Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Pari passu ex post facto distribution

Legal area

Court

17 Mar 2014

RE PERFORMANCE INVESTMENT PRODUCTS CORPORATION LTD

Citation

RE PERFORMANCE INVESTMENT PRODUCTS CORPORATION LTD
Court

Court of First Instance
Case number

HCCW348/2007

The court held the Subject Funds are trust assets, tracing individual entitlements is impracticable, and the Berkeley Applegate principle applies: the Joint Liquidators are entitled to have their reasonable fees and disbursements assessed and paid out of the Subject Funds. The Philippines injunction is not binding or enforceable in Hong Kong and the Liquidator is directed not to comply. The proposed cross-border protocol with the BVI is approved. Taxation of fees shall be undertaken by a taxing master applying a prudence/relevance test and allowing creditor participation in the taxation proce…
20 Dec 2000

RE FORLUXE SECURITIES LTD.

Citation

RE FORLUXE SECURITIES LTD.
Court

Court of First Instance
Case number

HCCW311/1998

Clients' entitlements to shares held by Forluxe are proprietary trusts; because documentary and operational records prevented identification between cash and margin clients the appropriate method for allocating shares where there is a shortfall is an ex post facto pari passu rateable distribution within each line of stock; liquidators' reasonable fees may be paid from trust assets; and the SFC's statutory subrogation under s.118 is limited to the proportion that its payment bears to the claimant's total loss.