RE KING FUNG CONSTRUCTION WORK CO LTD (“the Company”)

RE KING FUNG CONSTRUCTION WORK CO LTD (“the Company”)

The validation order was granted because the Company was shown to be solvent, the payments were in the ordinary course of business, and the petitioner's interests were adequately protected by the directors' undertaking to provide regular detailed schedules and inspection rights, making continuation of trading in creditors' interest.

Citation
RE KING FUNG CONSTRUCTION WORK CO LTD (“the Company”)
Parties
Petitioner: Yip Kwai Chor; Company: King Fung Construction Work Company Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
9 December 2004
Case Number
HCCW829/2004
Procedural Posture
Companies (winding Up) No. 829 of 2004 (winding Up Petition Under Companies Ordinance) / Interlocutory Application for Validation Order Under Section 182; Heard 9 December 2004
Outcome
Validation order granted in terms of paragraph 1 of the summons of 1 September 2004; undertaking accepted.
Legal Topics
Validation Order, Section 182 Companies Ordinance, Undertaking to Monitor Payments, Costs
Source Language
EN
Company Law Insolvency Law Civil Procedure Validation Order Section 182 Companies Ordinance Undertaking to Monitor Payments Costs

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 1 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Yip Kwai Chor

Petitioner

King Fung Construction Work Company Limited

Company

Procedural Posture

Companies (winding Up) No. 829 of 2004 (winding Up Petition Under Companies Ordinance) / Interlocutory Application for Validation Order Under Section 182; Heard 9 December 2004

Legal Issues

  1. 1 Whether payments from the company bank account can be validated under s182
  2. 2 Whether the company is solvent and continuation of trading is in creditors' interests
  3. 3 Adequacy of supporting documentation for payments

Ratio Decidendi

The validation order was granted because the Company was shown to be solvent, the payments were in the ordinary course of business, and the petitioner's interests were adequately protected by the directors' undertaking to provide regular detailed schedules and inspection rights, making continuation of trading in creditors' interest.

Court Disposition

Validation order granted in terms of paragraph 1 of the summons of 1 September 2004; undertaking accepted.

Orders

  • Order made in terms of paragraph 1 of the summons dated 1 September 2004.
  • Directors to provide the petitioner’s solicitors, until further order, a schedule on the 1st, 11th and 21st day of every month (first schedule 21 December 2004) detailing all payments from the Company’s bank account including date, amount, payee name and address, purpose and list of supporting documents.