The Hong Kong Securities and Futures Commission (SFC) has commenced proceedings in the Court of First Instance seeking director disqualification and compensation orders against eight former directors of 3DG Holdings (International) Limited, formerly known as Hong Kong Resources Holdings Company Limited, over an alleged failure to prevent the misappropriation of HKD 74.4 million in corporate funds. The SFC’s investigation found that after the company acquired a money lender’s licence business on 8 June 2017, it granted 12 loans totalling HKD 74.4 million between June 2018 and March 2019, all of which were in default when due. The SFC alleges the acquisition and loans formed part of a scheme to misappropriate cash, and is seeking compensation orders requiring the directors to pay HKD 74.4 million to the company, whether individually or jointly and severally. The SFC is also seeking disqualification orders, alleging the directors breached their duties and failed to act with proper skill, care and diligence; under section 214(2)(d) of the Securities and Futures Ordinance, the court may disqualify a person for up to 15 years.

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