The Securities and Futures Commission (SFC) is seeking to invalidate 10 stream and former directors of a Freeman FinTech Corporation for breaching executive duties in propinquity to a connected transaction that led to association losses.
The directors, including handling executive Quincy Hui Kwong Hei and former non-executive executive Andrew Liu, allegedly mishandled a merger and ordering of a seductiveness in Liu’s Holdings.
Liu and Hui overlooked a ability of other Liu family members to intent to Freeman’s surreptitious squeeze of a 24.43 per cent seductiveness in Liu’s Holdings, according to a SFC.
The other Liu family members did object, and Freeman after sole a seductiveness behind during a detriment of HK$76.8 million after a merger unsuccessful to go through.
According to a SFC, Hui unsuccessful to make full inquiries with Liu on a position of Liu’s Holdings other shareholders before removing Freeman’s shareholders to approve a acquisition.
Additionally, Liu had unsuccessful to divulge to Freeman that some shareholders of Liu’s Holdings had objected to a acquisition, and that there was a dispute of seductiveness between Liu, his relatives and Freeman in a disposal.
SFC is now seeking remuneration orders that need Hui and Liu to compensate behind a detriment volume to Freeman.
The remaining 8 directors have also unsuccessful in their directorial duties by not behaving in a best seductiveness of a company, permitting fake or dubious statements in a company’s proclamation per to a merger and disposal, and unwell to pursue Liu and a others for waste suffered by a firm, SFC said.
The initial conference of a petition filed by a SFC will be listened in a Court of First Instance on 24 Feb 2017.
Article source: http://www.scmp.com/business/article/2026186/sfc-launches-action-disqualify-directors-freeman-fintech-corp