20 January 2020


International Cases

Kam Leung Sui Kwan and ors v. Kam Kwan Lai and ors

China

11.11.2015

Company

Location of conduct of business of company quintessential to jurisdiction

Hearing a petition against the prejudicial conduct of business by a stakeholder in the company, the Hong Kong High Court gave rather a long stretch to “just and equitable”. Yung Kee Holdings Limited, holding company for a restaurant business, was incorporated in the British Virgin Islands in 1994, however, all board meetings were held in Hong Kong and all administrative matters were discussed in the city. The Court relied on previous rulings to move purposefully from finding injustice in the manner in which the company had been commandeered by the Respondent after the Petitioner’s death, to finding its own jurisdiction in the matter. It concluded that not only did all parties reside in Hong Kong, complaint conduct took place in Hong Kong and the whole of business income was derived from Hong Kong, giving courts sufficient jurisdiction to invoke winding-up.

Tags : Jurisdiction location conduct of business incorporation

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