21 Oct 2003
The court confirmed the reduction because the four established requirements were satisfied: equal treatment and proper explanation to shareholders, adequate safeguards for creditors (payment of accruals, deposit of HK$190,000 for tax liabilities and De Rigo HK's agreement to postpone its debt), and a clear commercial purpose for cancelling surplus capital.
24 Jan 2003
The court was satisfied the four established requirements for sanctioning a reduction of capital were met: a single class of shareholders equally affected and informed; a discernible purpose (remove capital lost to accumulated losses and improve balance sheet); and adequate creditor protection provided by letters of consent from current creditors and an undertaking to create an undistributable capital reduction reserve of HK$4,200,000. Accordingly the court confirmed the reduction of capital as proposed.
14 Jul 1998
The court confirmed the reductions because the applicants satisfied the Thorne criteria: shareholders treated equally and unaffected; creditors' interests are adequately safeguarded by the undertaking to create an undistributable special reserve recorded in the accounts; and there is a bona fide discernible purpose (to enable rapid capital raising if required) rather than an attempt to circumvent section 50.