Hong Kong Case Law: Decisions & Judgments

Topic

Validation order under s182

Legal area

Court

1 Mar 2010

SIU PING v. CHAN WAI CHI LOUIS AND OTHERS

Citation

SIU PING v. CHAN WAI CHI LOUIS AND OTHERS
Court

Court of First Instance
Case number

HCCW82/2010

The court held that the company was solvent on the facts (prepaid customer coupons comprise the main liabilities but are matched by ongoing service obligations and trading), and that payments of rent and employee salaries/commissions were necessary and expedient to enable the company to continue trading and protect the interests of the general body of unsecured creditors; accordingly a validation order under s182 was granted, subject to capping the disputed salary increases for the 1st and 2nd Respondents at pre-increase levels.
25 Aug 2009

RE LEHMAN BROTHERS FUTURES ASIA LTD

Citation

RE LEHMAN BROTHERS FUTURES ASIA LTD
Court

Court of First Instance
Case number

HCCW438/2008

Given the scale and detailed evidential justification, the court exercised its jurisdiction to permit interim payments but declined the 80% requested; it ordered 75% interim payment of provisional liquidators' and agents' fees (excluding billing tasks), 100% interim payment of other disbursements, withheld interim payment for billing tasks pending further assessment, required undertakings to repay any overpayment (with three Hong Kong solicitors giving direct undertakings), granted leave to apply for further interim payments and made a s182 validation order; costs reserved.
25 Aug 2009

RE LEHMAN BROTHERS ASIA HOLDING LTD

Citation

RE LEHMAN BROTHERS ASIA HOLDING LTD
Court

Court of First Instance
Case number

HCCW443/2008

The court exercised its jurisdiction to authorize interim payments on account of provisional liquidators' remuneration in a very large and complex insolvency, but limited the interim quantum to 75% of the fees claimed for provisional liquidators and their agents (excluding Billing Tasks) and allowed 100% of other disbursements; Billing Task costs were excluded from interim payment and left for further consideration; undertakings to repay any excess were accepted and a validation order under s182 was granted; liberty to apply for further interim payments was given.
25 Aug 2009

RE LEHMAN BROTHERS FUTURES ASIA LTD

Citation

RE LEHMAN BROTHERS FUTURES ASIA LTD
Court

Court of First Instance
Case number

HCCW452/2008

The court exercised its jurisdiction to permit interim payments on account but limited the payment to 75% of the fees claimed for the provisional liquidation period (excluding fees relating to billing tasks) and 100% of other disbursements, granted liberty to apply for further interim payments, required undertakings from the Provisional Liquidators and principal Hong Kong solicitors to repay any excess, and validated the payments under section 182; billing-task fees were excluded from interim payment pending further assessment.
25 Aug 2009

RE LEHMAN BROTHERS FUTURES ASIA LTD

Citation

RE LEHMAN BROTHERS FUTURES ASIA LTD
Court

Court of First Instance
Case number

HCCW463/2008

The court exercised its jurisdiction to order interim payments but reduced the percentage sought: it ordered interim payments of 75% of the fees claimed by the provisional liquidators and their agents for the provisional liquidation period (excluding fees for billing tasks), granted 100% interim reimbursement of other disbursements, declined any interim payment for billing tasks pending further assessment, and required undertakings to repay any excess; the court also granted a validation order under section 182 and reserved costs.
7 Dec 2005

RE GOLDCO DEVELOPMENT LTD

Citation

RE GOLDCO DEVELOPMENT LTD
Court

Court of First Instance
Case number

HCCW711/2005

Validation granted because provisional liquidators demonstrated the employee payments and the storage agreement were in the interests of the company, were arm's length, provided necessary working capital, and faced no opposition or government objection; the appointment order was amended to remove ambiguity and to make explicit the power to engage and remunerate solicitors; costs ordered to be paid from company assets.
28 Oct 2004

RE THE INCORPORATED OWNERS of FOREMOST BUILDING

Citation

RE THE INCORPORATED OWNERS of FOREMOST BUILDING
Court

Court of First Instance
Case number

HCCW47/2004

Court held that provisional liquidators may be authorized under s182 to make payments out of monies in the Companies Liquidation Account that represent owners' contributions for the purpose of paying necessary monthly management expenses of the building, provided such contributions are kept separate from funds intended to satisfy judgment creditors; accordingly the court granted a validation order in part, specifying amounts for past months and a capped monthly sum for the future, and refused validation in respect of the purported lift maintenance agreement and deferred payment of the secreta…
22 Apr 2004

RE: OCEAN CHINA INTERNATIONAL LTD

Citation

RE: OCEAN CHINA INTERNATIONAL LTD
Court

Court of First Instance
Case number

HCCW757/2003

The court granted a validation order in part by specifying and limiting the sums to be validated: historic operating expenses of HK$803,369.51, monthly operating expenses capped at HK$130,000.00 until further order, disbursements of US$20,723.58, and the Labour Tribunal award of HK$153,802.74; the court refused validation of the disputed HK$72,716.65. Costs were ordered in the cause.
12 Jun 2000

Re Citiform Ltd.

Citation

Re Citiform Ltd.
Court

Court of First Instance
Case number

HCCW1108/1999

The judge exercised discretion to adjourn the validation application to allow the board to meet and attempt ratification rather than dismissing the application; because the solicitors and remaining directors failed to give timely notice and caused a wasted hearing, the costs of that hearing were ordered to be borne by Messrs Pang, Wan & Choi.