LAM CHARM AND ANOTHER v. YUNG SHIU CHING AND OTHERS

LAM CHARM AND ANOTHER v. YUNG SHIU CHING AND OTHERS

Because there was a good prima facie case of misconduct and an irretrievable breakdown of trust and confidence and a clear prospect that a winding-up order would be made, the court exercised its discretion to appoint provisional liquidators immediately to protect the company pending the substantive hearing; costs of...

Source-derived case information.

Citation
LAM CHARM AND ANOTHER v. YUNG SHIU CHING AND OTHERS
Parties
1st Petitioner (hccw279/2010): Lam Charm; 2nd Petitioner (hccw279/2010): Wong Sek Tung; 1st Respondent (hccw279/2010): Yung Shiu Ching; 2nd Respondent (hccw279/2010): Lee Bing Fai Tomme; 3rd Respondent (hccw279/2010): Chan Kwok Keung; 4th Respondent (hccw279/2010): Au Lai Chi; 5th Respondent (hccw279/2010) and 2nd Respondent (hccw346/2010): Hempstone Limited; Petitioner (hccw346/2010): King Bakery International Co., Limited; 1st Respondent (hccw346/2010): Live & Live Limited; 3rd Respondent (hccw346/2010): De Rodeo Catering Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
15 December 2010
Case Number
HCCW279/2010
Procedural Posture
Companies (winding Up) Proceedings / Interlocutory Application and Hearing for Appointment of Provisional Liquidators; Substantive Winding Up Hearing Listed for 10 January 2011
Outcome
Provisional liquidators appointed by order in terms of the petitioners' draft (Annex 2 subject to corrections); no winding-up order made today; substantive hearing listed for 10 January 2011.
Legal Topics
Appointment of Provisional Liquidators, Winding Up Petition, Breakdown of Trust and Confidence, Allegations of Misconduct, Costs, Counsel Certification
Source Language
en
Company Law Insolvency Law Civil Procedure Appointment of Provisional Liquidators Winding Up Petition Breakdown of Trust and Confidence Allegations of Misconduct Costs +1 more

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Parties

Lam Charm

1st Petitioner (hccw279/2010)

Wong Sek Tung

2nd Petitioner (hccw279/2010)

Yung Shiu Ching

1st Respondent (hccw279/2010)

Lee Bing Fai Tomme

2nd Respondent (hccw279/2010)

Chan Kwok Keung

3rd Respondent (hccw279/2010)

Au Lai Chi

4th Respondent (hccw279/2010)

Hempstone Limited

5th Respondent (hccw279/2010) and 2nd Respondent (hccw346/2010)

King Bakery International Co., Limited

Petitioner (hccw346/2010)

Live & Live Limited

1st Respondent (hccw346/2010)

De Rodeo Catering Limited

3rd Respondent (hccw346/2010)

Procedural Posture

Companies (winding Up) Proceedings / Interlocutory Application and Hearing for Appointment of Provisional Liquidators; Substantive Winding Up Hearing Listed for 10 January 2011

Legal Issues

  1. 1 Whether the court should appoint provisional liquidators prior to the substantive winding-up hearing
  2. 2 Whether there is a prima facie case and reasonable prospect that a winding-up order will be made
  3. 3 Whether the exercise of discretion favors appointment now given solvency and possible commercial resolution

Ratio Decidendi

Because there was a good prima facie case of misconduct and an irretrievable breakdown of trust and confidence and a clear prospect that a winding-up order would be made, the court exercised its discretion to appoint provisional liquidators immediately to protect the company pending the substantive hearing; costs of the application were ordered against the 1st–4th Respondents and the matter was listed for full hearing on 10 January 2011.

Court Disposition

Provisional liquidators appointed by order in terms of the petitioners' draft (Annex 2 subject to corrections); no winding-up order made today; substantive hearing listed for 10 January 2011.

Orders

  • Provisional liquidators to be appointed in terms of the draft at Annex 2 subject to form corrections to be submitted by the Petitioners
  • No winding-up order made on 15 December 2010; petitions to be heard on 10 January 2011