DENIS M.P.C. HO AND ANOTHER v. CHAN KAM TIM AND ANOTHER

DENIS M.P.C. HO AND ANOTHER v. CHAN KAM TIM AND ANOTHER

The costs of the Title Application, including the respondents' costs and the liquidators' fees and expenses referable to that application, must be recovered from the trust assets (including securities held in CCASS) rather than from the company's free assets or from CAPF; implementation should be on a pari passu basis with values crystallised as at 20 January 1998 and the liquidators may make interim payments of counsel's fees and 50% of solicitors' costs subject to undertakings and taxation.

Citation
DENIS M.P.C. HO AND ANOTHER v. CHAN KAM TIM AND ANOTHER
Parties
Joint Liquidator (applicant): Denis M.P.C. Ho; Joint Liquidator (applicant): Jan G.W. Blaauw; 1st Representative Respondent: Chan Kam Tim; 2nd Representative Respondent: Tsui Yuet Ling
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
8 April 1999
Case Number
HCCW36/1998
Procedural Posture
Companies (winding Up) Actions / Decision on Costs (post Judgment on Title Application)
Outcome
Costs of the Title Application to be paid out of the trust assets; CAPF to bear no part of the costs; free assets to remain available for unsecured creditors; implementation pari passu with values crystallised at 20 January 1998; interim payments of counsel fees and 50% of solicitors' costs sanctioned subject to...
Legal Topics
Proprietary Rights in Securities, Allocation of Costs Between Trust and Company Assets, Liquidator Remuneration, Representative Respondents, CCASS (central Securities Depositary)
Source Language
EN
Company Law Insolvency Trusts Civil Procedure Costs Law Proprietary Rights in Securities Allocation of Costs Between Trust and Company Assets Liquidator Remuneration +2 more

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Parties

Denis M.P.C. Ho

Joint Liquidator (applicant)

Jan G.W. Blaauw

Joint Liquidator (applicant)

Chan Kam Tim

1st Representative Respondent

Tsui Yuet Ling

2nd Representative Respondent

Procedural Posture

Companies (winding Up) Actions / Decision on Costs (post Judgment on Title Application)

Legal Issues

  1. 1 Whether clients who instructed CAPS to purchase securities through CCASS acquired and retained proprietary (beneficial) interests in those securities
  2. 2 Whether costs of the Title Application and liquidators' fees should be paid out of trust assets or company free assets (or CAPF) and how such costs should be implemented

Ratio Decidendi

The costs of the Title Application, including the respondents' costs and the liquidators' fees and expenses referable to that application, must be recovered from the trust assets (including securities held in CCASS) rather than from the company's free assets or from CAPF; implementation should be on a pari passu basis with values crystallised as at 20 January 1998 and the liquidators may make interim payments of counsel's fees and 50% of solicitors' costs subject to undertakings and taxation.

Court Disposition

Costs of the Title Application to be paid out of the trust assets; CAPF to bear no part of the costs; free assets to remain available for unsecured creditors; implementation pari passu with values crystallised at 20 January 1998; interim payments of counsel fees and 50% of solicitors' costs sanctioned subject to...

Orders

  • Costs of instructing leading counsel to consider the decision and any appeal are to be regarded as costs in the Title Application, subject to taxation