LAU MAN WAI JOSEPH AND OTHERS v. CHEUNG SUN LING SANNY, the Administratrix of the Estate of KWAN YAU HANG, deceased AND OTHERS

LAU MAN WAI JOSEPH AND OTHERS v. CHEUNG SUN LING SANNY, the Administratrix of the Estate of KWAN YAU HANG, deceased AND OTHERS

The plaintiffs have locus to commence the Better Administration Action: as members, some as Executive Committee members and significant donors they possess an interest materially greater than ordinary members of the public; the court's parens patriae jurisdiction extends to charitable corporations and is not confined to the Secretary for Justice or s57A trust proceedings; accordingly the striking out application is dismissed.

Citation
[2022] HKCFI 3002
Parties
Plaintiffs (hcmp 143/2011, HCMP 1013/2011, HCMP 2477/2011): LAU MAN WAI JOSEPH and other named plaintiffs; Defendants: CHEUNG SUN LING SANNY, Administratrix of the Estate of KWAN YAU HANG, deceased and other named defendants (including LUK YAU TONG, TANG SIU BING, CHAN JOY SING, CHAN WING CHEUNG STEPHEN); Company / Defendant: KAM LAN KOON (the Company); Interested Party / Defendant: SECRETARY FOR JUSTICE
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
29 September 2022
Case Number
HCMP2477/2011
Procedural Posture
Better Administration Proceedings Concerning a Charitable Institution / Company and Related Membership and Resolution Disputes / Striking Out Application Heard on Locus Standi; Decision on Whether Plaintiffs Have Locus to Commence Better Administration Action (decision Dated 29 September 2022)
Outcome
Striking out application dismissed; plaintiffs found to have locus to bring Better Administration Action
Legal Topics
Parens Patriae, Locus Standi, Better Administration Order, Derivative Action, Inherent Jurisdiction, Striking Out Application
Source Language
EN
Charity Law Company Law Trusts Civil Procedure Administrative Law Parens Patriae Locus Standi Better Administration Order +3 more

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Parties

LAU MAN WAI JOSEPH and other named plaintiffs

Plaintiffs (hcmp 143/2011, HCMP 1013/2011, HCMP 2477/2011)

CHEUNG SUN LING SANNY, Administratrix of the Estate of KWAN YAU HANG, deceased and other named defendants (including LUK YAU TONG, TANG SIU BING, CHAN JOY SING, CHAN WING CHEUNG STEPHEN)

Defendants

KAM LAN KOON (the Company)

Company / Defendant

SECRETARY FOR JUSTICE

Interested Party / Defendant

Procedural Posture

Better Administration Proceedings Concerning a Charitable Institution / Company and Related Membership and Resolution Disputes / Striking Out Application Heard on Locus Standi; Decision on Whether Plaintiffs Have Locus to Commence Better Administration Action (decision Dated 29 September 2022)

Legal Issues

  1. 1 Whether the plaintiffs have locus standi to invoke the court's parens patriae jurisdiction over the Koon (a charity)
  2. 2 Whether the court's inherent jurisdiction over charities extends to charitable corporations as well as charitable trusts
  3. 3 Whether company law derivative action rules or procedural rules (Order 120 RHC) bar private members from bringing better administration proceedings

Ratio Decidendi

The plaintiffs have locus to commence the Better Administration Action: as members, some as Executive Committee members and significant donors they possess an interest materially greater than ordinary members of the public; the court's parens patriae jurisdiction extends to charitable corporations and is not confined to the Secretary for Justice or s57A trust proceedings; accordingly the striking out application is dismissed.

Court Disposition

Striking out application dismissed; plaintiffs found to have locus to bring Better Administration Action

Orders

  • Striking out application dismissed
  • Costs order nisi that the 2nd to 6th Defendants pay the costs of the Plaintiffs and the 7th Defendant in respect of the striking out application; costs to be made absolute 21 days after date of decision (29 September 2022)