Hong Kong Case Law: Decisions & Judgments

Topic

Ad valorem fees

Legal area

Court

27 Sept 2018

RE STX PAN OCEAN (HONG KONG) CO., LTD (In Liquidation) (the “Company”)

Citation

[2018] HKCFI 2210
Court

Court of First Instance
Case number

HCCW324/2013

The court held that 'realised' in Item I of Table B of the CFPO is not limited to conversion into cash but includes amounts 'got in' and brought to credit in the compulsory liquidation; therefore ad valorem fees are payable on the net amounts remitted by the former creditors' voluntary liquidators into the compulsory liquidation after the winding up order. The Liquidators' summons was dismissed.
6 Jun 2018

RE SHISEI (PNG) ENTERPRISES CO LTD

Citation

[2018] HKCFI 1535
Court

Court of First Instance
Case number

HCCW665/2009

The winding-up proceedings were stayed permanently on the applicants' undertaking to pay liquidators' fees of HK$205,000 within 14 days and to pay the Official Receiver's costs of HK$23,200 because there appeared to be no further outstanding liabilities, the liquidators confirmed no hidden liabilities, and there were genuine commercial reasons for the stay; the court accepted the parties' agreement on the ad valorem fee issue without resolving the legal question.
2 Mar 2015

RE MF GLOBAL HOLDINGS HK LTD

Citation

RE MF GLOBAL HOLDINGS HK LTD
Court

Court of Appeal
Case number

CACV252/2012

The definition of 'liquidator' in section 2(1) of the Companies Ordinance extends to all three types of provisional liquidators described in s194; accordingly the ad valorem fees under s296 and the Companies (Fees and Percentages) Order are payable on all realisations realised and brought to account by those provisional liquidators up to conversion to creditors' voluntary winding up, and the Official Receiver's appeal is allowed to that extent.
2 Mar 2015

RE MF GLOBAL HONG KONG LTD

Citation

RE MF GLOBAL HONG KONG LTD
Court

Court of Appeal
Case number

CACV251/2012

The Court held that provisional liquidators who were appointed under s.193 and who continued to act after the making of winding up orders did so by virtue of s.194 and therefore fall within the definition of "liquidator" in s.2(1); accordingly the ad valorem fees prescribed by s.296 and the Companies (Fees and Percentages) Order (Item I Table B Schedule 3 and para 7(2)) are payable on all realisations realised and brought to credit by the provisional liquidators up to conversion on 4 October 2012, and the orders sought by the Official Receiver were made.
4 Oct 2012

RE MF GLOBAL HONG KONG LTD

Citation

RE MF GLOBAL HONG KONG LTD
Court

Court of First Instance
Case number

HCCW356/2011

A provisional liquidator in office by virtue of section 194(1)(aa) of the Companies Ordinance is not a "liquidator" for the purposes of section 202(1); therefore section 202(1) and the ad valorem fee provisions of the Companies (Fees and Percentages) Order do not apply to sums realised by such provisional liquidators absent legislative change.
4 Oct 2012

RE MF GLOBAL HOLDINGS HK LTD

Citation

RE MF GLOBAL HOLDINGS HK LTD
Court

Court of First Instance
Case number

HCCW357/2011

The court exercised its discretion to convert both court windings into creditors' voluntary windings, appoint the provisional liquidators as joint and several liquidators and establish committees of inspection; crucially, the court held that a provisional liquidator who continues in office by virtue of section 194(1)(aa) is not a 'liquidator' for the purposes of section 202(1) of the Companies Ordinance, and therefore sums realized by such provisional liquidators are not required by that provision to be paid into the Companies Liquidation Account and do not attract ad valorem fees under the F…

Hong Kong Case Law

RE STX PAN OCEAN (HONG KONG) CO., LTD (In Liquidation) (the “Company”)

RE SHISEI (PNG) ENTERPRISES CO LTD

RE MF GLOBAL HOLDINGS HK LTD

RE MF GLOBAL HONG KONG LTD

RE MF GLOBAL HONG KONG LTD

RE MF GLOBAL HOLDINGS HK LTD