RIGHTOP INVESTMENT LTD AND ANOTHER v. YU TSUI SHEUNG AND ANOTHER

RIGHTOP INVESTMENT LTD AND ANOTHER v. YU TSUI SHEUNG AND ANOTHER

The court held that the Sub‑DMC governed the EGM and that BMO Schedules VII and VIII did not apply to a sub‑deed regulating a discrete part of a building; the chop/stamp impressions on proxies sufficed for authentication and, in any event, exclusion of contested proxies would not defeat the majority for removal under DMC/Sub‑DMC provisions; late lodgement and votes of delinquent owners did not invalidate the resolution; consequently the termination was valid and the plaintiffs were not entitled to damages.

Citation
RIGHTOP INVESTMENT LTD AND ANOTHER v. YU TSUI SHEUNG AND ANOTHER
Parties
1st Plaintiff: Rightop Investment Limited; 2nd Plaintiff: Rightop Property Services Limited; Defendant (representative of Commercial Owners): Yu Tsui Sheung; Defendant (representative of Commercial Owners): Sound Well Records Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
10 March 2005
Case Number
HCA2691/2001
Procedural Posture
Civil Building Management Dispute / Judgment (court of First Instance)
Outcome
Plaintiffs' action dismissed; defendants succeed
Legal Topics
Deed of Mutual Covenant, Sub Deed of Mutual Covenant, Proxy Validity, Termination of Manager, Building Management Ordinance, Owners Corporation, Damages and Mitigation
Source Language
EN
Property Law Contract Statutory Interpretation Company Law Building Management Deed of Mutual Covenant Sub Deed of Mutual Covenant Proxy Validity +4 more

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Parties

Rightop Investment Limited

1st Plaintiff

Rightop Property Services Limited

2nd Plaintiff

Yu Tsui Sheung

Defendant (representative of Commercial Owners)

Sound Well Records Limited

Defendant (representative of Commercial Owners)

Procedural Posture

Civil Building Management Dispute / Judgment (court of First Instance)

Legal Issues

  1. 1 Whether the commercial owners' EGM resolution validly terminated the 1st Plaintiff's management appointment
  2. 2 Whether BMO Schedules VII and VIII and their proxy/notice requirements apply to a Sub‑DMC governing a part of a building
  3. 3 Whether proxies lacking an embossed common seal are invalid

Ratio Decidendi

The court held that the Sub‑DMC governed the EGM and that BMO Schedules VII and VIII did not apply to a sub‑deed regulating a discrete part of a building; the chop/stamp impressions on proxies sufficed for authentication and, in any event, exclusion of contested proxies would not defeat the majority for removal under DMC/Sub‑DMC provisions; late lodgement and votes of delinquent owners did not invalidate the resolution; consequently the termination was valid and the plaintiffs were not entitled to damages.

Court Disposition

Plaintiffs' action dismissed; defendants succeed

Orders

  • Action dismissed
  • Costs reserved for further hearing