The Securities and Futures Commission (SFC) of Hong Kong has obtained an order from the Court of First Instance to freeze more than $101 million in cash in the personal bank account of Mr Ng Kwok Fai Ng, a suspected shadow director of Teamway International Group Holdings Limited.

The order was issued in connection with legal proceedings under section 214 of the Securities and Futures Ordinance (SFO) over alleged corporate misconduct.

This came after Ng and others agreed to pay $192 million for redistribution as compensation to independent public shareholders of delisted Combest Holdings Limited for their misconduct.

The current legal proceedings arose from the SFC’s investigation into corporate misconduct involving Teamway. The SFC alleges that Ng and Mr Yang Zhihui gained control of Teamway after acquiring a 75 per cent-interest in the company from its founder through a nominee in 2015 and then became the shadow directors, enabling them to transform the company into a “listed shell” with plans to inject new businesses to replace its original packaging business. The SFC’s case is that Ng and Yang, as shadow directors, engineered a series of transactions involving Teamway that prejudiced the interests of the company, thereby breaching their fiduciary duties.

The SFC claims that seven former executive directors (EDs) and three former independent non-executive directors (INEDs) of Teamway breached their fiduciary duties by approving the aforesaid transactions and/or allowing Ng and/or Yang to dominate the company’s affairs.

The SFC also claims that the former company secretary was negligent or reckless in performing her duties in relation to these transactions.

The regulator is seeking compensation orders against Ng, Yang, and the 10 former directors for $532 million in losses incurred by Teamway and its subsidiaries. It is also pursuing disqualification orders against them and the former company secretary from being directors or taking part in the management of any listed or unlisted corporation in Hong Kong.

The asset freezing order against Ng remains in effect until the disposal of the legal proceedings relating to Teamway or further order of the Court.