Hong Kong Case Law: Decisions & Judgments

Topic

Return of capital

Legal area

Court

2 Aug 2023

CHAN KAI YAN AND ANOTHER v. LEUNG CHI KIT AND OTHERS

Citation

[2023] HKCFI 2015
Court

Court of First Instance
Case number

HCA2498/2014

The court granted leave to file and serve Wong's witness statement and the annexed documents because the statement is clearly relevant, the plaintiffs had prior notice and there was minimal prejudice, the lateness was explainable and manageable, and admission of the material would not jeopardise the PTR or trial; case management discretion favoured allowing the evidence with directions.
2 Feb 2021

CHEUNG HAU CHUN v. TO SUET CHUN AND OTHERS

Citation

[2021] HKCFI 264
Court

Court of First Instance
Case number

HCA1259/2015

The Court held the written partnership agreement and power of attorney, executed before solicitors and relied upon by contemporaneous conduct, established a partnership between plaintiff and D1–D3 with plaintiff holding 25% in his own right; plaintiff retired on 15 August 2012 and the partnership dissolved that day; plaintiff was not entitled to an immediate return of HK$2,025,000 but was entitled to orders for accounts and inquiries for the period 23 August 2010 to 15 August 2012 and the attorney (D4) was ordered to provide an account; the defendants' counterclaim alleging plaintiff held his…
30 Nov 2009

TRADEPOWER (HOLDINGS) LTD (IN LIQUIDATION) v. TRADEPOWER (HONG KONG) LTD AND OTHERS

Citation

TRADEPOWER (HOLDINGS) LTD (IN LIQUIDATION) v. TRADEPOWER (HONG KONG) LTD AND OTHERS
Court

Court of Final Appeal
Case number

FACV5/2009

Section 60 must be construed to permit the Freeman v Pope inference: where a disponor makes a voluntary, unsupported disposition while insolvent (or thereby rendered insolvent) that clearly exposes creditors to a significant risk of non‑recovery, the court is justified in inferring intent to defraud; on the facts Holdings was insolvent when it transferred its THK shares for no consideration, the disposition is voidable under s60, and the directors are personally liable for misfeasance/unlawful return of capital with shareholder ratification ineffective to validate the gift.
5 Nov 2008

TRADEPOWER (HOLDINGS) LTD (IN LIQUIDATION) v. TRADEPOWER (HONG KONG) LTD AND OTHERS

Citation

TRADEPOWER (HOLDINGS) LTD (IN LIQUIDATION) v. TRADEPOWER (HONG KONG) LTD AND OTHERS
Court

Court of Appeal
Case number

CACV101/2008

TRADEPOWER (HOLDINGS) LTD (IN LIQUIDATION) v. TRADEPOWER (HONG KONG) LTD AND OTHERS
24 May 1985

CHAN SAU KUT t/a YAT FUNG CONSTRUCTION & ENGINEERING CO AND ANOTHER v. GRAY & IRON CONSTRUCTION & ENGINEERING CO (a firm)

Citation

CHAN SAU KUT t/a YAT FUNG CONSTRUCTION & ENGINEERING CO AND ANOTHER v. GRAY & IRON CONSTRUCTION & ENGINEERING CO (a firm)
Court

Court of First Instance
Case number

HCA6006/1982

The written agreement, when construed by its substance (clauses providing joint performance of the sub-contract, joint bank account with joint control, express equal profit sharing and joint management), created a partnership/joint adventure with equal sharing of profits and losses; clause purporting to exclude partnership did not defeat that substance; clause 6 was conditional on sufficient funds/profits and did not create an absolute personal obligation to repay; therefore neither party could maintain the present action against the other and the claim and counterclaim were dismissed.
5 May 1981

HIOE TJIEN TJIEN v. TJO TA CO LTD AND ANOTHER

Citation

HIOE TJIEN TJIEN v. TJO TA CO LTD AND ANOTHER
Court

Court of First Instance
Case number

HCA2240/1981

Given the accounts to 31 December 1979, the nature of the business, the company's healthy profits and asset values which greatly exceed liabilities and issued capital, there was no real risk to creditors and no serious issue to be tried on whether the proceeds could be treated as available; absence of fraud and shareholder approval further undermined the plaintiff's case, so interlocutory relief was refused.

Hong Kong Case Law

CHAN KAI YAN AND ANOTHER v. LEUNG CHI KIT AND OTHERS

CHEUNG HAU CHUN v. TO SUET CHUN AND OTHERS

TRADEPOWER (HOLDINGS) LTD (IN LIQUIDATION) v. TRADEPOWER (HONG KONG) LTD AND OTHERS

TRADEPOWER (HOLDINGS) LTD (IN LIQUIDATION) v. TRADEPOWER (HONG KONG) LTD AND OTHERS

CHAN SAU KUT t/a YAT FUNG CONSTRUCTION & ENGINEERING CO AND ANOTHER v. GRAY & IRON CONSTRUCTION & ENGINEERING CO (a firm)

HIOE TJIEN TJIEN v. TJO TA CO LTD AND ANOTHER