SECURITIES AND FUTURES COMMISSION v. C.L. MANAGEMENT SERVICES LTD AND ANOTHER

SECURITIES AND FUTURES COMMISSION v. C.L. MANAGEMENT SERVICES LTD AND ANOTHER

The magistrate's factual finding that R1's activities were isolated 'bits and pieces' and not a business carried on in advising on corporate finance was open on the evidence and not perverse; Fung Yee Man is fact‑sensitive and not per incuriam; carrying on a business under s114 is a question of fact and degree; appeal dismissed.

Citation
SECURITIES AND FUTURES COMMISSION v. C.L. MANAGEMENT SERVICES LTD AND ANOTHER
Parties
Appellant: Securities and Futures Commission; 1st Respondent: C.L. Management Services Limited; 2nd Respondent: Au Suet Ming Clarea
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
2 June 2016
Case Number
HCMA382/2014
Procedural Posture
Appeal by Way of Case Stated / Judgment on Case Stated
Outcome
Appeal dismissed; magistrate's acquittal on carrying on a business and attributable s390 offence upheld
Legal Topics
Unauthorized Regulated Activity, Holding Out, Corporate Finance Advice, Offences by Officers, Statutory Interpretation, Appeal by Way of Case Stated
Source Language
EN
Securities Law Criminal Law Regulatory Enforcement Administrative Law Unauthorized Regulated Activity Holding Out Corporate Finance Advice Offences by Officers +2 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 9 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Securities and Futures Commission

Appellant

C.L. Management Services Limited

1st Respondent

Au Suet Ming Clarea

2nd Respondent

Procedural Posture

Appeal by Way of Case Stated / Judgment on Case Stated

Legal Issues

  1. 1 Whether the magistrate erred in applying Fung Yee Man in finding that R1 did not carry on a business
  2. 2 Whether the magistrate's acquittal was perverse such that no reasonable tribunal could have reached it (Li Man Wai test)
  3. 3 Proper legal test for 'carrying on a business' under s114 SFO and application to intermittent or one‑off activities

Ratio Decidendi

The magistrate's factual finding that R1's activities were isolated 'bits and pieces' and not a business carried on in advising on corporate finance was open on the evidence and not perverse; Fung Yee Man is fact‑sensitive and not per incuriam; carrying on a business under s114 is a question of fact and degree; appeal dismissed.

Court Disposition

Appeal dismissed; magistrate's acquittal on carrying on a business and attributable s390 offence upheld

Orders

  • Appeal dismissed
  • Magistrate's acquittal of C.L. Management Services Limited on the s114(1)(a) offence and of Au Suet Ming Clarea on the attributable offence under s390 upheld