JONATHAN LIM v. SHE WAI HUNG AND OTHERS

JONATHAN LIM v. SHE WAI HUNG AND OTHERS

The plaintiff failed to establish a prima facie entitlement to bring a derivative action because the trustees in bankruptcy controlled the majority of the company's shares; accordingly summary judgment could not be granted, the Order 14 summons was unsustainable, and there was no basis to vary the costs order nisi — the plaintiff must pay the defendants' costs.

Citation
JONATHAN LIM v. SHE WAI HUNG AND OTHERS
Parties
Plaintiff: Jonathan Lim; 1st Defendant: She Wai Hung; 2nd Defendant: She Siu Pang; 3rd Defendant: Golden Bright Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
8 February 2011
Case Number
HCA391/2010
Procedural Posture
Company Law Derivative Action; Application for Summary Judgment; Application to Vary Costs Order Nisi / Application to Vary Costs Order Nisi Following Dismissal of Plaintiff's Summary Judgment and Injunction Applications; Decision 8 February 2011
Outcome
Application to vary costs order nisi dismissed; costs order nisi stands; plaintiff ordered to pay the defendants' costs of this application; prior dismissals of summary judgment, interim injunction and leave to appeal affirmed.
Legal Topics
Derivative Action, Summary Judgment, Locus Standi, Costs Order Nisi, Nominee Shareholding, Trustees in Bankruptcy, Leave to Appeal, Order 14 Summons
Source Language
EN
Company Law Civil Procedure Bankruptcy Costs Injunctions Derivative Action Summary Judgment Locus Standi +5 more

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Parties

Jonathan Lim

Plaintiff

She Wai Hung

1st Defendant

She Siu Pang

2nd Defendant

Golden Bright Limited

3rd Defendant

Procedural Posture

Company Law Derivative Action; Application for Summary Judgment; Application to Vary Costs Order Nisi / Application to Vary Costs Order Nisi Following Dismissal of Plaintiff's Summary Judgment and Injunction Applications; Decision 8 February 2011

Legal Issues

  1. 1 Whether the plaintiff had prima facie entitlement to bring a derivative action
  2. 2 Whether summary judgment and interim injunction were appropriate
  3. 3 Whether the costs order nisi should be varied

Ratio Decidendi

The plaintiff failed to establish a prima facie entitlement to bring a derivative action because the trustees in bankruptcy controlled the majority of the company's shares; accordingly summary judgment could not be granted, the Order 14 summons was unsustainable, and there was no basis to vary the costs order nisi — the plaintiff must pay the defendants' costs.

Court Disposition

Application to vary costs order nisi dismissed; costs order nisi stands; plaintiff ordered to pay the defendants' costs of this application; prior dismissals of summary judgment, interim injunction and leave to appeal affirmed.

Orders

  • Application to vary costs order nisi dismissed.
  • The plaintiff shall pay the 1st and 2nd defendants' costs of this application, to be assessed summarily.