Hong Kong Case Law: Decisions & Judgments

Topic

Cancellation of share premium account

Legal area

Court

29 Jun 2007

RE INTELLIGENT GROUP ENTERPRISE LTD

Citation

RE INTELLIGENT GROUP ENTERPRISE LTD
Court

Court of First Instance
Case number

HCMP700/2007

The court granted sanction because the statutory requirements and procedural safeguards were met: special resolutions were passed, the reduction served a legitimate commercial purpose, shareholders were treated equitably, adequate evidence showed sufficient liquid assets and working capital would remain, and creditors’ interests were adequately safeguarded.
5 Aug 2004

RE PCCW LTD

Citation

RE PCCW LTD
Court

Court of First Instance
Case number

HCMP1699/2004

The court confirmed the cancellation of the share premium account because statutory formalities and the Articles' power were satisfied, the reduction had a legitimate purpose to eliminate losses, shareholders were not prejudiced, and creditors were adequately protected by detailed undertakings and a bank guarantee facility, justifying exercise of the court's discretion to confirm the reduction and dispense with settlement of a list of creditors.
22 Dec 1997

RE LIPPO CHINA RESOURCES LTD

Citation

RE LIPPO CHINA RESOURCES LTD
Court

Court of First Instance
Case number

HCMP4195/1997

The court confirmed the cancellation of the share premium account because the statutory and judicial requirements were satisfied: the reduction preserved shareholders' rights, was properly explained, served a discernible purpose (to set off goodwill on consolidation and for future capitalisation), and adequate undertakings were given to safeguard creditors including contingent and prospective creditors.

Hong Kong Case Law

RE INTELLIGENT GROUP ENTERPRISE LTD

RE PCCW LTD

RE LIPPO CHINA RESOURCES LTD