On March 14, 2025, the Securities and Futures Commission ("SFC") initiated legal proceedings against eight former directors of 3DG Holdings (International) Limited for allegedly misappropriating $74.4 million in corporate funds. The SFC seeks disqualification and compensation orders. The directors were involved in the acquisition of a money lender’s licence and the granting of loans that were in default.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On March 14, 2025, the Securities and Futures Commission ("SFC") initiated legal action in the Court of First Instance against eight former directors of 3DG Holdings (International) Limited, previously known as Hong Kong Resources Holdings Company Limited, for alleged misappropriation of $74.4 million in corporate funds.
The eight directors, serving as members of the board of HK Resources at the time, comprise Mr. Xu Zhigang, Mr. Wu Xiaolin, Mr. Wilfred Lam Kwok Hing, Mr. Zhao Jianguo (all executive directors), Mr. Loke Yu, Mr. Anthony Fan Ren Da, and Mr. Xu Xiaoping (all independent non-executive directors). The SFC seeks disqualification and compensation orders against these directors.
According to the SFC’s investigation, on 8 June 2017, HK Resources acquired a 100% equity interest in a money lending company. Between June 2018 and March 2019, HK Resources granted 12 loans totaling $74.4 million, all of which defaulted upon maturity. The SFC alleges that these transactions constituted a scheme to misappropriate HK Resources' cash.
The SFC is seeking compensation orders, requiring the directors to repay either individually or jointly and severally the amount of $74.4 million. The SFC further seeks disqualification orders, alleging that all directors breached their fiduciary duties by failing to exercise proper skill, care, and diligence.
HK Resources, listed on the Main Board of the Stock Exchange of Hong Kong Limited since 30 June 2003, operates in the trademark licensing and retailing of gold and jewelry products in Hong Kong, Macau, and mainland China.
Under section 214(2)(d) of the SFC Ordinance, the court may disqualify a director for up to 15 years for defalcation, fraud, or misconduct towards the corporation. Additionally, the court has the power to issue other appropriate orders under section 214(2)(e).
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