RE T S WONG (INVESTMENT & FINANCE) CO LTD

RE T S WONG (INVESTMENT & FINANCE) CO LTD

Clients retain individual proprietary interests in securities purchased on their instructions; given the modest aggregate value of the client portfolio the liquidators were authorized to sell the General Portfolio and distribute net proceeds pro rata to verified claims per line of stock, subject to deductions for unpaid client debts and a provisional processing fee recoverable from trust assets (with any excess returned after taxation/assessment); net claims to securities to be valued at closing prices as at the winding-up date; unclaimed or unsaleable assets may be deposited into court after six months.

Citation
RE T S WONG (INVESTMENT & FINANCE) CO LTD
Parties
Company (in Liquidation): T S Wong (Investment & Finance) Company Limited; Liquidators (applicants): Joint and Several Liquidators of T S Wong (Investment & Finance) Company Limited; Petitioner: Securities and Futures Commission
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
25 September 2008
Case Number
HCCW163/1994
Procedural Posture
Companies (winding Up) No. 163 of 1994 / Directions Application Under Section 200(3) of the Companies Ordinance (summons for Directions)
Outcome
Order made as set out in the schedule: declaration of clients' proprietary interests; authorization for liquidators to sell saleable securities and to distribute capital and income proceeds pro rata subject to deductions; approval of provisional processing fee arrangement and charging of trust assets; delivery of...
Legal Topics
Proprietary Rights in Client Securities, Allocation and Distribution of Trust Assets, Powers and Remuneration of Liquidators, Processing Fees Charged to Trust Assets, Treatment of Unclaimed and Unsaleable Assets
Source Language
EN
Company Law Insolvency Law Trusts Securities Law Civil Procedure Proprietary Rights in Client Securities Allocation and Distribution of Trust Assets Powers and Remuneration of Liquidators +2 more

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Parties

T S Wong (Investment & Finance) Company Limited

Company (in Liquidation)

Joint and Several Liquidators of T S Wong (Investment & Finance) Company Limited

Liquidators (applicants)

Securities and Futures Commission

Petitioner

Procedural Posture

Companies (winding Up) No. 163 of 1994 / Directions Application Under Section 200(3) of the Companies Ordinance (summons for Directions)

Legal Issues

  1. 1 whether clients retain a proprietary interest in securities purchased on their instructions and held by the company
  2. 2 whether the liquidators may sell the entire client securities portfolio and allocate proceeds pro rata rather than distribute securities in specie
  3. 3 whether trust administration costs (processing fee) may be deducted from trust assets as a provisional fee

Ratio Decidendi

Clients retain individual proprietary interests in securities purchased on their instructions; given the modest aggregate value of the client portfolio the liquidators were authorized to sell the General Portfolio and distribute net proceeds pro rata to verified claims per line of stock, subject to deductions for unpaid client debts and a provisional processing fee recoverable from trust assets (with any excess returned after taxation/assessment); net claims to securities to be valued at closing prices as at the winding-up date; unclaimed or unsaleable assets may be deposited into court after six months.

Court Disposition

Order made as set out in the schedule: declaration of clients' proprietary interests; authorization for liquidators to sell saleable securities and to distribute capital and income proceeds pro rata subject to deductions; approval of provisional processing fee arrangement and charging of trust assets; delivery of...

Orders

  • Declaration that individual clients retain proprietary interest in securities purchased on their behalf (paragraph 1)
  • Liquidators authorised to sell all saleable securities held for clients and apply proceeds as ordered (paragraph 2.1)