Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Share premium and capital reserves
  • 4 Jun 2014

    RE CNT SECURITY GROUP LTD

    Citation
    RE CNT SECURITY GROUP LTD
    Court
    Court of First Instance
    Case number
    HCMP2227/2013

    The petition to reduce share capital is sanctioned because the court is satisfied the four primary criteria are met (equitable treatment of shareholders, proper explanation, discernible purpose and creditor safeguards) and the proposed undertakings creating special capital reserves, with restrictions on distributability and auditor reporting, adequately protect creditors and are the appropriate mechanism following s135 Cap 622.