Hong Kong Case Law: Decisions & Judgments

Topic

Validation order under section 182

Legal area

Court

16 Dec 2013

FANCYMIND INC v. FAKO INTERNATIONAL CORPORATION AND OTHERS

Citation

FANCYMIND INC v. FAKO INTERNATIONAL CORPORATION AND OTHERS
Court

Court of First Instance
Case number

HCCW373/2011

The court ordered distribution of the sale proceeds in accordance with the shareholding structures because the companies are solvent, the directors' proposed disposition was within their powers and an intelligent and honest person could view it as necessary or expedient in the companies' interests, and no compelling evidence was shown that the distribution would injure the companies.
25 Aug 2009

RE LEHMAN BROTHERS SECURITIES ASIA LTD

Citation

RE LEHMAN BROTHERS SECURITIES ASIA LTD
Court

Court of First Instance
Case number

HCCW437/2008

The court exercised its jurisdiction to grant interim payments but limited the interim drawdown to 75% of the claimed fees for the Provisional Liquidators and their agents (excluding fees relating to Billing Tasks) and 100% of other disbursements, on the basis that the applications were supported by extensive evidence, but that caution was required given unresolved assessment matters (charge-out rates, potential reductions, and absence yet of an assessor); Billing Tasks were excluded from interim payment pending further assessment; undertakings to repay any excess were obtained and a validati…
25 Aug 2009

RE LEHMAN BROTHERS ASIA LTD

Citation

RE LEHMAN BROTHERS ASIA LTD
Court

Court of First Instance
Case number

HCCW442/2008

The court exercised its jurisdiction to authorise interim payments on account of provisional liquidators' remuneration in this large, complex multi-jurisdictional liquidation, but limited the interim quantum to 75% of the fees claimed for the Provisional Liquidators and their agents (excluding Billing Tasks) and allowed 100% of other disbursements; Billing Tasks were excluded from interim payment pending further assessment; undertakings to repay excess were accepted and a validation order under s182 was granted; liberty to apply for further interim payments was given.
28 Jun 2006

RE NU-WEST NATURAL PRODUCTS CORP LTD

Citation

RE NU-WEST NATURAL PRODUCTS CORP LTD
Court

Court of First Instance
Case number

HCCW293/2006

The court dismissed the validation application because the company could not be shown to be solvent on a cashflow/liquidity test, and there was clear evidence of diversion of company funds and business to a new company established by the 1st respondent; granting validation would likely deplete company assets to the prejudice of the petitioner (a 50% shareholder) and a major creditor (Nu-West US), so the court exercised its discretion to refuse relief under s.182 and ordered costs against the 1st respondent.

Hong Kong Case Law

FANCYMIND INC v. FAKO INTERNATIONAL CORPORATION AND OTHERS

RE LEHMAN BROTHERS SECURITIES ASIA LTD

RE LEHMAN BROTHERS ASIA LTD

RE NU-WEST NATURAL PRODUCTS CORP LTD