A R EVANS CAPITAL PARTNERS LTD v. NOVEL ALTERNATIVE INVESTMENT LTD AND OTHERS

A R EVANS CAPITAL PARTNERS LTD v. NOVEL ALTERNATIVE INVESTMENT LTD AND OTHERS

On the evidence the petitioner was not ordinarily resident in Hong Kong: incorporation, registered office, registers and historic conduct pointed to the Bahamas, the Part XI/business registration was recent and inferentially contrived, and continuity of residence in Hong Kong had not been shown; accordingly the court had power under Order 23 r.1(1)(a) and in exercise of its discretion ordered security for costs of HK$1,500,000 to be paid into court within 14 days and granted costs to the 1st–4th respondents on a nisi basis.

Citation
A R EVANS CAPITAL PARTNERS LTD v. NOVEL ALTERNATIVE INVESTMENT LTD AND OTHERS
Parties
Petitioner: A R EVANS CAPITAL PARTNERS LIMITED; 1st Respondent: NOVEL ALTERNATIVE INVESTMENT LIMITED; 2nd Respondent: HEFFNER, PAUL LINCOLN; 3rd Respondent: LAU, WANG-CHI BARRY; 4th Respondent: GEN2 PARTNERS LIMITED; 5th Respondent: GEN2 PARTNERS INVESTMENT MANAGEMENT LIMITED; 6th Respondent: GEN2 PARTNERS INC.
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
16 February 2012
Case Number
HCMP1991/2011
Procedural Posture
Companies Petition (s.168 a Companies Ordinance) / Interlocutory — Security for Costs Application
Outcome
Order for security for costs granted against the petitioner; petitioner ordered to pay HK$1,500,000 into court within 14 days; no stay ordered; costs granted to 1st–4th respondents (nisi).
Legal Topics
Security for Costs, Ordinary Residence, Central Management and Control, Contrived Registration
Source Language
EN
Company Law Civil Procedure Costs Security for Costs Ordinary Residence Central Management and Control Contrived Registration

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Parties

A R EVANS CAPITAL PARTNERS LIMITED

Petitioner

NOVEL ALTERNATIVE INVESTMENT LIMITED

1st Respondent

HEFFNER, PAUL LINCOLN

2nd Respondent

LAU, WANG-CHI BARRY

3rd Respondent

GEN2 PARTNERS LIMITED

4th Respondent

GEN2 PARTNERS INVESTMENT MANAGEMENT LIMITED

5th Respondent

GEN2 PARTNERS INC.

6th Respondent

Procedural Posture

Companies Petition (s.168 a Companies Ordinance) / Interlocutory — Security for Costs Application

Legal Issues

  1. 1 Whether the petitioner is ordinarily resident in Hong Kong for the purposes of RHC Order 23 r.1(1)(a)
  2. 2 Whether security for costs should be ordered and, if so, the appropriate quantum
  3. 3 Whether the petitioner’s Part XI registration and business registration are contrived steps to avoid security

Ratio Decidendi

On the evidence the petitioner was not ordinarily resident in Hong Kong: incorporation, registered office, registers and historic conduct pointed to the Bahamas, the Part XI/business registration was recent and inferentially contrived, and continuity of residence in Hong Kong had not been shown; accordingly the court had power under Order 23 r.1(1)(a) and in exercise of its discretion ordered security for costs of HK$1,500,000 to be paid into court within 14 days and granted costs to the 1st–4th respondents on a nisi basis.

Court Disposition

Order for security for costs granted against the petitioner; petitioner ordered to pay HK$1,500,000 into court within 14 days; no stay ordered; costs granted to 1st–4th respondents (nisi).

Orders

  • Petitioner to provide security for the 1st to 4th respondents' costs in the sum of HK$1,500,000 to be paid into court within 14 days
  • Liberty to apply