CHAN HIN TUNG AND OTHERS v. CHAN TIN CHAI AND OTHERS

CHAN HIN TUNG AND OTHERS v. CHAN TIN CHAI AND OTHERS

The court held it had power to award interest on the purchase price under the slip rule and the liberty to apply in the earlier judgment; interest should run from the petition date (15 May 2007) to the date of the buy-out order (14 May 2010) at 1% above HSBC prime rate and thereafter at the prevailing judgment rate...

Source-derived case information.

Citation
CHAN HIN TUNG AND OTHERS v. CHAN TIN CHAI AND OTHERS
Parties
Petitioner: CHAN LUEN YAN; Petitioner: CHAN HIN TUNG; Petitioner: CHAN LUEN FAI; Petitioner: CHAN LUEN CHEUNG; Respondent: CHAN TIN CHAI; Respondent: CHAN HIN KAI; Respondent: CHAN HIN KUEN MICKY; Respondent: CHAN HIN CHEUNG PAUL; Respondent: CHAN BO YU; Respondent: CHAN MO YIN; Respondent: CHAN TAT CHAI; Respondent: CHAN HIN CHAI; Respondent: CHAN NAM THOMAS; Respondent: CHAN LOON FONG; Respondent: GOLDSFINE DEVELOPMENT LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
14 August 2013
Case Number
HCCW211/2007
Procedural Posture
Companies (winding Up) Petition Under Sections 168 a and 177(1)(f) of the Companies Ordinance Cap 32 / Post Trial Decision on Interest and Costs Following Valuation and Buy Out Order
Outcome
Interest awarded and costs allocated as set out in orders
Legal Topics
Unfairly Prejudicial Conduct, Buy Out Order Under S168 a, Valuation of Shares, Interest on Purchase Price, Allocation of Costs
Source Language
en
Company Law Civil Procedure Equity Costs Unfairly Prejudicial Conduct Buy Out Order Under S168 a Valuation of Shares Interest on Purchase Price +1 more

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Parties

CHAN LUEN YAN

Petitioner

CHAN HIN TUNG

Petitioner

CHAN LUEN FAI

Petitioner

CHAN LUEN CHEUNG

Petitioner

CHAN TIN CHAI

Respondent

CHAN HIN KAI

Respondent

CHAN HIN KUEN MICKY

Respondent

CHAN HIN CHEUNG PAUL

Respondent

CHAN BO YU

Respondent

CHAN MO YIN

Respondent

CHAN TAT CHAI

Respondent

CHAN HIN CHAI

Respondent

CHAN NAM THOMAS

Respondent

CHAN LOON FONG

Respondent

GOLDSFINE DEVELOPMENT LIMITED

Respondent

Procedural Posture

Companies (winding Up) Petition Under Sections 168 a and 177(1)(f) of the Companies Ordinance Cap 32 / Post Trial Decision on Interest and Costs Following Valuation and Buy Out Order

Legal Issues

  1. 1 Whether the court may award interest on a buy-out order post-judgment
  2. 2 Appropriate period from which interest should run
  3. 3 Appropriate rate or method for calculating interest

Ratio Decidendi

The court held it had power to award interest on the purchase price under the slip rule and the liberty to apply in the earlier judgment; interest should run from the petition date (15 May 2007) to the date of the buy-out order (14 May 2010) at 1% above HSBC prime rate and thereafter at the prevailing judgment rate until payment; costs of valuation up to 13 August 2012 were to be borne by the Petitioners and costs incurred thereafter by the Respondents.

Court Disposition

Interest awarded and costs allocated as set out in orders

Orders

  • Interest be awarded on the purchase price of the Petitioners' shares to run from 15 May 2007 to 14 May 2010 at the rate of 1% over the prevailing prime rate of the Hong Kong and Shanghai Banking Corporation, and thereafter at the prevailing judgment rate until payment.
  • Costs of the valuation of the Petitioners' shares up to 13 August 2012, including all costs previously reserved, be to the Petitioners, and all costs of the valuation exercise incurred thereafter be to the Respondents, to be taxed on the party and party basis if not agreed.