24 Aug 2020
CHOW WAI SHING DANIEL AND ANOTHER v. LU YING
- Citation
- [2020] HKCFI 2148
- Court
- Court of First Instance
- Case number
- HCMP486/2017
The Disposal was a transaction at an undervalue under s.49. The Court found Market Value for the block after a 10% illiquidity discount was approximately HK$35.06M–HK$37.08M and, on the facts, the bankrupt knew (or must have known) the purchaser's identity so Fair Value principles apply; the shares conferred special value (control) to the purchaser and a shell premium of HK$350M was appropriate. The sale at HK$30M was therefore substantially less than Market Value and grossly less than Fair Value; the Disposal was set aside and shares vested in the trustees.