Hong Kong’s Securities and Futures Commission (SFC) said Friday that it has launched legal proceedings in the Court of First Instance against eight former directors of 3DG Holdings (International) Limited, formerly known as Hong Kong Resources Holdings Company Limited (HK Resources).
Hong Kong’s SFC Seeks Disqualification and Compensation Orders Against Former Board of 3DG Holdings
The legal proceedings regard their alleged failure to prevent the misappropriation of HK$74.4 million in corporate funds.
The SFC said it is seeking disqualification orders to bar the directors from serving in corporate roles and compensation orders to recover the lost funds.
The directors named in the case include Xu Zhigang, the company’s former CEO, alongside former executive directors Wu Xiaolin, Wilfred Lam Kwok Hing, Zhao Jianguo, and Dai Wei. Also listed are former independent non-executive directors Loke Yu, Anthony Fan Ren Da, and Xu Xiaoping.
The SFC explained that its investigation found that in June 2017, HK Resources acquired a company with a money lender’s licence.
Between June 2018 and March 2019, the company granted 12 loans totalling HK$74.4 million, all of which defaulted when due.
The regulator alleges these transactions were part of a scheme to misappropriate corporate funds.
The SFC contends that the directors breached their duties by failing to act with proper skill, care, and diligence.
