POWER LEADER TECHNOLOGY DEVELOPMENT LTD v. ASIA PACIFIC BIOTECH CO LTD AND OTHERS

POWER LEADER TECHNOLOGY DEVELOPMENT LTD v. ASIA PACIFIC BIOTECH CO LTD AND OTHERS

Security for costs applications were granted in part: having found a real risk that Power Leader and Grant Smart might be unable to meet adverse costs orders, the court exercised its discretion to order security reduced to reflect prior security, likely taxation reductions and overlap between the three related proceedings, resulting in orders for HK$380,000 (miscellaneous proceedings) and HK$115,000 (High Court action).

Citation
POWER LEADER TECHNOLOGY DEVELOPMENT LTD v. ASIA PACIFIC BIOTECH CO LTD AND OTHERS
Parties
Petitioner (hccw544/2006); 1st Defendant (hca1107/2007); Plaintiff (hcmp1310/2007): Power Leader Technology Development Limited; 1st Respondent (hccw544/2006); 1st Defendant (hcmp1310/2007): Asia Pacific Biotech Co. Limited; 2nd Respondent (hccw544/2006); Plaintiff (hca1107/2007); 2nd Defendant (hcmp1310/2007): Grant Smart (HK) Limited; 3rd Respondent (hccw544/2006); 3rd Defendant (hcmp1310/2007): Lu Fei; 2nd Defendant (hca1107/2007): Ye Qing Wei (George); 4th Defendant (hcmp1310/2007): Li Hiu Hung; 5th Defendant (hcmp1310/2007): Li Kuei Min Franco
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
4 March 2008
Case Number
HCMP1310/2007
Procedural Posture
Companies (winding Up) Proceedings; High Court Action; Miscellaneous Proceedings / Application for Security for Costs Heard and Decided (interlocutory)
Outcome
Applications for security for costs granted in part
Legal Topics
Security for Costs, Winding Up, Unfairly Prejudicial Conduct (s168 A), Misrepresentation, Directors' Removal, Clean Hands
Source Language
EN
Company Law Civil Procedure Costs Equity Security for Costs Winding Up Unfairly Prejudicial Conduct (s168 A) Misrepresentation +2 more

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Parties

Power Leader Technology Development Limited

Petitioner (hccw544/2006); 1st Defendant (hca1107/2007); Plaintiff (hcmp1310/2007)

Asia Pacific Biotech Co. Limited

1st Respondent (hccw544/2006); 1st Defendant (hcmp1310/2007)

Grant Smart (HK) Limited

2nd Respondent (hccw544/2006); Plaintiff (hca1107/2007); 2nd Defendant (hcmp1310/2007)

Lu Fei

3rd Respondent (hccw544/2006); 3rd Defendant (hcmp1310/2007)

Ye Qing Wei (George)

2nd Defendant (hca1107/2007)

Li Hiu Hung

4th Defendant (hcmp1310/2007)

Li Kuei Min Franco

5th Defendant (hcmp1310/2007)

Procedural Posture

Companies (winding Up) Proceedings; High Court Action; Miscellaneous Proceedings / Application for Security for Costs Heard and Decided (interlocutory)

Legal Issues

  1. 1 Whether the court should order security for costs against Power Leader in the miscellaneous/winding‑up proceedings
  2. 2 Whether the court should order security for costs against Grant Smart in the High Court action
  3. 3 Appropriate quantum of security taking account of prior security and overlap between three related proceedings

Ratio Decidendi

Security for costs applications were granted in part: having found a real risk that Power Leader and Grant Smart might be unable to meet adverse costs orders, the court exercised its discretion to order security reduced to reflect prior security, likely taxation reductions and overlap between the three related proceedings, resulting in orders for HK$380,000 (miscellaneous proceedings) and HK$115,000 (High Court action).

Court Disposition

Applications for security for costs granted in part

Orders

  • Order that Power Leader provide security for costs in the sum of HK$380,000 in favour of the defendants in the High Court miscellaneous proceedings (HCMP1310/2007)
  • Order that Grant Smart (HK) Limited provide security for costs in the sum of HK$115,000 in favour of the plaintiffs in the High Court action (HCA1107/2007)