Hong Kong Securities and Futures Commission secures up to 10-year disqualification orders against former Superb Summit directors

The Hong Kong Securities and Futures Commission (SFC) has obtained Court of First Instance disqualification orders against five former directors of Superb Summit International Group Limited, banning them for between five and 10 years from acting as directors or being involved in management of the company or any other corporation. The individuals were also ordered to pay the SFC’s costs. The disqualifications cover four former executive directors, Mr Lee Chi Kong (10 years), Mr Lam Ping Kei (five years), Ms Wong Choi Fung (five years) and Mr Yeung Kwong Lun (five years), and a former independent non-executive director, Mr Wong Yun Kuen (seven years). The proceedings followed the SFC’s investigation into alleged misconduct linked to three acquisitions between 2007 and 2014 which the Court found formed part of schemes to defalcate and misappropriate Superb Summit’s assets, causing significant losses. In particular, Superb Summit acquired 70% and 30% interests in a target said to hold forestry assets in 2007 and 2009 for a total of HKD 1.678 billion, but the Court found the forestry assets did not exist; it also acquired interests in a company purportedly holding intellectual property rights for engineering technology, but the Court found the technology had little to no value and the transaction served to channel significant funds to a substantial shareholder. The directors admitted breaches of duty for failing to ensure proper and reasonable due diligence and accepted they were incompetent, reckless or negligent, with the Court making the orders under the Carecraft procedure based on agreed facts. Proceedings against other former directors and officers of Superb Summit remain ongoing.