RE EASY CARRY LTD

RE EASY CARRY LTD

Because the Ernst & Young candidates were trustees in the bankruptcy of Woo Koo-ping and that position gave rise to likely rival interests and duties with respect to the companies, creating at least a perceived conflict, and because the provisional liquidators had been in office for some years and there was no effective opposition, the court granted the summonses and appointed the joint and several provisional liquidators as liquidators in the best interests of the winding up.

Citation
[2019] HKCFI 1062
Parties
Applicants / Provisional Liquidators: Joint and Several Provisional Liquidators of the companies; Respondents / Trustees in Bankruptcy: Stephen Liu Yiukeung and Yen Chingwai David (Joint and Several Trustees of Mr Woo Koo-ping); Company in Winding Up: Easy Carry Limited; Company in Winding Up: Kokin Limited (高建企業有限公司); Company in Winding Up: Long Profit International Limited (利長國際有限公司); Company in Winding Up: K.C.K. Garment Factory Limited (立基製衣廠有限公司); Company in Winding Up: AP PROCUREMENT MACAO COMMERCIAL OFFSHORE LIMITED (AP Procurement澳門離岸商業服務有限公司); Creditor / Unrepresented Party: Diamond Force Limited; Creditor / Unrepresented Party: Oriented Prosperity Co Limited; Official Receiver / Neutral Party: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
27 March 2019
Case Number
HCCW297/2014
Procedural Posture
Companies (winding Up) Proceedings (consolidated) / Decision on Summons Appointing Liquidators (heard in Chambers)
Outcome
Summonses granted; order made appointing the joint and several provisional liquidators as liquidators of the companies
Legal Topics
Appointment of Liquidators, Conflict of Interest, Creditors' and Contributories' Meetings, Trustee Duties, Officers of the Court
Source Language
EN
Company Law Insolvency Bankruptcy Civil Procedure Appointment of Liquidators Conflict of Interest Creditors' and Contributories' Meetings Trustee Duties +1 more

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Parties

Joint and Several Provisional Liquidators of the companies

Applicants / Provisional Liquidators

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

Respondents / Trustees in Bankruptcy

Easy Carry Limited

Company in Winding Up

Kokin Limited (高建企業有限公司)

Company in Winding Up

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

Company in Winding Up

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

Company in Winding Up

AP PROCUREMENT MACAO COMMERCIAL OFFSHORE LIMITED (AP Procurement澳門離岸商業服務有限公司)

Company in Winding Up

Diamond Force Limited

Creditor / Unrepresented Party

Oriented Prosperity Co Limited

Creditor / Unrepresented Party

Official Receiver

Official Receiver / Neutral Party

Procedural Posture

Companies (winding Up) Proceedings (consolidated) / Decision on Summons Appointing Liquidators (heard in Chambers)

Legal Issues

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

Ratio Decidendi

Because the Ernst & Young candidates were trustees in the bankruptcy of Woo Koo-ping and that position gave rise to likely rival interests and duties with respect to the companies, creating at least a perceived conflict, and because the provisional liquidators had been in office for some years and there was no effective opposition, the court granted the summonses and appointed the joint and several provisional liquidators as liquidators in the best interests of the winding up.

Court Disposition

Summonses granted; order made appointing the joint and several provisional liquidators as liquidators of the companies

Orders

  • Order in terms of the summonses appointing the applicants (the joint and several provisional liquidators) as liquidators of Easy Carry Limited; Kokin Limited (高建企業有限公司); Long Profit International Limited (利長國際有限公司); K.C.K. Garment Factory Limited (立基製衣廠有限公司); and AP PROCUREMENT MACAO COMMERCIAL OFFSHORE LIMITED (AP...