Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Share capital reduction

  • 23 Apr 2009

    RE MOREHEAD CO LTD

    Citation
    RE MOREHEAD CO LTD
    Court
    Court of First Instance
    Case number
    HCMP162/2009

    The court confirmed the reduction because the special resolution was validly passed, the returned capital derived from the joint venture and was surplus to the Company’s needs, creditors’ interests would not be adversely affected given the low liabilities and compliance with advertisement directions, and the prior judicial dispensation regarding s.59(2)(a)–(c) removed procedural impediments.

  • 9 Jun 2006

    RE COSMOS INSURANCE MANAGEMENT LTD

    Citation
    RE COSMOS INSURANCE MANAGEMENT LTD
    Court
    Court of First Instance
    Case number
    HCMP652/2006

    The court confirmed the reduction because the losses to be written off were realised and permanent, the reduction would eliminate equivalent accumulated losses and better reflect the company's financial position for its new business, statutory procedures had been complied with, the only identified creditor had been informed and raised no objection, and the interests of creditors would not be prejudiced.

  • 9 Mar 2005

    RE JOYCE BOUTIQUE LTD

    Citation
    RE JOYCE BOUTIQUE LTD
    Court
    Court of First Instance
    Case number
    HCMP248/2005

    The court confirmed the reduction because (1) the affected non‑voting deferred shareholders had given informed consent satisfying equitable treatment; (2) the scheme and its effects were properly explained; (3) creditors were adequately safeguarded by JBHL’s written agreement to postpone its claims and by the restriction on the bank fixed deposit which exceeded the aggregate liabilities to other creditors and provisions; and (4) the reduction had a discernible purpose—elimination of accumulated losses to permit future dividends. The court therefore approved and ordered the reduction under the…