ONC Corporate Disputes and Insolvency Quarterly – August 2021
Business Law News
ONC Lawyers
Hong Kong
| ONC Corporate Disputes and Insolvency Quarterly | |||||||||||||||||||||||||||||||||||
| Dear Clients and Friends,This special newsletter aims to regularly update practitioners on important and noteworthy cases in the areas of corporate disputes and insolvency in Hong Kong, the UK and other common law jurisdictions. We would also seek to give alert on important legislative and regulatory initiatives from Hong Kong. In this issue, we have highlighted: | |||||||||||||||||||||||||||||||||||
| · 8 Corporate Insolvency Cases
· 3 Cross-border Insolvency Cases
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· 3 Corporate Disputes Cases· 8 Bankruptcy Cases | ||||||||||||||||||||||||||||||||||
| Our selection of cases and our analysis of them may not be exhaustive. Your comments and suggestions are always most welcome. Please feel free to contact me at ludwig.ng@onc.hkBest regards,
Ludwig Ng Partner, Solicitor Advocate ONC Lawyers
In this Quarterly, unless otherwise stated, the following abbreviations are used:-
- Section numbers refer to those in the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap 32, Laws of Hong Kong); - Rule numbers refer to those in the Companies (Winding Up) Rules (Cap 32H, Laws of Hong Kong); - “BO” means the Bankruptcy Ordinance (Cap 6, Laws of Hong Kong); - “CO” means Companies Ordinance (Cap 622, Laws of Hong Kong); - “the Company” refers to the company which is the subject matter of the disputes or the winding up petition; - “PL” means provisional liquidators
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| HEADLINES OF THIS ISSUE | |||||||||||||||||||||||||||||||||||
| • | Corporate Insolvency Cases | ||||||||||||||||||||||||||||||||||
| 1. Second petition dismissed where the Petitioner is aware of the earlier petition | |||||||||||||||||||||||||||||||||||
| Re Grand Peace Group Holdings Ltd [2021] HKCFI 1142 | |||||||||||||||||||||||||||||||||||
| 2. Unfair prejudice petition seeking winding up relief must be instituted under the companies winding up jurisdiction and there should be a separate petition for each company | |||||||||||||||||||||||||||||||||||
| Khan Khasman Kasidi Mahmood v Lucky Legend Industries Ltd [2021] HKCFI 2004 | |||||||||||||||||||||||||||||||||||
| 3. Court confirmed the reasonableness of a proposed sale upon the liquidators’ application for direction under section 200(3) | |||||||||||||||||||||||||||||||||||
| Re Founder Information (Hong Kong) Ltd [2021] HKCFI 1749 | |||||||||||||||||||||||||||||||||||
| 4. For future application to adjourn a winding-up petition against a listed company, it must be listed before Companies Judge | |||||||||||||||||||||||||||||||||||
| Yao Weitang v China Creative Global Holdings Ltd [2021] HKCFI 1565 | |||||||||||||||||||||||||||||||||||
| 5. Official Receiver’s claim for ad valorem fees dismissed as the same was only raised after the winding up proceedings were permanently stayed | |||||||||||||||||||||||||||||||||||
| Re GW Electronics Co Ltd [2021] HKCFI 1869 | |||||||||||||||||||||||||||||||||||
| 6. Timely reminder on the principles applicable in an application for leave to continue an action against a company in liquidation | |||||||||||||||||||||||||||||||||||
| Anglo Chinese Corporate Finance Ltd v Apastron Capital Ltd [2021] HKCFI 2042 | |||||||||||||||||||||||||||||||||||
| 7. Hsin Chong Saga: Yau Lee’s application to validate its takeover of the JV with Hsin Chong stayed pending outcome of the arbitration on the validity of the takeover notice | |||||||||||||||||||||||||||||||||||
| Re Hsin Chong Construction Co Ltd [2021] HKCFI 1295 | |||||||||||||||||||||||||||||||||||
| 8. Singapore Court of Appeal considered whether the company’s directors should be entitled to control the appeal against a winding-up order, and who should be responsible for the costs of the appeal | |||||||||||||||||||||||||||||||||||
| Sun Electric Power Pte Ltd v RCMA Asia Pte Ltd (formerly known as Tong Teik Pte Ltd) [2021] SGCA 60 | |||||||||||||||||||||||||||||||||||
| • | Cross-border Insolvency Cases | ||||||||||||||||||||||||||||||||||
| 9. Re China All Access Limited: First decision on Pilot Program for Mutual Recognition and Assistance to Insolvency Proceedings between the Courts of the Mainland and Hong Kong | |||||||||||||||||||||||||||||||||||
| Re China All Access (Holdings) Ltd [2021] HKCFI 1842 | |||||||||||||||||||||||||||||||||||
| 10. Concerned with misuse of the Z-Obee technique, the Court refused to assist offshore soft-touch provisional liquidators | |||||||||||||||||||||||||||||||||||
| Re China Bozza Development Holdings Ltd [2021] HKCFI 1235 | |||||||||||||||||||||||||||||||||||
| 11. For the third time in a Row – Court raised serious concerns on the potential misuse of overseas soft-touch provisional liquidation | |||||||||||||||||||||||||||||||||||
| Victory City International Holdings Ltd [2021] HKCFI 1370 | |||||||||||||||||||||||||||||||||||
| • | Restructuring Cases | ||||||||||||||||||||||||||||||||||
| 12. Parallel scheme should only be introduced in the place of incorporation if absent which there is a genuine risk of the company being wound up there | |||||||||||||||||||||||||||||||||||
| Re China Oil Gangran Energy Group Holdings Ltd [2021] HKCFI 1592 | |||||||||||||||||||||||||||||||||||
| 13. Sanction application ordered to be adjourned sine die pending the determination of the Listing Review Committee | |||||||||||||||||||||||||||||||||||
| Re Burwill Holdings Ltd (Provisional Liquidators Appointed) [2021] HKCFI 1318 | |||||||||||||||||||||||||||||||||||
| 14. Scheme meeting was allowed to proceed despite that the Listing Committee’s delisting decision was still under review | |||||||||||||||||||||||||||||||||||
| Re Grand Peace Group Holdings Ltd [2021] HKCFI 1563 | |||||||||||||||||||||||||||||||||||
| 15. English Court refused to sanction a Scheme due to inadequate explanation of alternatives and the unfair balance between the redress for the Scheme Creditors and the shareholders | |||||||||||||||||||||||||||||||||||
| Re All Scheme Limited [2021] EWHC 1401 (Ch) | |||||||||||||||||||||||||||||||||||
| 16. English Court held that in considering class compositions for scheme of arrangements, the court should avoid creating small voting classes as far as just and possible | |||||||||||||||||||||||||||||||||||
| Re DTEK Energy BV and Re DTEK Finance Plc [2021] EWHC 1456 (Ch) | |||||||||||||||||||||||||||||||||||
| • | Corporate Disputes Cases | ||||||||||||||||||||||||||||||||||
| 17. Court granted retrospective time extension for a company to lay financial accounts but refused out-of-time application to hold AGM | |||||||||||||||||||||||||||||||||||
| Re Goldbond Group Holdings Ltd (金榜集團控股有限公司) [2021] 2 HKLRD 742 | |||||||||||||||||||||||||||||||||||
| 18. Recent decision sheds light on how the Court would approach costs of the valuation process as a consequence of a buy-out order | |||||||||||||||||||||||||||||||||||
| Vitaly Orlov v Magnus Leonard Roth [2021] HKFI 1705 | |||||||||||||||||||||||||||||||||||
| 19. Latest in BVI: Unfair prejudice claims against the Majority Shareholder allowed to proceed whilst the claims against the Company stayed pending arbitration | |||||||||||||||||||||||||||||||||||
| Siong Beng Seng v Caldicott Worldwide Limited (BVIHCMAP 2020/0020) | |||||||||||||||||||||||||||||||||||
| • | Bankruptcy Cases | ||||||||||||||||||||||||||||||||||
| 20. Court of Appeal clarified that post-bankruptcy events could be taken into account in considering whether to rescind a bankruptcy order | |||||||||||||||||||||||||||||||||||
| Re Cheung Hing Chik also known as Charles H.C. Cheung, the debtor [2021] HKCA 981 | |||||||||||||||||||||||||||||||||||
| 21. Court of Appeal affirmed the decision below finding that the trustees in bankruptcy did not breach their duties to act with reasonable care and skill towards a major creditor of the bankrupt | |||||||||||||||||||||||||||||||||||
| Lau Chun Ming v Deloitte Touche Tohmatsu [2021] HKCA 546 | |||||||||||||||||||||||||||||||||||
| 22. A hybrid personal injury claim taken out by a bankrupt struck out due to lack of consent from his trustee in bankruptcy | |||||||||||||||||||||||||||||||||||
| Yip Kam Chun v Wellgain International Industrial Ltd [2021] HKDC 718 | |||||||||||||||||||||||||||||||||||
| 23. English Court of Appeal clarified that a bankrupt’s place of residence shall be given its natural meaning and hence it must be a settled or usual place of abode of the Bankrupt | |||||||||||||||||||||||||||||||||||
| Lakatamia Shipping Company Ltd v Su and others [2021] EWHC 1866 (Ch) | |||||||||||||||||||||||||||||||||||
| 24. The Singapore Court refused to validate division of matrimonial assets, finding it nothing but an attempt, through divorce proceedings, to put the Bankrupt’s assets out of the reach of his creditors | |||||||||||||||||||||||||||||||||||
| Ong Dan Tze Magdalene v Chee Yoh Chuang & Anor [2021] SGHC 129 | |||||||||||||||||||||||||||||||||||
| 25. The Court considered a married couple’s claim for common intention constructive trust in the context of bankruptcy | |||||||||||||||||||||||||||||||||||
| The Joint and Several Trustees of the Property of Yeung Wing Sing v. Yeung Wing Sing and Kwok Lai Au [2021] HKCFI 2018 | |||||||||||||||||||||||||||||||||||
| 26. Non-Commencement Order made against Ex-Akai chief James Ting on the basis of his total failure to cooperate with the Trustees in Bankruptcy | |||||||||||||||||||||||||||||||||||
| James Henry Ting v Akai Holdings Ltd [2021] HKCFI 1704 | |||||||||||||||||||||||||||||||||||
| 27. The court will not lightly accede to a request by the spouse of a bankrupt not to sell the co-owned property on the basis of hardship | |||||||||||||||||||||||||||||||||||
| Re Wong Lee Thomas [2021] HKCFI 1317 | |||||||||||||||||||||||||||||||||||