24 Dec 1999
Hong Kong law permits redenomination of share capital in a foreign currency; the court must approve minutes that state the re-increased share capital to avoid misleading the public; where reduction produces no prejudice to creditors or shareholders the court will exercise its discretion to sanction the reduction.
24 Dec 1999
The court exercised its discretion to sanction the proposed reductions and approved minutes reflecting the re‑increased share capital: redenomination into US dollars is lawful under the Companies Ordinance, the minutes must state the re‑increased share capital to avoid misleading the public, and a slight decrease in authorized capital may be sanctioned where no shareholder is prejudiced.
24 Dec 1999
The court held that the Companies Ordinance does not prevent share capital being denominated in a foreign currency, adopted the English practice of recording the re‑increased share capital in the minutes, and exercised its discretion to sanction the reductions because the slight decrease in authorized capital would not prejudice any party.