Cheung Hing v. Wah Fung Forest Resources Ltd

Read the full judgment text of HCMP 9/2017 on BabelCite. This High Court CFI judgment was delivered on 8 March 2017.

1. On this return date of Mr Cheung’s application for leave to bring a statutory derivative action in the name of the defendant company against Marcellotino Limited and Good Brothers Finance Limited, there seem to me to be circumstances appearing in Mr Cheung’s affirmation that prima facie raise concern, but, quite apart from the need to allow an opportunity for the defendant to file evidence, if it wishes, to contest the application, there are a few matters that need to be looked into.

Cites 1 case

Case No.HCMP 9/2017
Court
High Court CFI
Date08 Mar 2017
Judge
Case Document
100%Judiciary

HCMP 9/2017

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

MISCELLANEOUS PROCEEDINGS NO 9 OF 2017

____________________

  IN THE MATTER OF Wah Fung Forest Resources Limited
  and
  IN THE MATTER OF an application under Section 168BC of the Companies Ordinance (Cap 32)

____________________

BETWEEN
  CHEUNG HING Plaintiff
and
  WAH FUNG FOREST RESOURCES LIMITED Defendant

____________________

Before: Hon G Lam J in Chambers

Date of Hearing: 8 March 2017

Date of Decision: 8 March 2017

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D E C I S I O N

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1.On this return date of Mr Cheung’s application for leave to bring a statutory derivative action in the name of the defendant company against Marcellotino Limited and Good Brothers Finance Limited, there seem to me to be circumstances appearing in Mr Cheung’s affirmation that prima facie raise concern, but, quite apart from the need to allow an opportunity for the defendant to file evidence, if it wishes, to contest the application, there are a few matters that need to be looked into.

2.B Chu J granted an injunction in HCA 336/2008 on 10 November 2014 which on the face of it prevented the Company from dealing in any way with the property.  That injunction extended to Mr Wong Chor‑cheung who was the 1st defendant in that action.  Further, there were orders made by B Chu J on 13 August 2015 and 22 December 2016 in the same action requiring Mr Wong and the Company to provide Mr Cheung with certain information and documents, including information regarding the mortgages with Marcellotino Limited and Good Brothers Finance Limited.  It is not clear whether, and to what extent, these orders have been complied with.

3.The dispute between Mr Cheung and Mr Wong in relation to the Company and the Plantation Road property has generated a great deal of actions and proceedings.  There are already more than one derivative action commenced in the name of the Company.  In considering this new application for leave to bring another derivative action, the court should be apprised of their status and position as part of the overall circumstances.

4.Further, apparently some of the derivative actions commenced in the name of the Company have come to a standstill because Mr Cheung, as a litigant in person, has not been able to progress them.  It is a question that the court as well as the parties need to consider whether further proceedings should be brought in the name of the Company unless it is shown that they will be pursued and serve a purpose. 

5.I will therefore adjourn the Originating Summons sine die with liberty to restore.  That will also allow an opportunity for the technical matters raised by Mr Wong on behalf of the Company to be dealt with and resolved if the proceedings are to be pursued further.

  (Godfrey Lam)
Judge of the Court of First Instance
High Court

The plaintiff appeared in person

Mr Thomas Wong, instructed by W K To & Co, for the defendant