RE THE SUN\'S GROUP LTD

RE THE SUN\'S GROUP LTD

The Deloittes candidates were appointed because a prima facie case for winding up existed and they were independent with no material professional relationship with the Group; KPMG and RSM were unsuitable because their prior appointments as receivers over substantial Group assets created a reasonable perception of lack of independence and potential conflict, given provisional liquidators may need to investigate and review receivers' conduct and remuneration.

Citation
RE THE SUN\'S GROUP LTD
Parties
Petitioners: Petitioners; Company (subject): The Sun's Group Limited; Company (subject): The Sun's Group (HK) Limited; Creditor/trustee: Bank of China (Hong Kong) Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
17 June 2004
Case Number
HCCW426/2003
Procedural Posture
Companies (winding Up) / Application for Appointment of Provisional Liquidators Following Hearing of Winding Up Petitions
Outcome
Appointed Mr Derek Kar Yan Lai and Mr Joseph K C Lo of Deloitte Touche & Tohmatsu as provisional liquidators for the Companies
Legal Topics
Provisional Liquidators, Independence and Conflict of Interest, Appointment of Insolvency Practitioners, Review of Receivers' Conduct, Listed Company Rescue
Source Language
EN
Company Law Insolvency Law Corporate Restructuring Receivership Law Provisional Liquidators Independence and Conflict of Interest Appointment of Insolvency Practitioners Review of Receivers' Conduct +1 more

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Parties

Petitioners

Petitioners

The Sun's Group Limited

Company (subject)

The Sun's Group (HK) Limited

Company (subject)

Bank of China (Hong Kong) Limited

Creditor/trustee

Procedural Posture

Companies (winding Up) / Application for Appointment of Provisional Liquidators Following Hearing of Winding Up Petitions

Legal Issues

  1. 1 Whether provisional liquidators should be appointed
  2. 2 Which candidates should be appointed provisional liquidators
  3. 3 Whether prior appointment as receivers creates a material professional relationship disqualifying appointment

Ratio Decidendi

The Deloittes candidates were appointed because a prima facie case for winding up existed and they were independent with no material professional relationship with the Group; KPMG and RSM were unsuitable because their prior appointments as receivers over substantial Group assets created a reasonable perception of lack of independence and potential conflict, given provisional liquidators may need to investigate and review receivers' conduct and remuneration.

Court Disposition

Appointed Mr Derek Kar Yan Lai and Mr Joseph K C Lo of Deloitte Touche & Tohmatsu as provisional liquidators for the Companies

Orders

  • Appoint Mr Derek Kar Yan Lai and Mr Joseph K C Lo of Deloitte Touche & Tohmatsu as provisional liquidators of The Sun's Group Limited and The Sun's Group (HK) Limited
  • Schedule a hearing to determine the terms of their appointment and give directions for the restoration of the winding-up petitions