12 Jul 1985
RE KIU MAY CONSTRUCTION COMPANY LIMITED
- Citation
- RE KIU MAY CONSTRUCTION COMPANY LIMITED
- Court
- Court of First Instance
- Case number
- HCCW65/1984
Section 265(5B) is to be interpreted strictly: it only permits giving contributors an advantage where the indemnity was given for the costs of litigation and the specific purpose (institution of proceedings and recovery by means of that indemnity) was fulfilled; absent such fulfilment and absent real risk taken by contributors, the contributors are not entitled to preferential distribution and the recovered sum remains part of the liquidation for pari passu distribution.