RE C. A. PACIFIC SECURITIES LTD

RE C. A. PACIFIC SECURITIES LTD

Given the very small and widely dispersed residual and refund trust monies and the Official Solicitor's view, the Court approved a pragmatic distribution regime: sums under HK$200 need not be paid to individual clients and may be applied to distribution costs; cheques unbanked within six months are unclaimed and, for dissolved corporate clients, may be paid to the Government under s752 CO, and for others may be paid into Court under s62 TO with advertisement and application rights preserved; SFC subrogation is preserved; and the Liquidators' Trust Fees of HK$13,629,289.10 were assessed and approved and authorized to be paid from provisional processing fees.

Citation
[2019] HKCFI 2152
Parties
Company (in Liquidation): C. A. Pacific Finance Limited; Company (in Liquidation): C. A. Pacific Securities Limited; Applicants/liquidators: Liquidators of C. A. Pacific Finance Limited and C. A. Pacific Securities Limited; Interested Party/subrogee: Securities and Futures Commission; Interested Party/official Trustee: Official Solicitor (Official Trustee); Interested Party/official Receiver: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
10 September 2019
Case Number
HCCW37/1998
Procedural Posture
Companies Winding Up Proceedings / Application for Final Allocation and Distribution of Trust Monies and Approval of Liquidators' Fees (final Directions)
Outcome
Court made orders approving final allocation and distribution of trust monies, directions for handling unclaimed and de minimis amounts, and assessed and approved liquidators' fees.
Legal Topics
Distribution of Trust Monies, Unclaimed Assets, Payment Into Court Under Trustee Ordinance S62, Payment to Government for Dissolved Companies Under Companies Ordinance S752, Statutory Subrogation of SFC, Approval of Liquidators' Remuneration, Use of Thresholds to Avoid De Minimis Distributions
Source Language
EN
Companies Law Trusts and Trustees Insolvency and Liquidation Securities Regulation Civil Procedure Distribution of Trust Monies Unclaimed Assets Payment Into Court Under Trustee Ordinance S62 +4 more

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Parties

C. A. Pacific Finance Limited

Company (in Liquidation)

C. A. Pacific Securities Limited

Company (in Liquidation)

Liquidators of C. A. Pacific Finance Limited and C. A. Pacific Securities Limited

Applicants/liquidators

Securities and Futures Commission

Interested Party/subrogee

Official Solicitor (Official Trustee)

Interested Party/official Trustee

Official Receiver

Interested Party/official Receiver

Procedural Posture

Companies Winding Up Proceedings / Application for Final Allocation and Distribution of Trust Monies and Approval of Liquidators' Fees (final Directions)

Legal Issues

  1. 1 Whether liquidators may withhold and apply to costs client allocations of less than HK$200
  2. 2 Whether unbanked/unclaimed distributions may be paid into court under s62 of the Trustee Ordinance rather than handled under s67 or by the Official Solicitor
  3. 3 Whether amounts payable to dissolved corporate clients may be paid to the Government under s752 of the Companies Ordinance

Ratio Decidendi

Given the very small and widely dispersed residual and refund trust monies and the Official Solicitor's view, the Court approved a pragmatic distribution regime: sums under HK$200 need not be paid to individual clients and may be applied to distribution costs; cheques unbanked within six months are unclaimed and, for dissolved corporate clients, may be paid to the Government under s752 CO, and for others may be paid into Court under s62 TO with advertisement and application rights preserved; SFC subrogation is preserved; and the Liquidators' Trust Fees of HK$13,629,289.10 were assessed and approved and authorized to be paid from provisional processing fees.

Court Disposition

Court made orders approving final allocation and distribution of trust monies, directions for handling unclaimed and de minimis amounts, and assessed and approved liquidators' fees.

Orders

  • Allocate and distribute residual fractional trust monies, surplus provisional processing fees and refunded bank interest to clients as specified, subject to permitted deductions and SFC subrogation
  • Liquidators not required to distribute any client allocation net of permitted deductions totalling less than HK$200 and may apply such sums to distribution costs