RE CURRUTHERS LTD (In Liquidation)

RE CURRUTHERS LTD (In Liquidation)

The court has jurisdiction under section 200(3) of the Companies Ordinance and under its inherent jurisdiction to grant retrospective sanction for the appointment of solicitors where the appointment was necessary and in the best interests of the company and its creditors; therefore retrospective sanction and orders for payment of solicitors' costs out of company assets were appropriate in the circumstances.

Citation
RE CURRUTHERS LTD (In Liquidation)
Parties
Applicant (company in Liquidation): Curruthers Limited (In Liquidation); Applicant (company in Liquidation): Leading Spirit Computer (Hong Kong) Limited (In Liquidation); Respondent (defendant in Underlying High Court Action): Kingston Finance Limited; Interested Party (ultimate Holding Company): Leading Spirit High‑Tech (Holdings) Company Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
23 February 2005
Case Number
HCCW710/2001
Procedural Posture
Companies (winding‑up) / Chambers Application for Retrospective Sanction of Solicitors' Appointment Under Sections 199 and 200 of the Companies Ordinance
Outcome
Application granted
Legal Topics
Liquidator Powers, Retrospective Sanction, Appointment of Solicitors, Inherent Jurisdiction, Payment of Legal Costs Out of Company Assets
Source Language
EN
Company Law Insolvency Law Civil Procedure Liquidator Powers Retrospective Sanction Appointment of Solicitors Inherent Jurisdiction Payment of Legal Costs Out of Company Assets

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Parties

Curruthers Limited (In Liquidation)

Applicant (company in Liquidation)

Leading Spirit Computer (Hong Kong) Limited (In Liquidation)

Applicant (company in Liquidation)

Kingston Finance Limited

Respondent (defendant in Underlying High Court Action)

Leading Spirit High‑Tech (Holdings) Company Limited

Interested Party (ultimate Holding Company)

Procedural Posture

Companies (winding‑up) / Chambers Application for Retrospective Sanction of Solicitors' Appointment Under Sections 199 and 200 of the Companies Ordinance

Legal Issues

  1. 1 Whether the court has jurisdiction to grant retrospective sanction for the appointment of solicitors under section 199 or section 200(3) of the Companies Ordinance or under its inherent jurisdiction
  2. 2 Whether the expenditures on solicitors were necessary and in the best interests of the companies and their creditors
  3. 3 Whether costs of the solicitors and taxation procedure can be ordered to continue and be paid out of company assets

Ratio Decidendi

The court has jurisdiction under section 200(3) of the Companies Ordinance and under its inherent jurisdiction to grant retrospective sanction for the appointment of solicitors where the appointment was necessary and in the best interests of the company and its creditors; therefore retrospective sanction and orders for payment of solicitors' costs out of company assets were appropriate in the circumstances.

Court Disposition

Application granted

Orders

  • Retrospective sanction granted for the appointment of Messrs Deacons as solicitors and Messrs White & Case as solicitors in respect of High Court Action No.3133 of 2001
  • The costs, charges and expenses of Deacons and White & Case are to be paid out of the assets of the companies as bills rendered