Hong Kong Case Law: Decisions & Judgments

Topic

Section 327 cap 32

Legal area

Court

9 Sept 2021

SHANDONG CHENMING PAPER HOLDINGS LTD v. ARJOWIGGINS HKK 2 LTD

Citation

[2021] HKCA 1281
Court

Court of Appeal
Case number

CACV158/2017

The application for leave to appeal was dismissed because the questions posed either did not arise on the facts or were not reasonably arguable; established authority requires the court to assess whether a winding-up order would reasonably benefit the petitioning creditor, Hong Kong law permits creditors to petition for payment of debts, and there is no additional requirement that the lex incorporationis permit winding-up before Hong Kong may exercise jurisdiction; accordingly leave to appeal to the Court of Final Appeal was refused and costs ordered against the plaintiff.
31 Aug 2021

RE UP ENERGY DEVELOPMENT GROUP LTD

Citation

[2021] HKCFI 2595
Court

Court of First Instance
Case number

HCCW91/2016

The court refused to make an immediate winding up order in Hong Kong because the Petitioner failed to satisfy the core requirements under s.327: there was no evidence a Hong Kong liquidator would likely be able to obtain control of the BVI intermediaries or the Mainland subsidiaries, and Bermuda—being the place of incorporation and where proceedings and JPLs already exist—remains the appropriate forum; amendments to the petition were allowed and the petition was adjourned pending the outcome of the Company's judicial review of the delisting decision.
25 Aug 2020

RE LEADING GLOBAL FUND SPC

Citation

[2020] HKCFI 2307
Court

Court of First Instance
Case number

HCCW190/2019

The court adjourned and re-fixed the application because of a recent change in the company's management and legal representation and the parties' agreement to adjourn; costs were reserved. The court endorsed the Re Sunni test that at the leave stage the petitioner need only show a good arguable case on jurisdiction (s327 three core requirements) and a serious issue to be tried on the merits, and noted that in most cases it is preferable to concede leave and decide the substantive petition to avoid duplication.
5 Aug 2020

SHANDONG CHENMING PAPER HOLDINGS LTD v. ARJOWIGGINS HKK 2 LTD

Citation

[2020] HKCA 670
Court

Court of Appeal
Case number

CACV158/2017

The second core requirement (a reasonable possibility that the petitioner will benefit from a winding-up order) is an essential condition that must be satisfied; the leverage created by the prospect or making of a winding-up order (pressure leading to payment or enabling liquidator steps that may recover assets) can constitute a sufficient real possibility of benefit; on the facts the defendant showed a sufficient prospect of benefit and the Court of Appeal dismissed the plaintiff's appeal and upheld exercise of jurisdiction under s.327.
19 Nov 2018

RE BLOCKCHAIN GROUP CO LTD

Citation

[2018] HKCFI 2590
Court

Court of First Instance
Case number

HCCW118/2018

The court granted the winding-up order because the Company had habitually failed to pay its debts and failed to meet settlement obligations; creditors' protection and risk of dissipation of assets outweighed the Company's unsubstantiated plan to trade out of difficulty; technical deficiencies (absence of explicit s.327 reference and timing of statutory demand) were non-fatal and remedied by an undertaking to amend the petition.

Hong Kong Case Law

SHANDONG CHENMING PAPER HOLDINGS LTD v. ARJOWIGGINS HKK 2 LTD

RE UP ENERGY DEVELOPMENT GROUP LTD

RE LEADING GLOBAL FUND SPC

SHANDONG CHENMING PAPER HOLDINGS LTD v. ARJOWIGGINS HKK 2 LTD

RE BLOCKCHAIN GROUP CO LTD