Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Dividend retention
  • 23 Jul 1991

    LEE CHAI CHEONG AND ANOTHER v. THE PRUDENTIAL ENTERPRISE LTD.

    Citation
    LEE CHAI CHEONG AND ANOTHER v. THE PRUDENTIAL ENTERPRISE LTD.
    Court
    Court of First Instance
    Case number
    HCA3850/1990

    The court held Article 135 authorises the directors to retain dividends payable on the deceased's shares until the entitled person becomes a member or transfers; the board had validly and unanimously exercised that power by resolutions (supported by witness statements and minutes); the 13 May 1989 letter did not amount to a clear and unequivocal waiver of the retention power but rather indicated the directors would not take action to send a cheque at that time; accordingly the plaintiffs' claim failed.