RE TIFFIT SECURITIES (HONG KONG) LTD

RE TIFFIT SECURITIES (HONG KONG) LTD

The Subrogation Percentage must be determined by reference to the loss assessed for the purposes of ICC compensation (the date of default: 18 July 2006) because the ICC's right of subrogation and the client's entitlement to compensation arise under and are governed by the Ordinance and the Rules which fix the assessment date for loss.

Citation
RE TIFFIT SECURITIES (HONG KONG) LTD
Parties
Applicants (liquidators): Liquidators of Tiffit Securities (Hong Kong) Limited; Company (in Liquidation): Tiffit Securities (Hong Kong) Limited; Investor Compensation Company (icc): Investor Compensation Company Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
29 January 2008
Case Number
HCCW86/2007
Procedural Posture
Companies Winding Up (directions) / Chambers Hearing for Directions by Liquidators
Outcome
Application granted. Court directed that the Subrogation Percentage be calculated by reference to losses assessed at the date of default (18 July 2006) and gave consequential directions; costs to be paid out of the Company’s assets.
Legal Topics
Subrogation, Investor Compensation, Valuation Date for Loss, Proofs of Debt, Apportionment of Dividends
Source Language
EN
Companies Law Insolvency Securities Regulation Subrogation Investor Compensation Valuation Date for Loss Proofs of Debt Apportionment of Dividends

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Parties

Liquidators of Tiffit Securities (Hong Kong) Limited

Applicants (liquidators)

Tiffit Securities (Hong Kong) Limited

Company (in Liquidation)

Investor Compensation Company Limited

Investor Compensation Company (icc)

Procedural Posture

Companies Winding Up (directions) / Chambers Hearing for Directions by Liquidators

Legal Issues

  1. 1 Whether the Subrogation Percentage between the ICC and individual clients should be calculated by reference to loss assessed at the date of default (18 July 2006) or at the date of commencement of the liquidation (2 May 2007)
  2. 2 Whether liquidators must apply the assessment date prescribed by the Ordinance and the Rules when allocating recoveries between ICC and clients

Ratio Decidendi

The Subrogation Percentage must be determined by reference to the loss assessed for the purposes of ICC compensation (the date of default: 18 July 2006) because the ICC's right of subrogation and the client's entitlement to compensation arise under and are governed by the Ordinance and the Rules which fix the assessment date for loss.

Court Disposition

Application granted. Court directed that the Subrogation Percentage be calculated by reference to losses assessed at the date of default (18 July 2006) and gave consequential directions; costs to be paid out of the Company’s assets.

Orders

  • Direction that the Subrogation Percentage be calculated by reference to the loss as assessed for ICC compensation on the date of default (18 July 2006)
  • Direction that liquidators allocate dividends between clients and the ICC in accordance with that Subrogation Percentage