RE CHINO INDUSTRIES LTD

RE CHINO INDUSTRIES LTD

The petitions were dismissed because the applicant failed to show due cause to remove the liquidators or to justify compulsory winding up: no evidence of actual bias or unfitness was proven, the joint liquidators had been properly appointed by a majority in value of creditors, they were experienced and had advanced the liquidation work, and replacing them would prejudice the liquidation by delay and additional cost; therefore it was not in the interests of the liquidation to make the orders sought.

Citation
RE CHINO INDUSTRIES LTD
Parties
Petitioner: John Koon; Company Subject to Petitions: Texxan Industries Limited (In Voluntary Liquidation); Company Subject to Petitions: Chino Industries Limited (In Voluntary Liquidation); Joint Provisional Liquidators / Joint Liquidators: M.C. Nacson & E.M. McMillan (Arthur Andersen & Co.); Supporting Creditor / Majority Creditor Group: Yue Xiu Group / Yue Xiu Enterprises Limited / Yue Xiu Finance Company Limited; Supporting Creditor / Bank Creditor: The Hongkong & Shanghai Banking Corporation Limited; Supporting Creditor / Bank Creditor: Security Pacific Asian Bank Limited; Supporting Creditor / Bank Creditor: Nanyang Commercial Bank Limited; Official Receiver: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
25 September 1990
Case Number
HCCW152/1990
Procedural Posture
Companies (winding Up) / Judgment on Petitions for Compulsory Winding Up and Applications to Remove Liquidators
Outcome
Petitions for compulsory winding up dismissed; no removal of joint liquidators ordered
Legal Topics
Compulsory Winding Up, Removal of Liquidators, Conflict of Interest, Fraudulent Preference, Creditors' Meetings, Voluntary Liquidation
Source Language
EN
Company Law Insolvency Law Civil Procedure Compulsory Winding Up Removal of Liquidators Conflict of Interest Fraudulent Preference Creditors' Meetings +1 more

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Parties

John Koon

Petitioner

Texxan Industries Limited (In Voluntary Liquidation)

Company Subject to Petitions

Chino Industries Limited (In Voluntary Liquidation)

Company Subject to Petitions

M.C. Nacson & E.M. McMillan (Arthur Andersen & Co.)

Joint Provisional Liquidators / Joint Liquidators

Yue Xiu Group / Yue Xiu Enterprises Limited / Yue Xiu Finance Company Limited

Supporting Creditor / Majority Creditor Group

The Hongkong & Shanghai Banking Corporation Limited

Supporting Creditor / Bank Creditor

Security Pacific Asian Bank Limited

Supporting Creditor / Bank Creditor

Nanyang Commercial Bank Limited

Supporting Creditor / Bank Creditor

Official Receiver

Official Receiver

Procedural Posture

Companies (winding Up) / Judgment on Petitions for Compulsory Winding Up and Applications to Remove Liquidators

Legal Issues

  1. 1 Whether petitions for compulsory winding up should be granted
  2. 2 Whether the joint liquidators were conflicted or biased and should be removed
  3. 3 Whether due cause was shown under Companies Ordinance s.252(2) to remove liquidators

Ratio Decidendi

The petitions were dismissed because the applicant failed to show due cause to remove the liquidators or to justify compulsory winding up: no evidence of actual bias or unfitness was proven, the joint liquidators had been properly appointed by a majority in value of creditors, they were experienced and had advanced the liquidation work, and replacing them would prejudice the liquidation by delay and additional cost; therefore it was not in the interests of the liquidation to make the orders sought.

Court Disposition

Petitions for compulsory winding up dismissed; no removal of joint liquidators ordered

Orders

  • Petitions dismissed
  • Order nisi for costs to the joint liquidators