RE WING FUNG CONSTRUCTION (HK) LTD

RE WING FUNG CONSTRUCTION (HK) LTD

The court validated the payments listed in items 1 to 8 except the specified car-related sums in item 1 (HK$13,400.00 and HK$22,033.00) and the specified reimbursements in item 8 (HK$6,082.40, HK$5,243.00 and HK$2,929.01), accepted the respondents' explanation regarding alleged double payments and treated the directors' subsidies and salaries as genuine business expenses, and made the validation order subject to an undertaking to provide proof of payment and repayment of surplus funds.

Citation
RE WING FUNG CONSTRUCTION (HK) LTD
Parties
Petitioner: Lau Yee Ching; 1st Respondent: Wong Tak Kwong; 2nd Respondent: Madam Chan Wai Chun
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
13 January 2006
Case Number
HCCW807/2004
Procedural Posture
Validation Application Under Companies Ordinance, Chapter 32 / Adjourned Hearing — Application for Validation Order (hearing and Decision 13 January 2006)
Outcome
Application granted in part — validation order made with specified exceptions; no order as to costs
Legal Topics
Validation Order, Payments From Company Funds, Directors' Remuneration and Subsidies, Employee Salaries and Advances, Reimbursements to Employees, Bank and Solicitor Authorisation
Source Language
EN
Company Law Corporate Law Insolvency and Winding Up Validation Order Payments From Company Funds Directors' Remuneration and Subsidies Employee Salaries and Advances Reimbursements to Employees +1 more

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Parties

Lau Yee Ching

Petitioner

Wong Tak Kwong

1st Respondent

Madam Chan Wai Chun

2nd Respondent

Procedural Posture

Validation Application Under Companies Ordinance, Chapter 32 / Adjourned Hearing — Application for Validation Order (hearing and Decision 13 January 2006)

Legal Issues

  1. 1 Whether the specified payments from company funds should be validated
  2. 2 Whether certain car expenses are personal rather than company business expenses
  3. 3 Whether directors' subsidies and salaries are genuine business expenses

Ratio Decidendi

The court validated the payments listed in items 1 to 8 except the specified car-related sums in item 1 (HK$13,400.00 and HK$22,033.00) and the specified reimbursements in item 8 (HK$6,082.40, HK$5,243.00 and HK$2,929.01), accepted the respondents' explanation regarding alleged double payments and treated the directors' subsidies and salaries as genuine business expenses, and made the validation order subject to an undertaking to provide proof of payment and repayment of surplus funds.

Court Disposition

Application granted in part — validation order made with specified exceptions; no order as to costs

Orders

  • Validate payment of the sums set out in items 1 to 8 in exhibit to the 11th affirmation of the 1st respondent except the sums HK$13,400.00 and HK$22,033.00 in item 1 and HK$6,082.40, HK$5,243.00 and HK$2,929.01 in item 8
  • Messrs Paul Kwong & Company, solicitors authorised to pay out the validated amounts to the listed recipients