25 Feb 2015
RE HUN KAI FINANCE CO LTD
- Citation
- RE HUN KAI FINANCE CO LTD
- Court
- Court of Appeal
- Case number
- CACV32/2014
The Court of Appeal dismissed both appeals. The court held that the correct threshold for an s276 inquiry is a prima facie sufficient basis to warrant inquiry (not the full strike out standard), but on the facts the judge's exercise of discretion in refusing an s276 inquiry was within a reasonable ambit: the liquidator acted reasonably in approving the settlement given lack of funding, speculative claim value and commercial considerations. A common law derivative action cannot be maintained against a liquidator appointed personally; leave under s168BC to bring a statutory derivative action wa…