Introduction

The legal battles surrounding Nina Kung (“Nina”)’s estate have been long and complex. What began as a dispute over the fate of her late husband’s fortune escalated into a multiple of contentious proceedings. At the end, the drama concludes with the Court's determination on questions regarding the management and distribution of the estate, particularly its charitable elements. As the case unfolded, the Court’s decisions had far-reaching implications, shaping the future of the estate’s administration and its charitable legacy.

Nina Kung’s battle with her father-in-law

Nina’s legal battle with her father-in-law began after the mysterious disappearance of Mr Teddy Wang (“Teddy”), founder of the Chinachem Group (“The Group”), in 1990. Following his legal declaration of death in 1999, Mr Wang’s father (“the Father”) claimed probate of a will executed in 1968 by Teddy under which the Father was the sole beneficiary (the “1968 Will”). In response to the Father’s claim, Nina counterclaimed for probate of a Chinese, homemade will dated 12 March 1990 by Teddy, under which she was the sole beneficiary (the “1990 Will”).

The case hinged on the testimony of Teddy’s butler, who claimed to have witnessed the signing of the 1990 will. However, the butler’s death before trial weakened Nina’s position, while the Father alleged that the 1990 Will was a forgery. The Court found the handwriting evidence inconclusive, emphasizing that it neither confirmed nor disproved the 1990 will’s authenticity. Ultimately, the Court admitted the 1990 will to probate, awarding Nina her late husband’s vast estate.

The legal dispute over Nina Kung’s estate

In 2002, Nina executed a will (the “2002 Will”), which provided that the whole of Nina’s estate be given to the Chinachem Charitable Foundation Ltd (the “Foundation”). In 2004, Nina was diagnosed with cancer. She eventually passed away in 2007. Immediately after her death, Chan Chun Chuen (“Chan”) kicked off a legal battle by producing what he said was Nina’s last will, which entitled him to Nina’s entire estate as sole beneficiary (the “2006 Will”).

Chan, a Feng Shui master introduced to Nina in 1992, claimed they were long-time lovers, with Nina affectionately calling him “hubby pig”. To substantiate their relationship, Chan presented gifts, audio recordings, photographs, and videos taken by Nina.

Regarding the 2006 Will, Chan asserted he received it from Nina, along with an unsigned version, during one evening at her residence, with instructions to keep it a secret. He claimed to have kept the documents hidden until Nina’s death. However, the 2006 Will’s witnesses, a solicitor and another individual, testified that while they attested to a document on 16 October 2006, it was significantly different from the 2006 Will.

The Court found the 2006 Will to be a forgery, and Chan lost his bid for Nina’s estate. He appealed to the Court of Appeal but was again unsuccessful. His endeavours to claim the billionaire’s fortune ended up landing him in jail.

Who is the trustee?

 Despite the resolution of the legal dispute between Chan and the Foundation, questions surrounding the management of Nina’s multi-billion-dollar fortune remain unresolved. The Secretary for Justice (the “SJ”), acting as the protector of charities, initiated legal proceedings against the Foundation.

Under the 2002 Will, drafted with Nina’s sister’s help, several key provisions were highlighted:

1.      Clause 1 stated that Nina shall leave her estate to the Foundation.

2.      Clause 2 expressed Nina’s “wish to entrust [the Foundation] to the supervision of a managing organization jointly formed by the Secretary General of the United Nations; the Premier of the PRC Government as well as the Chief Executive of the [HKSAR]”; and that “not only must [the Foundation] continue all the projects … it has undertaken … to enable their developments continuously, but … must also continue to achieve the purpose of setting up a fund and a Chinese prize of worldwide significance similar to that of the Nobel Prize”. 

3.      Clause 3 related to the Foundation’s management of the Group “to ensure the continuous growth of the business empire of the [Foundation] and … to continuously develop the charitable business till eternity”. 

4.      Clause 4 required the Foundation to provide support for members of the family of Nina’s late husband, staff of the Chinachem and their children. 

The ambiguity in implementing the 2002 Will’s charitable intentions led to a dispute between the Foundation and the SJ. The issue was whether the Foundation received the estate as an absolute gift for general charitable purposes or as a trustee obligated to follow the 2002 Will’s specific directions. Both the Court of First Instance and the Court of Appeal held that the 2002 Will’s language imposed trustee obligations on the Foundation. The Court of Final Appeal agreed, ruling that the Foundation was a trustee, not an absolute beneficiary.

In July 2022, the Court imposed two conditions for the Foundation’s appointment as trustee: (1) Solvency Condition; and (2) the Fit and Proper Condition.

The Court dismissed the Foundation’s request to involve foreign officials in a supervisory managing organization (“SMO”), citing jurisdictional limitations. In July 2023, the Court ruled the Foundation failed the Solvency Condition, disqualifying it as trustee. Consequently, the SJ and the estate administrator had to develop a new management plan and recommend a suitable trustee.

Statement of the Department of Justice

On 6 January 2025, the Department of Justice made a statement on Nina’s Estate. According to the statement, on 16 May 2024, the Court approved the scheme of administration for the estate (the “Scheme”) submitted by the SJ. The key points of the Scheme are summarised as below:

1.      Trustee of the charitable trust: to set up a special purpose vehicle company (the “Company Trustee”, namely Nina Wang Charity Management Limited) as the Trustee. As a company limited by guarantee, the Company Trustee’s sole member is The Financial Secretary Incorporated or its directly held subsidiary established in accordance with the Financial Secretary Incorporation Ordinance (Cap. 1015).

2.      SMO: in accordance with Mrs Wang’s testamentary wishes, an SMO formed by three independent individuals is set up to supervise the operation of the Company Trustee. The appointees, who are appointed by the SJ, must possess unquestionable integrity, experience and judgement.

3.      Main responsibilities of the Company Trustee: include (but are not limited to) supervising the business operations of the Group and approving the Group’s financial budget and proposed major decisions. In addition, the Company Trustee will devise a budget for its charity-related works, which will be used for charity projects, fundraising and, in accordance with Nina’s testamentary wishes, the preparation for setting up a “fund and a Chinese prize of worldwide significance similar to that of the Nobel Prize”.

4.      Board of governors of the Company Trustee: there will be a board of governors for the Company Trustee, akin to a board of directors for a private company. The members of the board of governors shall be appointed pursuant to the Scheme and the Articles of Association of the Company Trustee, with at least two governors being government officials.

Implementation of the Scheme

Pursuant to the Scheme, the SJ made an application to the court to appoint the Company Trustee as the trustee of the charitable trust under Nina’s estate

On 21 November 2024, the Court formally appointed the Company Trustee as the trustee of Nina’s estate’s charitable trust. The SJ also appointed Mrs. Rita Fan Hsu Lai-tai, Mr Joseph Yam Chi-kwong, and Mr Cheng Yan-kee as members of the SMO to oversee the Company Trustee’s operations.

The Company Trustee will, at an appropriate time, release details about the composition of the board of governors, the Scheme, and other related information to the public. This appears to mark the end of a long and intricate legal saga. As the Company Trustee begins its work, it remains to be seen how it will fulfil its duty of advancing the charitable causes in line with Nina’s testamentary wishes.

Conclusion

The legal battles surrounding Nina’s estate, while initially focused on the inheritance of her husband’s fortune, evolved into a broader issue of charitable trust management. After extensive litigation, the Court determined that the Foundation could not serve as trustee. As a result, the SJ was tasked with developing a new management structure for the estate, culminating in the formation of The Company Trustee to drive and implement the charitable causes set out in the 2002 Will.

The establishment of an independent SMO further ensured adherence to Nina’s charitable wishes. With the Court’s approval in late 2024, the charitable trust is now poised to implement Nina’s vision, including supporting the Group and establishing a prestigious Chinese prize akin to the Nobel Prize. As the Company Trustee begins its work, the legacy of Nina’s charitable aspirations will take shape, signalling the resolution of one of Hong Kong’s most intricate contentious legal sagas.

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Important: The law and procedure on this subject are very specialised and complicated. This article is just a very general outline for reference and cannot be relied upon as legal advice in any individual case. If any advice or assistance is needed, please contact our solicitors.

Published by ONC Lawyers © 2025