The Securities and Futures Commission (SFC) has commenced proceedings in the High Court, seeking orders to disqualify Mr. Andy Wong Shu Wing, a former chairman and executive director of Sunlink International Holdings Ltd (Sunlink) and Mr. Lee Chak To, a former chief financial officer of Sunlink as company directors for alleged misconducts (Notes 1 and 2).
The SFC alleges that Wong and Lee failed to manage Sunlink with the necessary degree of skill, care, diligence and competence as is reasonably expected of persons of their knowledge and experience and holding their offices and functions within Sunlink; and failed to ensure Sunlink complied with disclosure requirements under the Listing Rules of the Stock Exchange of Hong Kong (SEHK).
The SFC alleges that the breaches of Wong and Lee centred on a number of material events in October and November 2008 concerning the financial position of Sunlink, which the SFC alleges should have been disclosed to its members, the general investing public and the SEHK.
- the mounting pressure from banks for the repayment of bank loans and the threat of legal proceedings being issued against Sunlink and its subsidiaries by the banks for repayment;
- the winding up petition being presented against Sunlink by a supplier for failure to pay trade debts;
- serious liquidity problem resulting from customers refusing to settle purchases as a result of product defects;
- occurrence of labour strikes in Sunlink’s factory on the Mainland causing disruption to rectification of defective products; and
- the appointment of an independent financial adviser for debt restructuring.
The first hearing of the petition was heard in the High Court today.