RE THE INCORPORATED OWNERS of FOREMOST BUILDING

RE THE INCORPORATED OWNERS of FOREMOST BUILDING

Court held that provisional liquidators may be authorized under s182 to make payments out of monies in the Companies Liquidation Account that represent owners' contributions for the purpose of paying necessary monthly management expenses of the building, provided such contributions are kept separate from funds intended to satisfy judgment creditors; accordingly the court granted a validation order in part, specifying amounts for past months and a capped monthly sum for the future, and refused validation in respect of the purported lift maintenance agreement and deferred payment of the secretary's salary until duties clarified.

Citation
RE THE INCORPORATED OWNERS of FOREMOST BUILDING
Parties
Applicant (contributory / Owner): Wong Wai Man; Company (subject to Winding Up): The Incorporated Owners of Foremost Building; Provisional Liquidators: Joint & Several Provisional Liquidators (Ting Koon Hung; Fiona Chan); Petitioners: Petitioners (personal injuries judgment creditors)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
28 October 2004
Case Number
HCCW47/2004
Procedural Posture
Companies (winding Up) No. 47 of 2004 / Application Under S182 Companies Ordinance for Validation of Dispositions After Winding Up; Decision in Chambers on 28 October 2004
Outcome
Validation order granted in part and refused in part
Legal Topics
Validation Order Under S182, Winding Up of Incorporated Owners, Statutory Contribution Under Building Management Ordinance S34, Provisional Liquidators' Powers, Separation of Trust Contributions
Source Language
EN
Company Law Insolvency Law Building Management Law Trusts and Fiduciary Obligations Validation Order Under S182 Winding Up of Incorporated Owners Statutory Contribution Under Building Management Ordinance S34 Provisional Liquidators' Powers +1 more

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Parties

Wong Wai Man

Applicant (contributory / Owner)

The Incorporated Owners of Foremost Building

Company (subject to Winding Up)

Joint & Several Provisional Liquidators (Ting Koon Hung; Fiona Chan)

Provisional Liquidators

Petitioners (personal injuries judgment creditors)

Petitioners

Procedural Posture

Companies (winding Up) No. 47 of 2004 / Application Under S182 Companies Ordinance for Validation of Dispositions After Winding Up; Decision in Chambers on 28 October 2004

Legal Issues

  1. 1 Whether dispositions/payments by provisional liquidators after winding-up can be validated under section 182 Companies Ordinance
  2. 2 Whether payments for building management (wages, lift maintenance, utilities) can be validated out of monies received post-winding-up
  3. 3 Whether contributions received from owners under BMO s34 may be segregated and used for management expenses rather than satisfaction of judgment debt

Ratio Decidendi

Court held that provisional liquidators may be authorized under s182 to make payments out of monies in the Companies Liquidation Account that represent owners' contributions for the purpose of paying necessary monthly management expenses of the building, provided such contributions are kept separate from funds intended to satisfy judgment creditors; accordingly the court granted a validation order in part, specifying amounts for past months and a capped monthly sum for the future, and refused validation in respect of the purported lift maintenance agreement and deferred payment of the secretary's salary until duties clarified.

Court Disposition

Validation order granted in part and refused in part

Orders

  • Payments may be made by the provisional liquidators out of monies accounted for by them to the Official Receiver and held in the Companies Liquidation Account being contributions by owners for monthly management expenses: July 2004 HK$36,004.50
  • Payments may be made for August 2004 in the sum of HK$36,071.50