RE CHINA SOLAR ENERGY HOLDINGS LTD

RE CHINA SOLAR ENERGY HOLDINGS LTD

Applying Brookes the court found no change of circumstances sufficient to displace the general rule: the opposing contributories' withdrawal was pragmatic and motivated by a friendly white knight they helped procure, not by supervening events or unreasonable conduct by respondents. The ex parte appointment was not shown to be bound to fail. Therefore the discontinuing contributories must pay the costs of the company and Ankang; costs to be taxed if not agreed, with certificate for counsel.

Citation
RE CHINA SOLAR ENERGY HOLDINGS LTD
Parties
1st Opposing Contributory: Larm Cheung Hon Peter; 1st Opposing Contributory: Lo Chun Kit Ken; 2nd Opposing Contributory: Chong Cheng Keat Patrick; 2nd Opposing Contributory: Shi Yu Han; 2nd Opposing Contributory: Yang Xin Yu; 2nd Opposing Contributory: Yang Mao Zhong; Company: China Solar Energy Holdings Limited; Petitioner: Ankang Limited; Provisional Liquidators: Provisional Liquidators
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
1 March 2016
Case Number
HCCW108/2015
Procedural Posture
Companies (winding Up) Proceedings / Substantive Hearing on Costs Following Discontinuance of Summonses
Outcome
Leave granted to withdraw summonses; costs awarded against opposing contributories
Legal Topics
Provisional Liquidators, Discontinuance of Proceedings, Costs Orders, Change of Circumstances, Corporate Restructuring, Delisting
Source Language
EN
Company Law Insolvency Civil Procedure Costs Provisional Liquidators Discontinuance of Proceedings Costs Orders Change of Circumstances +2 more

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Parties

Larm Cheung Hon Peter

1st Opposing Contributory

Lo Chun Kit Ken

1st Opposing Contributory

Chong Cheng Keat Patrick

2nd Opposing Contributory

Shi Yu Han

2nd Opposing Contributory

Yang Xin Yu

2nd Opposing Contributory

Yang Mao Zhong

2nd Opposing Contributory

China Solar Energy Holdings Limited

Company

Ankang Limited

Petitioner

Provisional Liquidators

Provisional Liquidators

Procedural Posture

Companies (winding Up) Proceedings / Substantive Hearing on Costs Following Discontinuance of Summonses

Legal Issues

  1. 1 Whether the discontinuing contributories should be ordered to pay the costs of the company and Ankang
  2. 2 Whether there was a change of circumstances sufficient to displace the general rule that a discontinuing party pays costs
  3. 3 Whether the ex parte appointment of provisional liquidators was unjustified and bound to be discharged

Ratio Decidendi

Applying Brookes the court found no change of circumstances sufficient to displace the general rule: the opposing contributories' withdrawal was pragmatic and motivated by a friendly white knight they helped procure, not by supervening events or unreasonable conduct by respondents. The ex parte appointment was not shown to be bound to fail. Therefore the discontinuing contributories must pay the costs of the company and Ankang; costs to be taxed if not agreed, with certificate for counsel.

Court Disposition

Leave granted to withdraw summonses; costs awarded against opposing contributories

Orders

  • Opposing contributories granted leave to withdraw their respective summonses
  • Costs of and arising out of the 1st summons to be paid by the 1st opposing contributories to the company and Ankang, to be taxed if not agreed, with certificate for counsel