RE WAH FOOK HONG INTERNATIONAL CO LTD (“the Company”)

HCCW 6/2018

[2020] HKCFI 2362

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

COMPANIES WINDING-UP PROCEEDINGS NO 6 OF 2018

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D E C I S I O N

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1.  I have before me an application to stay the winding-up of the Company which was put into liquidation in March 2018. The application is straight forward.

2.  The Company has two creditors, both of whom have been paid.  It would appear that it has, in the form of a Mainland subsidiary, underlying assets which an investor wishes to acquire and for that purpose it is proposed that the liquidation is terminated.  The liquidators have provided to the Official Receiver and the court a report.  Neither the liquidators nor the Official Receiver suggest that there are any outstanding matters including action in respect of any director’s breach of duty that require action.

3.  The principles that guide the court’s consideration of applications for a permanent stay of a winding-up are explained in various decisions.  To succeed in the application, the burden is on the company to make out a sufficient case for a stay that carries conviction.  The court considers:

(a)  the interests of members creditors and the liquidator;

(b)  whether the stay is conducive or detrimental to commercial morality and to the interest of the public at large; and

(c)  whether if a stay is granted all creditors and potential outstanding liabilities of the company are provided for.

See: Re The Grande Holdings Ltd [1].

4.  I am satisfied that this is an appropriate case for a permanent stay to be granted and I so order.  I further order the liquidators namely, Huen Ho Yin and Huen Yuen Fun be discharged forthwith.