2 Apr 2020
RE GW ELECTRONICS CO LTD
- Citation
- [2020] HKCA 180
- Court
- Court of Appeal
- Case number
- CACV24/2017
The Court of Appeal held that TEAL validly terminated the distribution agreement in the face of the Company's insolvency; the sums claimed were liquidated and sufficiently ascertainable under the contract and supporting documents; there was no bona fide dispute on substantial grounds as to liability or quantum because contemporaneous documents and commercial common sense contradicted the alleged oral settlement; accordingly the strike‑out was rightly refused and the winding‑up order was properly made (though stayed pending appeal submissions).
- Winding-up petition
- Statutory demand (s.178)
- Bona fide dispute doctrine
- Oral settlement agreement
- Termination of distributorship (contractual remedies)
- Insolvency tests (cash flow vs balance sheet)