{"id":9522,"date":"2025-06-22T16:25:29","date_gmt":"2025-06-22T08:25:29","guid":{"rendered":"https:\/\/hkytl.com\/?p=9522"},"modified":"2025-06-22T17:40:43","modified_gmt":"2025-06-22T09:40:43","slug":"sfc-enforcement-director-disqualification-hong-kong-defense","status":"publish","type":"post","link":"https:\/\/hkytl.com\/cn\/2025\/06\/22\/sfc-enforcement-director-disqualification-hong-kong-defense\/","title":{"rendered":"\u8bc1\u76d1\u4f1a\u5bf9\u8463\u4e8b\u7684\u6267\u6cd5\uff1a\u7ecf\u9a8c\u6559\u8bad\u4e0e\u8fa9\u62a4\u7b56\u7565"},"content":{"rendered":"\t\t
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Introduction<\/strong><\/p>

In the landmark disqualification case\u00a0Securities and Futures Commission v Chen Li-Jun & Others<\/strong><\/em><\/a> [2025] HKCFI 2024, the SFC secured 2\u20139-year director bans<\/strong> against four executives (comprising 1 financial manager, 2 executive directors, and 1 independent non-executive director (who was a member of the audit committee)) of a delisted GEM company. This ruling exposes the severe consequences of governance failures \u2013 and underscores why directors need professional legal defense.<\/p>
Role<\/span><\/th>Disqualification<\/span><\/th>Key Failures<\/span><\/th><\/tr><\/thead>
Financial Manager<\/td>9 years<\/td>Orchestrated dubious fund transfers (RMB 1.85B)<\/td><\/tr>
Executive Directors<\/td>7 years each<\/td>Enabled chairman\u2019s dominance; ignored fraud (HK$384M misappropriation)<\/td><\/tr>
INED\/Audit Committee<\/td>2 years<\/td>Failed to exercise independent oversight<\/td><\/tr><\/tbody><\/table>

Breaches that triggered SFC action<\/b><\/p>

  1. HK$676.7M unpaid share subscriptions<\/span>\u00a0by controlling shareholder.<\/p><\/li>

  2. HK$384M diverted<\/span>\u00a0to unauthorized entity that was not the intended recipient, and using the sum for non-intended purposes.<\/p><\/li>

  3. RMB1.85B “pass-through” transactions<\/span>\u00a0with no commercial purpose.<\/p><\/li>

  4. HK$50M loan <\/span>disguising a transfer to former chairman.<\/p><\/li><\/ol>

    \u00a0Legal issues<\/b><\/p>

    The SFC alleged that the respondents breached their fiduciary duties and other duties by:<\/span><\/p>