Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Employee stock ownership scheme

Legal area

Court

31 Jan 2018

張才奎所託管中國山水投資有限公司股份相關員工 AND OTHERS v. 張才奎 AND ANOTHER

Citation

[2018] HKCFI 195
Court

Court of First Instance
Case number

HCA1661/2014

The court found that under the ESO scheme and relevant Mainland law the participating employees were the actual beneficial owners of the relevant interests and that when CSI shares were transferred on 11 April 2005 those shares were held by Zhang and Li as trustees on fixed trusts for the individual participating employees in proportion to their entitlements; the November 2005 BVI discretionary trust deeds could not validly resettle assets already subject to fixed equitable trusts and were ineffective as against the plaintiffs; the 2008 Confirmation did not amount to informed ratification of…
31 Jan 2018

LI MING AND OTHERS v. ZHANG CAIKUI AND ANOTHER

Citation

[2018] HKCFI 195
Court

Court of First Instance
Case number

HCA1282/2017

On the evidence and applicable law the participating employees were the actual beneficial owners of specific aliquot CSI shares derived from the ESO scheme; from 11 April 2005 those aliquot interests were held on fixed equitable trusts for the employees and could not be validly resettled by the defendants on full discretionary BVI trusts in November 2005 without informed consent; accordingly the court declares 456,325 CSI shares are held on trust for the plaintiffs and orders transfer and related relief.