In proceedings initiated by the Securities and Futures Commission, the Market Misconduct Tribunal of Hong Kong has found that CMBC Capital Holdings and six of its former directors failed to disclose 'inside information' as soon as reasonably practicable in accordance with the Securities and Futures Ordinance.
The tribunal has imposed a 15-month disqualification order against the company’s former CEO and company secretary, Mr Philip Suen Yick Lun.
The tribunal also fined Philip Suen and CMBC Capital’s former chairman Mr Paul Suen Cho Hung HK$1.2 million and HK$900,000 respectively in proceedings initiated by the Securities and Futures Commission.
The remaining four former directors involved in the case at the time in question are Mr Lau King Hang, a former executive director, and three former independent non-executive directors, Mr Huang Zhencheng, Mr Weng Yixiang and Mr Wong Kwok Tai.
CMBC Capital and the aforementioned six former directors admitted that the information about significant improvements in the company’s financial performance for the five months ended 31 August 2014 came to their knowledge on or around 13 October 2014, but such information was not made public until 7 November 2014 when a "positive profit alert" was published in relation to the company’s financial performance for the six months ending 30 September 2014.
Philip Suen and Paul Suen also admitted that their negligent conduct had resulted in CMBC Capital’s contravention of the corporate disclosure regime.
The tribunal ordered CMBC Capital and the six former directors to pay the SFC’s investigation and legal costs. The six former directors are now on a training course.