Re Taipao Resins Chemical Co. Ltd.

Re Taipao Resins Chemical Co. Ltd.

The initial offer of 15 October 1998 was reasonable; both parties and their solicitors are to blame for failure to settle; accordingly the petitioners are entitled to costs up to 15 October 1998 and there should be no order as to costs thereafter or for the hearing date.

Citation
Re Taipao Resins Chemical Co. Ltd.
Parties
Petitioners: 1st to 8th Petitioners (members of the Yin Family); Respondents: 2nd to 11th Respondents (members of the Huang Family); Company (subject of Petition): Taipao Resins Chemical Company Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
29 March 2000
Case Number
HCCW590/1998
Procedural Posture
Companies Winding Up Proceedings / Costs Hearing and Judgment on Costs Following Order for Share Purchase
Outcome
Petitioners awarded costs up to 15 October 1998; no order as to costs after that date; no order as to costs for the hearing on 29 March 2000; earlier order made that respondents purchase petitioners' shares.
Legal Topics
Winding Up, Share Purchase Offer, Costs Order, Valuation Date Dispute, Minority Shareholding Discount
Source Language
EN
Company Law Civil Procedure Costs Winding Up Share Purchase Offer Costs Order Valuation Date Dispute Minority Shareholding Discount

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Parties

1st to 8th Petitioners (members of the Yin Family)

Petitioners

2nd to 11th Respondents (members of the Huang Family)

Respondents

Taipao Resins Chemical Company Limited

Company (subject of Petition)

Procedural Posture

Companies Winding Up Proceedings / Costs Hearing and Judgment on Costs Following Order for Share Purchase

Legal Issues

  1. 1 Whether a reasonable offer was made and unreasonably rejected so as to affect entitlement to costs
  2. 2 What date and basis should be used for valuation of shares
  3. 3 Whether a minority shareholding discount should apply to valuation

Ratio Decidendi

The initial offer of 15 October 1998 was reasonable; both parties and their solicitors are to blame for failure to settle; accordingly the petitioners are entitled to costs up to 15 October 1998 and there should be no order as to costs thereafter or for the hearing date.

Court Disposition

Petitioners awarded costs up to 15 October 1998; no order as to costs after that date; no order as to costs for the hearing on 29 March 2000; earlier order made that respondents purchase petitioners' shares.

Orders

  • Order dated 13 March 2000 that the petitioners' shares be purchased by the respondents.
  • Petitioners to have their costs up to and including 15 October 1998.