8 Jun 2011
PASSPORT SPECIAL OPPORTUNITIES MASTER FUND, LP AND ANOTHER v. ESUN HOLDINGS LTD AND OTHERS
- Citation
- PASSPORT SPECIAL OPPORTUNITIES MASTER FUND, LP AND ANOTHER v. ESUN HOLDINGS LTD AND OTHERS
- Court
- Court of First Instance
- Case number
- HCA2722/2008
The court found Passport did not prove on balance (or by compelling inference) that the directors acted with a predominant improper purpose to entrench Mr Lam's control; the placees could not be treated as predetermined 'friendly hands'; even if directors failed to give adequate consideration to economic dilution that failure renders an allotment voidable rather than void; given the placees' innocent position the court would not set aside the placement; Passport's claims dismissed.