Read the full judgment text of CACV 234/2012 on BabelCite. This Court of Appeal judgment was delivered on 17 September 2013 before Lam VP, Lunn JA and McWalters J.
Civil law – trusts – resulting trust – presumption of advancement – transfer of shares from mother to son – share lending – rebuttal of presumption of advancement – banking facility requirements – admissibility of evidence – appeal against primary findings of fact – transfer of 180,000 shares in Menfond Electronic Art & Computer Design Co Ltd from mother to son on 19 December 2006 to satisfy Standard Chartered Bank's requirement that the two sons be majority shareholders of the company for grant of overdraft and other banking facilities – whether Judge erred in finding that mother intended to 'lend' rather than gift the shares – whether presumption of advancement applicable to mother-to-son share transfer and whether presumption was rebutted – whether conversation between mother's other son (Victor) and mother was admissible to prove her intention – whether resulting trust claim is inconsistent with 'lending' case – court followed Overseas Trust Bank Ltd v Lee See Ching John holding that presumption of advancement is displaced by evidence of transferor's actual intention – court applied Ting Kwok Keung v Tam Dick Yuen standard for disturbing primary findings of fact – Victor was found to have acted on behalf of himself and the Defendant when asking mother to lend the shares – appeal dismissed with costs with certificate for two counsel.
Legal issues: Disturbance of primary finding of fact on transferor's intention · Rebuttal of presumption of advancement in mother-to-son share transfer · Admissibility of conversation between non-party sibling and transferor to prove intention · Consistency of resulting trust claim with 'lending' case
Outcome: Appeal dismissed.
Cited by 1 case · Cites 1 case