CHEN YUNG NGAI KENNETH, one of the joint and several trustees of the property of the Bankrupt, LI SHU CHUNG v. KAREN JANE LI AND OTHERS

CHEN YUNG NGAI KENNETH, one of the joint and several trustees of the property of the Bankrupt, LI SHU CHUNG v. KAREN JANE LI AND OTHERS

The court found, on uncontradicted evidence including the Bankrupt's own prior sworn admissions and trustee confirmations, that the Bankrupt was the beneficial owner of the Roteland shares and of Joesh prior to the 2016 disposition; the 2016 transfers were transactions at undervalue to associates within five years of the petition, triggering the presumption of insolvency and supporting a finding of intent to defraud creditors; accordingly the disposition was set aside and the shares vested in the trustee under BO ss.49,51A and CPO s.60, with consequential transfer and vesting orders and costs against the defendants.

Citation
[2026] HKCFI 1130
Parties
Plaintiff (trustee in Bankruptcy): CHEN YUNG NGAI KENNETH; Subject/bankrupt (not a Party): LI SHU CHUNG (the Bankrupt); 1st Defendant: KAREN JANE LI; 2nd Defendant: JOSHUA ALEXANDER LI; 3rd Defendant: CHARLOTTE SEE WAI FISHER; 4th Defendant: AMY SEE YAN BILLINGTON-LI; 5th Defendant: ISABELLA ROSE LI; 6th Defendant (registered Shareholder of Roteland): JOESH OVERSEAS LTD.; 7th Defendant (company Holding Family Residence): ROTELAND DEVELOPMENT LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
23 February 2026
Case Number
HCA415/2021
Procedural Posture
Bankruptcy Proceedings Avoidance of Dispositions and Proprietary Claims / Trial at Court of First Instance (judgment)
Outcome
Plaintiff's claims allowed: declaration made that the Bankrupt was beneficial owner of the 34% Roteland shares held in Joesh; the 2016 Disposition set aside; vesting and transfer orders made in favour of the Trustee; costs ordered.
Legal Topics
Avoidance of Transactions (undervalue), Intent to Defraud Creditors, Constructive Trust, Vesting Orders Under Bankruptcy Law, Fraudulent Conveyance
Source Language
EN
Bankruptcy Conveyancing Equity Trusts Company Law Avoidance of Transactions (undervalue) Intent to Defraud Creditors Constructive Trust +2 more

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Parties

CHEN YUNG NGAI KENNETH

Plaintiff (trustee in Bankruptcy)

LI SHU CHUNG (the Bankrupt)

Subject/bankrupt (not a Party)

KAREN JANE LI

1st Defendant

JOSHUA ALEXANDER LI

2nd Defendant

CHARLOTTE SEE WAI FISHER

3rd Defendant

AMY SEE YAN BILLINGTON-LI

4th Defendant

ISABELLA ROSE LI

5th Defendant

JOESH OVERSEAS LTD.

6th Defendant (registered Shareholder of Roteland)

ROTELAND DEVELOPMENT LIMITED

7th Defendant (company Holding Family Residence)

Procedural Posture

Bankruptcy Proceedings Avoidance of Dispositions and Proprietary Claims / Trial at Court of First Instance (judgment)

Legal Issues

  1. 1 Whether the Bankrupt was the beneficial owner of 34% Roteland shares held in the name of Joesh
  2. 2 Whether the 2016 allotment/transfer of Joesh shares to family members should be set aside under Bankruptcy Ordinance ss.49,51 and 51A
  3. 3 Whether the Disposition is voidable under Conveyancing and Property Ordinance s.60 for intent to defraud creditors

Ratio Decidendi

The court found, on uncontradicted evidence including the Bankrupt's own prior sworn admissions and trustee confirmations, that the Bankrupt was the beneficial owner of the Roteland shares and of Joesh prior to the 2016 disposition; the 2016 transfers were transactions at undervalue to associates within five years of the petition, triggering the presumption of insolvency and supporting a finding of intent to defraud creditors; accordingly the disposition was set aside and the shares vested in the trustee under BO ss.49,51A and CPO s.60, with consequential transfer and vesting orders and costs against the defendants.

Court Disposition

Plaintiff's claims allowed: declaration made that the Bankrupt was beneficial owner of the 34% Roteland shares held in Joesh; the 2016 Disposition set aside; vesting and transfer orders made in favour of the Trustee; costs ordered.

Orders

  • Declaration that the Bankrupt was at all material times and still is the beneficial owner of 34% Roteland shares registered in the name of Joesh and that Joesh was and is trustee/nominee for the Bankrupt
  • The 2016 Disposition of Joesh shares to D1–D5 be set aside