SECURITIES AND FUTURES COMMISSION v. YEUNG KUI WONG AND OTHERS

SECURITIES AND FUTURES COMMISSION v. YEUNG KUI WONG AND OTHERS

On the agreed facts the court was satisfied that, during the relevant period, the business or affairs of the Company were conducted in a manner involving misfeasance or misconduct and/or resulting in members not being given information they might reasonably expect within s.214(1)(b) and (c). The 3rd and 4th Respondents failed persistently to ensure compliance with Listing Rules including non-disclosure of multiple price-sensitive events and connected-party financial assistance; accordingly disqualification under s.214(2)(d) was appropriate and, taking into account guidance on tariff brackets and mitigation, a 5-year disqualification was imposed.

Citation
SECURITIES AND FUTURES COMMISSION v. YEUNG KUI WONG AND OTHERS
Parties
Petitioner: Securities and Futures Commission; 1st Respondent: Yeung Kui Wong; 2nd Respondent: Hung Kwok Wa Godfrey; 3rd Respondent: Lai Wing Chuen John; 4th Respondent: Yeung Ying Fong Ellen; 5th Respondent: Yu Hung Wong; 6th Respondent: Leung Ping Chung Hermann
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
9 April 2010
Case Number
HCMP1742/2009
Procedural Posture
Disqualification Proceedings Under Section 214 Securities and Futures Ordinance / Judgment (carecraft Summary Procedure)
Outcome
Disqualification orders made against the 3rd and 4th Respondents; each disqualified for 5 years starting 21 days from the date of the order and each ordered to pay HK$90,000 to the SFC for costs.
Legal Topics
Director Disqualification, Failure to Disclose Price Sensitive Information, Breach of Listing Rules, Misfeasance, Carecraft Summary Disposal
Source Language
EN
Securities Law Company Law Regulatory Enforcement Listing Rules Compliance Director Disqualification Failure to Disclose Price Sensitive Information Breach of Listing Rules Misfeasance +1 more

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 11 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Securities and Futures Commission

Petitioner

Yeung Kui Wong

1st Respondent

Hung Kwok Wa Godfrey

2nd Respondent

Lai Wing Chuen John

3rd Respondent

Yeung Ying Fong Ellen

4th Respondent

Yu Hung Wong

5th Respondent

Leung Ping Chung Hermann

6th Respondent

Procedural Posture

Disqualification Proceedings Under Section 214 Securities and Futures Ordinance / Judgment (carecraft Summary Procedure)

Legal Issues

  1. 1 Whether the directors' conduct amounted to misfeasance or misconduct and/or resulted in shareholders not being given information they might reasonably expect within s.214(1)(b) and (c) of the SFO
  2. 2 Whether persistent failure to disclose a series of price-sensitive events and connected-party financial assistance breached Listing Rules and warranted disqualification
  3. 3 What is the appropriate length and scope of disqualification given established brackets and mitigating factors

Ratio Decidendi

On the agreed facts the court was satisfied that, during the relevant period, the business or affairs of the Company were conducted in a manner involving misfeasance or misconduct and/or resulting in members not being given information they might reasonably expect within s.214(1)(b) and (c). The 3rd and 4th Respondents failed persistently to ensure compliance with Listing Rules including non-disclosure of multiple price-sensitive events and connected-party financial assistance; accordingly disqualification under s.214(2)(d) was appropriate and, taking into account guidance on tariff brackets and mitigation, a 5-year disqualification was imposed.

Court Disposition

Disqualification orders made against the 3rd and 4th Respondents; each disqualified for 5 years starting 21 days from the date of the order and each ordered to pay HK$90,000 to the SFC for costs.

Orders

  • The 3rd and 4th Respondents are disqualified for a period of 5 years commencing 21 days from the date of this order and, without leave of the court, shall not during that period be or continue to be a director, liquidator, receiver or manager of the property or business of any listed or unlisted company in Hong Kong...
  • The 3rd and 4th Respondents shall each pay HK$90,000 to the Securities and Futures Commission in respect of the SFC's costs of these proceedings