RE CONCORD UNITED LTD (IN CREDITORS VOLUNTARY LIQUIDATION)

HCMP 2927/2004

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

MISCELLANEOUS PROCEEDINGS NO. 2927 OF 2004

____________

____________

_____________

D E C I S I O N

_____________

1.  This is an application by Mr Ho Fung Yuen and Mr Lam Hak Sing under section 248(4) of the Companies Ordinance, Cap. 32 that the date of dissolution of Concord United Limited (in creditors’ voluntary liquidation) (“the Company”) be deferred to 19 November 2005.

2.  The applicants are the only shareholders and directors of the Company.  This is the second occasion they applied for an order to defer the dissolution of the Company.  On 21 May 2004, I made an order deferring the dissolution to 19 November 2004 for the reasons set out in my decision in HCMP No. 1055 of 2004.  I refer to that decision for the relevant background matters.  In summary, the Company seeks to defer its dissolution to contest the mortgage action brought by Wing Hang Bank Limited against the Company and others in HCMP No. 1944 of 2003.  The mortgage action was commenced on 7 May 2003 but no action was taken by the bank since the filing of evidence on its behalf on 2 March 2004.  The Company and Mr Lam intend to apply to court to strike out the mortgage action if the bank should continue not to proceed with it in another 6 months.  So the Company seeks an order deferring its dissolution for another 12 months.

3.  The liquidator of the Company has filed evidence in support stating that the applicants have agreed with him his fees for acting in the liquidation of the Company, including such action as may be required to contest the mortgage action.  The applicants have agreed to bear the legal costs and disbursements in defending the mortgage action and the deferral of the dissolution of the Company.  The liquidator has acknowledged that he would be liable to pay such costs and disbursements if they cannot be recovered from the applicants.

4.  It does not appear to me that the interest of any creditor of the Company should be affected by the deferral of the dissolution.

5.  I therefore make an order in terms of the Originating Summons as amended.  I further order the applicants to deliver to the Registrar of Companies, within 7 days hereof, an office copy of the order for registration, pursuant to section 248(5).