Hong Kong Case Law: Decisions & Judgments

Topic

Sale of trust property

Legal area

Court

28 Mar 2024

RE CHAN KAM FAI AND ANOTHER

Citation

[2024] HKCFI 933
Court

Court of First Instance
Case number

HCMP144/2024

The court granted the vesting order because the applicants provided clear and satisfactory evidence of legal title (registered Assignment), the existence of a trust and their beneficial entitlement (registered Declaration of Trust), the trustee's death, and the absence of any personal representative in Hong Kong or the USA, thereby satisfying the statutory conditions for a vesting order under s45(e) and s57(1).
15 Oct 2021

RE SHUN LOONG FINANCE LTD

Citation

[2021] HKDC 1285
Court

District Court
Case number

DCMP4204/2020

The court granted the application because the applicant established that the assets were held on trust and that, despite reasonable endeavours (letters and newspaper advertisement), the beneficiaries could not be contacted or were unresponsive; accordingly it was appropriate and expedient under section 56 Trustee Ordinance to authorize sale of specified unclaimed securities and to dispose/forfeit delisted shares, odd lot shares and very small cash balances, and under section 60 and Order 92 to pay sale proceeds and other unclaimed cash into court; costs were summarily assessed at HK$55,000.
6 Jun 2019

THE BAN KHI AND OTHERS v. THE LOEI BENG AND ANOTHER

Citation

[2019] HKCFI 1492
Court

Court of First Instance
Case number

HCMP1312/2018

The court found that the settlor retained control over the Singapore property during his lifetime but that the 2nd defendant's proposed conduct was correct to give effect to the settlor's wishes; consequently the proper course was to effect the trusts by selling the property and equally distributing the proceeds among the beneficiaries.
3 Oct 2016

LAM SIK SHI v. LAM SIK YING,ADMINISTRATOR OF THE ESTATE OF LAM TIM ALIAS STAN LAM TIM, DECEASED AND ANOTHER

Citation

LAM SIK SHI v. LAM SIK YING,ADMINISTRATOR OF THE ESTATE OF LAM TIM ALIAS STAN LAM TIM, DECEASED AND ANOTHER
Court

Court of First Instance
Case number

HCA1605/2004

The administrator (Lam Sik Ying/Victor) breached fiduciary duties in the sale of the estate property to APH by failing to market properly, not obtaining an updated valuation, imposing/accepting restrictive and purchaser‑favouring terms and favoring one family branch; the sale had been set aside against APH by consent and the administrator is liable to account and pay plaintiffs' costs; Victor's counterclaim against Susie succeeded only nominally (HK$100).
21 Jan 2010

MAN PING NAM v. MAN TIM LUP AND OTHERS

Citation

MAN PING NAM v. MAN TIM LUP AND OTHERS
Court

Court of First Instance
Case number

HCMP2417/2007

Application refused because the evidence was insufficient to establish that the purported 'majority rule' had been validly adopted by the Wui and therefore the Resolutions did not validly vest the manager with authority to proceed with the sale; given that deficiency the court would not grant the directions sought under s56 or Order 85.
28 Nov 1989

IP CHEUNG KWOK AND ANOTHER v. IP SIU BUN AND OTHERS

Citation

IP CHEUNG KWOK AND ANOTHER v. IP SIU BUN AND OTHERS
Court

Court of Appeal
Case number

CACV79/1988

The court had jurisdiction under the procedural and substantive provisions cited (Orders and statutes) to allow the amendment to the plaintiff's capacity and to direct sale; on the facts (dereliction, no income, significant outgoings, delay and likely further appeals) it was in the interest of the eventual beneficiaries to lift the stay and proceed with arrangements for sale under court direction rather than await speculative future appreciation.
27 Jan 1989

KWONG SUK CHUN v. WONG FUNG MING AND ANOTHER

Citation

KWONG SUK CHUN v. WONG FUNG MING AND ANOTHER
Court

Court of First Instance
Case number

HCMP66/1989

The court will exercise its s.56 power to authorize a sale of trust property where the sale is expedient and cannot otherwise be effected, but will impose protective conditions including appointment of an additional trustee to act with the selling trustee so as to safeguard a minor beneficiary; proceeds are to be held on the declared trusts with income available under s.33 and capital only with court leave or under s.34, and inaccurate recitals in a declaration of trust do not preclude the court granting such relief.

Hong Kong Case Law

RE CHAN KAM FAI AND ANOTHER

RE SHUN LOONG FINANCE LTD

THE BAN KHI AND OTHERS v. THE LOEI BENG AND ANOTHER

LAM SIK SHI v. LAM SIK YING,ADMINISTRATOR OF THE ESTATE OF LAM TIM ALIAS STAN LAM TIM, DECEASED AND ANOTHER

MAN PING NAM v. MAN TIM LUP AND OTHERS

IP CHEUNG KWOK AND ANOTHER v. IP SIU BUN AND OTHERS

KWONG SUK CHUN v. WONG FUNG MING AND ANOTHER