31 Dec 1992
CHINGTUNG FUTURES LTD v. ARTHUR LAI CHEUK KWAN AND OTHERS
- Citation
- CHINGTUNG FUTURES LTD v. ARTHUR LAI CHEUK KWAN AND OTHERS
- Court
- Court of First Instance
- Case number
- HCA5081/1989
The 1st defendant, Arthur Lai, as chairman and account executive, breached the director's safeguards duty by allowing Account C1210 to be opened and operated with inadequate safeguards (no guarantee, inadequate margin, insufficient knowledge of the customer) exposing CTF to a foreseeable risk of large loss in a market crash; the Black Monday crash and subsequent market closure did not break causation; ratification cannot bar the company's claim where exposure to insolvency occurred; section 358 relief is refused; damages of HKD 83,977,986 awarded to CTF.