Hong Kong Case Law: Decisions & Judgments

Topic

Declaration of solvency

Legal area

Court

29 Aug 2014

ALBERT EDWARD RODRIGUES v. ASSOCIACAO PORTUGUESA DE SOCORROUS MUTUOS (IN LIQUIDATION)

Citation

ALBERT EDWARD RODRIGUES v. ASSOCIACAO PORTUGUESA DE SOCORROUS MUTUOS (IN LIQUIDATION)
Court

Court of First Instance
Case number

HCMP1391/2014

Because the company is clearly solvent, can pay all creditors and any liquidation expenses, there is no reason to investigate historical conduct, and it is more appropriate for the company to continue its activities, the court will exercise its discretion under ss209 and 255 to stay the technical state of liquidation and validate past transactions under s182.
23 Feb 2005

RE GLORY LINE CONSULTANTS LTD

Citation

RE GLORY LINE CONSULTANTS LTD
Court

Court of First Instance
Case number

HCMP256/2005

The court granted a stay under s255(3) because the company was solvent, there were no creditors or prejudice, the defect arose from a procedural slip in the timing of the declaration of solvency, and the liquidator had borne and waived costs, making a stay appropriate to allow a members voluntary winding up to proceed.
6 Nov 2002

SHUM LAP CHI v. WAI CHI KWONG AND ANOTHER

Citation

SHUM LAP CHI v. WAI CHI KWONG AND ANOTHER
Court

Court of First Instance
Case number

HCMP3912/2002

A stay of the members' voluntary winding-up was granted because the liquidator demonstrated the company was solvent, there were no creditors or public interest concerns, all shareholders consented, the liquidator confirmed no irregularities and liquidation costs were paid, and a stay was necessary to preserve the company to pursue a bona fide compensation claim in the Lands Tribunal.
16 May 2001

ADONIS IP KAI KWONG v. CITIBANK OVERSEAS INVESTMENT CORPORATION AND ANOTHER

Citation

ADONIS IP KAI KWONG v. CITIBANK OVERSEAS INVESTMENT CORPORATION AND ANOTHER
Court

Court of First Instance
Case number

HCCW328/2001

The court granted a permanent stay of the creditors' voluntary winding-up because the liquidator discharged the burden: the delay was inadvertent, both shareholders consented, there were effectively no creditors and assets were sufficient to meet liabilities, the Official Receiver had no objection, and no public interest opposed the exercise of discretion—therefore it was just and beneficial to stay the winding-up.
28 Sept 2000

RE MANAGEMENT RESOURCES INTERNATIONAL, LTD.

Citation

RE MANAGEMENT RESOURCES INTERNATIONAL, LTD.
Court

Court of First Instance
Case number

HCMP2629/2000

Because the company faces a material contingent liability under an assigned English lease which could crystallise through to 2011 and thus undermines any earlier Declaration of Solvency, and because authorities require such contingent liabilities to be admitted to proof and valued before distribution, the court must stay the voluntary winding up proceedings.

Hong Kong Case Law

ALBERT EDWARD RODRIGUES v. ASSOCIACAO PORTUGUESA DE SOCORROUS MUTUOS (IN LIQUIDATION)

RE GLORY LINE CONSULTANTS LTD

SHUM LAP CHI v. WAI CHI KWONG AND ANOTHER

ADONIS IP KAI KWONG v. CITIBANK OVERSEAS INVESTMENT CORPORATION AND ANOTHER

RE MANAGEMENT RESOURCES INTERNATIONAL, LTD.