Hong Kong Securities Regulatory Commission: Involved in corporate misconduct, TEAMWAY INTL GP (01239) suspects that the director behind the scenes will be HK$101 million

Zhitong Finance App learned that the Hong Kong Securities Regulatory Commission (CSRC) reported on December 16 that the Hong Kong Securities Regulatory Commission obtained a court order from the Court of First Instance to freeze more than Wu's personal bank account in legal proceedings on suspected corporate misconduct under section 214 of the Securities and Futures Ordinance, based on the Hong Kong Securities Regulatory Commission and Teamway International Group Holdings Limited (01239) suspecting the consent of the director behind the scenes Wu Guohui (male) HK$101 million in cash.

Earlier, Wu and others agreed to pay HK$192 million for their misconduct to be redistributed to independent public shareholders of delisted Kangbai Holdings Limited (Kangbai) as compensation.

The current legal process stems from an investigation by the Hong Kong Securities Regulatory Commission into corporate misconduct involving Teamway. The Hong Kong Securities Regulatory Commission alleges that after acquiring 75% of the company's interests from the founder of Teamway through a nominee in 2015, Wu and Yang Zhi Hui (male) took control of Teamway, then became a behind-the-scenes director, and turned the company into an “empty listed company” through plans to inject new business to replace its original packaging business. According to the case presented by the Hong Kong Securities Regulatory Commission, Wu Jiyang, as the director behind the scenes, planned a series of transactions that harmed Teamway's interests, in violation of their fiduciary responsibilities.

The Hong Kong Securities Regulatory Commission alleges that seven former executive directors and three former independent non-executive directors of Teamway violated their fiduciary duties by approving the transaction and/or allowing Wu and/or Yang to lead the company's affairs. The Hong Kong Securities Regulatory Commission also alleges that the former company secretary was involved in negligence or ignoring consequences in carrying out his duties in relation to such transactions.

The Hong Kong Securities Regulatory Commission is seeking compensation orders from the court against Wu, Yang and ten former directors to cover the losses of HK$532 million suffered by Teamway and its subsidiaries. The Hong Kong Securities Regulatory Commission is also seeking a court order to disqualify these persons and former company secretaries to prohibit them from acting as directors or participating in the management of any listed or unlisted corporation in Hong Kong.

The asset freeze order against Wu remains in effect until the legal process relating to Teamway is completed or a further court order is issued.