Hong Kong Case Law: Decisions & Judgments

Topic

Liquidators' powers

Legal area

Court

22 Nov 2023

RE NUO RUI INVESTMENTS LTD

Citation

[2023] HKCFI 3142
Court

Court of First Instance
Case number

HCCW88/2022

Given the agreement between contributories and liquidators, the significant receivables (in excess of HK$300 million) which justify reducing ad valorem fees, and the Official Receiver's neutrality, the court exercised its power under s209A to order the winding up to continue as a creditors' voluntary winding up, to confirm the liquidators continue as joint and several liquidators, and to order costs be paid from the company's assets.
15 Sept 2023

WING SZE TIFFANY WONG AND EDWARD SIMON MIDDLETON IN THEIR CAPACITY AS THE JOINT AND SEVERAL LIQUIDATORS OF CHINA PROPERTIES GROUP LTD (IN LIQUIDATION) v. WONG SAI CHUNG

Citation

[2023] HKCFI 2346
Court

Court of First Instance
Case number

HCCW67/2022

The court exercised its in personam jurisdiction to grant mandatory orders requiring the respondent to execute and irrevocably ratify the specified Resolutions within two calendar days and to provide the statement of affairs and affidavit within 21 days, refused to grant an anti‑suit injunction and declined to make a vesting order under s198, holding that the orders were necessary and proportionate to facilitate the Hong Kong liquidation and protect the liquidation process in the face of competing BVI proceedings.
6 Apr 2022

RE HONG KONG FRESH WATER INTERNATIONAL GROUP LTD (IN LIQUIDATION) (“COMPANY”)

Citation

[2022] HKCFI 924
Court

Court of First Instance
Case number

HCMP300/2022

The Court granted the letter of request because the Liquidators demonstrated a pressing need to obtain recognition and assistance in Shanghai to protect and collect the Company's substantial Mainland assets, the Cooperation Mechanism and SPC Opinion requirements were met, and the Company's COMI was properly situated in Hong Kong, thereby justifying issuance of the letter of request under the Court's inherent jurisdiction.
27 Sept 2019

THE JOINT & SEVERAL PROVISIONAL LIQUIDATORS OF CHINA MEDICAL TECHNOLOGIES, INC v. SAMSON TSANG TAK YUNG

Citation

[2019] HKCA 1076
Court

Court of Appeal
Case number

CACV46/2015

The Court refused leave to appeal because the questions raised were not of great general or public importance, largely due to s221 having been replaced by s286B which rendered the controversy largely academic; the Court held its earlier approach (that documents relating to the company may be ordered under the statute when relevant to valuation and recoverability of claims) was correct and there was no basis to grant a stay; costs awarded to liquidators.
3 May 2018

RE THE JOINT AND SEVERAL LIQUIDATORS OF CHINA POINT STOCK BROKERS LTD

Citation

[2018] HKCFI 1106
Court

Court of First Instance
Case number

HCMP297/2018

The court accepted that the assets were held on trust by the broker and, given reasonable but unsuccessful efforts to contact beneficiaries, granted leave under s56 Trustee Ordinance to sell or otherwise deal with the unclaimed and abandoned trust assets, permitted pooling of proceeds to pay the liquidators' proper fees and expenses and ordered the balance to be paid into court under s62; it also authorized withdrawal of share certificates to lodge with the Registrar after three months and permitted dispensation of certain procedural requirements subject to advertisement.
25 Aug 2016

LEE CHEUNG LAU v. THOMAS LEE HOK LAU AND OTHERS

Citation

LEE CHEUNG LAU v. THOMAS LEE HOK LAU AND OTHERS
Court

Court of First Instance
Case number

HCCW289/2012

The court concluded the liquidators' proposed procedure fell within the permissible range of commercial decisions and was not so unreasonable as to warrant interference; it therefore authorized the liquidators to proceed with one further listing attempt at a reserve of RMB 40,000,000 and, if no acceptable offer by 5pm on 22 September 2016, to shut down CTTS and sell its assets, with specified costs directions.
8 Oct 2015

RE COMPANY F

Citation

RE COMPANY F
Court

Court of First Instance
Case number

HCMP120/2008

Leave granted: the proposed commercial funding agreement did not infringe the rules against maintenance and champerty because it was in the interests of creditors, the liquidators retained control of the litigation, adequate safeguards limited the risk of improper influence, and practical considerations (impracticality of funding by bondholders) justified the arrangement.
8 Oct 2015

RE COMPANY G

Citation

RE COMPANY G
Court

Court of First Instance
Case number

HCMP2019/2015

Leave to enter the proposed funding agreement was granted because the arrangement is in the interests of creditors, the Liquidators retain control of the litigation, the risk of the funder improperly influencing conduct is limited by the agreement, and the funding is practically necessary given the bondholder constituency; these factors outweigh the public policy concerns about commercial third-party funding in the specific insolvency context.
8 Oct 2015

RE COMPANY E

Citation

RE COMPANY E
Court

Court of First Instance
Case number

HCMP2421/2007

The court granted leave for the liquidators to enter the proposed funding agreement because the arrangement was in the creditors' interests, was on satisfactory terms, ensured the liquidators retained control of the litigation, and the risks of maintenance and champerty from a commercial funder were acceptably mitigated in the circumstances; the commercial character of the funder did not, on these facts, render the agreement impermissible.
8 Oct 2015

RE COMPANY A

Citation

RE COMPANY A
Court

Court of First Instance
Case number

HCCW384/2006

Leave was granted because the proposed funding agreement served the interests of creditors, the liquidators retained control of litigation, the arrangement provided fair allocation to the funder only on success, and the practical difficulties of sourcing funding from dispersed creditors coupled with safeguards meant the commercial character of the funder did not render the agreement champertous in this insolvency context.