Re Yung Kee Holdings case — resolving shareholder disputes
The recent decision of Mr Justice Harris in the case of Re Yung Kee Holdings  6 HKC 246 in the Court of First Instance in Hong Kong has highlighted some of the issues that can arise in resolving shareholder disputes where offshore companies are used to hold assets and businesses elsewhere. In particular, and subject to what the Hong Kong Court of Appeal may decide, it demonstrates that in many cases where corporate disputes arise, those disputes should be determined in the jurisdictions of incorporation and not in the jurisdictions where the underlying assets or principals are located.
Yung Kee is a famous restaurant in Hong Kong’s Central district (particularly renowned for its goose), founded by Kam Shui Fai, who died in 2004. Prior to his death Kam Senior arranged for the business to be held through two BVI companies, Yung Kee Holdings Ltd and Long Yao Limited. Long Yao was originally the trustee of a unit trust holding interests in the business, but in 2006 this was distributed to members of Kam Senior’s family and they became shareholders in Yung Kee Holdings Ltd, which held Long Yao Limited which, in turn, held the operating companies of the business.
Kam Senior had three sons, two of whom (Kam Kwan Lai and Kam Kwan Sing) were alive at the time of the issue of the proceedings, and a daughter, Kelly Kam. A dispute arose between the two surviving brothers, who had both been involved for many years in the business and had the largest individual shareholdings. In 2010 Kwan Sing commenced the action seeking a winding-up order or alternative relief from the Hong Kong court. By this time, Kwan Lai was in effective control of 55% of the shares of Yung Kee Holdings Ltd…
If you are registered and logged in to the site, click on the link below to read the rest of the Appleby briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Appleby
News from The Lawyer
Briefings from Appleby
The Jersey Financial Services Commission has published its consultation paper on the penultimate stage of its Review of Financial Advice.
Standard Chartered consolidated its two Jersey banking entities into a single operating platform for its Jersey business in September 2013.
Analysis from The Lawyer
The past quarter has been busy for the offshore sector as firms have looked to capitalise on globalisation, while workflow has remained high
Business is booming in the Isle of Man, a small jurisdiction that thinks big