RE LONG PROFIT INTERNATIONAL LTD

RE LONG PROFIT INTERNATIONAL LTD

The court granted the orders appointing the applicants as liquidators because appointment of the Ernst & Young trustees would give rise to a real or perceived conflict of interest between their role as trustees in bankruptcy of Woo Koo-ping and as liquidators of the companies, continuity and cost-effectiveness favoured the provisional liquidators, and there was no effective opposition to the applications.

Citation
[2019] HKCFI 1062
Parties
Company: Easy Carry Limited; Company: Kokin Limited (高建企業有限公司); Company: Long Profit International Limited (利長國際有限公司); Company: K.C.K. Garment Factory Limited (立基製衣廠有限公司); Company: AP Procurement Macao Commercial Offshore Limited (AP Procurement澳門離岸商業服務有限公司); Applicants: Joint and several provisional liquidators; Respondents: Stephen Liu Yiukeung and Yen Chingwai David (Joint and Several Trustees of Mr Woo Koo-ping); Interested Party: Diamond Force Limited; Interested Party: Oriented Prosperity Co Limited; Interested Party: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
27 March 2019
Case Number
HCCW299/2014
Procedural Posture
Companies (winding Up) Proceedings Under Cap 32 / Hearing/decision on Appointment of Liquidators (judgment)
Outcome
Order granted in the summonses; provisional liquidators appointed as liquidators
Legal Topics
Appointment of Liquidators, Conflict of Interest, Creditors and Contributories Meetings, Trustees in Bankruptcy
Source Language
EN
Company Law Insolvency Law Bankruptcy Law Appointment of Liquidators Conflict of Interest Creditors and Contributories Meetings Trustees in Bankruptcy

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Parties

Easy Carry Limited

Company

Kokin Limited (高建企業有限公司)

Company

Long Profit International Limited (利長國際有限公司)

Company

K.C.K. Garment Factory Limited (立基製衣廠有限公司)

Company

AP Procurement Macao Commercial Offshore Limited (AP Procurement澳門離岸商業服務有限公司)

Company

Joint and several provisional liquidators

Applicants

Stephen Liu Yiukeung and Yen Chingwai David (Joint and Several Trustees of Mr Woo Koo-ping)

Respondents

Diamond Force Limited

Interested Party

Oriented Prosperity Co Limited

Interested Party

Official Receiver

Interested Party

Procedural Posture

Companies (winding Up) Proceedings Under Cap 32 / Hearing/decision on Appointment of Liquidators (judgment)

Legal Issues

  1. 1 Validity of contributory votes cast by authority of Mastery Gain
  2. 2 Whether trustees in bankruptcy (Ernst & Young) have a conflict of interest if appointed liquidators
  3. 3 Whether the provisional liquidators should be appointed as liquidators in the best interests of the winding up

Ratio Decidendi

The court granted the orders appointing the applicants as liquidators because appointment of the Ernst & Young trustees would give rise to a real or perceived conflict of interest between their role as trustees in bankruptcy of Woo Koo-ping and as liquidators of the companies, continuity and cost-effectiveness favoured the provisional liquidators, and there was no effective opposition to the applications.

Court Disposition

Order granted in the summonses; provisional liquidators appointed as liquidators

Orders

  • Order in terms of the summonses
  • Appoint the joint and several provisional liquidators as the liquidators of the five companies named in the proceedings