The Securities and Futures Commission ("SFC") obtained compensation and disqualification orders against former directors of Arta TechFin Corporation Limited. The court ordered Mr Andrew Liu and Mr Quincy Hui to compensate the company $57.5 million, and disqualified them for eight and six years respectively. Seven other former directors were disqualified for one to two years.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On February 10, 2026, the Securities and Futures Commission ("SFC") secured a Court of First Instance order compelling Mr. Andrew Liu and Mr. Quincy Hui Kwong Hei, former non-executive and managing directors of Arta TechFin Corporation Limited (Arta TechFin), to compensate the company $57.5 million for the financial loss they inflicted on its acquisition and disposal of a stake in Liu’s Holdings Limited. The two were also disqualified from acting as directors or being associated with the management of Arta TechFin and any other corporation for eight and six years, respectively, pending court approval.
The Court found Mr. Liu’s misconduct to be more serious, and Mr. Hui played a significant role in the transaction. Additionally, seven other former executive and independent non-executive directors of Arta TechFin—including Mr. Lo Kan Sun, Ms. Sue Au Shuk Yee, Mr. Philip Suen Yick Luni, Mr. Scott Allen Phillips, Mr. Agustin V Que, Mr. Gary Drew Douglas, and Mr. Peter Temple Whitelam—were disqualified from director positions for periods ranging from one to two years.
The SFC initiated legal proceedings in October 2016 against these individuals under section 214 of the Securities and Futures Ordinance, alleging breaches of directors' duties during the acquisition and disposal of Liu’s Holdings, leading to substantial losses for Arta TechFin. The Court determined that the directors were collectively responsible for the company's business affairs being conducted in an oppressive manner, involving defalcation, misfeasance, or misconduct.
The compensation and disqualification orders were delivered after the Court's findings, reinforcing the SFC’s stance on maintaining high standards of corporate governance and individual accountability. SFC Executive Director of Enforcement, Mr. Michael Duignan, expressed support for the judgment, emphasizing the Commission's commitment to safeguarding investors, protecting company assets, and upholding market integrity. Arta TechFin Corporation Limited, formerly known as Freeman Financial Corporation Limited until October 2016 and Freeman FinTech Corporation Limited from 2016 to 2021, underwent a name change to its current designation in October 2021.
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