13 Nov 2017
OSMAN MOHAMMED ARAB AND WONG KWOK KEUNG, THE JOINT AND SEVERAL LIQUIDATORS OF KAM TOYS & NOVELTY MANUFACTURING LTD (IN CREDITORS’ VOLUNTARY LIQUIDATION) v. CASHBOX CREDIT SERVICES LTD
- Citation
- OSMAN MOHAMMED ARAB AND WONG KWOK KEUNG, THE JOINT AND SEVERAL LIQUIDATORS OF KAM TOYS & NOVELTY MANUFACTURING LTD (IN CREDITORS’ VOLUNTARY LIQUIDATION) v. CASHBOX CREDIT SERVICES LTD
- Court
- Court of First Instance
- Case number
- HCMP637/2017
The Court of Appeal held the liquidators failed to prove the subjective desire required by s.266(4); although the Cashbox loan had suspicious features, the evidence established a commercial purpose (leveraging the HK$30m deposit and providing working capital) and absence of evidence that the directors positively wished to prefer Cashbox; accordingly the payment was not an unfair preference and the liquidators' appeal was dismissed.