Former Deputy Chairman of Listco found not liable for SFC’s HK$622 million compensation order claim

This judgment is now reported in [2020] 3 HKLRD 606.

On 7^th 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 2^nd Respondent, the former Deputy Chairman of the Company, instructed by Messrs. Leung, Tam & Wong.

The full text of the judgment can be found here.