Hong Kong Securities and Futures Commission obtains three-year disqualification order against former National United Resources executive director

The Hong Kong Securities and Futures Commission obtained a Court of First Instance disqualification order against Mr Lo Ka Wai, a former executive director of National United Resources Holdings Limited. The order bans Lo for three years from being a director, liquidator, receiver or manager of, or being involved in the management of, any listed or unlisted corporation in Hong Kong, and requires him to pay the SFC’s costs. The case concerned two back-to-back fuel oil supply and sale transactions entered into by a National United Resources subsidiary in 2015 that the SFC found to be fictitious, including because both the customer and supplier were controlled by the group or persons closely connected to it and the supporting bills of lading were not genuine. The disqualification followed Lo’s admission that he breached his duties and was negligent in committing the subsidiary to the transactions and approving payments totalling 302 million from National United Resources to its subsidiary for purported settlement, as well as approving the publication of the company’s 2015 annual results and report containing false or misleading statements about the transactions. Proceedings were brought under section 214 of the Securities and Futures Ordinance and were disposed of by way of a Carecraft procedure based on agreed facts and proposed orders. The SFC’s proceedings against other former directors and officers of National United Resources remain ongoing.