Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Invalid share allotments
  • 5 Aug 2003

    WONG MAN YIN v. RICACORP PROPERTIES LTD AND OTHERS

    Citation
    WONG MAN YIN v. RICACORP PROPERTIES LTD AND OTHERS
    Court
    Court of Final Appeal
    Case number
    FACV14/2002

    The appeal is dismissed. The deputy judge erred by being inconsistent: having found the allotments bona fide and not unfairly prejudicial he could not thereafter treat the respondents' subscription moneys as loans for valuation; the Court of Appeal's directions stand that the subscription moneys be treated as capital and the petitioner's shares valued by reference to an issued capital of 50,000,000 shares, and that the respondents collectively are entitled to the 20% bonus (to be apportioned between continuing directors) rather than only two-thirds for valuation purposes.