HRM v Gotzborg Lottery 2016 HCJ 1

Application

In the High Court of the Realm

Lonenberg

Between:

The Royal Government in Right of His Royal Majesty the King

Applicant

and

Gotzborg Lottery and Gaming Association GmbH

Respondent

APPLICATION FOR DISSOLUTION ORDER PURSUANT TO SECTION 24 OF THE BUSINESS AND CORPORATION REGISTRATION ACT

September 11, 2015

I, Lord Montin, Counsel for the Applicant, make oath and say that I have reasonable grounds to believe that the Respondent is in breach of Section 24(A)(i) of the Business and Corporation Registration Act, as amended, and therefore the Applicant prays that a Dissolution Order be granted pursurant to the provisions of that Act.

My reasonable grounds for belief are as follows:

1. The Respondent was lawfully registered as a Gesellschaft mit beschränkter Haftung corporation pursuant to Section 9 of the Business and Corporation Registration Act (the "Act") on April 15, 2013 and is therefore presently bound by the provisions of the Act;
2. The Respondent had issued 1,000 shares at the time of registration, which the Ministry of Commerce and Industry, via its Business and Trade Division, presently advises are held as follows: 500 shares held by Brandon Sullivan, a foreign national, and 500 shares held by the Respondent;
3. The Respondent has total current assets totalling 1,063 Thalers, held as currency in the Respondent's account on the Gotzborg Exchange Utility as defined in Section 8 of the Currency, Exchange and Banking Act. There are no other known assets directly held by the Respondent.
4. As of this date, the Respondent has total liabilities totalling 3,000 Thalers, consisting of debt owing due to business registration renewal fees levied by the Ministry of Commerce and Industry on August 31, 2015.
5. The Respondent is therefore only capable of servicing 1,063 Thalers of its outstanding 3,000 Thaler debt, leaving an outstanding debt of 1,937 Thalers that the Respondent is unable to service.
6. Pursuant to Section 24(A)(i) of the Act, the Applicant believes that the Respondent is insolvent and incapable of servicing its debts and the Applicant invokes its authority, as granted by Section 24(B) of the Act, to seek a Dissolution Order from a court of competent jurisdiction.

[x- ] Lord Montin Counsel for the Applicant

Decision

IN THE HIGH COURT OF THE REALM

Lonenberg

CITATION: APPLICATION FOR DISSOLUTION ORDER 001/16

BEFORE:

Lord Justice Amanda Saint

DATE:

3 May 2016

BETWEEN:

The Royal Government in Right of His Royal Majesty the King

AND

Gotzborg Lottery and Gaming Association GmbH

1. The Royal Government in Right of His Royal Majesty the King in pursuit of Section 24 of the Business and corporation registration Act (the Act) requests this Court to issue a Dissolution Order affecting the Respondent.
2. The aforesaid Section of the Act reads: ("A. A court of competent jurisdiction may order the dissolution of a business entity if – [...](i) the business entity is insolvent and incapable of servicing its debts;[...]").
3. The Court approves of the argument that the Respondent is lawfully registered as a Gesellschaft mit beschränkter Haftung corporation pursuant to Section 9 of the Act.
4. The Court takes into consideration the argument that The Respondent has total current assets totalling 1,063 Thalers, held as currency in the Respondent's account on the Gotzborg Exchange Utility as defined in Section 8 of the Currency, Exchange and Banking Act.
5. The Court approves of the argument that as of the date the Application was filed, the Respondent had total liabilities totalling 3,000 Thalers, consisting of debt owing due to business registration renewal fees levied by the Ministry of Commerce and Industry on August 31, 2015.
6. The Court approves of the argument that the Respondent is only capable of servicing 1,063 Thalers of its outstanding 3,000 Thaler debt, leaving an outstanding debt of 1,937 Thalers that the Respondent is unable to service.
7. The Court, taking into consideration the financial status of the Respondent, has found that the Respondent is unable to service its debts.
8. Therefore, the Court, in pursuit of Section 24 (B) of the Act which reads: ("An application to the court for an order under section A above may only be brought by a person or entity having a material interest in the matter, or by the Royal Government.") and of Section 24 (a) issues a Dissolution Order and instructs the Royal Bank of Commerce to undertake the necessary actions to implement this order.