RE DESCARTES INVESTMENT MANAGEMENT LTD

RE DESCARTES INVESTMENT MANAGEMENT LTD

Given the statutory demand, lack of payment, absence of opposing evidence by the Company, supporting evidence of regulatory contraventions and asset dissipation furnished by the SFC and administrators, the court was satisfied the Company was insolvent under s327 and that it was in the public interest to wind up the Company; continuity justified appointing existing administrators as provisional liquidators and ordering costs to be paid from the Company's assets.

Citation
RE DESCARTES INVESTMENT MANAGEMENT LTD
Parties
Petitioner: Yen Ling Ning; Company (respondent): Descartes Investment Management Limited; Supporting Creditor: Tsang Kuang Ching; Intervener/supporter: Securities and Futures Commission; Joint Administrator and Provisional Liquidator: John Robert Lees; Joint Administrator and Provisional Liquidator: Colum Sebastian Joseph Bancroft; Official Receiver: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
25 May 2009
Case Number
HCCW73/2009
Procedural Posture
Winding Up Petition Under Companies Ordinance (cap.32) (companies (winding Up) No.73 of 2009) / Judgment and Orders Made on 25 May 2009 (post Appointment of Administrators on 27 April 2009)
Outcome
Winding-up order made; administrators previously appointed to administer the companies continued as provisional liquidators; costs ordered to be paid out of the Company's assets; return/hearing vacated.
Legal Topics
Winding Up, Provisional Liquidation, Appointment of Administrators, Statutory Demand, Costs in Insolvency
Source Language
EN
Companies Law Insolvency Securities Regulation Civil Procedure Winding Up Provisional Liquidation Appointment of Administrators Statutory Demand +1 more

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Parties

Yen Ling Ning

Petitioner

Descartes Investment Management Limited

Company (respondent)

Tsang Kuang Ching

Supporting Creditor

Securities and Futures Commission

Intervener/supporter

John Robert Lees

Joint Administrator and Provisional Liquidator

Colum Sebastian Joseph Bancroft

Joint Administrator and Provisional Liquidator

Official Receiver

Official Receiver

Procedural Posture

Winding Up Petition Under Companies Ordinance (cap.32) (companies (winding Up) No.73 of 2009) / Judgment and Orders Made on 25 May 2009 (post Appointment of Administrators on 27 April 2009)

Legal Issues

  1. 1 Whether the Company was insolvent and unable to pay its debts within s327 Companies Ordinance
  2. 2 Whether it was in the public interest to wind up the Company
  3. 3 Whether administrators should continue as provisional liquidators for continuity and efficiency

Ratio Decidendi

Given the statutory demand, lack of payment, absence of opposing evidence by the Company, supporting evidence of regulatory contraventions and asset dissipation furnished by the SFC and administrators, the court was satisfied the Company was insolvent under s327 and that it was in the public interest to wind up the Company; continuity justified appointing existing administrators as provisional liquidators and ordering costs to be paid from the Company's assets.

Court Disposition

Winding-up order made; administrators previously appointed to administer the companies continued as provisional liquidators; costs ordered to be paid out of the Company's assets; return/hearing vacated.

Orders

  • Winding-up order made against Descartes Investment Management Limited dated 25 May 2009
  • Order appointing John Robert Lees and Colum Sebastian Joseph Bancroft as provisional liquidators of the Company to continue in office