Hong Kong Case Law: Decisions & Judgments

Topic

Shelf company

Legal area

Court

26 Sept 2013

SUNNY SECURITIES INVESTMENT LTD v. BENELUX MANUFACTURING LTD

Citation

SUNNY SECURITIES INVESTMENT LTD v. BENELUX MANUFACTURING LTD
Court

Court of First Instance
Case number

HCA1801/2005

There was a prima facie case that the plaintiff would be unable to pay the defendant's costs because recent asset injections and increased capital were not credibly explained and the plaintiff failed to produce supporting evidence of trading or assets; accordingly security for costs should be ordered and the proceedings stayed until paid; the appropriate amount to cover to the end of trial is HK$1,200,000.
16 Mar 2001

ALCAN CONSTRUCTION MATERIALS LTD v. KWOK HO TAK

Citation

ALCAN CONSTRUCTION MATERIALS LTD v. KWOK HO TAK
Court

Court of First Instance
Case number

HCCT49/2000

Defendant did not establish the prima facie case under s.357 by relying solely on the plaintiff's status as a shelf company; accordingly s.357 was not triggered and, even if it had been, the court would have declined to exercise its discretion to order substantial security because the claim was bona fide, small and an order for large security would be oppressive.
23 Oct 2000

ALWAYS NEW LTD. v. CHOW CHI NANG AND ANOTHER

Citation

ALWAYS NEW LTD. v. CHOW CHI NANG AND ANOTHER
Court

Court of First Instance
Case number

HCA12994/1997

On the evidence the plaintiff was a shelf company with no apparent assets, nominal share capital and directors/shareholders resident at the same address, the court reasonably inferred the plaintiff would likely be unable to pay the defendants' costs; exercising its discretion under s.357 Companies Ordinance the court ordered security of HK$150,000 and stayed proceedings until it was provided.

Hong Kong Case Law

SUNNY SECURITIES INVESTMENT LTD v. BENELUX MANUFACTURING LTD

ALCAN CONSTRUCTION MATERIALS LTD v. KWOK HO TAK

ALWAYS NEW LTD. v. CHOW CHI NANG AND ANOTHER