NG YAT CHI AND ANOTHER v. MAX SHARE LTD AND ANOTHER

NG YAT CHI AND ANOTHER v. MAX SHARE LTD AND ANOTHER

The court found the 1st Petitioner to be a nominal plaintiff with no beneficial interest in the shares and an undischarged bankrupt who had not shown ability to pay costs; exercising its discretion the court ordered security for costs of HK$350,000 (about two-thirds of the sum claimed) to be paid into court within 14 days, failing which the 1st Petitioner's proceedings would be stayed, and ordered the 1st Petitioner to bear the costs of the application.

Citation
NG YAT CHI AND ANOTHER v. MAX SHARE LTD AND ANOTHER
Parties
1st Petitioner: Ng Yat Chi; 2nd Petitioner: Choy Bing Wing; 1st Respondent: Max Share Limited; 2nd Respondent: China Resources (Holdings) Company Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
4 November 1996
Case Number
HCCW321/1996
Procedural Posture
Companies (winding Up) Petition Under Companies Ordinance Cap.32 / Interlocutory — Security for Costs Application and Striking Out Summons
Outcome
Security for costs ordered against 1st Petitioner; application granted in part
Legal Topics
Security for Costs, Nominal Plaintiff, Winding Up Petition, Bankruptcy, Striking Out
Source Language
EN
Company Law Civil Procedure Insolvency Law Costs Security for Costs Nominal Plaintiff Winding Up Petition Bankruptcy +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 5 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Ng Yat Chi

1st Petitioner

Choy Bing Wing

2nd Petitioner

Max Share Limited

1st Respondent

China Resources (Holdings) Company Limited

2nd Respondent

Procedural Posture

Companies (winding Up) Petition Under Companies Ordinance Cap.32 / Interlocutory — Security for Costs Application and Striking Out Summons

Legal Issues

  1. 1 Whether the 1st Petitioner is a nominal plaintiff with no beneficial interest in the shares
  2. 2 Whether the 1st Petitioner is likely unable to pay costs due to bankruptcy and therefore security for costs should be ordered
  3. 3 Appropriate quantum of security for costs

Ratio Decidendi

The court found the 1st Petitioner to be a nominal plaintiff with no beneficial interest in the shares and an undischarged bankrupt who had not shown ability to pay costs; exercising its discretion the court ordered security for costs of HK$350,000 (about two-thirds of the sum claimed) to be paid into court within 14 days, failing which the 1st Petitioner's proceedings would be stayed, and ordered the 1st Petitioner to bear the costs of the application.

Court Disposition

Security for costs ordered against 1st Petitioner; application granted in part

Orders

  • 1st Petitioner to pay HK$350,000 into court as security for costs within 14 days
  • In default of payment, the 1st Petitioner's proceedings against the Respondents are stayed