The Hong Kong Securities and Futures Commission has launched Court of First Instance proceedings under section 214 of the Securities and Futures Ordinance seeking disqualification orders against four former directors of Century Energy International Holdings Limited, formerly known as China Oil Gangran Energy Group Holdings Limited. The action follows an SFC investigation into the company’s loss of control over four major operating subsidiaries in the Mainland, which were deconsolidated with effect from 1 January 2019 and resulted in a loss of $184 million for the year ended 31 March 2019. The SFC alleges that Mr Gregory Ho Chun Kit, Mr Zheng Jian Peng, Ms Eugenia Yang and Mr Vincent Lau Sung Tat failed to properly supervise the subsidiaries and did not act in the company’s best interests, with prolonged lack of oversight leading to the deconsolidation and significant losses. It also alleges that Ho, Yang and Lau were responsible for a 2014 circular containing inaccurate or misleading information about one of the Mainland subsidiaries; the subsidiaries accounted for over 80% of total revenue for the year ended 31 March 2018 and more than 40% of total assets as of 31 March 2018.