Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Misrepresentation in announcements
  • 13 Oct 2009

    SECURITIES AND FUTURES COMMISSION v. FUNG CHIU AND OTHERS

    Citation
    SECURITIES AND FUTURES COMMISSION v. FUNG CHIU AND OTHERS
    Court
    Court of First Instance
    Case number
    HCMP2524/2006

    The SFC proved that the 1st and 3rd respondents were responsible, collectively or individually, for the Company’s affairs being conducted with misfeasance and other misconduct: they allowed a shadow controller to control finances, approved or signed misleading announcements and back‑dated minutes, failed to exercise required skill and care, and permitted significant unsecured transfers to related parties; accordingly disqualification orders (7 years for 1st respondent, 6 years for 3rd respondent) covering all corporations were justified to protect the public and deter misconduct.