Hong Kong Case Law: Decisions & Judgments

Topic

Waiver of procedural irregularities

Legal area

Court

18 Apr 2000

Re Fairking Transportation Ltd.

Citation

Re Fairking Transportation Ltd.
Court

Court of First Instance
Case number

HCMP431/2000

The court applied the rights test to class composition and concluded that internal creditors could properly be included in the same class because their legal rights in respect of the unsecured portion were not so dissimilar as to make consultation for common interest impossible; disputed claims properly valued at zero in good faith may be excluded from voting; the technical irregularities were waived; substantial independent creditor support remained and therefore the court exercised its discretion to sanction the 25 Schemes (subject to the stated condition precedent).
18 Apr 2000

Re UDL Steel Fabricators & Shipbuilders Co. Ltd.

Citation

Re UDL Steel Fabricators & Shipbuilders Co. Ltd.
Court

Court of First Instance
Case number

HCMP421/2000

The court applied the rights test to determine classes, held that internal creditors could vote as their legal rights were not so dissimilar as to make consultation impossible, found no confiscation or injustice to preferential or disputed creditors given preservation of preferential rights and good faith valuation of disputed claims, accepted that the meetings were representative with substantial independent support and exercised its discretion to waive technical irregularities; accordingly the court sanctioned the 25 schemes (subject to the stated condition precedent).
18 Apr 2000

Re Faith On International Ltd.

Citation

Re Faith On International Ltd.
Court

Court of First Instance
Case number

HCMP430/2000

The court applied the rights test for class constitution, held that the meetings were not unrepresentative and that inclusion of internal creditors did not produce confiscation or injustice; disclosure and valuation of disputed claims were not shown to be made in bad faith nor likely to have materially affected votes; accordingly the court exercised its discretion to sanction the 25 Schemes of Arrangement subject to the stated condition precedent (Stock Exchange approval).
18 Apr 2000

Re UDL Marine Pte Ltd.

Citation

Re UDL Marine Pte Ltd.
Court

Court of First Instance
Case number

HCMP415/2000

The court applied the rights test to classify creditors, found no dissimilarity of legal rights that warranted separate class meetings for internal or preferential creditors, accepted that disputed claims valued at zero may be excluded from voting if reasonably assessed in good faith, concluded identified irregularities were technical and waivable, and exercised its discretion to sanction the 25 Schemes on terms (including reserving costs and a Stock Exchange approval condition).

Hong Kong Case Law

Re Fairking Transportation Ltd.

Re UDL Steel Fabricators & Shipbuilders Co. Ltd.

Re Faith On International Ltd.

Re UDL Marine Pte Ltd.