RE GOLDLORY RESTAURANT LTD

RE GOLDLORY RESTAURANT LTD

The court holds that s196(2) and r146(2) confer an unfettered discretion on the court to determine the basis of remuneration for liquidators in summary cases and that the Official Receiver's percentage scale is not the default; as a matter of practice the time cost basis should be adopted for remuneration in summary...

Source-derived case information.

Citation
RE GOLDLORY RESTAURANT LTD
Parties
Official Receiver: Official Receiver; Liquidator Firm: Alvarez & Marsal Asia Limited; Liquidator Firm: Baker Tilly Hong Kong Business Recovery Limited; Liquidator Firm: Kenny Tam & Co.; Liquidator Firm: 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
HCCW572/2001
Procedural Posture
Company Winding Up (summary Procedure) / Determination of Legal Basis for Liquidator Remuneration and Practice Guidance
Outcome
Court determines that the remuneration of liquidators appointed under s227F should not be taken by default to be the Official Receiver's percentage scale; the court's discretion under s196(2) permits fixation on a time cost basis and, as a matter of practice, time cost basis should be adopted for summary cases and...
Legal Topics
Liquidator Remuneration, Companies Ordinance S227 F, Companies Ordinance S196(2), Companies (winding Up) Rules R146(2), Panel T Scheme, Summary Winding Up Procedure
Source Language
en
Company Law Insolvency Law Statutory Interpretation Administrative/public Law Liquidator Remuneration Companies Ordinance S227 F Companies Ordinance S196(2) Companies (winding Up) Rules R146(2) +2 more

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Parties

Official Receiver

Official Receiver

Alvarez & Marsal Asia Limited

Liquidator Firm

Baker Tilly Hong Kong Business Recovery Limited

Liquidator Firm

Kenny Tam & Co.

Liquidator Firm

Gallant Y.T. Ho & Co.

Liquidator Firm

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 Procedure) / Determination of Legal Basis for Liquidator Remuneration and Practice Guidance

  1. 1 Whether remuneration of liquidators appointed under s227F should be assessed on a percentage basis or a time cost basis
  2. 2 Whether rule 146(2) mandates the percentage basis as the default where there is no committee of inspection
  3. 3 Whether a liquidator must show special circumstances before remuneration can be fixed on a time cost basis

Ratio Decidendi

The court holds that s196(2) and r146(2) confer an unfettered discretion on the court to determine the basis of remuneration for liquidators in summary cases and that the Official Receiver's percentage scale is not the default; as a matter of practice the time cost basis should be adopted for remuneration in summary cases and should be provided for when a summary procedure order under s227F is made.

Court Disposition

Court determines that the remuneration of liquidators appointed under s227F should not be taken by default to be the Official Receiver's percentage scale; the court's discretion under s196(2) permits fixation on a time cost basis and, as a matter of practice, time cost basis should be adopted for summary cases and...

Orders

  • As a matter of construction of s196(2) and r146(2) the court has an unfettered discretion and the percentage basis is not the default
  • As a matter of practice the time cost basis shall be adopted for the remuneration of liquidators in summary cases and it is appropriate to provide for that basis when a summary procedure order under s227F is made