Hong Kong Case Law: Decisions & Judgments

Topic

Distribution of assets

Legal area

Court

15 Apr 2024

SHIH RICK JU FENG AND OTHERS v. LO YUEH LI AND OTHERS

Citation

[2024] HKCA 317
Court

Court of Appeal
Case number

CACV50/2023

The plaintiffs were to be regarded as substantially successful because the undertakings approved by the court achieved the substantive protection they sought; accordingly the plaintiffs' costs of the appeal (including leave applications) and before the Recorder are ordered to be in the cause of the main action, and there is no order as to the liquidators' costs.
24 Jan 2019

RE CAPITAL SHIPBROKERS LTD (the “Company”)

Citation

[2019] HKCFI 573
Court

Court of First Instance
Case number

HCCW222/2016

The court authorized the liquidators to distribute the residual assets to the two persons identified as contributories because the liquidation is solvent, assets recovered total HK$17,556,545.46, adequate provision has been made for taxed and anticipated professional fees and Official Receiver ad valorem fees, amounts owing by a contributory were accounted for, and both contributories consented to the proposed distribution, making the proposal appropriate under rule 143.
4 Sept 2017

FRED LEE and CHOW WAI LAN, CHRISTINE, trustee of the property of LAW SHUI KEI, a bankrupt v. LEE & WU (a firm) AND ANOTHER

Citation

FRED LEE and CHOW WAI LAN, CHRISTINE,<br>trustee of the property of LAW SHUI KEI, a bankrupt v. LEE & WU (a firm) AND ANOTHER
Court

Court of First Instance
Case number

HCMP504/2016

Absent any claims after public advertisement and with the bankrupt's assertion unsubstantiated by documentary evidence, the court declares that the monies in the client account beneficially vest in the bankrupt's estate. The Trustees are directed to advertise their intention to distribute and, if no claims are forthcoming, to distribute the monies to creditors with protection under s.29 of the Trustees Ordinance; costs to be paid from the estate.
27 Feb 2013

MKKWH (also known as MKGWH) v. RKSH

Citation

MKKWH (also known as MKGWH) v. RKSH
Court

Court of Appeal
Case number

CACV197/2012

Cheung JA did not err in concluding the appeal was reasonably arguable and would be rendered nugatory without a stay because unique antiques could not be adequately compensated by money; the Court allowed the appeal in part by upholding a limited stay and directing a mechanism for partial allocation of items up to HK$140,000,000 pending the substantive appeal.
28 Aug 2012

RE C.A. PACIFIC FINANCE LTD (in Liquidation)

Citation

RE C.A. PACIFIC FINANCE LTD (in Liquidation)
Court

Court of First Instance
Case number

HCCW36/1998

Applying the Ferris criteria and the assessor's targeted percentage reductions (not an across-the-board cut), the court assessed the liquidators' remuneration for administration of trust assets at HKD 83,252,953 with disbursements HKD 2,543,663, and ordered the Official Receiver to release HKD 2,844,460 from provisional processing fee funds to the liquidators; assessments were conducted by category and period to ensure proportionality and 'value for money'.
12 Nov 2010

LKW v. DD

Citation

LKW v. DD
Court

Court of Final Appeal
Case number

FACV16/2008

C v C is overruled; when applying section 7 MPPO courts should adopt the White v White / Miller/McFarlane framework: ascertain assets, assess needs (often dispositive), if surplus apply an equal‑sharing yardstick and depart only for good reason after considering source of assets, duration, contributions, conduct (only if obvious and gross) and compensation (generally intrinsic to sharing); apply broad‑brush discretion and articulate reasons for any departure from equality.
19 May 2004

CHAN CHIU LAM AND OTHERS v. YAU YEE PING

Citation

CHAN CHIU LAM AND OTHERS v. YAU YEE PING
Court

Court of Appeal
Case number

CACV209/2003

Appeal allowed: plaintiffs failed to prove actual loss of estate assets causally linked to wilful default by the defendant; expenditures and distributions were legitimate and the defendant reasonably believed she was entitled, therefore account must be taken in the common form not on the footing of wilful default.
19 Nov 2003

THE OFFICIAL RECEIVER v. THE REGISTRAR OF COMPANIES

Citation

THE OFFICIAL RECEIVER v. THE REGISTRAR OF COMPANIES
Court

Court of First Instance
Case number

HCMP4920/2003

Under section 290 the court will declare a dissolution void where the application is made within two years and it is necessary to revive the company to enable proper administration and distribution of assets discovered after dissolution; the Official Receiver as former liquidator has locus and the court will make consequential directions including appointment to continue liquidation.
28 Dec 1993

In re INTER TRANS FAR EAST LTD.

Citation

In re INTER TRANS FAR EAST LTD.
Court

Court of First Instance
Case number

HCCW195/1986

Under s.265(5B) a court may grant a creditor who indemnifies the liquidator a preferential share above pari passu where the indemnity and efforts materially contribute to recovery; the discretion must be exercised strictly, matching reward to risk/expense and, where practicable, offering other creditors the opportunity to indemnify; applying these principles, a 15% indemnity was reasonable on the facts.
16 Oct 1985

FEDERAL ENTERPRISES CO LTD v. THE OFFICIAL RECEIVER

Citation

FEDERAL ENTERPRISES CO LTD v. THE OFFICIAL RECEIVER
Court

Court of Appeal
Case number

CACV125/1985

The Court must not exercise jurisdiction under s.265(5B) until after assets have been recovered or preserved so that the actual risk can be assessed; although the contributions here amounted to an indemnity fund, the risk run was minimal and on the facts the discretion to refuse preferential distribution was properly exercised; the ex parte order of 5 June was without jurisdiction.