Hong Kong Case Law: Decisions & Judgments

Topic

Priority of liquidation expenses

Legal area

Court

18 Oct 2022

RE SAMWELL SPARE PARTS LTD

Citation

[2022] HKCFI 3185
Court

Court of First Instance
Case number

HCCW379/2021

A proportion of the liquidator's pre- and post-petition costs were properly and necessarily incurred in the voluntary liquidation and in addressing serious allegations and court updates; there was insufficient basis to fix those costs on the Connected Creditors; accordingly the liquidator's reasonable costs and any Official Receiver costs are liquidation expenses payable from the company's assets and the statutory priority of payment is not varied.
1 Apr 2003

RE FIVE STAR WINE LTD

Citation

RE FIVE STAR WINE LTD
Court

Court of First Instance
Case number

HCCW1208/2002

The court exercised its discretion under s209(1) to grant a conditional stay of the winding-up because the sole remaining creditor (the Petitioner) and the Provisional Liquidators consented and the proposed conditions (payment of the petition debt with interest, additional costs to the petitioner, and security of HK$150,000 for liquidators' and Official Receiver's expenses) adequately protected creditors and the liquidator; the stay takes effect only upon compliance with the specified payments and does not allow the company to resume trading until the conditions are met.
20 Mar 1990

EXTRAMONEY LTD AND ANOTHER v. CHAN, LAI, PANG AND CO (a firm)

Citation

EXTRAMONEY LTD AND ANOTHER v. CHAN, LAI, PANG AND CO (a firm)
Court

Court of Appeal
Case number

CACV199/1989

The judge erred in law by failing to take into account that liquidation expenses (including costs awarded against the liquidators) are payable with priority and therefore, on the liquidators' evidence and undertakings, CHL had rebutted the presumption of insolvency for the purposes of s.357; accordingly the discretion to order security against CHL never arose and the order requiring security was set aside. Security against Extramoney was also unnecessary because CHL's assets and the undertakings meant the defendant was adequately protected.
25 Jul 1986

RE KING\'S DYEING & WEAVING FACTORY LTD

Citation

RE KING\'S DYEING & WEAVING FACTORY LTD
Court

Court of First Instance
Case number

HCCW217/1986

The Official Receiver was appointed as provisional liquidator effective 23 July 1986 because the petitioner had established prima facie insolvency and risk to assets, the directors effected a sudden and unexplained voluntary winding-up which did not demonstrate majority creditor support, and the Official Receiver was better placed to protect creditors' and workforce interests than the newly appointed voluntary provisional liquidators.

Hong Kong Case Law

RE SAMWELL SPARE PARTS LTD

RE FIVE STAR WINE LTD

EXTRAMONEY LTD AND ANOTHER v. CHAN, LAI, PANG AND CO (a firm)

RE KING\'S DYEING & WEAVING FACTORY LTD