SECURITIES AND FUTURES COMMISSION v. LI WO HING AND OTHERS

SECURITIES AND FUTURES COMMISSION v. LI WO HING AND OTHERS

On the agreed facts the 1st Respondent committed misfeasance and produced misleading disclosures (breaches of s214(1)(b),(c),(d)) and the 2nd Respondent committed misfeasance and issued misleading disclosures (breaches of s214(1)(b),(c)); having regard to seriousness, admissions, restitution and costs undertakings and relevant authorities, the court imposed a 7-year disqualification on the 1st Respondent and a 4-year disqualification on the 2nd Respondent and ordered restitution and costs as specified.

Citation
SECURITIES AND FUTURES COMMISSION v. LI WO HING AND OTHERS
Parties
Petitioner: Securities and Futures Commission; 1st Respondent: Li Wo Hing; 2nd Respondent: Li Nga Kuk James; 3rd Respondent: Medical China Limited (renamed China Asean Resources Limited)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
26 September 2012
Case Number
HCMP1023/2011
Procedural Posture
SFO S214 Disqualification Petition / Decision (summary Carecraft Procedure)
Outcome
Disqualification orders made against 1st and 2nd Respondents; restitution and costs orders made; no further order against the Company other than costs and discontinuance upon repayment
Legal Topics
Director Disqualification, Misfeasance, Misappropriation, Misleading Disclosure, Financial Controls
Source Language
EN
Company Law Securities Regulation Corporate Governance Fiduciary Duties Director Disqualification Misfeasance Misappropriation Misleading Disclosure +1 more

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Parties

Securities and Futures Commission

Petitioner

Li Wo Hing

1st Respondent

Li Nga Kuk James

2nd Respondent

Medical China Limited (renamed China Asean Resources Limited)

3rd Respondent

Procedural Posture

SFO S214 Disqualification Petition / Decision (summary Carecraft Procedure)

Legal Issues

  1. 1 Whether the 1st and 2nd Respondents breached duties under s214 of the Securities and Futures Ordinance by misfeasance, making misleading disclosures and failing to maintain proper financial controls
  2. 2 Whether disqualification orders should be made and for what period
  3. 3 Whether restitution and costs orders are appropriate

Ratio Decidendi

On the agreed facts the 1st Respondent committed misfeasance and produced misleading disclosures (breaches of s214(1)(b),(c),(d)) and the 2nd Respondent committed misfeasance and issued misleading disclosures (breaches of s214(1)(b),(c)); having regard to seriousness, admissions, restitution and costs undertakings and relevant authorities, the court imposed a 7-year disqualification on the 1st Respondent and a 4-year disqualification on the 2nd Respondent and ordered restitution and costs as specified.

Court Disposition

Disqualification orders made against 1st and 2nd Respondents; restitution and costs orders made; no further order against the Company other than costs and discontinuance upon repayment

Orders

  • 1st Respondent disqualified for 7 years from being or acting as director, liquidator, receiver or manager and from taking part in management of the 3rd Respondent or any other corporation without leave of the Court
  • 2nd Respondent disqualified for 4 years from being or acting as director, liquidator, receiver or manager and from taking part in management of the 3rd Respondent or any other corporation without leave of the Court