RE GOLDLORY RESTAURANT LTD

RE GOLDLORY RESTAURANT LTD

The court holds that s196(2) and rule 146(2) afford the court an unfettered discretion and that the percentage basis applicable to the Official Receiver is not the default for private liquidators in summary winding-ups; as a matter of practice the time cost basis should be adopted and provided for at the time a...

Source-derived case information.

Citation
RE GOLDLORY RESTAURANT LTD
Parties
Official Receiver: Official Receiver; Liquidator: Alvarez & Marsal Asia Limited; Liquidator: Baker Tilly Hong Kong Business Recovery Limited; Liquidator: Kenny Tam & Co.; Liquidator: Gallant Y.T. Ho & Co.; Company: Goldlory Restaurant Limited; Company: DOUBLE MIND COMPANY LIMITED; Company: SOBUN SERVICES LIMITED; Company: REGENT DELTA LIMITED; Company: SUN DENKI (H.K.) COMPANY LIMITED; Company: FU KONG (HOLDINGS) COMPANY LIMITED; Company: APEX COMPUTRONICS COMPANY LIMITED; Company: CHINA GUANGDONG REAL ESTATE INVESTMENT LIMITED; Company: CHAMPION PEAK (GROUP) LIMITED; Company: HARVEST SUMMIT LIMITED; Company: PROFIT FORWARD DEVELOPMENT LIMITED; Company: CORNFIELD INVESTMENT LIMITED; Company: HING WONG ENTERPRISES COMPANY LIMITED; Company: CENTRE OCEAN INVESTMENT LIMITED; Company: MANSION SURVEYORS LIMITED; Company: LUCKY FORTUNE RESTAURANT COMPANY LIMITED; Company: HEADWELL LIMITED; Company: KEENWAY RESOURCES LIMITED; Company: MAJORWORLD LIMITED; Company: ELEGANT GARMENTS & TEXTILES LIMITED; Company: CROWN LUXE DEVELOPMENT LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
7 July 2006
Case Number
HCCW36/2003
Procedural Posture
Company Winding Up (summary) / Decision on Referred Issue (chambers)
Outcome
Issue determined: court rejects percentage basis as default in summary cases and directs that as matter of practice time cost basis should be adopted and specified when summary procedure order is made.
Legal Topics
Liquidator Remuneration, Summary Winding Up, Companies Ordinance S227 F, Companies Ordinance S196(2), Companies (winding Up) Rules R146(2)
Source Language
en
Company Law Insolvency Law Statutory Interpretation Civil Procedure Liquidator Remuneration Summary Winding Up Companies Ordinance S227 F Companies Ordinance S196(2) +1 more

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Parties

Official Receiver

Official Receiver

Alvarez & Marsal Asia Limited

Liquidator

Baker Tilly Hong Kong Business Recovery Limited

Liquidator

Kenny Tam & Co.

Liquidator

Gallant Y.T. Ho & Co.

Liquidator

Goldlory Restaurant Limited

Company

DOUBLE MIND COMPANY LIMITED

Company

SOBUN SERVICES LIMITED

Company

REGENT DELTA LIMITED

Company

SUN DENKI (H.K.) COMPANY LIMITED

Company

FU KONG (HOLDINGS) COMPANY LIMITED

Company

APEX COMPUTRONICS COMPANY LIMITED

Company

CHINA GUANGDONG REAL ESTATE INVESTMENT LIMITED

Company

CHAMPION PEAK (GROUP) LIMITED

Company

HARVEST SUMMIT LIMITED

Company

PROFIT FORWARD DEVELOPMENT LIMITED

Company

CORNFIELD INVESTMENT LIMITED

Company

HING WONG ENTERPRISES COMPANY LIMITED

Company

CENTRE OCEAN INVESTMENT LIMITED

Company

MANSION SURVEYORS LIMITED

Company

LUCKY FORTUNE RESTAURANT COMPANY LIMITED

Company

HEADWELL LIMITED

Company

KEENWAY RESOURCES LIMITED

Company

MAJORWORLD LIMITED

Company

ELEGANT GARMENTS & TEXTILES LIMITED

Company

CROWN LUXE DEVELOPMENT LIMITED

Company

Procedural Posture

Company Winding Up (summary) / Decision on Referred Issue (chambers)

  1. 1 Whether remuneration of liquidators appointed under s227F in summary winding-ups should be assessed on a percentage (commission) basis as default or on a time cost basis
  2. 2 Whether the court must treat the percentage basis under rule 146(2) as the default absent special circumstances
  3. 3 Whether the court has an unfettered discretion under s196(2) to fix remuneration and whether a uniform practice should adopt time cost basis in summary cases

Ratio Decidendi

The court holds that s196(2) and rule 146(2) afford the court an unfettered discretion and that the percentage basis applicable to the Official Receiver is not the default for private liquidators in summary winding-ups; as a matter of practice the time cost basis should be adopted and provided for at the time a summary procedure order under s227F is made.

Court Disposition

Issue determined: court rejects percentage basis as default in summary cases and directs that as matter of practice time cost basis should be adopted and specified when summary procedure order is made.

Orders

  • Time cost basis to be adopted as the standard basis of remuneration for liquidators in summary winding-up cases (s227F) and to be provided for upon making of the summary procedure order
  • Costs of earlier hearing reserved; Official Receiver and participants to inform the court by letter within 7 days what order as to costs they will seek