The Hong Kong Securities and Futures Commission (SFC) has obtained Court of First Instance disqualification orders against four former senior officers of National Agricultural Holdings Limited (NAH), barring them for between two and nine years from acting as directors or being involved in the management of any corporation in Hong Kong. The disqualified individuals are former financial manager Lu Ying (nine years), former executive directors Ren Hai and Peng Guojiang (seven years each), and former independent non-executive director Ting Tit Cheung (two years), who were also ordered to pay the SFC’s costs. The orders followed SFC investigations into multiple questionable transactions, including NAH’s controlling shareholder Parko (Hong Kong) Limited acquiring 212,194,500 NAH shares but failing to pay approximately HKD 676 million on allotment in June 2015. The investigations also found transfers of HKD 384 million between January and June 2015 purportedly to establish an investment fund but used for unrelated purposes, including transfers to Parko; the rapid onward movement of RMB 1.85 billion (a refund from two lapsed transactions deposited in August 2017) through a series of dubious transactions for unknown purposes; and a HKD 50 million transfer in 2015 to a company connected to NAH’s former chairman Chen Li-Jun concealed as a loan. Chen was identified as the central figure in the misconduct but had died after proceedings began, and Parko had become defunct; the Court made the orders after the four respondents admitted breaches of duty, with findings that Lu coordinated payments in the questionable transactions, Ren and Peng failed to challenge or rectify the misconduct, and Ting failed to exercise independent oversight, including as an audit committee member after auditor concerns were raised. The SFC commenced the section 214 proceedings in January 2021, and it previously obtained disqualification orders in June 2023 against three other former NAH directors in the same proceedings.
Hong Kong Securities & Futures Commission 2025-05-27
Hong Kong Securities and Futures Commission obtains two to nine-year director disqualification orders against former National Agricultural Holdings executives
The Hong Kong Securities and Futures Commission (SFC) secured disqualification orders against four former senior officers of National Agricultural Holdings Limited (NAH) for two to nine years due to breaches of duty. The orders followed investigations into questionable transactions, including unpaid share allotments and misused funds, with former financial manager Lu Ying coordinating payments and others failing to address misconduct. The Court's decision was based on the respondents' admissions of duty breaches.