Hong Kong Case Law: Decisions & Judgments

Topic

Ordinary residence of a company

Legal area

Court

15 Jul 2008

AKAI HOLDINGS LTD (IN COMPULSORY LIQUIDATION) v. ERNST & YOUNG (A HONG KONG FIRM)

Citation

AKAI HOLDINGS LTD (IN COMPULSORY LIQUIDATION) v. ERNST & YOUNG (A HONG KONG FIRM)
Court

Court of First Instance
Case number

HCCL29/2004

The court dismissed the defendant's summons for security for costs for want of jurisdiction under Order 23 r.1(1)(a) because, on the facts, the plaintiff company's central management and control and the conduct of the liquidation are in Hong Kong; the anomaly caused by overseas registration and the scope of s.357 cannot be remedied by the court's inherent jurisdiction and requires legislative amendment.
11 Jan 2008

AA CHEN (ASIA PACIFIC) CONSULTANTS LTD. v. KHOO EE LIAM

Citation

AA CHEN (ASIA PACIFIC) CONSULTANTS LTD. v. KHOO EE LIAM
Court

Court of First Instance
Case number

HCA4354/2003

Defendant failed to prove on the evidence that the plaintiff is ordinarily resident outside Hong Kong or that, on the balance of probabilities, the plaintiff will be unable to pay any costs order under s.357; the plaintiff's sole significant asset (the convertible bond) is likely to yield repayment by end 2008 and, coupled with plaintiff's undertakings not to dispose of up to HK$4,900,000 and to notify if unpaid, negates the need for security; appeal dismissed.
27 Jun 2002

SILVER STONE DEVELOPMENT LTD. AND ANOTHER v. LAU KWONG CHING, JAMES AND OTHERS

Citation

SILVER STONE DEVELOPMENT LTD. AND ANOTHER v. LAU KWONG CHING, JAMES AND OTHERS
Court

Court of First Instance
Case number

HCA2206/2000

The 1st plaintiff was held to be ordinarily resident outside the jurisdiction because its raison d'être is to hold shares as a BVI nominee and thus 'keep house' in the BVI; it was also a nominal plaintiff suing for the benefit of the 2nd plaintiff; accordingly, on those grounds security for costs is just and the Master’s order for security of $800,000 is upheld.
10 Sept 1997

CHARTER VIEW HOLDINGS (B.V.I.) LTD. v. TUNGTEX (HOLDINGS) CO. LTD. and Others

Citation

CHARTER VIEW HOLDINGS (B.V.I.) LTD. v. TUNGTEX (HOLDINGS) CO. LTD. and Others
Court

Court of First Instance
Case number

HCA7611/1996

On the facts before the Court the company was not ordinarily resident in Hong Kong; consequently the Court had power to order security under Ord.23 r.1(1)(a); section 357 did not apply to the overseas company incorporated in the BVI; the Court ordered further security of HKD 1,100,000 in the first action (to be paid within 28 days and staying the action until paid) and treated the HKD 250,000 already paid into court as security in the second action; the company's appeal against Master Chu's order was dismissed.

Hong Kong Case Law

AKAI HOLDINGS LTD (IN COMPULSORY LIQUIDATION) v. ERNST & YOUNG (A HONG KONG FIRM)

AA CHEN (ASIA PACIFIC) CONSULTANTS LTD. v. KHOO EE LIAM

SILVER STONE DEVELOPMENT LTD. AND ANOTHER v. LAU KWONG CHING, JAMES AND OTHERS

CHARTER VIEW HOLDINGS (B.V.I.) LTD. v. TUNGTEX (HOLDINGS) CO. LTD. and Others