Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Shareholders' deficit
  • 14 Dec 2001

    RE EAST SUN BUTTON INTERNATIONAL LTD.

    Citation
    RE EAST SUN BUTTON INTERNATIONAL LTD.
    Court
    Court of First Instance
    Case number
    HCMP5514/2001

    The court exercised its discretion to confirm the reduction of share capital because the reduction met the established criteria: shareholders were equitably treated (majority consent), the proposals were clearly explained, creditors were safeguarded by an accepted undertaking, and the reduction served the recognised statutory purpose of extinguishing accumulated losses under s58(1)(b); the minute of reduction was approved for registration.