RE RICH GLORY SHIPPING LTD

Parties

Procedural Posture

Companies Winding Up Proceedings / Application for Retrospective Ratification and Taxation of Agents' Fees (resumed Taxation Hearing)

Legal Issues

1. 1 Whether the Panel B appointments amounted to an impermissible wholesale delegation of the Official Receiver's functions
2. 2 Whether the court can retrospectively ratify the appointments under Companies Ordinance s200(3) or under its inherent jurisdiction
3. 3 Whether agents' fees can be paid out of company assets subject to taxation

Ratio Decidendi

The court exercised its discretion under Companies Ordinance s200(3) to retrospectively ratify the Official Receiver's appointments of Panel B agents and to authorise payment of their fees out of the companies' assets subject to taxation because the agents' work benefited the creditors and the liquidations, there was no evidence of misconduct or conflict of interest, taxation will provide independent scrutiny, and it would be disproportionate to investigate delegation in each file.

Court Disposition

Applications granted: retrospective ratification and sanction under s200(3) for appointments and payment of agents' fees in each of the 19 cases

Orders

• Court exercises powers under Companies Ordinance s200(3) to authorise retrospectively the appointments of agents in the 19 specified winding-up proceedings and to sanction payment of their fees out of the assets of the respective companies subject to taxation pursuant to the Companies (Winding-Up) Rules