Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Undertaking for creditors
  • 19 Sept 2007

    RE WORLDCO INTERNATIONAL LTD

    Citation
    RE WORLDCO INTERNATIONAL LTD
    Court
    Court of First Instance
    Case number
    HCMP382/2007

    The petition was granted because the proposed reduction was for the clear purpose of extinguishing accumulated losses and aligning capital with assets, the directors provided sufficient explanation of the nature of the losses and offered a formal undertaking including a special reserve to protect creditors for amounts that might not be permanent, procedural requirements were satisfied and there was no unfair treatment of shareholders; accordingly the court approved the draft order and minute for reduction of capital.