Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Loans vs distributions
  • 6 Sept 2013

    TSE KWONG CHUNG v. HO HUNG KIT

    Citation
    TSE KWONG CHUNG v. HO HUNG KIT
    Court
    Court of First Instance
    Case number
    HCA2233/2006

    On the balance of probabilities the court found that Tse was not an employee of Wing Yip but had entered into a joint venture with Ho using Wing Yip as the corporate vehicle; Tse and Ho were equal partners sharing 50% of net profits; the four lump sum payments of $1.7M were distributions of Tse's profit share not loans; Ho must account for all income, expenses and profits of the joint venture (including post-17 July 2006 Western Corridor orders and the Clinic Project) and pay sums found due to Tse after credit for those distributions.

  • 17 Mar 2008

    LEE CHEUNG CHING v. LOK HSIAO PEI, JOHN

    Citation
    LEE CHEUNG CHING v. LOK HSIAO PEI, JOHN
    Court
    Court of First Instance
    Case number
    HCA978/2004

    On the balance of contemporaneous documents and credible witness evidence the court found the joint venture comprised 7 CP units and 6 IT units chosen on or about 24 March 1992, the agreed profit sharing was 30% (plaintiff) and 70% (defendant/Sun Co), the Sun Co bought out the plaintiff's 30% interest on 8 April 1993 ending the JV, CP units 2108 and 2109 were transferred as compensation for a separate proposed venture not as profit distribution, and subsequent payments totalling $17.5m were loans repayable by the plaintiff.