Hong Kong Case Law: Decisions & Judgments

Topic

Self-dealing rule

Legal area

Court

18 Jul 2023

NG, ROSE KAI CHING AND OTHERS v. LIANG YUM SHING HOWARD (in his personal capacity and as the executor and trustee of the estate of LIANG TING SEN THOMAS, deceased) AND ANOTHER

Citation

[2023] HKCFI 1867
Court

Court of First Instance
Case number

HCMP2013/2018

Court found plaintiffs did agree to the narrow corporate structure that a BVI holding company (Mega Best) be formed with beneficiaries allotted shares in their will proportions and that Mega Best held the legal title as trustee; however there was no informed consent to abandon rights under the Will or to complete administration; Howard failed to make full and frank disclosure, breached fiduciary duties (fair-dealing and other duties), did not complete administration, and therefore was not entitled to estoppel or to have transactions upheld as conclusive; consequence: Howard removed as executo…
6 Jun 2012

KONG LIN YEUNG AND ANOTHER v. LAI IN PENG

Citation

KONG LIN YEUNG AND ANOTHER v. LAI IN PENG
Court

Court of First Instance
Case number

HCMP543/2012

The plaintiffs failed to prove good title because the husband, as trustee under the court Order, engaged in transactions amounting to self-dealing and potentially a sham reconveyance; the plaintiffs had constructive notice of the wife's interest through proper searches and thus the title was defective and open to the wife's claim, rendering the Originating Summons dismissible.
31 Mar 1999

SUN SEK HAW AND OTHERS v. AU SO KUM

Citation

SUN SEK HAW AND OTHERS v. AU SO KUM
Court

Court of Appeal
Case number

CACV215/1998

The Court held that the 1974 conveyance, read with the grant of administration and absence of consideration, put subsequent purchasers on inquiry; there was no evidence that the conveyance was made in purported exercise of s.68 PAO appropriation powers so s.68(8) did not protect purchasers; and because subsequent purchasers had or ought to have had constructive notice (through proper conveyancing enquiries) they could be constructive trustees such that claims by the underage children may not be barred by limitation under s.20(1)(b) LO. Accordingly the purchasers were entitled to reject the ti…

Hong Kong Case Law

NG, ROSE KAI CHING AND OTHERS v. LIANG YUM SHING HOWARD (in his personal capacity and as the executor and trustee of the estate of LIANG TING SEN THOMAS, deceased) AND ANOTHER

KONG LIN YEUNG AND ANOTHER v. LAI IN PENG

SUN SEK HAW AND OTHERS v. AU SO KUM