THE JOINT & SEVERAL PROVISIONAL LIQUIDATORS OF ARTSHOP DESIGN AND CONSTRUCTION LTD v. SHIU WING HAN

THE JOINT & SEVERAL PROVISIONAL LIQUIDATORS OF ARTSHOP DESIGN AND CONSTRUCTION LTD v. SHIU WING HAN

The court accepted the liquidators' evidence that repayments to the respondent and the payment to Chief Concept occurred while the company was insolvent and placed her in a better position than other creditors; absent any stay application under the Bankruptcy Ordinance and with the claim listed in the respondent's...

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Citation
THE JOINT & SEVERAL PROVISIONAL LIQUIDATORS OF ARTSHOP DESIGN AND CONSTRUCTION LTD v. SHIU WING HAN
Parties
Petitioner: The Joint & Several Provisional Liquidators of Artshop Design and Construction Limited (In Compulsory Liquidation); Respondent: Shiu Wing Han
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
18 June 2004
Case Number
HCCW1420/2002
Procedural Posture
Companies (winding Up) Summons Under Companies Ordinance Cap. 32 / Chambers Hearing and Decision on Summons Under Sections 266 B and 276
Outcome
Order made in terms of paragraphs 1 to 5 of the liquidators' summons
Legal Topics
Unfair Preference, Voidable Transactions, Liquidator Recovery, Bankruptcy Stay
Source Language
en
Company Law Insolvency Law Bankruptcy Law Civil Procedure Unfair Preference Voidable Transactions Liquidator Recovery Bankruptcy Stay

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Parties

The Joint & Several Provisional Liquidators of Artshop Design and Construction Limited (In Compulsory Liquidation)

Petitioner

Shiu Wing Han

Respondent

Procedural Posture

Companies (winding Up) Summons Under Companies Ordinance Cap. 32 / Chambers Hearing and Decision on Summons Under Sections 266 B and 276

Legal Issues

  1. 1 Whether payments made by the company to the respondent between 3 December 2001 and 7 October 2002 constituted unfair preferences under section 266B of the Companies Ordinance
  2. 2 Whether the payment of management fees to Chief Concept on or about 5 August 2002 was an unfair preference
  3. 3 Whether the respondent should be ordered to repay sums received and interest

Ratio Decidendi

The court accepted the liquidators' evidence that repayments to the respondent and the payment to Chief Concept occurred while the company was insolvent and placed her in a better position than other creditors; absent any stay application under the Bankruptcy Ordinance and with the claim listed in the respondent's statement of affairs, the liquidators established entitlement to relief under ss266B and 276 of the Companies Ordinance and the court ordered relief in terms of the summons.

Court Disposition

Order made in terms of paragraphs 1 to 5 of the liquidators' summons

Orders

  • Declare all payments made by the company in favour of the respondent between 3 December 2001 and 7 October 2002 to be unfair preferences within section 266B and void accordingly
  • Declare the payment by the company to Chief Concept Limited on or around 5 August 2002 of HK$725,600.00 in management fees to be an unfair preference within section 266B and void accordingly