SFC obtains court orders against former director and chief financial officer of Changgang Dunxin Enterprise Company Limited

The Securities and Futures Commission (SFC) has obtained compensation and disqualification orders against Mr. Chen Ruomao, a former executive director and chief financial officer of Changgang Dunxin Enterprise Company Limited. The court ordered Chen to pay $163 million in compensation to the company for his misconduct, which involved allowing the misappropriation of funds raised through share and bond placements and concealing this misappropriation from auditors and the company’s board. Although there is no evidence that Chen personally received any of the misappropriated funds, the court found his misconduct to be serious and ordered him to compensate the company. Additionally, Chen has been disqualified from acting as a director or being involved in the management of any listed or unlisted corporation for 10 years. The SFC’s Executive Director of Enforcement emphasized the importance of holding individuals accountable for corporate misconduct and highlighted that even without personal financial benefits, complicity in misconduct is not excused. The SFC’s proceedings against three other former directors of the company are still ongoing. Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=24PR61