Hong Kong Case Law: Decisions & Judgments

Topic

Termination for incapacity

Legal area

Court

28 Jul 1998

MING KEE SHIPPING SERVICE (FAR EAST) CO LTD v. CHINAL LIGHT & POWER CO LTD

Citation

MING KEE SHIPPING SERVICE (FAR EAST) CO LTD v. CHINAL LIGHT & POWER CO LTD
Court

Court of First Instance
Case number

HCA9343/1995

Clause 4.1(ii) permits immediate termination where the Company was of the opinion the Contractor had become incapable of performing the Contract; the Court gives effect to the clause as drafted (subjective opinion sufficient), and on the facts CLP held such an opinion (alternatively a reasonable person would have formed it, and alternatively objectively the Contractor was incapable), therefore termination was valid and CLP may recover replacement costs leading to a net judgment to Plaintiff of $275,979.17.
19 Dec 1995

STARLIGHT ELECTRONICS COMPANY LIMITED v. THE OFFICIAL SOLICITOR appointed by the Order of Master Cheung dated the 2nd day of December 1993 to represent the estate of TAM CHUNG SHING (Deceased)

Citation

STARLIGHT ELECTRONICS COMPANY LIMITED v. THE OFFICIAL SOLICITOR appointed by the Order of Master Cheung dated the 2nd day of December 1993 to represent the estate of TAM CHUNG SHING (Deceased)
Court

Court of First Instance
Case number

HCA6502/1993

The court held that (1) the deceased ceased to be managing director on 8 March 1993 which triggered clause 4(5) and deemed notice to sell; (2) no part of the $7.5m loan had been repaid because no declared dividend had been made and the proviso to clause 3(2) did not operate; (3) the share price was par ($1 per share) given the auditor's valuation methodology; (4) plaintiffs ACDL and ACLL are beneficial owners of the 7,500,000 shares as of 8 March 1993 and the Registrar is appointed to execute necessary transfers on behalf of the deceased's estate; (5) plaintiffs SECL and KEL are entitled to j…
19 Dec 1995

ACME DELIGHT LIMITED & OTHER v. THE OFFICIAL SOLICITOR appointed by the Order of Master Cheung dated the 2nd day of December 1993 to represent the estate of TAM CHUNG SHING (Deceased)

Citation

ACME DELIGHT LIMITED & OTHER v. THE OFFICIAL SOLICITOR appointed by the Order of Master Cheung dated the 2nd day of December 1993 to represent the estate of TAM CHUNG SHING (Deceased)
Court

Court of First Instance
Case number

HCA6501/1993

Court held that no part of the $7,500,000 loan had been repaid because no dividend was declared and the net profit for set-off must be distributable/accumulated profit as reflected in consolidated accounts; the price for the shares was par ($1 per share) and plaintiffs were entitled to the transfer of 7,500,000 shares as from 8 March 1993; plaintiffs also succeeded on the separate loan claims and were awarded judgments with interest and appropriate set-offs; Registrar appointed to execute transfers and costs ordered against the deceased's estate.

Hong Kong Case Law

MING KEE SHIPPING SERVICE (FAR EAST) CO LTD v. CHINAL LIGHT & POWER CO LTD

STARLIGHT ELECTRONICS COMPANY LIMITED v. THE OFFICIAL SOLICITOR appointed by the Order of Master Cheung dated the 2nd day of December 1993 to represent the estate of TAM CHUNG SHING (Deceased)

ACME DELIGHT LIMITED & OTHER v. THE OFFICIAL SOLICITOR appointed by the Order of Master Cheung dated the 2nd day of December 1993 to represent the estate of TAM CHUNG SHING (Deceased)