XCHRX Re C A Pacific Finance Ltd.

HCCW 36/1998

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

COMPANIES (WINDING UP) PROCEEDINGS

NO. 36 OF 1998

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D E C I S I O N

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1. This is an application under section 227B of the Companies Ordinance on the part of the Official Receiver for an order that 3 vacancies in the Committee of Inspection of C A Pacific Finance Limited be filled.

2. The report of the Official Receiver filed with the Court on 30 November 1999 shows that on 10 June 1998, the Court appointed a total of 6 persons and companies to be members of the Committee of Inspection of C A Pacific Finance Limited. Of those 6 persons and companies, 3 had since tendered their resignation: the papers disclose that in January 1999, Mr Poon Kwok Fai resigned; on 30 July 1999, Mr Harry Hon resigned and on 1 September 1999 Mr Kwok Tsz San resigned. This has left the Committee with only 3 members.

3. It would appear from the papers that as early as March 1999, the meeting of the Committee of Inspection was inquorate as only two members turned up. A further meeting was scheduled in April 1999 which was attended by only the 3 remaining members.

4. Obviously, this is not satisfactory. The whole point of having a Committee of Inspection is to enable the creditors, especially in a high profile case such as this, to be aware of and to assist in the liquidation of the company.

5. Upon the Official Receiver's enquiries, a number of persons have expressed their interest in appointment to the Committee of Inspection and I have seen some of the correspondence. The Official Receiver recommends that the following persons and companies be appointed to fill the vacancies: first of all, Mr Peter Chow whose claim as at 16 or 19 January 1998 was slightly in excess of $24 million; High Stake Limited whose amount of claim was $14 million and Mrs Yuen Kwong Wai Sheung whose amount of claim was $400,000.

6. In my view, the Court should accept the Official Receiver's recommendation as to the appointment of these persons. The first two persons, Mr Chow and High Stake Limited, have substantial claims and therefore could be expected to be interested in the progress of the liquidation. In relation to Mrs Yuen, although her claim is far less compared with the other two, and also compared with some other interested persons whose name have been proffered to the Official Receiver, it would appear from the correspondence that has been exhibited that she has expressed a keen interest in the progress of the liquidation. And it would also be fair that parties or creditors with small amounts of claims should also be represented so that the liquidation would take into account a wide spectum of parties involved.

7. Accordingly, the liquidators having indicated that they have no preferences one way or the other, I would order on this application that the vacancies in the Committee of Inspection of C A Pacific Finance Limited left by the resignation of Mr Kwok Tsz San, Mr Harry Hon and Mr Poon Kwok Fai be filled by the appointment of Mr Peter Chow, High Stake Limited and Mrs Yuen Kwong Wai Sheung.