Hong Kong Case Law: Decisions & Judgments

Topic

Margin calls and liquidation

Legal area

Court

5 Jul 1990

WOCOM FINANCIAL SERVICES CO LTD v. YU CHOY YEE NGAN

Citation

WOCOM FINANCIAL SERVICES CO LTD v. YU CHOY YEE NGAN
Court

Court of First Instance
Case number

HCA2757/1988

Defendant is liable to the plaintiff for the assigned trading debt because notice of assignment was given and the defendant was bound by the signed trading/authorization documents allowing margin calls and liquidation; the alleged illegality defence fails on precedent; judgment is awarded for the plaintiff for $2,695,983.12 with interest on the capital sum at 8% p.a. from 4 November 1987 and costs to follow the event.
10 May 1990

FUNG SIU POR t/a ROCTEC FUTURES TRADING CO AND ANOTHER v. LEE CHEUNG FUNG SHU, VERONICA

Citation

FUNG SIU POR t/a ROCTEC FUTURES TRADING CO AND ANOTHER v. LEE CHEUNG FUNG SHU, VERONICA
Court

Court of First Instance
Case number

HCCL233/1988

The court found that market conditions (limit-down and lack of buyers) prevented execution on 19 October despite reasonable efforts by the 1st plaintiff, that the 2nd plaintiff validly sold shares under the contractual margin provisions to restore the loan ratio, and that the plaintiffs were entitled to set off the credit in the defendant's share account against the liquidation loss, resulting in judgment for the 1st plaintiff for the net debit balance.
9 Apr 1990

WARDLEY-THOMSON LTD v. YIP KAM FAI

Citation

WARDLEY-THOMSON LTD v. YIP KAM FAI
Court

Court of First Instance
Case number

HCA6865/1987

The Court preferred the evidence of the plaintiff's witnesses over the defendant, found no instruction to liquidate on 16 October, found no actionable misrepresentation as to Exchange membership, held that non-disclosure under s.45A(2)(e) did not invalidate the transactions, accepted the plaintiff's calculations and awarded judgment to the plaintiff for $14,730,151.44 with interest; the defendant's counterclaim was dismissed.

Hong Kong Case Law

WOCOM FINANCIAL SERVICES CO LTD v. YU CHOY YEE NGAN

FUNG SIU POR t/a ROCTEC FUTURES TRADING CO AND ANOTHER v. LEE CHEUNG FUNG SHU, VERONICA

WARDLEY-THOMSON LTD v. YIP KAM FAI