Hong and Cao

In the matter of *Hong and Cao*, heard before Carew J, the dispute concerned an application by the Husband to vary existing court orders made on 22 October 2015. The Husband sought permission to purchase a significant number of shares in B Incorporated from a Mr J, with these shares to be held by B Industrial Limited. He also sought to obtain a substantial line of credit from Bank I in the name of B Industrial Limited to fund this share acquisition, and to offer both his personally held and B Industrial Limited's B Incorporated shares as collateral for this credit facility.

The central legal issue before the court was whether to permit the Husband to proceed with the proposed share purchase and associated financing, notwithstanding the terms of the previous orders. This required the court to consider the implications of these proposed actions on the existing financial arrangements and potentially the division of assets or liabilities between the parties.

Carew J granted the Husband's application, permitting him to purchase 1,221,000 shares in B Incorporated from Mr J, with these shares to be registered in the name of B Industrial Limited. The court also authorised the Husband to secure a line of credit for NTD$68,000,000 in the name of B Industrial Limited from Bank I to facilitate this purchase. Crucially, the Husband was permitted to use both the B Incorporated shares held in his personal name and those held by B Industrial Limited as collateral for this line of credit.