Hong Kong Case Law: Decisions & Judgments

Topic

Directors' duties

Legal area

Court

27 Mar 2026

CARMON REESTRUTURA-ENGENHARIA E SERVIÇOS TÉCNICOS ESPECIAIS (SU) LIMITADA v. CARMON RESTRUTURA LTD AND ANOTHER

Citation

[2026] HKCFI 1573
Court

Court of First Instance
Case number

HCA1812/2022

On the totality of contemporaneous documentation and witness evidence the court finds that Cuenda acted as nominee/trustee for Carmon Angola in respect of the 1st defendant and its bank account; the shares in Carmon HK and the funds in its bank account were held on express trust for Carmon Angola and the December 2022 transfers were misappropriation; therefore declarations, proprietary remedies, equitable compensation, personal liability for misappropriated funds and transfer of shares are warranted.
18 Jul 2025

SECURITIES AND FUTURES COMMISSION v. XU LIAN GUO AND OTHERS

Citation

[2025] HKCFI 3116
Court

Court of First Instance
Case number

HCMP283/2019

The court found on the evidence that Zhang, who was responsible for financial management and internal controls, knew or ought to have known of the unauthorized transfer of RMB 150,000,000 and the unauthorized disposal of the 20% interest, failed to prevent or report those matters to the Board, and approved interim results that omitted those material matters; those findings satisfy s.214(1)(b),(c) and (d) of the SFO and warranted a disqualification order for six years and an order for costs against Zhang.
14 Jul 2025

ARCHID GARMENT FACTORY LTD v. TSE YUET YU AND OTHERS

Citation

[2025] HKCFI 2933
Court

Court of First Instance
Case number

HCA1504/2024

Unconditional leave to the 1st Defendant to defend the claim for repayment (Relief No 2) was required because the materials before the court disclosed a real, triable factual issue as to whether the creditors' interests duty was engaged at the time of the transfers and whether the transfers were repayments of a prior family advance; on those facts summary judgment would be inappropriate.
22 May 2025

GMT INDUSTRIAL LTD v. FAN RONG LI and YAU PAUL as the Administrator of the estate of SELVAM SELVARAJ, deceased

Citation

[2025] HKCFI 2141
Court

Court of First Instance
Case number

HCA546/2015

On the balance of probabilities the court found the liquidators proved that the two payments totalling US$7,000,000 were misappropriated by director Selvaraj in breach of his fiduciary duties, that the estate holds the sums on constructive trust for GMT, and that the defendant failed to justify the receipts or raise any valid defence; accordingly declarations, an account and restitution with equitable compensation and interest were ordered.
22 Apr 2025

CHINA EVERGRANDE GROUP (IN LIQUIDATION) v. HUI KA YAN AND OTHERS

Citation

[2025] HKCFI 1644
Court

Court of First Instance
Case number

HCMP1080/2024

The court refused leave to appeal both the Discharge Decision and the Unless Ruling for lack of reasonable prospects; found Xia repeatedly and deliberately non‑compliant with asset disclosure orders and that the Defence filed on 27 March 2025 without a Statement of Truth (and effectively filed to frustrate an imminent unless sanction) was an abuse of process and struck it out; granted a final extension to comply with the Asset Disclosure Order to 12 noon on 25 April 2025, failing which Xia will be debarred from defending the action; and ordered costs for the applications in favour of CEG (inc…
22 Apr 2025

LEUNG KING LUN DANNY AND OTHERS v. NG LOUIE KWOK KUEN AND OTHERS

Citation

[2025] HKCFI 1583
Court

Court of First Instance
Case number

HCMP2126/2021

The summons to strike out the petition is dismissed: whether the Assignment, nondisclosure of a director's conflict, leveraging of security and the two refusals to supply constitute unfair prejudice are fact‑sensitive issues that cannot be resolved as obviously unsustainable at interlocutory strike‑out stage. Financial loss is not a necessary precondition to establish unfair prejudice; concealment and conflict may amount to unfair prejudice. The buyout relief cannot be struck out because it is not shown at this stage that the shares would definitely have been worthless absent the alleged cond…
27 Feb 2025

CHEN MING v. CHEN JIAGAN AND OTHERS

Citation

[2025] HKCFI 868
Court

Court of First Instance
Case number

HCA2553/2024

The writ and indorsement were plainly demurrable and were struck out because the plaintiff, not being a member, lacked standing to challenge breaches of the company’s articles or to pursue fiduciary duty claims save by derivative action; ss.728-729 relief is available only to members or creditors and could not be invoked by the plaintiff; the summons for interim relief was dismissed because it sought relief outside the pleadings, lacked urgency, and balance of convenience favoured defendants; intended plaintiffs could not be joined as they had no cause of action; costs were awarded against th…
26 Nov 2024

SAN PAK ENGINEERING COMPANY LTD v. CHAN YIK FONG AND ANOTHER

Citation

[2024] HKCFI 3250
Court

Court of First Instance
Case number

HCA201/2020

The Court found on the facts that Mr Chan misappropriated substantial company funds and the 3rd Party assisted or participated; D2's non est factum plea failed because he signed carelessly; the parties concluded and performed a binding Settlement Agreement which discharged the disputes in question (including the 5th Withdrawal); the Letter was not actionable as defamatory in context and alternatively was justified by the truth of the misconduct found; accordingly the Plaintiff's claims and the Defendants' counterclaims and third party claim were dismissed and costs ordered to follow the event…
28 Jun 2024

WISDOM WEALTH RESOURCES INVESTMENT HOLDING GROUP LTD AND OTHERS v. THE STOCK EXCHANGE OF HONG KONG LTD

Citation

[2024] HKCFI 1570
Court

Court of First Instance
Case number

HCAL412/2024

The LRC's findings that the Company breached Rule 2.13(2) by failing to disclose sufficient explanation for a sevenfold increase in land valuation and that directors breached Rule 3.08 in not procuring adequate disclosure were reasonable and not Wednesbury-irrational; the imposed sanction (public statement involving criticism) was proportionate (less than public censure) and the court refused leave for judicial review
12 Jun 2024

SMART TRIKE MNF PTE LTD AND OTHERS v. CHIU SUI CHUN AND OTHERS

Citation

[2024] HKCFI 1562
Court

Court of First Instance
Case number

HCIP76/2019

The court found on the factual matrix that Chiu had assumed extensive managerial and financial roles and accepted confidential production files and customer/pricing information; she owed fiduciary duties and breached them by operating and facilitating a competing business. Choi, Ye, Global Wise and Capital Key either breached fiduciary duties or dishonestly assisted the breaches; the defendants also misused confidential designs and customer information and participated in an unlawful means conspiracy. Remedies and quantum to be determined at a subsequent account and inquiry stage.