Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Priorities and charges
  • 6 Apr 2001

    LOW TUCK KWONG AND OTHERS v. DYNASTY LINE LTD.

    Citation
    LOW TUCK KWONG AND OTHERS v. DYNASTY LINE LTD.
    Court
    Court of First Instance
    Case number
    HCA9505/1999

    When identifiable blocks of shares were transferred to the defendant without full payment and it would be unconscionable for the defendant to dispose of them, an equitable lien arises by operation of law over the whole block of each plaintiff's shares to secure the unpaid contractual price and interest; identification is determined at the time of transfer and unparticularised allegations of subsequent dealings or third party priorities do not defeat the lien as against the defendant in the absence of adequate evidence; accordingly plaintiffs are entitled to declaration of equitable lien and a…