SINO RESOURCES GROUP LTD v. HUNG CHEN RICHAEL AND OTHERS

HCMP 1805/2010

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF APPEAL

MISCELLANEOUS PROCEEDINGS NO. 1805 OF 2010

(ON AN INTENDED APPEAL FROM HCA NO. 2477 OF 2009)

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D E C I S I O N

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1.  In my view the issue of whether the holding of the Annual General Meeting constitutes a material change of circumstance for the purpose of varying the injunction re-granted by Chung J has a reasonable prospect of success on appeal. The test is whether there is a reasonable and not probable prospect of success. It appears that the focus of Chung J was on the disposal of the shares and not the exercise of the defendant’s voting rights at the Annual General Meeting notwithstanding a brief reference in the plaintiff’s evidence to the risk of the defendant taking part in the company’s business. Whether the voting rights in such shares should also be restrained because of the injunction on their disposal should be fully argued in the appeal.

2.  For this reason I will grant leave to appeal and order the appeal to be heard before 30 September 2010 which is the date of the Annual General Meeting.