Re Akai Holdings Ltd (formally known as Semi-Tech (Global) Company Ltd) 2000 Civil Jur. No. 271 Re Kong Wah Holdings Ltd 2000 Civil Jur. No. 272

• Jurisdiction: Bermuda
• Judgment Date: 16 March 2001
• Date: 16 March 2001
• Docket Number: Civil Jurisdiction 2000–271 Civil Jurisdiction 2000–272
• Court: Supreme Court (Bermuda)

In the Supreme Court of Bermuda

Ward, CJ

Civil Jurisdiction 2000–271

Civil Jurisdiction 2000–272

Re Akai Holdings Limited (formally known as Semi-Tech (Global) Company Limited)

and

Re Kong Wah Holdings Limited

Mr. Andrew Martin for Semi-Tech and Crescent Court

Mr. David Kessaram for Joint Provisional Liquidators

Mr. Mark Diel for Petitioning Creditors

Re Keypack Homecare Ltd.UNK [1987] BCLC 409

Re Baron Invstments (Holdings) Ltd (in liquidation)UNK [1999] 1 BCLC 272

Companies Act 1981, s. 171(c)

Liquidation — Application by petitioning creditors for appointment of joint provisional liquidators as Permanent Liquidators — Application by companies for removal of Joint Provisional Liquidators as appointment of Official Receiver as liquidator — Removal of liquidator for cause — Impartiality and independence — Two groups fighting for control of liquidation

JUDGMENT

There are two applications before the Court. The first is by the petitioning creditors for the appointment of the Joint Provisional Liquidators as Permanent Liquidators. The second is by Semi-Tech Europe Limited (Kong Wah) and by Crescent Court Enterprises Limited (Akai). affiliated companies, for the removal of the Joint Provisional Liquidators and for the appointment of the Official Receiver of Bermuda as liquidator of the companies.

Pursuant to section 173 of the Companies Act 1981, a liquidator appointed by the Court may be removed on cause shown.

On 28th August 2000, Craig Christensen of Arthur Morris. Christensen & Co. was appointed as provisional liquidator. On the same date Nelson Wheeler Corporate Advisory Services Limited of Hong Kong was appointed as agent for the provisional liquidator in Hong Kong. On 1st September 2000 Damien Hodgkinson and Fan Wai Kuen. both partners of Nelson Wheeler Corporate Advisory Services Limited, Hong Kong, were appointed as provisional liquidators to act jointly with Craig Christensen. On 29th September 2000 the Order was amended thereby enabling the joint provisional liquidators to act jointly and severally.

On 23rd August 2000 Winding-up Orders were made in Hong Kong on the ground that the companies were unable to pay their debts and on 29th September 2000 similar orders were made in Bermuda. Messrs Hodgkinson and Fan are special managers assisting the Official Receiver of Hong Kong, who is the provisional liquidator in Hong Kong. Thus in Bermuda and in Hong Kong partners of Nelson Wheeler are involved in the...