitioner

AU YEUNG FAN aka FAN AO IEONG

1st Respondent

WONG KA MAN

2nd Respondent

FANSWAY INTERNATIONAL LIMITED

3rd Respondent

Procedural Posture

Companies Ordinance S168 a and S177(1)(f) Application for Share Valuation and Related Relief / Judgment on Application (court of First Instance)

Legal Issues

  1. 1 Whether the court may determine the value of the Petitioner’s shares as between the Petitioner and the 1st Respondent only
  2. 2 Whether the Petitioner’s solicitors may release sums held as stakeholder to the Petitioner
  3. 3 Whether the earlier order limiting the joint valuer to the Petitioner and the 1st Respondent precludes extending valuation to the 2nd Respondent

Ratio Decidendi

Because the prior appointment and order of 14 October 2010 specifically limited the joint valuer and valuation to the Petitioner and the 1st Respondent, the court was entitled to determine the value of the Petitioner’s shares only as between those two parties and to order release of stakeholder funds to the Petitioner; the court declined to extend the valuation to the 2nd Respondent but ordered costs of the application to be paid by the 1st and 2nd Respondents to the Petitioner and adjourned the application sine die.

Court Disposition

Court granted valuation as between Petitioner and 1st Respondent, ordered release of stakeholder funds to Petitioner, ordered costs against 1st and 2nd Respondents (to be taxed if not agreed), adjourned application sine die and made no order as to costs of today.

Orders

  • Value of the Petitioner’s shares as between the Petitioner and the 1st Respondent determined pursuant to Recorder A Ho, SC (30 May 2007) and Harris J (14 October 2010) is RMB18,888,761.84.
  • The Petitioner’s solicitors may release to the Petitioner the sums held by them as stakeholder pursuant to the order of Deputy Judge To dated 9 July 2009.