LIM HANG YOUNG v. L&A INTERNATIONAL HOLDINGS LTD AND ANOTHER

HCCW 169/2017

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

COMPANIES WINDING‑UP PROCEEDINGS NO 169 OF 2017

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D E C I S I O N

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1.  On 6 June 2017 the petitioner, Lim Hang Young, issued a petition seeking a winding-up order against the 1^st respondent (“Company”), which is listed on the GEM Board of the Stock Exchange of Hong Kong Limited, and the 2^nd respondent, the majority shareholder of the Company. In short, serious mismanagement is alleged.

2.  The petitioner, who is Korean, did not appear on the first hearing of the petition and has not appeared today on the hearing of a summons issued on 16 August 2017 seeking an order striking out the petition against both respondents. 

3.  The summons and evidence were served at the petitioner’s address as it appears in the petition.

4.  I will strike out the petition and make an order that the petitioner pays the 1^st and 2^nd respondents’ costs.  In my view, given the petitioner’s complete inactivity following presentation of petition, it is appropriate that those costs be assessed on an indemnity basis which I so order.

5.  I note that the Companies Court has had a series of petitions to deal with in the last couple of years which involve Korean petitioners issuing similar petitions to wind up small listed companies on the grounds of misconduct.  It is unclear what their motivation is, but it might be prudent for this to be brought to the attention of the Securities and Futures Commission in order that they can ensure that it does not involve any market manipulation.