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

Given the evidence that the companies concerned (Power Leader and Grant Smart) had limited, largely illiquid assets and there was a real risk they could not meet adverse costs orders, security for costs was justified; the claimed sums were excessive and required reductions for overlap, prior security and probable taxation (25% discount); after crediting prior security and deducting overlap, security of HK$380,000 was ordered for the miscellaneous/winding-up proceedings (payable by Power Leader) and HK$115,000 was ordered for the High Court action (payable by Grant Smart), with interim costs directions as set out.

Citation
POWER LEADER TECHNOLOGY DEVELOPMENT LTD v. ASIA PACIFIC BIOTECH CO LTD AND OTHERS
Parties
Petitioner; Plaintiff (hcmp1310/2007): Power Leader Technology Development Limited; 1st Respondent; Subject Company (winding Up): Asia Pacific Biotech Co. Limited; 2nd Respondent; Plaintiff (hca1107/2007): Grant Smart (HK) Limited; 3rd Respondent; Director: Lu Fei; 2nd Defendant; Director / Controller of Power Leader: Ye Qing Wei, George; 4th Defendant (hcmp1310/2007): Li Hiu Hung; 5th Defendant (hcmp1310/2007): Li Kuei Min Franco; Official Receiver (attendance Excused): Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
4 March 2008
Case Number
HCCW544/2006
Procedural Posture
Companies (winding Up) Proceedings; High Court Action; Miscellaneous Proceedings (consolidated Trial) / Interlocutory (applications for Security for Costs)
Outcome
Security for costs ordered against Power Leader and Grant Smart in reduced amounts; costs directions given
Legal Topics
Security for Costs, Winding Up Petitions, Unfairly Prejudicial Conduct (s168 A), Misrepresentation, Directors Removal, Clean Hands
Source Language
EN
Company Law Civil Procedure Costs Law Equity Security for Costs Winding Up Petitions Unfairly Prejudicial Conduct (s168 A) Misrepresentation +2 more

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Parties

Power Leader Technology Development Limited

Petitioner; Plaintiff (hcmp1310/2007)

Asia Pacific Biotech Co. Limited

1st Respondent; Subject Company (winding Up)

Grant Smart (HK) Limited

2nd Respondent; Plaintiff (hca1107/2007)

Lu Fei

3rd Respondent; Director

Ye Qing Wei, George

2nd Defendant; Director / Controller of Power Leader

Li Hiu Hung

4th Defendant (hcmp1310/2007)

Li Kuei Min Franco

5th Defendant (hcmp1310/2007)

Official Receiver

Official Receiver (attendance Excused)

Procedural Posture

Companies (winding Up) Proceedings; High Court Action; Miscellaneous Proceedings (consolidated Trial) / Interlocutory (applications for Security for Costs)

Legal Issues

  1. 1 Whether court should order security for costs against Power Leader (applicant in HCMP/HCCW)
  2. 2 Whether court should order security for costs against Grant Smart (plaintiff in HCA1107/2007)
  3. 3 Appropriate quantum of security given overlapping proceedings and prior security provided

Ratio Decidendi

Given the evidence that the companies concerned (Power Leader and Grant Smart) had limited, largely illiquid assets and there was a real risk they could not meet adverse costs orders, security for costs was justified; the claimed sums were excessive and required reductions for overlap, prior security and probable taxation (25% discount); after crediting prior security and deducting overlap, security of HK$380,000 was ordered for the miscellaneous/winding-up proceedings (payable by Power Leader) and HK$115,000 was ordered for the High Court action (payable by Grant Smart), with interim costs directions as set out.

Court Disposition

Security for costs ordered against Power Leader and Grant Smart in reduced amounts; costs directions given

Orders

  • Order Power Leader Technology Development Limited to provide security for costs of HK$380,000 in favour of the defendants in the miscellaneous/winding-up proceedings (HCMP/HCCW)
  • Order Grant Smart (HK) Limited to provide security for costs of HK$115,000 in favour of the plaintiffs in the High Court action (HCA1107/2007)