Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Security for costs under s.357 companies ordinance
  • 10 Apr 1984

    GARFUL CO LTD v. SHUI HING INVESTMENT CO LTD AND ANOTHER

    Citation
    GARFUL CO LTD v. SHUI HING INVESTMENT CO LTD AND ANOTHER
    Court
    Court of First Instance
    Case number
    HCA10157/1983

    Plaintiffs are companies with paid-up capital of $2 and failed to prove greater assets; exercising the court's wide discretion under s.357 and guided by Procon, the judge fixed security at a sum calculated to indemnify defendants on a party and party basis ($54,000 total) and stayed the actions until bank guarantees in that amount (divided between plaintiffs) were provided.

    • Security for costs under s.357 companies ordinance
    • Assessment of party and party costs
    • Form of security (bank guarantees)
    • Discretion on fixing security early in proceedings