Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Distribution of assets in liquidation

Legal area

Court

24 Oct 2006

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

Citation

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

Court of First Instance
Case number

HCCW37/1998

The court approved the liquidators' proposals: corporate actions are to be converted into cash except in limited efficient cases, and proceeds are to be allocated and distributed according to established guidelines (cash clients given priority over margin clients where applicable; pari passu among cash clients); CAP Finance was not prejudiced because it was only a secured creditor and not the beneficial owner of pledged shares.
30 Nov 2000

RE YAOHAN HONGKONG CORPORATION LTD. (in liquidation)

Citation

RE YAOHAN HONGKONG CORPORATION LTD. (in liquidation)
Court

Court of Appeal
Case number

CACV379/2000

The court held that the listing status was an asset of the company and that the proposed apportionment between shareholders and creditors lacked adequate justification and contravened principles governing distribution in liquidation; because the liquidators obtained the benefit of the order after giving an undertaking and did not seek relief from it, they could not now challenge the order and the appeal was dismissed; the scheme was approved only on terms that the liquidators pay specified portions of their fees and legal disbursements for the benefit of creditors.