Hong Kong Case Law: Decisions & Judgments

Topic

Delegation of liquidator functions

Legal area

Court

20 Apr 2007

RE CHINA ARTS AND CRAFTS PRINTING LTD

Citation

RE CHINA ARTS AND CRAFTS PRINTING LTD
Court

Court of First Instance
Case number

HCCW420/1997

The court exercised its discretion under Companies Ordinance s200(3) to grant retrospective authorisation of the Panel B appointments and sanction payment of agents' fees from company assets (subject to taxation) because the agents' work benefited creditors, there was no evidence of misconduct or conflict, fees would be independently taxed, and it was disproportionate to investigate delegation individually given the time elapsed and limited assets.
20 Apr 2007

RE SUN WING LEE HING CHAN CO LTD

Citation

RE SUN WING LEE HING CHAN CO LTD
Court

Court of First Instance
Case number

HCCW754/1999

The court exercised its discretion under section 200(3) to grant retrospective authorisation of the Panel B appointments and to permit payment of agents' fees out of company assets subject to taxation because the appointments served creditors' interests, there was no evidence of conflict or misconduct, fees would be judicially scrutinised by taxation, and it was disproportionate to require case-by-case investigation of delegation given the passage of time and limited assets.
20 Apr 2007

RE GEARLAND CO LTD

Citation

RE GEARLAND CO LTD
Court

Court of First Instance
Case number

HCCW59/1998

The court will exercise its discretion under section 200(3) to retrospectively authorise the appointments of Panel B agents and to permit payment of their fees out of company assets subject to taxation where the appointments served the interests of the creditors and the liquidations, no misconduct is shown, oversight existed and individual inquiries into delegation would be disproportionate; payments are limited to amounts allowed on taxation.
20 Apr 2007

RE PHILMA PETROLEUM LTD

Citation

RE PHILMA PETROLEUM LTD
Court

Court of First Instance
Case number

HCCW459/1997

The court will exercise its discretion under s200(3) to grant retrospective authorisation of the Official Receiver's appointments of Panel B agents and to sanction payment of agents' fees out of the companies' assets, subject to taxation and scrutiny, because the appointments and work done were in the interests of the creditors and the liquidation, there is no evidence of misconduct or conflict of interest, and a case-by-case inquiry into delegation is disproportionate and impractical.
27 Jan 2005

RE BONDFIELD INTERNATIONAL LTD

Citation

RE BONDFIELD INTERNATIONAL LTD
Court

Court of First Instance
Case number

HCCW99/2002

Court refused immediate removal of the liquidators because the evidence did not establish wholesale delegation or deliberate concealment to the requisite degree and because the interests of the liquidations (costs and stage of progress) weighed against removal; however the Court held that fees representing charges of Nelson Wheeler incurred while the appellants acted as provisional liquidators without required sanction under s199(5) are disallowable out of company assets and ordered limited disallowance for companies with assets.
27 Jan 2005

RE FITNESS CENTRE LTD

Citation

RE FITNESS CENTRE LTD
Court

Court of First Instance
Case number

HCCW711/2002

The court refused the liquidators' summary dismissal application; it declined to remove the liquidators at this stage because wholesale delegation and deliberate concealment were not established on the evidence and removal must consider creditor interests and costs; it ordered disallowance of fees representing Nelson Wheeler's charges only for the period when the liquidators acted as s194(1A) provisional liquidators and where company assets would be used to pay such charges; broader examination and fishing expeditions were refused.

Hong Kong Case Law

RE CHINA ARTS AND CRAFTS PRINTING LTD

RE SUN WING LEE HING CHAN CO LTD

RE GEARLAND CO LTD

RE PHILMA PETROLEUM LTD

RE BONDFIELD INTERNATIONAL LTD

RE FITNESS CENTRE LTD