Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Rights issue/dilution
  • 2 Jan 2003

    RE KENLY (HK) LTD.

    Citation
    RE KENLY (HK) LTD.
    Court
    Court of First Instance
    Case number
    HCCW964/2002

    The court dismissed the strike-out application. It held that (1) the locus challenge to the 2nd petitioner (Brian Cheng) could not be resolved on existing evidence and he should not be struck out in relation to s168A; (2) the factual allegations (forgery, dilution via rights issue, misleading audited accounts) disclose a cause of action for winding-up and it is not plain and obvious they will fail; and (3) given unresolved factual disputes and the distinct position of Brian Cheng, it was not appropriate to strike out the winding-up allegations as unreasonable; costs orders nisi were granted a…