RE PRESSURE VESSELS MANUFACTURING CO LTD

RE PRESSURE VESSELS MANUFACTURING CO LTD

The court exercised its discretionary power under s.287 to make a winding‑up order because the petitioner had a genuine and legitimate grievance about the appointment and conduct of the provisional liquidator, undermining confidence in his impartiality, and those considerations outweighed the expressed wishes of the majority of creditors to continue the voluntary liquidation.

Citation
RE PRESSURE VESSELS MANUFACTURING CO LTD
Parties
Petitioner: Standard Chartered Bank; Company: Pressure Vessels Manufacturing Company Limited; Provisional Liquidator: Mr Danvil Chan (K H Chan & Co); Opposing Creditor and Shareholder: Chan Kam Hoo Samson; Opposing Creditor and Shareholder: Chan Kam Chun John; Opposing Creditor: Chan Kong Yin Bing; Creditor: Wing Hang Bank Ltd; Interested Party: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
9 December 2002
Case Number
HCCW1005/2002
Procedural Posture
Winding Up Petition (companies Ordinance Cap.32) / Judgment Following Hearing on Petition
Outcome
Winding-up order made by the court
Legal Topics
Winding Up, Liquidator Appointment and Independence, Voting Rights of Secured Creditors, Third Party Security and Voting, Companies Ordinance S.228 a, Companies Ordinance S.287
Source Language
EN
Company Law Insolvency Law Civil Procedure Winding Up Liquidator Appointment and Independence Voting Rights of Secured Creditors Third Party Security and Voting Companies Ordinance S.228 a +1 more

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Parties

Standard Chartered Bank

Petitioner

Pressure Vessels Manufacturing Company Limited

Company

Mr Danvil Chan (K H Chan & Co)

Provisional Liquidator

Chan Kam Hoo Samson

Opposing Creditor and Shareholder

Chan Kam Chun John

Opposing Creditor and Shareholder

Chan Kong Yin Bing

Opposing Creditor

Wing Hang Bank Ltd

Creditor

Official Receiver

Interested Party

Procedural Posture

Winding Up Petition (companies Ordinance Cap.32) / Judgment Following Hearing on Petition

Legal Issues

  1. 1 Whether the appointment of the voluntary liquidator should be disturbed by the court
  2. 2 Whether third‑party securities may be deducted for voting purposes
  3. 3 Whether the provisional liquidator could act impartially and independently

Ratio Decidendi

The court exercised its discretionary power under s.287 to make a winding‑up order because the petitioner had a genuine and legitimate grievance about the appointment and conduct of the provisional liquidator, undermining confidence in his impartiality, and those considerations outweighed the expressed wishes of the majority of creditors to continue the voluntary liquidation.

Court Disposition

Winding-up order made by the court

Orders

  • Company to be wound up by the court
  • Petitioner's costs to be paid out of the Company's assets