Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Corporate capital adequacy

  • 29 Jul 1982

    KINGEARN CO LTD v. LEE WOO-BUN AND OTHERS

    Citation
    KINGEARN CO LTD v. LEE WOO-BUN AND OTHERS
    Court
    District Court
    Case number
    DCCJ7180/1981

    The claim for possession was allowed because the plaintiff established a genuine intention and adequate financial capacity to rebuild after increasing its paid-up capital to HKD10,000,000; given rental inflation and lack of judicial precedents the court fixed compensation at four times the rateable value as reasonable; possession granted subject to specified payment schedule, lodging of plans and building commencement/completion conditions and a stay until 28 January 1983.

  • 29 Jul 1982

    KINGEARN CO LTD v. LEE WOO-BUN AND OTHERS

    Citation
    KINGEARN CO LTD v. LEE WOO-BUN AND OTHERS
    Court
    District Court
    Case number
    DCCJ7176/1981

    The court held that the plaintiff, as originally constituted, lacked sufficient paid‑up capital and therefore financial capability to satisfy a rebuilding obligation and would likely be insolvent if creditors called; after the plaintiff increased its paid‑up capital to $10,000,000 the court was satisfied of genuine intention and financial capacity, and on the facts awarded compensation equal to four times the rateable value as reasonable, granted possession subject to specified conditions and a stay, and made no order as to costs under s68B.