Hong Kong Case Law: Decisions & Judgments

Topic

Misappropriation of company assets

Legal area

Court

21 Oct 2022

CHINA MEDICAL TECHNOLOGIES, INC (IN LIQUIDATION) AND OTHERS v. WU XIAODONG AND OTHERS

Citation

[2022] HKCFI 3237
Court

Court of First Instance
Case number

HCA3391/2016

The application for security for costs was dismissed because the court, having regard to all circumstances and the discretion under RHC O 23 r 1 and s905 CO, was satisfied the plaintiffs had a genuine and strong case of massive alleged fraud and misappropriation; ordering security would be unjust and oppressive as the plaintiffs' impecuniosity was substantially caused by the alleged wrongdoing; the defendant's contempt, absconding and US indictment further militated against ordering security.
29 Nov 2019

WONG CHUI YI 及另二人對梁顯聰

Citation

[2019] HKDC 1592
Court

District Court
Case number

DCCJ1118/2017

The court accepted the plaintiffs' factual account and found the defendant, as director and asset agent, breached fiduciary and agency duties by failing to keep or produce full accounts and by inappropriately using company assets; because the defendant failed to vindicate his position at trial and records were incomplete, the proper remedy was an order for accounts and repayment of amounts shown by those accounts with interest, whereas a blanket repayment of investors' contributions or damages for the alleged missed second injection was refused for lack of proved loss or legal basis.
30 Apr 2014

CHEN HA PING HEPBURN also known as CHEN HA PING AND ANOTHER v. LEELOONG INVESTMENT COMPANY LTD AND ANOTHER

Citation

CHEN HA PING HEPBURN also known as CHEN HA PING AND ANOTHER v. LEELOONG INVESTMENT COMPANY LTD AND ANOTHER
Court

Court of First Instance
Case number

HCMP1383/2013

Leave was granted to commence derivative actions on behalf of Loong San and Loong Wan in respect of the misappropriation sum of HK$11,375,108 because the respondent was in possession of company monies without a satisfactory defence or proof of beneficial entitlement; dividends dispute was resolved by the respondent's undertaking and no substantive relief was required; the Loans issue (beneficial ownership of purchase price channeled through respondent's account) was withdrawn by applicants and left to pending private litigation by the founder, thus no leave was granted on that issue and assoc…
11 Nov 2010

TAM PO KEI v. ED FORCES TRADING CO LTD AND OTHERS

Citation

TAM PO KEI v. ED FORCES TRADING CO LTD AND OTHERS
Court

Court of First Instance
Case number

HCCW379/2007

Court found that the affairs of the Company were conducted in a manner unfairly prejudicial to petitioner. Key holdings: (a) dividends stated in accounts were not properly declared and distributions after 1 Jan 1972 require accounting by Tam Bo Kin; (b) Tam Bo Kin must account for the unexplained shortfall in the joint savings account when closed (court found a shortfall and liability to account); (c) Tam Bo Kin must account for HK$2,683,199.50 being the part of the director/current account not shown to have been applied for the late Father's benefit; (d) directors' emoluments actually paid a…

Hong Kong Case Law

CHINA MEDICAL TECHNOLOGIES, INC (IN LIQUIDATION) AND OTHERS v. WU XIAODONG AND OTHERS

WONG CHUI YI 及另二人 對 梁顯聰

CHEN HA PING HEPBURN also known as CHEN HA PING AND ANOTHER v. LEELOONG INVESTMENT COMPANY LTD AND ANOTHER

TAM PO KEI v. ED FORCES TRADING CO LTD AND OTHERS

WONG CHUI YI 及另二人對梁顯聰