Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Distributable profits

Legal area

Court

26 Nov 2024

WONG CHUN KWONG IVAN AND ANOTHER v. CANADIAN EDUCATION FOUNDATION (CHINA) LTD AND OTHERS

Citation

[2024] HKCFI 3167
Court

Court of First Instance
Case number

HCCW130/2016

The petitioner failed to prove unfairly prejudicial conduct or misappropriation. The court accepted that substantial injections by Fortune/Yeung were loans and, on balance, that the parties agreed at the Fishing Point meeting that those loans bore interest at 6% and were repayable ahead of others; audited accounts reflected the indebtedness and, where qualified, were re-audited to unqualified status when confirmations were provided. The transfer of the School interest to Ms Yeung was justified by PRC regulatory requirements and implemented under a nominee/trust arrangement. There was no estab…
9 Nov 2022

GAVIN WILLIAM BROWN v. ASTRON CORPORATION LTD

Citation

[2022] HKCFI 3426
Court

Court of First Instance
Case number

HCMP1308/2021

The court granted an interim injunction because there was a serious issue to be tried that the proposed in‑specie distribution would be made out of non‑distributable profits contrary to s 297, the management accounts did not constitute adequate financial statements enabling a reasonable judgment as to distributable profits, damages would be an inadequate remedy, and the balance of convenience favoured preserving the status quo pending substantive determination.