ALAN CHUNG WAH TANG AND ANOTHER v. LEE SIU FUNG, SIEGFRIED AND OTHERS

ALAN CHUNG WAH TANG AND ANOTHER v. LEE SIU FUNG, SIEGFRIED AND OTHERS

The court held that the trustees satisfied the s29 criteria: they demonstrated a reasonable requirement for information in specified areas and a prima facie case that the 2nd and 3rd respondents could provide relevant information; after balancing the need for inquiry against oppression and delay the balance favoured ordering private examinations of the brother and son, subject to defined limitations on scope.

Citation
ALAN CHUNG WAH TANG AND ANOTHER v. LEE SIU FUNG, SIEGFRIED AND OTHERS
Parties
Applicant (joint and Several Trustee in Bankruptcy): Alan Chung Wah Tang; Applicant (joint and Several Trustee in Bankruptcy): Hou Chung Man; 1st Respondent (discharged Bankrupt): Lee Siu Fung, Siegfried; 2nd Respondent (younger Brother): Li Xiao Yi; 3rd Respondent (son): Lelalertsuphakun Surasak
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
21 September 2017
Case Number
HCB345/2001
Procedural Posture
Bankruptcy Proceedings (trustees' Summons for Private Examination) / Judgment (court of First Instance) 21 September 2017
Outcome
Order made for private examination under s29 Bankruptcy Ordinance of the 2nd and 3rd respondents (the brother and the son) with specified qualifications and limitations
Legal Topics
S29 Examination, Private Examination, Trustees' Duties and Powers, Automatic Discharge, Insider Dealing, Asset Concealment and Nominee Arrangements, Balancing Test for Oppression
Source Language
EN
Bankruptcy/insolvency Civil Procedure Company Law Insolvency Practitioners' Powers Property and Asset Tracing S29 Examination Private Examination Trustees' Duties and Powers +4 more

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Parties

Alan Chung Wah Tang

Applicant (joint and Several Trustee in Bankruptcy)

Hou Chung Man

Applicant (joint and Several Trustee in Bankruptcy)

Lee Siu Fung, Siegfried

1st Respondent (discharged Bankrupt)

Li Xiao Yi

2nd Respondent (younger Brother)

Lelalertsuphakun Surasak

3rd Respondent (son)

Procedural Posture

Bankruptcy Proceedings (trustees' Summons for Private Examination) / Judgment (court of First Instance) 21 September 2017

Legal Issues

  1. 1 Whether the trustees satisfied s29 Bankruptcy Ordinance requirements to summon third parties for private examination
  2. 2 Whether the trustees established a reasonable requirement that information/documents were needed to perform their functions
  3. 3 Whether the respondents were prima facie able to provide relevant information or documents

Ratio Decidendi

The court held that the trustees satisfied the s29 criteria: they demonstrated a reasonable requirement for information in specified areas and a prima facie case that the 2nd and 3rd respondents could provide relevant information; after balancing the need for inquiry against oppression and delay the balance favoured ordering private examinations of the brother and son, subject to defined limitations on scope.

Court Disposition

Order made for private examination under s29 Bankruptcy Ordinance of the 2nd and 3rd respondents (the brother and the son) with specified qualifications and limitations

Orders

  • Private examination of the 2nd and 3rd respondents to be held before a Master of the High Court
  • Examination scope qualified: excludes examination of the Brother in relation to the bankrupt's transfer of 800,000 SFPH shares in December 1997 and the Brother's transfer of 1.6 million SFPH shares to his wife in March 1998