Read the full judgment text of HCMP 202/1998 on BabelCite. This Court of First Instance judgment was delivered on 6 March 2012 before Chu JA.
Civil law – trust administration – co-trustees – finalization of list of shareholders/beneficiaries – Order dated 18 July 2005 (as varied) – beneficial ownership of trust shares – whether assignment by original shareholder of properties allocated pursuant to a share constitutes assignment of the interest under the share – whether failure to have original shareholder join as confirmor and failure to give notice of sale to trustees gives rise to inference that original shareholder retained interest – approach of analyzing available evidence to determine whether there is real risk that the interest was not validly transferred – seven specific cases considered: Shares no.15 and 16, no.58, no.75 and 76, no.88, no.139, no.157 and 158, and no.214 – Kong Yiu Hung admitted as beneficiary of Shares no.15 and 16 – Yip Ching Chee may be admitted as beneficiary of Share no.58 subject to confirmation or declaration from Chan Yip Che or both – Tam Fou Kwan and Tam Chi Keung Alan admitted as beneficiaries of Shares no.75 and 76 – Share no.88 to be established by further steps including contacting Chow Suet Lin, conducting probate search for estate of Chow Hin Ming, and obtaining declaration from Amy Lam – Lam Yuet Ngor admitted as beneficiary of Share no.139 – Ip Choi Hing may be admitted as beneficiary of Shares no.157 and 158 subject to confirmation or declaration from Lam Yu Yuk or both – Share no.214 to be established subject to declaration(s) from Kwan Ping and/or Kwan Hoi Ping, Kwan Hoi Ching Osward, and Kwan Hoi Yin – further directions for finalization of list, trust accounts, and shareholders' meeting – manner of giving notice of shareholders' meeting adopted as proposed – costs of Co-trustees ordered to be paid out of the Trust on trustee basis by order nisi, to become absolute in 14 days if not varied – Co-trustees reminded of duties under paragraph (3)(g) and (h) of the Order to report to the court on outcome of investigations of the Trust accounts and any disagreements between them.
Legal issues: Whether assignment of property allocated pursuant to a share constitutes assignment of the interest under the share · Whether deviations from best practice in conveyance give rise to inference that original shareholder retained interest in share · Whether costs of the Co-trustees in connection with this determination should be paid out of the Trust on trustee basis
Outcome: The court determined the beneficiaries of the seven outstanding shares, admitting some unconditionally, admitting others subject to confirmation or declaration, and requiring further steps for two shares. Further directions were given for finalizing the list, the trust accounts, and the shareholders' meeting. An order nisi was made that the Co-trustees' costs of the determination be paid out of the Trust on trustee basis.