HWANG DA-LIN AND ANOTHER v. WONG CHUNG KEUNG AND OTHERS

HWANG DA-LIN AND ANOTHER v. WONG CHUNG KEUNG AND OTHERS

The court accepted in principle that the company could satisfy the purchase by assigning the Lap Fai units to the Petitioners provided measures are taken to protect the pari passu rights of unsecured creditors (notably payment to a special account and agreed safeguards); however no final order was made because parties must consider and agree draft terms and the 2nd Respondent was given opportunity to adduce evidence which he failed to do.

Citation
HWANG DA-LIN AND ANOTHER v. WONG CHUNG KEUNG AND OTHERS
Parties
1st Petitioner: HWANG DA-LIN; 2nd Petitioner: WONG SHI HOI, CARSON; 1st Respondent: WONG CHUNG KEUNG sued as the sole executor of the estate of WONG CHING MAN, deceased; 2nd Respondent: WONG CHUNG KEUNG; 3rd Respondent: TAI LAP INVESTMENT COMPANY LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
15 May 2001
Case Number
HCCW643/1996
Procedural Posture
Companies Winding Up No. 643 of 1996 / Adjourned Hearing of a Summons to Implement Prior Court Order; Decision in Chambers
Outcome
No final order made. Court indicated in principle approval of assignment subject to safeguards to protect unsecured creditors and adjourned the matter for parties to consider and file a draft order; liberty to restore.
Legal Topics
Share Purchase Order, Receivership, Assignment of Property, Creditor Priorities, Winding Up, Valuation of Assets
Source Language
EN
Companies Law Insolvency Property Law Civil Procedure Share Purchase Order Receivership Assignment of Property Creditor Priorities +2 more

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Parties

HWANG DA-LIN

1st Petitioner

WONG SHI HOI, CARSON

2nd Petitioner

WONG CHUNG KEUNG sued as the sole executor of the estate of WONG CHING MAN, deceased

1st Respondent

WONG CHUNG KEUNG

2nd Respondent

TAI LAP INVESTMENT COMPANY LIMITED

3rd Respondent

Procedural Posture

Companies Winding Up No. 643 of 1996 / Adjourned Hearing of a Summons to Implement Prior Court Order; Decision in Chambers

Legal Issues

  1. 1 How the court-ordered purchase of petitioners' shares is to be effected
  2. 2 Whether assignment of charged property (Lap Fai units) to petitioners can satisfy the purchase without preferring unsecured creditors
  3. 3 Whether payment into a special account can secure pari passu rights of unsecured creditors

Ratio Decidendi

The court accepted in principle that the company could satisfy the purchase by assigning the Lap Fai units to the Petitioners provided measures are taken to protect the pari passu rights of unsecured creditors (notably payment to a special account and agreed safeguards); however no final order was made because parties must consider and agree draft terms and the 2nd Respondent was given opportunity to adduce evidence which he failed to do.

Court Disposition

No final order made. Court indicated in principle approval of assignment subject to safeguards to protect unsecured creditors and adjourned the matter for parties to consider and file a draft order; liberty to restore.

Orders

  • Hearing adjourned
  • No final order made