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 and affairs of Warderly were conducted in a manner involving misfeasance or misconduct and in a manner that denied members and the public price-sensitive information; the conduct breached the Listing Rules and warranted disqualification under s.214(2)(d) of the SFO. The court imposed a five-year disqualification on the 1st respondent and a two-year disqualification on the 5th respondent and ordered specified contributions to the SFC\'s costs, with a narrow exemption for a named private company for the 1st respondent.

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
27 October 2010
Case Number
HCMP1742/2009
Procedural Posture
Section 214 SFO Disqualification Proceedings / Final Judgment (reasons for Decision) Following Summary Carecraft Procedure
Outcome
Disqualification orders made under s.214 SFO against the 1st and 5th respondents as set out below
Legal Topics
Director Disqualification, Disclosure Obligations (price Sensitive Information), Misfeasance and Misconduct, Connected Transactions and Pledging of Shares, Costs
Source Language
EN
Securities Law Company Law Corporate Governance Listing Rules Compliance Director Disqualification Disclosure Obligations (price Sensitive Information) Misfeasance and Misconduct Connected Transactions and Pledging of Shares +1 more

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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

Section 214 SFO Disqualification Proceedings / Final Judgment (reasons for Decision) Following Summary Carecraft Procedure

Legal Issues

  1. 1 Whether the directors conducted the company's affairs involving misfeasance or misconduct under s.214(1)(b) of the SFO
  2. 2 Whether members and the market were deprived of price-sensitive information contrary to s.214(1)(c) and the Listing Rules
  3. 3 Appropriate scope and duration of disqualification orders and costs contributions

Ratio Decidendi

On the agreed facts the court was satisfied that during the relevant period the business and affairs of Warderly were conducted in a manner involving misfeasance or misconduct and in a manner that denied members and the public price-sensitive information; the conduct breached the Listing Rules and warranted disqualification under s.214(2)(d) of the SFO. The court imposed a five-year disqualification on the 1st respondent and a two-year disqualification on the 5th respondent and ordered specified contributions to the SFC\'s costs, with a narrow exemption for a named private company for the 1st respondent.

Court Disposition

Disqualification orders made under s.214 SFO against the 1st and 5th respondents as set out below

Orders

  • 1st Respondent (Yeung Kui Wong) disqualified for 5 years from being or acting as director, liquidator, receiver or manager of any listed or unlisted Hong Kong company or from being concerned in management of any such company without leave of the Court (narrow exemption for Homely Manufacturing Limited); order...
  • 5th Respondent (Yu Hung Wong) disqualified for 2 years from being or acting as director, liquidator, receiver or manager of any listed or unlisted Hong Kong company or from being concerned in management of any such company without leave of the Court