SECURITIES AND FUTURES COMMISSION v. KENNETH CHEUNG CHI SHING AND OTHERS

SECURITIES AND FUTURES COMMISSION v. KENNETH CHEUNG CHI SHING AND OTHERS

On the agreed facts the defendant's conduct constituted mismanagement and breaches within s.214(1)(b),(c) and (d); the conduct was sufficiently serious to fall into the middle Sevenoaks bracket (6–10 years); weighing admitted mitigation (cooperation, admission, employment dependency) produced a reduced period of 6...

Source-derived case information.

Citation
SECURITIES AND FUTURES COMMISSION v. KENNETH CHEUNG CHI SHING AND OTHERS
Parties
Plaintiff: Securities and Futures Commission; 1st Respondent: Kenneth Cheung Chi Shing; 2nd Respondent: Yvonne Yeung Han Yi; 3rd Respondent: Steven Li Wang Tai; 4th Respondent: Miranda Chan Chi Mei; 5th Respondent: Styland Holdings Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
23 November 2010
Case Number
HCMP1702/2008
Procedural Posture
Section 214 SFO Disqualification Proceedings / Decision Following Agreed Facts (carecraft Procedure)
Outcome
Disqualification order made against Mr Steven Li for 6 years, limited to listed corporations and their subsidiaries or affiliates; costs order made.
Legal Topics
Director Disqualification, Misfeasance, Connected Transactions, Disclosure Obligations, Duty of Care and Skill
Source Language
en
Securities Law Company Law Corporate Governance Director Disqualification Misfeasance Connected Transactions Disclosure Obligations Duty of Care and Skill

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Parties

Securities and Futures Commission

Plaintiff

Kenneth Cheung Chi Shing

1st Respondent

Yvonne Yeung Han Yi

2nd Respondent

Steven Li Wang Tai

3rd Respondent

Miranda Chan Chi Mei

4th Respondent

Styland Holdings Limited

5th Respondent

Procedural Posture

Section 214 SFO Disqualification Proceedings / Decision Following Agreed Facts (carecraft Procedure)

Legal Issues

  1. 1 Whether the agreed facts establish conduct within s.214(1)(b),(c) and/or (d) of the Securities and Futures Ordinance
  2. 2 Appropriate duration and scope of a director disqualification order
  3. 3 Whether mitigating factors justify reduction from a standard period

Ratio Decidendi

On the agreed facts the defendant's conduct constituted mismanagement and breaches within s.214(1)(b),(c) and (d); the conduct was sufficiently serious to fall into the middle Sevenoaks bracket (6–10 years); weighing admitted mitigation (cooperation, admission, employment dependency) produced a reduced period of 6 years and the disqualification was correctly restricted to listed corporations and their subsidiaries/affiliates.

Court Disposition

Disqualification order made against Mr Steven Li for 6 years, limited to listed corporations and their subsidiaries or affiliates; costs order made.

Orders

  • For a period of 6 years Mr Steven Li shall not, without the leave of the Court, be or continue to be a director, liquidator, or receiver or manager of the property or business of Styland or any listed corporation or their subsidiaries or affiliates, and shall not, directly or indirectly, be concerned or take part in...
  • Mr Steven Li shall pay one-quarter of the SFC's costs up to 18 June 2010 and the costs of the hearing, to be taxed if not agreed.