RE MOUNT EVEREST INVESTMENTS LIMITED

RE MOUNT EVEREST INVESTMENTS LIMITED

Although there were errors and some nondisclosures in the petitioner's affidavits, the company was insolvent and there was a real likelihood that assets were in jeopardy given the conduct of the controlling shareholder; urgency justified the ex parte appointment and the Official Receiver's appointment as provisional...

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Citation
RE MOUNT EVEREST INVESTMENTS LIMITED
Parties
Company: Mount Everest Investments Limited; Petitioner/creditor: James Capel (Far East) Futures Limited; Applicant/creditor: Plywah Company Limited; Applicant/contributory: Hui Chun Ping; Provisional Liquidator/party: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
25 January 1988
Case Number
HCCW249/1987
Procedural Posture
Companies Ordinance Winding Up and Provisional Liquidation / Application to Set Aside Ex Parte Provisional Liquidator Appointment (chambers Hearing)
Outcome
Summons to set aside dismissed; appointment of Official Receiver as provisional liquidator continued
Legal Topics
Provisional Liquidation, Creditors' Voluntary Winding Up, Non Disclosure in Ex Parte Applications, Conflict of Interest of Liquidator, Appointment and Duties of Liquidators, Fraudulent Trading and Preferences
Source Language
en
Company Law Insolvency Law Civil Procedure Professional Regulation Provisional Liquidation Creditors' Voluntary Winding Up Non Disclosure in Ex Parte Applications Conflict of Interest of Liquidator +2 more

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Parties

Mount Everest Investments Limited

Company

James Capel (Far East) Futures Limited

Petitioner/creditor

Plywah Company Limited

Applicant/creditor

Hui Chun Ping

Applicant/contributory

Official Receiver

Provisional Liquidator/party

Procedural Posture

Companies Ordinance Winding Up and Provisional Liquidation / Application to Set Aside Ex Parte Provisional Liquidator Appointment (chambers Hearing)

Legal Issues

  1. 1 Whether the ex parte order appointing the Official Receiver as provisional liquidator should be set aside for failure to disclose material facts
  2. 2 Whether the assets of the company were in jeopardy justifying appointment of a provisional liquidator
  3. 3 Whether the company's auditor (Mr Ho) had a disqualifying conflict of interest and failed in statutory duties to take custody of assets

Ratio Decidendi

Although there were errors and some nondisclosures in the petitioner's affidavits, the company was insolvent and there was a real likelihood that assets were in jeopardy given the conduct of the controlling shareholder; urgency justified the ex parte appointment and the Official Receiver's appointment as provisional liquidator was therefore properly made and was not set aside.

Court Disposition

Summons to set aside dismissed; appointment of Official Receiver as provisional liquidator continued

Orders

  • Summons to set aside the ex parte order dismissed
  • Order appointing the Official Receiver as provisional liquidator of Mount Everest Investments Limited continued