On 7th May 2020, in SFC v Wong Wai Kwong David & Ors [2020] HKCFI 727, the Court of First Instance held after trial that the former Deputy Chairman of EganaGoldpfeil (Holdings) Limited (Stock Code: 048) (in Liquidation) (the “Company”) is not liable for the HK$622 million compensation order sought by the SFC, although he shall be subject to a disqualification order for 6 years.

This case is a petition brought by the SFC under s.214 of the Securities and Futures Ordinance.  The SFC alleged that a large-scale misapplication of funds belonging to the Company and its subsidiaries took place between 2006 and 2007, which gave rise to doubtful receivables of approximately HK$2.55 billion, and that each of the Directors sued in the Petition was responsible for that misapplication of funds.

Bernard Mak and Lok Ho acted for the 2nd Respondent, the former Deputy Chairman of the Company, instructed by Messrs. Leung, Tam & Wong.

The full text of the judgment can be found here.