Khor Yong Yong (Liquidator Of Shigen Polycolor Sdn. Bhd. (In Liquidation) [Company No: 200101031179 (566938-x)] 1. ) TAN KHENG GUAN 2. ) CHU KOK KHING 3. ) EE GENG CHOON

Khor Yong Yong (Liquidator Of Shigen Polycolor Sdn. Bhd. (In Liquidation) [Company No: 200101031179 (566938-x)] 1. ) TAN KHENG GUAN 2. ) CHU KOK KHING 3. ) EE GENG CHOON

Where a court-appointed liquidator has performed liquidation duties while his appointment was in effect he is entitled to fair and reasonable remuneration and reimbursement of expenses for that period even if the winding up order is later set aside; professionals appointed by the liquidator may be paid as part of those expenses; liability to pay is imposed on the losing party in the underlying winding up petition (shareholder who loses), not the company.

Citation
PA-28PW-30-08/2023 (Mahkamah Tinggi)
Parties
Applicant (liquidator): Khor Yong Yong; 1st Respondent (petitioner): Tan Kheng Guan; 2nd Respondent: Chu Kok Khing; 3rd Respondent: Ee Geng Choon
Court
High Court
Jurisdiction
Malaysia
Judgment Date
20 January 2025
Case Number
PA-28PW-30-08/2023 (Mahkamah Tinggi)
Procedural Posture
Liquidator's Remuneration Application Following Setting Aside of Winding Up Order / Judgment on Liquidator's Application for Remuneration
Outcome
Application allowed in part. Liquidator's fees and expenses and solicitors' professional fees ordered to be paid by the losing party in Petition PA-28NCC-42-05/2022; costs awarded to solicitors as specified; alternative sharing if petition withdrawn or settled.
Legal Topics
Liquidator Remuneration, Winding Up, Setting Aside Winding Up Order, Priority of Payments, Costs Orders
Source Language
Malay/English
Company Law Insolvency Law Civil Procedure Liquidator Remuneration Winding Up Setting Aside Winding Up Order Priority of Payments Costs Orders

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Parties

Khor Yong Yong

Applicant (liquidator)

Tan Kheng Guan

1st Respondent (petitioner)

Chu Kok Khing

2nd Respondent

Ee Geng Choon

3rd Respondent

Procedural Posture

Liquidator's Remuneration Application Following Setting Aside of Winding Up Order / Judgment on Liquidator's Application for Remuneration

Legal Issues

  1. 1 Whether a court-appointed liquidator is entitled to remuneration for work performed while appointment was in effect even if the winding up order is later set aside
  2. 2 Who is liable to pay the liquidator's remuneration and expenses and the fees of professionals appointed by the liquidator
  3. 3 Whether company funds should be used to meet costs arising from a shareholders' dispute

Ratio Decidendi

Where a court-appointed liquidator has performed liquidation duties while his appointment was in effect he is entitled to fair and reasonable remuneration and reimbursement of expenses for that period even if the winding up order is later set aside; professionals appointed by the liquidator may be paid as part of those expenses; liability to pay is imposed on the losing party in the underlying winding up petition (shareholder who loses), not the company.

Court Disposition

Application allowed in part. Liquidator's fees and expenses and solicitors' professional fees ordered to be paid by the losing party in Petition PA-28NCC-42-05/2022; costs awarded to solicitors as specified; alternative sharing if petition withdrawn or settled.

Orders

  • Order that the losing party in Petition No. PA-28NCC-42-05/2022 pay to the liquidator Khor Yong Yong the sum of RM54,873.51 within one month from the date the winding up Court determines Petition 42
  • Order that the losing party in Petition No. PA-28NCC-42-05/2022 pay to Messrs. Cheng, Lee & Goh the sum of RM10,000 (professional fees and disbursements) within one month from the date the winding up Court determines Petition 42