Hong Kong Case Law: Decisions & Judgments

Topic

Director loans

Legal area

Court

13 May 2020

SHUN HING HOLDINGS CO LTD AND OTHERS v. LI KWOK PO DAVID AND OTHERS

Citation

[2020] HKCA 309
Court

Court of Appeal
Case number

CACV509/2018

It is not plain and obvious that the Plaintiffs' pleaded Relevant Pleas are wholly unarguable; directors' approval and shareholders' adoption of audited financial statements are not conclusive as a matter of law to defeat claims of breach of fiduciary duty or to preclude proprietary tracing; therefore leave to file a fresh statement of claim is granted, the striking out order is dismissed and the actions should be heard together.
20 May 2009

WILLIAM JOHN LAU v. WAN YUK LIN ALISON AND OTHERS

Citation

WILLIAM JOHN LAU v. WAN YUK LIN ALISON AND OTHERS
Court

Court of First Instance
Case number

HCCW576/2007

The court exercised its discretion to disallow the majority of the interrogatories as irrelevant, duplicative or better addressed at trial or by document production; allowed limited parts of Interrogatory 3 against the 1st respondent (the first set up to the penultimate sentence) to enable case preparation; treated the December interrogatories as a separate second set and ordered their withdrawal; restrained further interrogatories without leave; awarded the 1st and 3rd respondents 7/8 of their costs in the summonses.
12 May 2009

ROBERT YIP v. WING FAI CONSTRUCTION CO LTD (IN LIQUIDATION)

Citation

ROBERT YIP v. WING FAI CONSTRUCTION CO LTD (IN LIQUIDATION)
Court

Court of Final Appeal
Case number

FACV24/2008

Payments were not loans within s.157H where they were made to meet or reimburse company expenditure; however, because the appellant failed to prove he expended more than $450,000, he was liable to refund the unexpended balance of company funds (resulting in judgment for $1.25 million plus interest).
14 Apr 2005

CHU SIU WO v. KOLDTECH DEVELOPMENT (INTERNATIONAL) LTD

Citation

CHU SIU WO v. KOLDTECH DEVELOPMENT (INTERNATIONAL) LTD
Court

Court of First Instance
Case number

HCA3641/2003

The judge accepted documentary and bank evidence (company accounts, bank deposit voucher, and an email) and credible witness evidence that the two director loans existed and that an agreement to pay variable interest was made; payments made by the company were interest; limitation was not available because of recent payments; the counterclaim alleging breach of fiduciary duty lacked evidence, therefore judgment entered for plaintiff for principal and accrued interest and enhanced costs on a common fund basis rather than indemnity.

Hong Kong Case Law

SHUN HING HOLDINGS CO LTD AND OTHERS v. LI KWOK PO DAVID AND OTHERS

WILLIAM JOHN LAU v. WAN YUK LIN ALISON AND OTHERS

ROBERT YIP v. WING FAI CONSTRUCTION CO LTD (IN LIQUIDATION)

CHU SIU WO v. KOLDTECH DEVELOPMENT (INTERNATIONAL) LTD