Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Class constitution

Legal area

Court

6 Oct 2021

RE CENTURY SUN INTERNATIONAL LTD

Citation

[2021] HKCFI 2928
Court

Court of First Instance
Case number

HCMP759/2021

The court held that rights against third parties (guarantees or rights against joint obligors) do not affect constitution of the class for voting on a company scheme; releases of third‑party liabilities are permissible where necessary to give the scheme efficacy; the majority vote of creditors, including affiliated group creditors, fairly represented the class absent evidence that they voted for extraneous motives; however the explanatory statement was inadequate and a further meeting with an improved explanatory statement was required.
17 May 2016

RE WINSWAY ENTERPRISES HOLDINGS LTD

Citation

RE WINSWAY ENTERPRISES HOLDINGS LTD
Court

Court of First Instance
Case number

HCMP453/2016

The court sanctioned the Scheme because the statutory procedures were complied with, the Scheme Creditors formed a single class with identical legal rights, the consent fee did not necessitate separate classes, Hong Kong had sufficient connection to justify jurisdiction (listing, registered office, bank accounts, shareholders, auditors), the explanatory statement was adequate, and it was likely that Chapter 15 recognition would secure the Scheme’s effect in the United States, thus the Scheme was one an intelligent and honest creditor could reasonably approve.