Hong Kong Securities and Futures Commission secures court order freezing over 101 million in suspected shadow director’s bank account in Teamway misconduct case

The Hong Kong Securities and Futures Commission obtained a Court of First Instance order, by consent with Ng Kwok Fai, to freeze more than 101 million in cash held in Ng’s personal bank account in connection with section 214 Securities and Futures Ordinance proceedings alleging corporate misconduct at Teamway International Group Holdings Limited. The case concerns allegations that Ng and Yang Zhihui became Teamway’s shadow directors after acquiring a 75% interest in 2015 through a nominee, and then engineered transactions that prejudiced the company’s interests and breached fiduciary duties as Teamway was turned into a “listed shell”. Claims have also been made against seven former executive directors and three former independent non-executive directors for approving the transactions and or allowing Ng and or Yang to dominate the company’s affairs, and against the former company secretary for negligence or recklessness. The SFC is seeking compensation orders of 532 million for losses incurred by Teamway and its subsidiaries, and disqualification orders against Ng, Yang, the former directors and the former company secretary; the freezing order followed an earlier arrangement requiring Ng and others to pay 192 million for redistribution to independent public shareholders of delisted Combest Holdings Limited. The asset freeze will remain in effect until the Teamway legal proceedings are disposed of or the Court orders otherwise.