The Stock Exchange of Hong Kong Limited has issued a statement regarding the unsuitability of two individuals associated with a company. Madam Fu Qiang, a former non-executive director, has been publicly censured and deemed unsuitable to hold a directorial or senior management position in the company or its subsidiaries. Additionally, Mr Yang Qing Eric, the former Chairman and executive director, has been criticized. The exchange has directed Mr Yang to attend 15 hours of training. The unsuitability statement and censure against Madam Fu are related to her involvement in granting loans to a borrower introduced by the company’s substantial shareholder, Irena Group Co. Ltd., of which she was also a substantial shareholder. Mr Yang approved the loans without conducting proper due diligence and failed to ensure that the loans were guaranteed. The borrower defaulted, and Irena Group arranged for a third party to take over the loan obligation, with Madam Fu providing a personal guarantee. It was later discovered that Madam Fu had purported to waive the repayment obligations of the third party to the company. The exchange believes that Madam Fu misappropriated funds through the loans and borrower. While Mr Yang has settled the disciplinary proceedings by agreeing to resolve the matter, Madam Fu did not provide a substantial response to the investigation.
Resource: https://www.hkex.com.hk/News/Regulatory-Announcements/2023/230817news?sc_lang=en