SECURITIES AND FUTURES COMMISSION v. LIU ZHONGKUI AND OTHERS

SECURITIES AND FUTURES COMMISSION v. LIU ZHONGKUI AND OTHERS

On the basis of the agreed facts the 3rd Respondent failed to exercise the requisite degree of skill and care and participated in conduct amounting to misconduct, deprivation of information and unfairly prejudicial conduct under s.214(1)(b),(c) and (d) SFO; an eight year disqualification is appropriate and the 3rd Respondent must pay costs of HK$285,000 to the SFC.

Citation
[2021] HKCFI 1975
Parties
Petitioner: Securities and Futures Commission; 1st Respondent: Liu Zhongkui; 2nd Respondent: Yang Ma; 3rd Respondent: Lin Supeng; 4th Respondent: Yang Shuyan; 5th Respondent: Cheung Chuen
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
8 July 2021
Case Number
HCMP314/2020
Procedural Posture
Securities and Futures Ordinance S.214 Disqualification Proceedings (carecraft Procedure) / Decision (reasons for Judgment)
Outcome
Disqualification order made against the 3rd Respondent for eight years; costs awarded to the Petitioner.
Legal Topics
Director Disqualification, Misconduct, Financial Misstatement, Carecraft Procedure, Costs Assessment
Source Language
EN
Company Law Securities Regulation Corporate Governance Director Disqualification Misconduct Financial Misstatement Carecraft Procedure Costs Assessment

Case Brief

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Parties

Securities and Futures Commission

Petitioner

Liu Zhongkui

1st Respondent

Yang Ma

2nd Respondent

Lin Supeng

3rd Respondent

Yang Shuyan

4th Respondent

Cheung Chuen

5th Respondent

Procedural Posture

Securities and Futures Ordinance S.214 Disqualification Proceedings (carecraft Procedure) / Decision (reasons for Judgment)

Legal Issues

  1. 1 Whether the 3rd Respondent's conduct fell within s.214(1)(b),(c) and (d) of the SFO
  2. 2 Appropriate period of disqualification for the 3rd Respondent
  3. 3 Quantum of costs payable by the 3rd Respondent

Ratio Decidendi

On the basis of the agreed facts the 3rd Respondent failed to exercise the requisite degree of skill and care and participated in conduct amounting to misconduct, deprivation of information and unfairly prejudicial conduct under s.214(1)(b),(c) and (d) SFO; an eight year disqualification is appropriate and the 3rd Respondent must pay costs of HK$285,000 to the SFC.

Court Disposition

Disqualification order made against the 3rd Respondent for eight years; costs awarded to the Petitioner.

Orders

  • The 3rd Respondent (Lin Supeng) is disqualified from being a director for a period of 8 years.
  • The 3rd Respondent is ordered to pay HK$285000 to the Securities and Futures Commission forthwith.