The Securities and Futures Commission (SFC) of Hong Kong has obtained disqualification orders in the Court of First Instance against the former chairman and executive director, Mr Li Wing Sang; and two former executive directors, Mr Liu Xinsheng and Mr Chiu Chi Hong, of Tech Pro Technology Development Limited (Tech Pro) for breaching their duties in failing to properly manage the company’s investment through a joint venture with a Mainland partner.

Li and Liu, who were also the director and supervisor of the joint venture respectively, were disqualified for a period of seven years from being a director, liquidator, receiver or manager, and being involved in the management of any listed or unlisted corporation in Hong Kong. Meanwhile, Chiu, who did not hold any position in the joint venture, was disqualified for a period of four years. The trio was also ordered to pay the SFC’s costs in the proceedings.

The SFC’s investigation revealed that the three directors failed to obtain sufficient control and supervision over the joint venture and left the daily management to the Mainland partner, who as a result was able to misappropriate over RMB300 million from the joint venture.

The Mainland partner also failed to settle the outstanding rent for a building in Shanghai, resulting in a Mainland court ordering the termination of the joint venture’s sub-leasing right for the building (ie, the principal asset of the joint venture), effectively wiping out the value of Tech Pro’s investment in the joint venture.

Nevertheless, the trio was unaware of the Mainland court order and the relevant legal proceedings.