Read the full judgment text of HCCT 28/2002 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 3 June 2004 before Hon Reyes J.
Procedure — Equitable execution — Appointment of receivers — Shares as judgment debtor's assets — Enforcement of charging and garnishee orders — Access to financial information of private companies — Conflicts of interest — Powers of receivers — Future debts and dividends — Legal impediment of garnishee orders not attaching future debts — Court discretion. KBC applied for receivers over Pertamina's shares in three Hong Kong private companies to facilitate enforcement of an arbitration award converted to judgment. The Court refused appointment of receivers with shareholder powers to access further financial information and control, citing existing means of obtaining financial data and risks of conflicts if receivers acted as directors. However, the Court appointed receivers with powers to ascertain and receive monies due or to become due (including dividends), given garnishee orders' limits and risk of unauthorized payments. Costs were ordered against Pertamina. Application partly granted to balance practical enforcement with judicial caution over receivership powers.
Legal issues: Appointment of receivers with shareholder powers · Appointment of receivers to receive future debts and dividends
Outcome: Appointment of receivers limited to powers to ascertain and receive monies due from the 3 Companies; refusal to appoint receivers with shareholder powers enabling access to further financial information or control.
Cited by 2 cases