SHUM WING PING v. WING TAK COMPUTER EMBROIDERY DEVELOPMENT COMPANY LTD AND ANOTHER

SHUM WING PING v. WING TAK COMPUTER EMBROIDERY DEVELOPMENT COMPANY LTD AND ANOTHER

Having reviewed the evidence and draft statement of claim the court concluded the applicant has demonstrated a serious question to be tried and that pursuing the claims appears to be in the company’s interests; therefore leave to commence the statutory derivative action under s.733 is granted; the application for indemnity of costs out of company assets is adjourned sine die; costs of this leave application to follow the event.

Citation
SHUM WING PING v. WING TAK COMPUTER EMBROIDERY DEVELOPMENT COMPANY LTD AND ANOTHER
Parties
Plaintiff: Shum Wing Ping; 1st Defendant: Wing Tak Computer Embroidery Development Company Limited; 2nd Defendant: Chan Kin Lam
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
12 December 2014
Case Number
HCMP1438/2014
Procedural Posture
Statutory Derivative Action Under Companies Ordinance S.733 / Decision on Application for Leave to Commence Derivative Action
Outcome
Leave granted to the applicant to commence derivative proceedings on behalf of the company under Companies Ordinance s.733; application for indemnity of costs out of company assets adjourned sine die; costs of this application to follow the event.
Legal Topics
Statutory Derivative Action, Leave to Commence Proceedings, Breach of Fiduciary Duty, Winding Up
Source Language
EN
Company Law Civil Procedure Statutory Derivative Action Leave to Commence Proceedings Breach of Fiduciary Duty Winding Up

Case Brief

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Parties

Shum Wing Ping

Plaintiff

Wing Tak Computer Embroidery Development Company Limited

1st Defendant

Chan Kin Lam

2nd Defendant

Procedural Posture

Statutory Derivative Action Under Companies Ordinance S.733 / Decision on Application for Leave to Commence Derivative Action

Legal Issues

  1. 1 Whether the applicant satisfies statutory criteria in s.733(1) for leave to bring a derivative action
  2. 2 Whether there is a serious question to be tried on the face of the application
  3. 3 Whether the matter should be left to a liquidator to investigate instead of granting leave

Ratio Decidendi

Having reviewed the evidence and draft statement of claim the court concluded the applicant has demonstrated a serious question to be tried and that pursuing the claims appears to be in the company’s interests; therefore leave to commence the statutory derivative action under s.733 is granted; the application for indemnity of costs out of company assets is adjourned sine die; costs of this leave application to follow the event.

Court Disposition

Leave granted to the applicant to commence derivative proceedings on behalf of the company under Companies Ordinance s.733; application for indemnity of costs out of company assets adjourned sine die; costs of this application to follow the event.

Orders

  • Leave granted to plaintiff to commence statutory derivative action under s.733 of the Companies Ordinance (Cap. 622) on behalf of the company
  • Application for an order that costs of the derivative action be indemnified out of company assets adjourned sine die