CAI SHUYI v. THE JOINT AND SEVERAL LIQUIDATORS OF BLOCKCHAIN GROUP CO LTD (IN LIQUIDATION)

CAI SHUYI v. THE JOINT AND SEVERAL LIQUIDATORS OF BLOCKCHAIN GROUP CO LTD (IN LIQUIDATION)

On the evidence before the court it is not appropriate to disenfranchise or discount any of the votes of known creditors; absent definitive evidence that particular creditors lack entitlement, their votes must be counted and the court will give weight to creditors' views, with a further hearing to resolve outstanding entitlement issues and to decide on any appointment of liquidator(s).

Citation
[2019] HKCFI 1522
Parties
Company: Blockchain Group Company Limited; Respondents (liquidators): The Respondents; Creditors/contributories: Known creditors and contributories
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
12 June 2019
Case Number
HCCW118/2018
Procedural Posture
Companies (winding Up) Proceedings / Interlocutory Hearing on Appointment of Liquidators and Voting Disputes
Outcome
Court declined to disenfranchise or discount votes on the evidence before it and ordered further proceedings to resolve entitlement issues and determine the appointment of liquidator(s).
Legal Topics
Appointment of Liquidator, Voting Rights of Creditors, Conflict of Interest, Court Discretion Under Winding‑up Statute
Source Language
EN
Company Law Insolvency Liquidation Procedural Law Appointment of Liquidator Voting Rights of Creditors Conflict of Interest Court Discretion Under Winding‑up Statute

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Parties

Blockchain Group Company Limited

Company

The Respondents

Respondents (liquidators)

Known creditors and contributories

Creditors/contributories

Procedural Posture

Companies (winding Up) Proceedings / Interlocutory Hearing on Appointment of Liquidators and Voting Disputes

Legal Issues

  1. 1 Whether the court should appoint replacement liquidator(s) in place of the respondents
  2. 2 Whether votes of certain known creditors should be disenfranchised or discounted pending resolution of entitlement disputes
  3. 3 Whether alleged associations or conflicts disqualify the current liquidators

Ratio Decidendi

On the evidence before the court it is not appropriate to disenfranchise or discount any of the votes of known creditors; absent definitive evidence that particular creditors lack entitlement, their votes must be counted and the court will give weight to creditors' views, with a further hearing to resolve outstanding entitlement issues and to decide on any appointment of liquidator(s).

Court Disposition

Court declined to disenfranchise or discount votes on the evidence before it and ordered further proceedings to resolve entitlement issues and determine the appointment of liquidator(s).

Orders

  • Respondents to ascertain from all known creditors and contributories their votes and any nominations of liquidator(s) and to report to the Court
  • Do not disenfranchise or discount any votes of known creditors on the evidence before the Court