68
THE HONGKONG WEEKLY PRESS &
(29) 74
July 14, 1939
PETITION FOR WINDING UP OF CHING ¿KEE STEAM NAVIGATION CO., Japan, and that
15 SUCCESSFULLY BROUGHT
Order Already Made By Court In Chungking
July 4.
A PETITION FOR THE WINDING UP OF THE CHING KEE STEAM NAVIGATION CO., LTD. was successfully brought in the Supreme Court yesterday by Shiang Kee, otherwise known the China Merchants Steam Navigation Co., Ltd.
as
The grounds for the winding up, as submitted, were that a winding up order in respect of the company had been made by a court of competent jurisdiction in Chungking; that as a con- sequence, the corporate powers of the company had, been des- troyed in the country of origin. and that it was just and equit- able that the Hongkong branch should be wound up as it could no longer carry on its lawful business.
The petition was heard by the Chief Justice, Sir
the law would apply equally were the company whose winding up was sought a Japanese company.
Regarding the decision of the Chungking Court, Mr. Potter said there had been an appeal against that, but it had been heard and dismissed. As a result of the Chungking order, the activities of the Company would be illegal, void and criminal according to the laws of China.
APPOINTMENT DENIED
Referring to an affidavit made by Mr. Bunzaburo Matsumoto. counsel of the Marine Court of Dairen, in which it was stated that the Dairen Kisen Kaisha had been appointed as agents of the Ching Kee by attorneys for Japanese and other shareholders, Mr. Potter said it was illegal for a Chinese company to appoint a Japanese company to be its agents when a state of war existed be- At the beginning of February, |tween the two countries. Atholl Mac- the Dairen Kisen Kaisha, a Jap- Gregor. Petitioners were repre- anese company with a branch in The appointment however, was sented by Mr. Eldon Potter, K.C Hongkong, claimed to have re- denied in Mr. Jun-ke Choy's affirm-
Comation. and Mr. H. C.
in-ceived authority from the
Mr. Potter produced Strellett, pany to take structed
possession by Mr. D. L.
of and document
to purporting while Mr. H. G. Sheldon, K.C. and operate the six ships, and applied been signed by the president the Hon. Mr. Leo D'Almada e to the Harbour Master for clear- of the Company at Dairen, which Castro, Jnr., instructed by Mr. H. ances in respect of two vessels. had just reached Hongkong, and J. Armstrong, appeared for parties The clearances were, however, said that no documents had been opposing the winding up.
stopped as the result of certain produced to show the appoint- ment of the D. K. K. before Mr. Lo Tung-fan, barrister-at-proceedings before the Court. law of Gray's Inn, a member of Petitioners in the present case February 16. Neither was there the Canton Bar and
held one-time proceeded Mr. Potter,
1,500 any document to prove that the legal expert to the Legislative shares in the Ching Kee Company. six ships were chartered to the
their Yuan, was cross-examined .on an On
petition, the District affidavit wherein he had consi-Court of Chungking on February dered the position and activities 21 ordered that the Company be of the Company in the light of wound up and that Messrs. Jun-ke Chinese criminal and emergency | Choy, Ting Z. Chang and Yuen-wu laws.
Wong be appointed liquidators.
Macnamara,
a
a
have
before the commence- D. K. K. ment of the hostilities.
If any contracts or other com- mitments had ever been entered Mr. Matsumoto alleged. into. as such engagements would now be illegal.
the
a
an ultra
company
The Ching Kee Steam Naviga-
SPECIAL JURISDICTION tion Company, said Mr. Potter in The District Court of Chungking Mr. Potter cited many autho- opening, was incorporated with was a court of competent jurisdic-rities in support of his arguments. added that a shareholder limited liability under the laws of tion to order the winding up, for and
every right to restrain the Republic of China on April 1, it had derived special jurisdiction | had 1920, with its head office in Che-for the purpose by an order made company from doing foo. At all material times, the by the Supreme Court of China vires act though every shareholder but himself acquiesced in it. Company had maintained a branch dated February 20.
was of fundamental office in Hongkong, which car- Mr. Potter said that in view of Where it
as it was in the ried on business up to the middle the Sino-Japanese hostilities, for importance, of January this year.
the Company to carry on business present case, the shareholder was
entitled to it
have in would either involve PRACTICALLY CEASED Since the outbreak of hostilities breach of the laws of China with wound up. between China and Japan in 1937. | regard to trading with an enemy the business of the Company in or result in the seizure of its ships that the company had ceased to the Colony had practically ceased by hostile forces. In the circum-carry on business was answered by the affidavit of Mr. Mat- and six of 20 steamships owned stances, it was just and equitable
sumoto where it said that the the been lying that
Company should be by the Company had
suspension of business in Hong- for the past 18 months in Hong-wound up.
kong was only temporary.
He kong waters.
After referring to the local or-
submitted that could not be sum- Since Jaunary this year the offi.dinance for authority to wind un
cient ground for winding up. unregistered companies. cers of the Company. formerly in foreign
asked for the appli- charge of the business here. had Mr. Potter ceased to control the affairs of the cation here of the same law a office and had, in fact, returned had existed prior to the unhappy state of affairs between China and to North China,
Mr. Sheldon said the allegation
14 SHIPS TRADING
On the point that the hostilities prevented the Company from (Continued on page 69)
had