RE CROWN RECORD CO LTD

RE CROWN RECORD CO LTD

The petition succeeds because the debt of HK$479,639 was undisputed and not repaid after formal demand; the asserted ability to repay via sale of the property was unsubstantiated because the property is subject to an all‑monies mortgage with no reliable evidence of the outstanding sum, the bank refused a further loan, and there was no evidence of the Company's other liabilities; accordingly the Company is insolvent and a winding‑up order is appropriate, with costs as ordered.

Citation
RE CROWN RECORD CO LTD
Parties
Petitioner; 16% Shareholder and Director: Ms Dora Lau; Company (subject of Petition): Crown Record Company Limited; Director and Shareholder; Initial Opponent of Petition: Mr David Lau
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
4 August 2011
Case Number
HCCW13/2011
Procedural Posture
Companies Winding Up Proceedings (petition Under Companies Ordinance) / Hearing on Petition; Winding Up Order Granted
Outcome
Winding-up order granted against Crown Record Company Limited
Legal Topics
Winding Up, Inability to Pay Debts, Shareholder Dispute, Costs
Source Language
EN
Company Law Insolvency Law Winding Up Inability to Pay Debts Shareholder Dispute Costs

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Parties

Ms Dora Lau

Petitioner; 16% Shareholder and Director

Crown Record Company Limited

Company (subject of Petition)

Mr David Lau

Director and Shareholder; Initial Opponent of Petition

Procedural Posture

Companies Winding Up Proceedings (petition Under Companies Ordinance) / Hearing on Petition; Winding Up Order Granted

Legal Issues

  1. 1 Whether the Company is unable to pay its debts and therefore liable to be wound up
  2. 2 Whether the existence of the Company’s property and an alleged mortgage could defeat the petition
  3. 3 Proper allocation of costs given the opposition by a shareholder/director

Ratio Decidendi

The petition succeeds because the debt of HK$479,639 was undisputed and not repaid after formal demand; the asserted ability to repay via sale of the property was unsubstantiated because the property is subject to an all‑monies mortgage with no reliable evidence of the outstanding sum, the bank refused a further loan, and there was no evidence of the Company's other liabilities; accordingly the Company is insolvent and a winding‑up order is appropriate, with costs as ordered.

Court Disposition

Winding-up order granted against Crown Record Company Limited

Orders

  • The Company be wound up.
  • Costs of the petition to be paid out of the assets of the Company.