Ovens still fired up – but trademark fragrant dishes could be at risk
Court of Final Appeal order was issued against Yung Kee Holdings Company, a British Virgin Island registered company that holds the assets of the family, including the restaurant, through a number of subsidiary companies
Yung Kee restaurant may still be in business as usual despite a winding up order imposed on Wednesday, but whether it can continue to operate remains uncertain, say legal and accounting experts. And if it can carry on, its trademark fragrant dishes could be in danger.
The Court of Final Appeal order was issued against Yung Kee Holdings Company, a British Virgin Island registered company that holds the assets of the family, including the restaurant, through a number of subsidiary companies.
“It is a very important point to note that the winding up order is against the holdings company. The activities of the subsidiaries continue as normal and will do uninterruptedly, hopefully, for many months,” Fred Kinmonth, lawyer for younger brother Ronald Kam Kwan-lai’s side, said.
According to usual procedure, the Official Receiver will appoint a provisional liquidator to take over control of the company, including its assets and accounting records, and investigate the firm’s affairs.
The liquidator will arrange meetings with all shareholders and decide how to distribute the assets or how to put them up for sell.
A lawyer familiar with company law said the liquidator had a duty to free the company’s assets and find potential buyers. These need not be a third party. Shareholders of the company could buy back the assets and continue to run the business.
She said if the business ceased running, it would be worth nothing. As Yung Kee was profitable she felt it unlikely that the liquidator would opt to close the business.
However, the company’s assets included the Yung Kee Building in Wellington Street. If this was sold to a third party, the restaurant might need to move. This could affect the food, a restaurant spokesman said, as it might not be possible to use the large charcoal burner now in use. He said the licence granted to Yung Kee earlier to use this cooking device in an urban area was no longer available. If it moved, it may have to compromise and use coal.
Chef Fung Ho-tong said: “Charcoal definitely results in a better fragrance.”
