RE WEALTHY UP FINANCE LTD

RE WEALTHY UP FINANCE LTD

Joinder of Mr Yeung was permitted but the application to make him liable for the opposing creditors' costs was dismissed because the requisite exceptional circumstances were not established, no clear loss attributable to his conduct was identified, and it was not just and fair to order him personally to pay costs arising from the company's proceedings.

Citation
[2021] HKCFI 401
Parties
Company (petitioner): Wealthy Up Finance Limited; Applicants for Joinder and Third Party Costs Order: Opposing creditors; Shareholder and Sole Director / Non Party Joined: Mr Yeung Ping Kwan
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
5 February 2021
Case Number
HCCW113/2019
Procedural Posture
Companies Winding Up Proceedings (section 177(1)(d)) / Hearing of Summons for Joinder and Application for Third Party Costs Order; Decision on Joinder and Costs
Outcome
Allowed joinder of Mr Yeung; dismissed opposing creditors' application to make Mr Yeung liable for the company's costs
Legal Topics
Third Party Costs Order, Joinder of Non Party for Costs, Garnishee Order, Abuse of Process, Insolvency Evidence, Director Liability for Costs
Source Language
EN
Company Law Insolvency Civil Procedure Costs Third Party Costs Order Joinder of Non Party for Costs Garnishee Order Abuse of Process +2 more

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Parties

Wealthy Up Finance Limited

Company (petitioner)

Opposing creditors

Applicants for Joinder and Third Party Costs Order

Mr Yeung Ping Kwan

Shareholder and Sole Director / Non Party Joined

Procedural Posture

Companies Winding Up Proceedings (section 177(1)(d)) / Hearing of Summons for Joinder and Application for Third Party Costs Order; Decision on Joinder and Costs

Legal Issues

  1. 1 Whether the court should order a director/controlling mind of a company to be jointly and severally liable for the company's costs
  2. 2 Whether exceptional circumstances exist to justify a costs order against a non-party
  3. 3 Whether the director's alleged dilatoriness or failure to cause the company to be liquidated earlier caused loss to the opposing creditors

Ratio Decidendi

Joinder of Mr Yeung was permitted but the application to make him liable for the opposing creditors' costs was dismissed because the requisite exceptional circumstances were not established, no clear loss attributable to his conduct was identified, and it was not just and fair to order him personally to pay costs arising from the company's proceedings.

Court Disposition

Allowed joinder of Mr Yeung; dismissed opposing creditors' application to make Mr Yeung liable for the company's costs

Orders

  • Application to join Mr Yeung Ping Kwan to the proceedings allowed
  • Paragraph 3 of the opposing creditors' summons seeking an order that Mr Yeung be held jointly and severally liable for the company's costs dismissed with costs to Mr Yeung