Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Dividend exception
  • 21 Oct 2025

    RE LIPPO LTD

    Citation
    [2025] HKCFI 5034
    Court
    Court of First Instance
    Case number
    HCMP909/2025

    The Court sanctioned the Scheme and confirmed the reduction of capital. The Distribution prima facie constitutes financial assistance because, in commercial substance, it forms part of the composite consideration and reduces the company’s net assets. The Distribution can fall within the dividend exception (s.277(a)(i)) only if it is a dividend lawfully made, which requires the organs empowered to declare dividends to have passed the requisite resolutions in accordance with the Ordinance and the articles; accordingly the Court accepted the Company’s undertaking that the Board would pass those…