RE BONDFIELD INTERNATIONAL LTD

RE BONDFIELD INTERNATIONAL LTD

Court refused immediate removal of the liquidators because the evidence did not establish wholesale delegation or deliberate concealment to the requisite degree and because the interests of the liquidations (costs and stage of progress) weighed against removal; however the Court held that fees representing charges of Nelson Wheeler incurred while the appellants acted as provisional liquidators without required sanction under s199(5) are disallowable out of company assets and ordered limited disallowance for companies with assets.

Citation
RE BONDFIELD INTERNATIONAL LTD
Parties
Applicant: Official Receiver (Eamonn O'Connell); Provisional Liquidator / Respondent: William Nicholas Giles; Provisional Liquidator / Respondent: Alan Hubert Day; Company: Bondfield International Limited; Company: The Fitness Centre Limited; Corporate Service Provider / Tenderer: H&G Services Limited (HGSL); Solicitors / Corporate Services Firm: Horvath & Giles (H&G); Third Party / Contractor: RSM Nelson Wheeler Corporate Advisory Services Limited (Nelson Wheeler)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
27 January 2005
Case Number
HCCW99/2002
Procedural Posture
Companies (winding Up) / Judgment of Court of First Instance After Contested Hearing
Outcome
Application by liquidators to dismiss Official Receiver's summons dismissed; application to remove liquidators refused at this stage; limited disallowance of fees ordered; examination orders largely refused; costs orders made on a split basis (orders nisi).
Legal Topics
Removal of Liquidator, Delegation of Liquidator Functions, Summary Liquidation (s227 F), Tendering for Provisional Liquidator Appointments, Disallowance of Fees, Privilege Against Self Incrimination, Statutory Interpretation of S194(1 A) and S199(5)
Source Language
EN
Company Law Insolvency Law Civil Procedure Evidence (privilege) Removal of Liquidator Delegation of Liquidator Functions Summary Liquidation (s227 F) Tendering for Provisional Liquidator Appointments +3 more

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Parties

Official Receiver (Eamonn O'Connell)

Applicant

William Nicholas Giles

Provisional Liquidator / Respondent

Alan Hubert Day

Provisional Liquidator / Respondent

Bondfield International Limited

Company

The Fitness Centre Limited

Company

H&G Services Limited (HGSL)

Corporate Service Provider / Tenderer

Horvath & Giles (H&G)

Solicitors / Corporate Services Firm

RSM Nelson Wheeler Corporate Advisory Services Limited (Nelson Wheeler)

Third Party / Contractor

Procedural Posture

Companies (winding Up) / Judgment of Court of First Instance After Contested Hearing

Legal Issues

  1. 1 Whether provisional/liquidators should be removed under section 196
  2. 2 Whether there was unlawful wholesale delegation of liquidators' functions to Nelson Wheeler
  3. 3 Whether fees charged for work done by Nelson Wheeler are disallowable absent sanction under s199(5)

Ratio Decidendi

Court refused immediate removal of the liquidators because the evidence did not establish wholesale delegation or deliberate concealment to the requisite degree and because the interests of the liquidations (costs and stage of progress) weighed against removal; however the Court held that fees representing charges of Nelson Wheeler incurred while the appellants acted as provisional liquidators without required sanction under s199(5) are disallowable out of company assets and ordered limited disallowance for companies with assets.

Court Disposition

Application by liquidators to dismiss Official Receiver's summons dismissed; application to remove liquidators refused at this stage; limited disallowance of fees ordered; examination orders largely refused; costs orders made on a split basis (orders nisi).

Orders

  • Liquidators' summons to dismiss Official Receiver's application dismissed
  • No order removing William Nicholas Giles or Alan Hubert Day as liquidators at this stage