RE BILISON (ASIA) LTD

Parties

Procedural Posture

Companies Winding Up Proceedings / Application for Retrospective Ratification of Appointments and Sanction for Payment of Agents' Fees; Resumed Taxation Hearing

Legal Issues

1. 1 Whether appointments of Panel B agents amounted to an impermissible wholesale delegation of the Official Receiver's functions as liquidator
2. 2 Whether the court can retrospectively ratify those appointments under section 200(3) of the Companies Ordinance or its inherent jurisdiction
3. 3 Whether agents' fees can be paid out of company assets subject to taxation despite concerns about delegation

Ratio Decidendi

The court exercised its power under section 200(3) to retrospectively ratify the Official Receiver's appointments of Panel B agents in the 19 listed liquidations and authorised payment of the agents' fees out of the companies' assets subject to taxation because the appointments benefited creditors, there was no evidence of misconduct, and individualized inquiries would be disproportionate; taxation will safeguard scrutiny of fees.

Court Disposition

Applications granted; court retrospectively sanctioned the appointments under section 200(3) and authorised payment of agents' fees from company assets subject to taxation

Orders

• Order made under section 200(3) authorising retrospective ratification of the Official Receiver's appointments of Panel B agents in the 19 listed winding-up proceedings and authorising payment of the agents' fees and expenses out of the companies' assets subject to taxation in the ordinary way