Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Paid-up capital

  • 2 Feb 2001

    SAN HEINES INVESTMENTS LTD. v. THL (HOLDINGS) CO. LTD. AND ANOTHER

    Citation
    SAN HEINES INVESTMENTS LTD. v. THL (HOLDINGS) CO. LTD. AND ANOTHER
    Court
    Court of First Instance
    Case number
    HCA13883/1997

    Defendants failed to adduce credible evidence from which it could reasonably be inferred that the plaintiff will be unable to pay costs; the only reliable fact is the plaintiff's paid-up share capital of HKD 1,000,000, which distinguishes it from shell companies and does not satisfy the statutory test under s.357, therefore the security for costs application is dismissed.

    • Security for costs
    • Companies ordinance s.357
    • Paid-up capital
    • Impecuniosity
    • Onus of proof

  • 10 Apr 1984

    YIELD SUN (COMPANIES SECRETARIES) LTD v. SHUI HING INVESTMENT CO LTD AND ANOTHER

    Citation
    YIELD SUN (COMPANIES SECRETARIES) LTD v. SHUI HING INVESTMENT CO LTD AND ANOTHER
    Court
    Court of First Instance
    Case number
    HCA10159/1983

    Security for costs under s.357 was ordered because plaintiffs were companies with paid-up capital of $2 and failed to demonstrate additional assets; the court exercised its broad discretion to fix an aggregate security of HKD 54,000 (HKD 13,500 per plaintiff) based on an assessment that the trial would last five days with only junior counsel instructed and appropriate allowances for counsel and solicitors' costs, and stayed the actions until satisfactory security in the form of bank guarantees was provided.

    • Security for costs
    • Paid-up capital
    • Stay of proceedings
    • Assessment of party and party costs