The Securities and Futures Commission (SFC) has secured disqualification orders against two former directors of Luxey International (Holdings) Limited for their misconduct in relation to a corporate acquisition. The directors, Mr Joseph Lau Chi Yuen and Mr Chung Man Wai, have been banned from both directly and indirectly managing and serving as a director, liquidator, or receiver/manager of any listed or unlisted company in Hong Kong for eight and five years respectively, and have been ordered to cover the SFC’s costs. The Court found that their actions resulted in Luxey’s affairs being conducted in a manner that involved defalcation, fraud, misfeasance, or other misconduct that unfairly prejudiced Luxey’s members. The SFC took action after investigating Luxey’s acquisition of Easy Time Trading Limited, which held a 99% stake in Ratio Knitting Factory Limited. The investigation revealed that Lau had used nominees to purchase Ratio and concealed his secret profit or material interest in these transactions, thereby denying Luxey the opportunity to acquire Easy Time or Ratio at a significantly lower price. Chung had also failed to conduct sufficient inquiries about Lau and his nominees’ relationships and prevent Luxey from acquiring Easy Time at a substantially higher price.
resource: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=23PR54