RE THE JOINT AND SEVERAL LIQUIDATORS OF SHANGHAI SHENYIN SECURITIES (H.K.) LTD

RE THE JOINT AND SEVERAL LIQUIDATORS OF SHANGHAI SHENYIN SECURITIES (H.K.) LTD

The court held that the company held the assets on trust and beneficiaries were unreachable, thus payment into court and related steps were ordered; however the court refused to permit deduction of the liquidators' fees and solicitors' costs from the Unclaimed Assets and made no order as to costs because the company's deficient record-keeping substantially caused the tracing expense and it would be unfair to require a single major beneficiary to bear disproportionate costs.

Citation
[2023] HKCFI 2132
Parties
Joint and Several Liquidator/applicant: Chow Tsz Nga Georgia; Joint and Several Liquidator/applicant: Mat Ng; Company (subject of Winding Up): Shanghai Shenyin Securities (H.K.) Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
15 August 2023
Case Number
HCMP405/2023
Procedural Posture
Miscellaneous Proceedings (companies Winding Up; Trustee Ordinance Application) / Application for Disposal of Unclaimed Trust Assets by Payment Into Court (originating Summons Heard and Decided)
Outcome
Application granted in part: payment into court and related consequential steps ordered; application to deduct liquidators' and solicitors' fees from the Unclaimed Assets refused; no order as to costs.
Legal Topics
Unclaimed Trust Assets, Trustee Ordinance Ss56 and 62, Berkeley Applegate Orders, Costs Orders, Payment Into Court
Source Language
EN
Trusts Company Law Insolvency Law Civil Procedure Unclaimed Trust Assets Trustee Ordinance Ss56 and 62 Berkeley Applegate Orders Costs Orders +1 more

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Parties

Chow Tsz Nga Georgia

Joint and Several Liquidator/applicant

Mat Ng

Joint and Several Liquidator/applicant

Shanghai Shenyin Securities (H.K.) Limited

Company (subject of Winding Up)

Procedural Posture

Miscellaneous Proceedings (companies Winding Up; Trustee Ordinance Application) / Application for Disposal of Unclaimed Trust Assets by Payment Into Court (originating Summons Heard and Decided)

Legal Issues

  1. 1 Whether the assets were held by the company as trustee
  2. 2 Whether beneficiaries are unreachable despite reasonable efforts
  3. 3 Whether court should order payment into court of unclaimed trust assets under the Trustee Ordinance

Ratio Decidendi

The court held that the company held the assets on trust and beneficiaries were unreachable, thus payment into court and related steps were ordered; however the court refused to permit deduction of the liquidators' fees and solicitors' costs from the Unclaimed Assets and made no order as to costs because the company's deficient record-keeping substantially caused the tracing expense and it would be unfair to require a single major beneficiary to bear disproportionate costs.

Court Disposition

Application granted in part: payment into court and related consequential steps ordered; application to deduct liquidators' and solicitors' fees from the Unclaimed Assets refused; no order as to costs.

Orders

  • Payment into court of the Unclaimed Assets and consequential steps as sought
  • Order made in terms of paragraphs 1, 3, 4, 5 and 7 of the draft order as amended