COMPETITION COMMISSION 對 FUNGS E&M ENGINEERING CO LTD 及另八人

COMPETITION COMMISSION 對 FUNGS E&M ENGINEERING CO LTD 及另八人

The 9th Respondent fell within s103(2)(b): although he did not directly cause the breach he had reasonable grounds to suspect his company's conduct and failed to take steps to prevent or correct it; balancing the mitigating factors (early admission, cooperation, age, limited literacy and private company) the appropriate disqualification period is two years reduced by two months, resulting in a final order of one year ten months ending 30 August 2022.

Citation
[2020] HKCT 9
Parties
Applicant: Competition Commission; 1st Respondent: FUNGS E&M ENGINEERING COMPANY LIMITED (馮氏機電工程有限公司); 2nd Respondent: YEE HING METAL SHOP (義興鐵器土木油漆工程); 3rd Respondent: CHEUNG MIN (張棉) trading as ACCORD CONSTRUCTION & DECORATION CO (雅閣建築裝修工程公司); 4th Respondent: HING SHING CONSTRUCTION COMPANY (興盛建築公司); 5th Respondent: LUEN HOP DECORATION ENGINEERING COMPANY LIMITED (聯合裝飾工程有限公司); 6th Respondent: DAO KEE CONSTRUCTION COMPANY LIMITED (陶記營造廠有限公司); 7th Respondent: WONG WAI CHUEN (黃偉銓); 8th Respondent: WONG FU SAN (黃富新); 9th Respondent: CHEUNG YUN KAM (張潤錦)
Court
Competition Tribunal
Jurisdiction
Hong Kong
Judgment Date
30 October 2020
Case Number
CTEA1/2019
Procedural Posture
Enforcement Action Under the Competition Ordinance (cap 619) / Penalty/disqualification Hearing and Costs Determination
Outcome
Disqualification order issued against the 9th Respondent (Cheung Yun Kam) under s101 for one year and ten months, effective to 30 August 2022; partial costs award in favour of the applicant with detailed apportionment and an overall 20% reduction; interim costs directions to become final after 21 days unless varied.
Legal Topics
Director Disqualification, Disqualification Order, Sanctions, Costs Assessment
Source Language
CH
Competition Law Company Law Director Disqualification Disqualification Order Sanctions Costs Assessment

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 9 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Competition Commission

Applicant

FUNGS E&M ENGINEERING COMPANY LIMITED (馮氏機電工程有限公司)

1st Respondent

YEE HING METAL SHOP (義興鐵器土木油漆工程)

2nd Respondent

CHEUNG MIN (張棉) trading as ACCORD CONSTRUCTION & DECORATION CO (雅閣建築裝修工程公司)

3rd Respondent

HING SHING CONSTRUCTION COMPANY (興盛建築公司)

4th Respondent

LUEN HOP DECORATION ENGINEERING COMPANY LIMITED (聯合裝飾工程有限公司)

5th Respondent

DAO KEE CONSTRUCTION COMPANY LIMITED (陶記營造廠有限公司)

6th Respondent

WONG WAI CHUEN (黃偉銓)

7th Respondent

WONG FU SAN (黃富新)

8th Respondent

CHEUNG YUN KAM (張潤錦)

9th Respondent

Procedural Posture

Enforcement Action Under the Competition Ordinance (cap 619) / Penalty/disqualification Hearing and Costs Determination

Legal Issues

  1. 1 Whether the 9th Respondent is unfit to be involved in management under s102(b) of the Competition Ordinance
  2. 2 Whether s103(2)(b) applies (reasonable grounds to suspect and failure to prevent)
  3. 3 Appropriate duration of a disqualification order under s101 and s103

Ratio Decidendi

The 9th Respondent fell within s103(2)(b): although he did not directly cause the breach he had reasonable grounds to suspect his company's conduct and failed to take steps to prevent or correct it; balancing the mitigating factors (early admission, cooperation, age, limited literacy and private company) the appropriate disqualification period is two years reduced by two months, resulting in a final order of one year ten months ending 30 August 2022.

Court Disposition

Disqualification order issued against the 9th Respondent (Cheung Yun Kam) under s101 for one year and ten months, effective to 30 August 2022; partial costs award in favour of the applicant with detailed apportionment and an overall 20% reduction; interim costs directions to become final after 21 days unless varied.

Orders

  • Disqualification order under s101 prohibiting the 9th Respondent from acting as a company director, liquidator, receiver or otherwise participating in company formation or management for one year and ten months, effective to 30 August 2022.
  • R9 to pay one‑ninth of the applicant's litigation costs up to and including the 13 July 2020 case management hearing, subject to the specific allowances below.