RE FORLUXE SECURITIES LTD.

RE FORLUXE SECURITIES LTD.

The Court directed specific apportionments: general liquidation/statutory work to be attributed to companies where identifiable and otherwise shared equally; apportionment between trust and general assets to be by proportion of asset values except where otherwise stated; share portfolio costs allocated by company ownership and by trust/general proportion; insurance claim costs fall to FSL and to general assets; sale of stock exchange seat costs to FSL general assets; HCA 7543/1998 litigation costs apportioned between FSL and FFL by relative claim values (approx. 20% FSL, 80% FFL) and between trust and general assets equally; tracing and s.221 examination costs to be borne by trust assets...

Citation
RE FORLUXE SECURITIES LTD.
Parties
Company (in Liquidation): Forluxe Securities Limited; Company (in Liquidation): Forluxe Finance Limited; Liquidator: Mr N.T.C. Hill; Defendant (judgment Debtor): James Mui Kwong-ngok; Defendant (judgment Debtor): Gordon Mui Kwong-yin; Defendant (judgment Debtor): Peggy Lee Pui-yin
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
7 July 2001
Case Number
HCCW310/1998
Procedural Posture
Companies (winding Up) Action (hccw 310/1998 and 311/1998) / Chambers Directions on Allocation of Liquidators' Fees and Distribution Following Summons (post Provisional Liquidation)
Outcome
Summons granted in part; directions issued allocating liquidators' fees and expenses across seven categories and ordering distribution method for shares
Legal Topics
Liquidation, Apportionment of Costs, Trust Assets Vs General Assets, Berkeley Applegate Order, Brokers Fidelity Insurance Claim, Distribution of Shares
Source Language
EN
Company Law Insolvency Law Trust Law Civil Procedure Liquidation Apportionment of Costs Trust Assets Vs General Assets Berkeley Applegate Order +2 more

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Parties

Forluxe Securities Limited

Company (in Liquidation)

Forluxe Finance Limited

Company (in Liquidation)

Mr N.T.C. Hill

Liquidator

James Mui Kwong-ngok

Defendant (judgment Debtor)

Gordon Mui Kwong-yin

Defendant (judgment Debtor)

Peggy Lee Pui-yin

Defendant (judgment Debtor)

Procedural Posture

Companies (winding Up) Action (hccw 310/1998 and 311/1998) / Chambers Directions on Allocation of Liquidators' Fees and Distribution Following Summons (post Provisional Liquidation)

Legal Issues

  1. 1 How to allocate liquidators' fees and expenses between FSL and FFL
  2. 2 How to apportion costs between trust assets and general assets
  3. 3 Allocation of costs for share portfolio management

Ratio Decidendi

The Court directed specific apportionments: general liquidation/statutory work to be attributed to companies where identifiable and otherwise shared equally; apportionment between trust and general assets to be by proportion of asset values except where otherwise stated; share portfolio costs allocated by company ownership and by trust/general proportion; insurance claim costs fall to FSL and to general assets; sale of stock exchange seat costs to FSL general assets; HCA 7543/1998 litigation costs apportioned between FSL and FFL by relative claim values (approx. 20% FSL, 80% FFL) and between trust and general assets equally; tracing and s.221 examination costs to be borne by trust assets...

Court Disposition

Summons granted in part; directions issued allocating liquidators' fees and expenses across seven categories and ordering distribution method for shares

Orders

  • General liquidation/statutory work costs to be charged to FSL or FFL where identifiable; otherwise apportioned equally between the two companies and between trust and general assets in proportion to the value of those assets
  • Share portfolio management and administration costs to be allocated to the company for which shares were held and between trust and general assets in proportion to the value of share trust assets versus general assets