RE SUNNI INTERNATIONAL LTD (In Liquidation)

RE SUNNI INTERNATIONAL LTD (In Liquidation)

Applicant failed to discharge the heavy onus to show cause for removal: inspection summons had been dismissed; Fung acted reasonably on Official Receiver papers and made inquiries when informed of Applicant's shareholding; Applicant was not a creditor and creditors (and COI) supported Fung; potential recoveries require funded litigation and removal would cause delay and costs; therefore removal was not for the general advantage of those interested in the assets.

Citation
[2018] HKCFI 2371
Parties
Applicant (contributory): Asia Pacific Glory Limited; Liquidator/respondent: Fung Chi Keung; Company (in Liquidation): Sunni International Limited (In Liquidation)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
29 October 2018
Case Number
HCCW121/2013
Procedural Posture
Companies (winding Up) Proceedings / Application for Removal of Liquidator (decision)
Outcome
application dismissed
Legal Topics
Removal of Liquidator, Fiduciary Duties of Liquidator, Contributory and Creditor Rights, Disclosure/inspection of Liquidation Records, Committee of Inspection
Source Language
EN
Company Law Insolvency Law Civil Procedure Removal of Liquidator Fiduciary Duties of Liquidator Contributory and Creditor Rights Disclosure/inspection of Liquidation Records Committee of Inspection

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Parties

Asia Pacific Glory Limited

Applicant (contributory)

Fung Chi Keung

Liquidator/respondent

Sunni International Limited (In Liquidation)

Company (in Liquidation)

Procedural Posture

Companies (winding Up) Proceedings / Application for Removal of Liquidator (decision)

Legal Issues

  1. 1 Whether cause shown to remove liquidator under s196 CO
  2. 2 Whether liquidator acted with bias or partiality in refusing disclosure and in recognizing contributories
  3. 3 Whether liquidator failed to verify contributories and creditors by independent investigation

Ratio Decidendi

Applicant failed to discharge the heavy onus to show cause for removal: inspection summons had been dismissed; Fung acted reasonably on Official Receiver papers and made inquiries when informed of Applicant's shareholding; Applicant was not a creditor and creditors (and COI) supported Fung; potential recoveries require funded litigation and removal would cause delay and costs; therefore removal was not for the general advantage of those interested in the assets.

Court Disposition

application dismissed

Orders

  • Dismissed Asia Pacific Glory Limited's summons dated 21 November 2017 as amended on 3 May 2018
  • Costs to the Liquidator to be taxed if not agreed