RE EASY CHAMP CORPORATION LTD (in liquidation) (the “Company”)

RE EASY CHAMP CORPORATION LTD (in liquidation) (the “Company”)

The summons was dismissed: a provisional liquidator appointed by the Official Receiver under s.194(1A) is not a person "properly employed by the Official Receiver" for the purposes of rule 179(1) and therefore their remuneration is not payable at the 1st Rank; instead such provisional liquidators fall within the...

Source-derived case information.

Citation
[2022] HKCFI 769
Parties
Company (in Liquidation): Easy Champ Corporation Limited (裕昌興業有限公司); Liquidator (applicant): Mr Lau Siu Hung; Liquidator (applicant): Ms Kwok Sin Kwan; Respondent (official Receiver): Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
16 March 2022
Case Number
HCCW38/2020
Procedural Posture
Companies (winding Up) Proceedings / Summons for Directions Under S.200(3) (application Dismissed at Chambers)
Outcome
Summons dismissed
Legal Topics
Priority of Costs, Provisional Liquidator Status, Official Receiver Powers, Rule 179 Priority, Rule 153 Obligations, S.194(1 A) Appointment of Provisional Liquidator, S.200(3) Directions
Source Language
en
Company Law Insolvency Law Statutory Interpretation Priority of Costs Provisional Liquidator Status Official Receiver Powers Rule 179 Priority Rule 153 Obligations +2 more

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Parties

Easy Champ Corporation Limited (裕昌興業有限公司)

Company (in Liquidation)

Mr Lau Siu Hung

Liquidator (applicant)

Ms Kwok Sin Kwan

Liquidator (applicant)

Official Receiver

Respondent (official Receiver)

Procedural Posture

Companies (winding Up) Proceedings / Summons for Directions Under S.200(3) (application Dismissed at Chambers)

Legal Issues

  1. 1 Whether a provisional liquidator appointed by the Official Receiver under s.194(1A) is a "person properly employed by the Official Receiver" under rule 179(1) and thus entitled to 1st rank priority for fees
  2. 2 Whether fees of a s.194(1A) provisional liquidator have priority under rule 153 or rule 179(1) over taxed petition costs and other liquidators' remuneration
  3. 3 Whether the second question raised concerned the company in this proceeding or another company

Ratio Decidendi

The summons was dismissed: a provisional liquidator appointed by the Official Receiver under s.194(1A) is not a person "properly employed by the Official Receiver" for the purposes of rule 179(1) and therefore their remuneration is not payable at the 1st Rank; instead such provisional liquidators fall within the definition of "liquidator" and their remuneration is covered by the 8th Rank (remuneration of liquidators other than the OR); rule 153 does not determine priority of payments and the second question was inapplicable to this company's liquidation because the provisional liquidators and liquidators were the same persons.

Court Disposition

Summons dismissed

Orders

  • Summons dated 5 October 2021 dismissed
  • No order as to costs; however the Liquidators are not entitled to recover their remuneration and costs incurred in preparing the application out of the assets of the Company