Hong Kong SFC Disqualified 2 Former Directors of Luxey International for Misconduct & Fraud on Corporate Acquisition, Used Nominees to Buy Acquisition
Hong Kong, Asia's leading financial centre Caproasia.com | The leading source of data, research, information & resource for financial professionals, investment managers, professional investors, family offices & 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 Caproasia Access | Events | Summits | Register Events | The Financial Centre The 2023 Investment Day | 2023 Family Office Summits | Family Office Circle 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 SFC Disqualified 2 Former Directors of Luxey International for Misconduct & Fraud on Corporate Acquisition, Used Nominees to Buy Acquisition Target at $6.4 Million & Resell to Luxey International for $49.8 Million 24th May 2023 | Hong Kong
Hong Kong Securities & Futures Commission (SFC) has obtained disqualification orders (Hong Kong court) on 2 former directors (Joseph Lau Chi Yuen 8 years, Chung Man Wai 5 years) of Luxey International for misconduct & fraud on corporate acquisition, using nominees to buy acquisition target at $6.4 million (HKD 50.1 million) and re-selling to Luxey International for $49.8 million (HKD 390 million). Hong Kong SFC: “The Court found that Lau and Chung were responsible for Luxey’s business or affairs having been conducted in a manner involving defalcation, fraud, misfeasance or other misconduct that was unfairly prejudicial to Luxey’s members, resulting in them not having been given all the information with respect to Luxey’s business or affairs that they might reasonably expect. The SFC’s action follows an investigation into Luxey’s very substantial acquisition of Easy Time Trading Limited (Easy Time) which held a 99% stake in Ratio Knitting Factory Limited (Ratio) at the time of the acquisition on 31 March 2011. The SFC’s investigation found that Lau had utilised nominees to acquire Ratio for HKD 50.1 million before it was effectively resold to Luxey for HKD 390 million and concealed his secret profit and/or material interest in these transactions. As a result, Luxey was deprived of the opportunity to acquire Easy Time or Ratio at a price substantially lower than the consideration of HKD 390 million.” More info below.
“ Hong Kong SFC Disqualified 2 Former Directors of Luxey International for Misconduct & Fraud on Corporate Acquisition, Used Nominees to Buy Acquisition Target at $6.4 Million & Resell to Luxey International for $49.8 Million “
- Article continues below - Web links may be disabled on mobile for security. Please click on desktop. Quick Links, Ads & Announcements Caproasia Access | Events | Summits | Register Events | The Financial Centre The 2023 Investment Day | 2023 Family Office Summits | Family Office Circle New to Caproasia Sign Up | Subscribe | Register Events The 2023 Investment Day | 6/6 HK & 13/6 SG Private Equity, Hedge Funds, Boutique Funds, Private Markets & more. Taking place on 6th June 2023 in Hong Kong, 13th June 2023 in Singapore. Visit | Register here
Luxey was listed on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited on 7 July 2000. It was known as Intcera Inc. before it was listed. It changed its name to Intcera High Tech Group Limited on 2 June 2000 and then to China Post E-Commerce (Holdings) Limited on 29 April 2009 before changing to its current name on 22 December 2011. Luxey is principally engaged in the manufacture and sale of apparel.
The two former directors, Mr Joseph Lau Chi Yuen and Mr Chung Man Wai, were disqualified for eight years and five years respectively, without leave of the Court, from (i) being, or continuing to be, a director, liquidator, or receiver or manager of the property or business of any listed or unlisted company in Hong Kong; or (ii) in any event, whether directly or indirectly, be concerned, or taking part, in the management of any listed or unlisted company in Hong Kong.
Hong Kong SFC Disqualified 2 Former Directors of Luxey International for Misconduct & Fraud on Corporate Acquisition
Hong Kong, Asia’s leading financial centre SFC obtains disqualification orders against former directors of Luxey International (Holdings) Limited
24th May 2023 – The Securities and Futures Commission (SFC) has obtained disqualification orders in the Court of First Instance against two former directors of Luxey International (Holdings) Limited (Luxey) for their misconduct involving a corporate acquisition (Note 1).
The two former directors, Mr Joseph Lau Chi Yuen and Mr Chung Man Wai, were disqualified for eight years and five years respectively, without leave of the Court, from (i) being, or continuing to be, a director, liquidator, or receiver or manager of the property or business of any listed or unlisted company in Hong Kong; or (ii) in any event, whether directly or indirectly, be concerned, or taking part, in the management of any listed or unlisted company in Hong Kong.
They were also ordered to pay the SFC’s costs in the proceedings.
The Court found that Lau and Chung were responsible for Luxey’s business or affairs having been conducted in a manner involving defalcation, fraud, misfeasance or other misconduct that was unfairly prejudicial to Luxey’s members, resulting in them not having been given all the information with respect to Luxey’s business or affairs that they might reasonably expect (Notes 2 & 3).
The SFC’s action follows an investigation into Luxey’s very substantial acquisition of Easy Time Trading Limited (Easy Time) which held a 99% stake in Ratio Knitting Factory Limited (Ratio) at the time of the acquisition on 31 March 2011.
The SFC’s investigation found that Lau had utilised nominees to acquire Ratio for $50.1 million before it was effectively resold to Luxey for $390 million and concealed his secret profit and/or material interest in these transactions. As a result, Luxey was deprived of the opportunity to acquire Easy Time or Ratio at a price substantially lower than the consideration of $390 million.
As for Chung, he had failed to make sufficient enquiries about the relationships among Lau and his nominees and to take steps to prevent Luxey from acquiring Easy Time at a substantially higher price (Note 4).
Notes:
You are:
InvestorProfessionalFamily OfficeExecutive
Select:
TrialSubscriptionMembershipEvents
Interests / Events / Summits / Roundtables / Networking:
Professional InvestorPrivate 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)
Country
New to Caproasia Learn More | Sign Up | Subscribe | Register Events Caproasia Users - Manage $20 million to $3 billion of assets
- Invest $3 million to $300 million
- Advise institutions, billionaires, UHNWs & HNWs
- Caproasia.com
- Caproasia Access
- Caproasia Events
- The Financial Centre | Find Services
- Membership
- Family Office Circle
- Professional Investor Circle
- Investor Relations Network
- Professional Investor
- Family Office
- HNW Partnership
- Family Office Circle
- Family Office Networking
- Family Office Roundtable
- The Family Office Summit
- 28th March 2023 - Hong Kong
- 4th April 2023 - Singapore
- April 2023 - Virtual
- 6th June 2023 - Hong Kong
- 13th June 2023 - Singapore
- Sept 2023 - Hong Kong
- Oct 2023 - Singapore
- Oct 2023 - Hong Kong
- Visit: The Investment Day | Register: Click here
- The Investment Summit
- The Private Wealth Summit
- The Family Office Summit
- The CEO & Entrepreneur Summit
- The Capital Markets Summit
- The ESG / Sustainable Investment Summit
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.