Hong Kong Court Orders HK & SG Listed Co. Sound Global Ltd Chairman Wen Yibo to Buy Shares from Shareholders at Court-Determined Price in Landmark Rul
Hong Kong, Asia's leading financial centre Caproasia.com | The leading source of data, research, information & resource for investment managers, professional investors, UHNW & HNW investors, and advisors to institutions, billionaires, UHNWs & HNWs. Covering capital markets, investments and private wealth in Asia. How do you invest $3 million to $300 million? How do you manage $20 million to $3 billion of assets? Caproasia - Learn more This site is for accredited investors, professional investors, investment managers and financial professionals only. You should have assets around $3 million to $300 million or managing $20 million to $3 billion. 
Hong Kong Court Orders HK & SG Listed Co. Sound Global Ltd Chairman Wen Yibo to Buy Shares from Shareholders at Court-Determined Price in Landmark Ruling, 12 Years Disqualification for Inflating Bank Balances by $379 Million 13th October 2022 | Hong Kong
The Hong Kong Securities & Futures Commission (SFC) has obtained an order (from Hong Kong court) on former Hong Kong & Singapore listed company Sound Global Ltd Chairman Wen Yibo to buy shares from other shareholders at a court-determined price in a first-of-its-kind landmark ruling (under section 214 of the HK Securities & Futures Ordinance ~ SFO), with a further 12 years disqualification as a director or management of any corporation for inflating bank balances by $379 million (RMB 2.72 billion) in 2013. Hong Kong Court: “The Court was satisfied that as a result of Wen’s scheme, which involved five bank accounts maintained by Sound Global’s subsidiaries at two Mainland banks for the financial years of 2011, 2012 and 2013, the bank balances of the company’s subsidiaries were inflated by RMB 2.18 billion and RMB 2.72 billion as at 31 December 2012 and 2013 respectively, representing 82% and 89% of the net assets of Sound Global as reported in its 2012 and 2013 annual reports.” Ashley Alder, the SFC’s Chief Executive Officer: “The share purchase order represents an important milestone in the SFC’s efforts to protect the investing public from wrongful conduct by management of listed companies and our determination to deploy our full range of regulatory tools to tackle market misconduct and uphold market integrity.” See below for more information.
Ads & Announcements
(function(t,e,s,o){var n,c,l;t.SMCX=t.SMCX||[],e.getElementById(o)||(n=e.getElementsByTagName(s),c=n[n.length-1],l=e.createElement(s),l.type="text/javascript",l.async=!0,l.id=o,l.src="https://widget.surveymonkey.com/collect/website/js/tRaiETqnLgj758hTBazgdw_2FrTqLsoWjmVFwM5csk2vL4dBkVAR7ILuYTMMU8NYZ_2F.js",c.parentNode.insertBefore(l,c))})(window,document,"script","smcx-sdk"); “ Hong Kong Court Orders HK & SG Listed Co. Sound Global Ltd Chairman Wen Yibo to Buy Shares from Shareholders at Court-Determined Price in Landmark Ruling, 12 Years Disqualification for Inflating Bank Balances by $379 Million “
Sound Global is an investment holding company listed on the Singapore Exchange Securities Trading Limited and on the Main Board of The Stock Exchange of Hong Kong Limited (SEHK) (former stock code: 967) since 6 October 2006 and 30 September 2010 respectively. It was voluntarily delisted from the Singapore Exchange Securities Trading Limited on 27 January 2014 and was delisted by the SEHK with effect from 13 September 2022.
Section 214(2)(e) of the SFO provides that the Court may “make any other order it considers appropriate, whether for regulating the conduct of the business or affairs of the corporation in future, or for the purchase of the shares of any members of the corporation by other members of the corporation…”
Hong Kong SFC Statement
Hong Kong, Asia’s leading financial centre - Court orders Sound Global to purchase shares from investors
The Securities and Futures Commission (SFC) has obtained an order in the Court of First Instance against the chairman and executive director of Sound Global Ltd. (Sound Global), Mr Wen Yibo, to purchase shares held by the other shareholders of the company at a price to be determined by the Court – after he was found to have orchestrated a scheme to falsify the company’s bank balances and fabricated relevant bank statements and balance confirmations (Notes 1 to 3).
The order was the first of its kind made under section 214 of the SFO (Note 4).
The Court also issued a disqualification order for 12 years against Wen, who was ordered to pay the SFC’s costs on an indemnity basis (Note 5).
The Court was satisfied that as a result of Wen’s scheme, which involved five bank accounts maintained by Sound Global’s subsidiaries at two Mainland banks for the financial years of 2011, 2012 and 2013, the bank balances of the company’s subsidiaries were inflated by RMB 2.18 billion and RMB 2.72 billion as at 31 December 2012 and 2013 respectively, representing 82% and 89% of the net assets of Sound Global as reported in its 2012 and 2013 annual reports.
Mr Ashley Alder, the SFC’s Chief Executive Officer said: “The share purchase order represents an important milestone in the SFC’s efforts to protect the investing public from wrongful conduct by management of listed companies and our determination to deploy our full range of regulatory tools to tackle market misconduct and uphold market integrity.”
The SFC would like to acknowledge and thank the China Securities Regulatory Commission for its assistance in the investigation of this case.
Notes:
Sign Up / Subscribe:
Mailing ListFree TrialPromo $20 MonthlyPromo $180 YearlyInvestor $680 YearlyProfessional $680 YearlyExecutive $2,000 Yearly
Interests / Events / Summits / Roundtables / Networking:
Private WealthFamily OfficePrivate BankingWealth ManagementInvestmentsAlternativesPrivate MarketsCapital MarketsESG & SICEO & EntrepreneursTax, Legal & RisksHNW & UHNWs Insights
Your Name*
Company*
Job Title*
Email 1 (Work / Personal)*
Email 2 (Work / Personal)
Contact No.
Country
Your Message (leave blank if none)
Owl Media Group takes pride in providing social-first platforms which equally benefit and facilitate engagement between businesses and consumers and creating much-needed balance to make conducting business, easier, safer, faster and better. The vision behind every platform in the Owl Media suite is to make lives better and foster a healthy environment in which parties can conduct business efficiently. Facilitating free and fair business relationships is crucial for any thriving economy and Owl Media bridges the gap and open doors for transparent and successful transacting. No advertising funds influence the functionality of our media platforms because we value authenticity and never compromise on quality no matter how lucrative the offers from advertisers may seem.