The British Virgin Islands Court of Appeal has rejected the appellants’ appeal in Lau Man Sang v King Bun Limited (Claim No. BVIHCMAP 2021/0034), upholding the decision of the trial judge, Wallbank J.
James Bailey (led by Jern-Fei Ng KC of 7BR) represented the successful respondents.
The appeal arises out of a derivative action brought by the minority shareholders of a BVI holding company, the subsidiaries of which manufactured pharmaceutical products. The claimants alleged that the defendants (directors of the BVI company) caused the BVI company to dispose of the valuable subsidiary companies to the first defendant by wrongful/unlawful means at a gross undervalue. The claimants succeeded against all the directors at the trial on liability.
The defendants appealed against the judgment, advancing 26 grounds of appeal, largely against findings of fact. In a written judgment handed down on 7 July 2023, the BVI Court of Appeal unanimously upheld the judgment of Wallbank J, reiterating the high threshold that must be met for appeals against findings of fact to succeed.
James Bailey and Jern-Fei Ng KC were instructed by Jerry Samuel, Norman Hau, Alecia Johns, Jasamine Yung and Catherine Wong of Conyers.