Re Guangnan (KK) Supermarket Ltd.

Re Guangnan (KK) Supermarket Ltd.

Given the large number of creditors, low anticipated return to unsecured creditors, substantial estimated costs and logistical difficulty of convening first meetings, and the support of major creditors and the Official Receiver, the court was entitled to make a regulating order under s.227A, dispense with first meetings under s.227B (with the Official Receiver joining the application), appoint the existing provisional liquidators as joint and several liquidators, fix remuneration to be calculated on a time spent basis at agreed standard hourly rates and paid from company assets subject to section 196, and appoint a seven-member committee of inspection.

Citation
Re Guangnan (KK) Supermarket Ltd.
Parties
Company: Guangnan (KK) Supermarket Limited; Provisional Liquidators/applicants: Messrs O'Driscoll and Liu (Provisional Liquidators); Official Receiver/applicant: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
1 November 2001
Case Number
HCCW618/2001
Procedural Posture
Companies Winding Up Proceedings / Application Under Sections 227 a and 227 B for a Regulating Order and Appointment of Liquidators
Outcome
Application granted. Regulating order made; first meetings dispensed with; provisional liquidators appointed as joint and several liquidators; committee of inspection appointed; publication and costs directions ordered.
Legal Topics
Regulating Order, Appointment of Liquidators, Committee of Inspection, Dispensing With Creditors' Meeting, Costs in Liquidation
Source Language
EN
Company Law Insolvency Law Regulating Order Appointment of Liquidators Committee of Inspection Dispensing With Creditors' Meeting Costs in Liquidation

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Parties

Guangnan (KK) Supermarket Limited

Company

Messrs O'Driscoll and Liu (Provisional Liquidators)

Provisional Liquidators/applicants

Official Receiver

Official Receiver/applicant

Procedural Posture

Companies Winding Up Proceedings / Application Under Sections 227 a and 227 B for a Regulating Order and Appointment of Liquidators

Legal Issues

  1. 1 Whether a regulating order under s.227A is appropriate given the large number of creditors and low expected dividend
  2. 2 Whether first meetings of creditors and contributories can be dispensed with under s.227B and who may properly apply under s.227B
  3. 3 Whether the provisional liquidators should be appointed as joint and several liquidators

Ratio Decidendi

Given the large number of creditors, low anticipated return to unsecured creditors, substantial estimated costs and logistical difficulty of convening first meetings, and the support of major creditors and the Official Receiver, the court was entitled to make a regulating order under s.227A, dispense with first meetings under s.227B (with the Official Receiver joining the application), appoint the existing provisional liquidators as joint and several liquidators, fix remuneration to be calculated on a time spent basis at agreed standard hourly rates and paid from company assets subject to section 196, and appoint a seven-member committee of inspection.

Court Disposition

Application granted. Regulating order made; first meetings dispensed with; provisional liquidators appointed as joint and several liquidators; committee of inspection appointed; publication and costs directions ordered.

Orders

  • Winding up of the company to be regulated specially by the court under Section 227A of the Companies Ordinance
  • Regulating Order to be published in the Hong Kong SAR Government Gazette and once in an English language Hong Kong daily newspaper and in two Chinese language Hong Kong daily newspapers selected by the Provisional Liquidators