RE A-ONE INVESTMENTS LTD

RE A-ONE INVESTMENTS LTD

The court found no appearance of prejudiced bias by the provisional liquidators: their adjudications at meetings were proper for voting purposes, their litigation (including Mareva injunction and High Court actions) was properly sanctioned and pursued within court process, no conflict arose from engaging Mallesons as they ceased acting for DB Trustees on company matters, and the Festina settlement was sanctioned; accordingly the master’s appointment of the provisional liquidators as liquidators was within the court's discretion and the appeal was dismissed.

Citation
RE A-ONE INVESTMENTS LTD
Parties
Contributory/appellant: Mr Patrick Chau Cham Wong; Contributory/appellant: Mr Leung Yung; Provisional Liquidators/respondents: Mr Cosimo Borrelli and Ms Jacqueline Fangonil Walsh; Company: A-One Investments Limited (in compulsory liquidation)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
11 September 2009
Case Number
HCCW448/2008
Procedural Posture
Companies Winding Up Appeal / Appeal Against Master's Order Appointing Liquidators
Outcome
Appeal dismissed
Legal Topics
Appointment of Liquidator, Apparent Bias, Conflict of Interest, Mareva Injunction, Derivative Action, Adjudication of Claims for Voting Purposes, Settlement Approval, Sanction to Commence Proceedings
Source Language
EN
Company Law Insolvency Civil Procedure Judicial Bias Equity and Trusts Appointment of Liquidator Apparent Bias Conflict of Interest +5 more

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Parties

Mr Patrick Chau Cham Wong

Contributory/appellant

Mr Leung Yung

Contributory/appellant

Mr Cosimo Borrelli and Ms Jacqueline Fangonil Walsh

Provisional Liquidators/respondents

A-One Investments Limited (in compulsory liquidation)

Company

Procedural Posture

Companies Winding Up Appeal / Appeal Against Master's Order Appointing Liquidators

Legal Issues

  1. 1 Whether appointment of provisional liquidators as liquidators was tainted by apparent bias or prejudice
  2. 2 Whether provisional liquidators gave preferential treatment to secured creditor DB Trustees/ABN
  3. 3 Whether commencing High Court actions against the contributories was unreasonable, oppressive or an abuse of process

Ratio Decidendi

The court found no appearance of prejudiced bias by the provisional liquidators: their adjudications at meetings were proper for voting purposes, their litigation (including Mareva injunction and High Court actions) was properly sanctioned and pursued within court process, no conflict arose from engaging Mallesons as they ceased acting for DB Trustees on company matters, and the Festina settlement was sanctioned; accordingly the master’s appointment of the provisional liquidators as liquidators was within the court's discretion and the appeal was dismissed.

Court Disposition

Appeal dismissed

Orders

  • Mr Patrick Chau Cham Wong and Mr Leung Yung to pay provisional liquidators' costs assessed at HK$100,000 jointly and severally
  • Mr Patrick Chau Cham Wong and Mr Leung Yung to pay Official Receiver's costs assessed at HK$50,000 jointly and severally