RE LOK TIN (HOLDINGS) LTD.

RE LOK TIN (HOLDINGS) LTD.

The court held that the petitioner's statutory entitlement to a winding up order prevailed because the respondents failed to establish exceptional circumstances: the evidence about recoverable assets was unreliable, the directors lacked credibility, and the proposed undertakings and instalment plan did not provide sufficient protection to the petitioner; accordingly a winding up order was made.

Citation
RE LOK TIN (HOLDINGS) LTD.
Parties
Petitioner: The Hongkong & Shanghai Banking Corporation Limited; Company: Lok Tin (Holdings) Limited; Opposing Contributories/directors: Opposing contributories (directors); Official Receiver: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
4 November 1999
Case Number
HCCW90/1999
Procedural Posture
Winding Up Petition (company Insolvency) / Judgment
Outcome
Winding up order made against Lok Tin (Holdings) Limited
Legal Topics
Winding Up Petitions, Insolvency, Creditor Priority, Undertakings to Continue Business, Subordination of Debt
Source Language
EN
Company Law Insolvency Law Winding Up Petitions Insolvency Creditor Priority Undertakings to Continue Business Subordination of Debt

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 2 Authorities cited 1 Party arguments 2 Amounts and remedies 7
Sign in to unlock

Parties

The Hongkong & Shanghai Banking Corporation Limited

Petitioner

Lok Tin (Holdings) Limited

Company

Opposing contributories (directors)

Opposing Contributories/directors

Official Receiver

Official Receiver

Procedural Posture

Winding Up Petition (company Insolvency) / Judgment

Legal Issues

  1. 1 Whether exceptional circumstances exist to refuse a compulsory winding up order
  2. 2 Whether the proposed undertaking and subordination would adequately protect the petitioner's interests
  3. 3 Whether the company's asserted assets (trade debts) are reliable and recoverable to justify refusal of winding up

Ratio Decidendi

The court held that the petitioner's statutory entitlement to a winding up order prevailed because the respondents failed to establish exceptional circumstances: the evidence about recoverable assets was unreliable, the directors lacked credibility, and the proposed undertakings and instalment plan did not provide sufficient protection to the petitioner; accordingly a winding up order was made.

Court Disposition

Winding up order made against Lok Tin (Holdings) Limited

Orders

  • Make winding up order against Lok Tin (Holdings) Limited
  • Costs to be borne personally by the opposing contributories