The Securities and Futures Commission ("SFC") obtained disqualification orders against former executives of Tech Pro Technology Development Limited for failing to properly manage a joint venture, resulting in the misappropriation of RMB 300 million. Mr Li Wing Sang and Mr Liu Xinsheng were disqualified for 7 years, while Mr Chiu Chi Hong was disqualified for 4 years.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On March 03, 2025, the Securities and Futures Commission ("SFC") secured disqualification orders against Mr Li Wing Sang, Mr Liu Xinsheng, and Mr Chiu Chi Hong, former executives of Tech Pro Technology Development Limited (Tech Pro), for breach of their duties in managing a joint venture with a Mainland partner.
Li and Liu, as director and supervisor of the joint venture, were disqualified from holding any such positions for seven years. Mr Chiu, who did not hold a position in the joint venture, was disqualified for a period of four years. Additionally, the trio was ordered to cover the SFC’s legal costs.
The SFC’s investigation disclosed that the trio failed to exert proper control and supervision over the joint venture, allowing the Mainland partner to misappropriate over RMB 300 million. Consequently, the joint venture was unable to settle outstanding rent for a building in Shanghai, leading to the termination of its sub-leasing right. The executives were unaware of these misconducts.
Mr Christopher Wilson, Executive Director of Enforcement at the SFC, highlighted the responsibility of executives to manage the financial and operational status of a joint venture. Delegating management duties does not absolve executives of their fiduciary duties.
These judgments reaffirm the SFC’s dedication to maintaining high standards of corporate governance and individual accountability in protecting investors and upholding market integrity.
Tech Pro, alongside its subsidiaries, specialized in manufacturing and selling LED lighting products and accessories. Listed on the Main Board of the Stock Exchange of Hong Kong Limited on September 6, 2007, the company was delisted on March 2, 2020.
The legal proceedings were initiated under section 214 of the Securities and Futures Ordinance. The orders against Liu and Chiu were finalized through the Court’s approval of the Carecraft procedure.
The respective judgments against the three directors are accessible on the Judiciary’s website (Case No.: HCMP 2068/2020).
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