Articles: Late disclosure of Inside Information
MMT sanctions Mayer (1116) and its former senior management for late disclosure of inside information
| MMT Report
SFC, 21-Dec-2023
Once again the MMT has, wrongly in our view, fined a listed company for the failures of its directors, thereby punishing the shareholders from whom information was withheld. The MMT writes that the company's "culpability was its failure to have in place policies and guidelines" - but that is, of course, a failure of the directors to put those in place.
SFC, 21-Dec-2023
Once again the MMT has, wrongly in our view, fined a listed company for the failures of its directors, thereby punishing the shareholders from whom information was withheld. The MMT writes that the company's "culpability was its failure to have in place policies and guidelines" - but that is, of course, a failure of the directors to put those in place.
MMT finds Mayer (1116) and its former senior management liable for late disclosure of inside information
| MMT report
SFC, 9-Aug-2023
This was on the second attempt, after an earlier tribunal in 2017 (with a different Chairman and the same 2 lay-members) was found by the Court of Appeal to have erred in law. The previous Chairman, Kenneth Kwok Hing Wai, became too ill to proceed with the remitted hearing. The events date back to 2012.
SFC, 9-Aug-2023
This was on the second attempt, after an earlier tribunal in 2017 (with a different Chairman and the same 2 lay-members) was found by the Court of Appeal to have erred in law. The previous Chairman, Kenneth Kwok Hing Wai, became too ill to proceed with the remitted hearing. The events date back to 2012.
HKICPA reprimands Mr Kong Muk Yin, ex-ED of China Medical & Healthcare (0383)
HKICPA, 8-Apr-2022
This is a follow-on action from his sanction by the Market Misconduct Tribunal.
HKICPA, 8-Apr-2022
This is a follow-on action from his sanction by the Market Misconduct Tribunal.
HKICPA fines Stephen Tang Siu Kun HK$15k
HKICPA, 5-Oct-2021
This is a piggy-back action after the Market Misconduct Tribunal's findings against him and Magic Holdings (ex-1633) for late disclosure of Inside Information.
HKICPA, 5-Oct-2021
This is a piggy-back action after the Market Misconduct Tribunal's findings against him and Magic Holdings (ex-1633) for late disclosure of Inside Information.
MMT sanctions China Medical & HealthCare (0383) and its directors for late disclosure of inside information
| MMT report, 6-Aug-2021
SFC, 12-May-2021
SFC, 12-May-2021
MMT fines Magic Holdings International Ltd and directors HK$4m, DQs them for 8-24 months
| MMT report parts 2 & 3
SFC, 11-Mar-2021
The company was taken private in 2014.
SFC, 11-Mar-2021
The company was taken private in 2014.
MMT sanctions CMBC Capital (1141) and 6 ex-directors for late disclosure in 2014
| MMT report, 19-Feb-2021
SFC, 16-Oct-2020
SFC, 16-Oct-2020
Mayer (1116) ex-directors v SFC & MMT
HK Court of Appeal, 5-Jun-2020
The appeal against the Market Misconduct Tribunal's findings is allowed on an error of law, and the case is remitted back to the MMT. The tribunal had considered the case based on whether the withheld information would have affected the pre-suspension price, rather than whether it would have affected the price after taking into account other post-suspension events.
HK Court of Appeal, 5-Jun-2020
The appeal against the Market Misconduct Tribunal's findings is allowed on an error of law, and the case is remitted back to the MMT. The tribunal had considered the case based on whether the withheld information would have affected the pre-suspension price, rather than whether it would have affected the price after taking into account other post-suspension events.
MMT finds Magic Holdings International Ltd and 5 directors culpable of late disclosure on L'Oreal privatisation bid
SFC, 25-Mar-2020
SFC, 25-Mar-2020
SFC takes China Medical & Healthcare (0383) and 6 directors to MMT, alleges late disclosure of inside information
SFC, 31-Oct-2019
It took them nearly 6 months to reveal windfall gains on shares of a company which became Alibaba Pictures Group Ltd (1060). The SFC is pursuing the entire board at that time (2014), including 3 INEDs who have since left.
SFC, 31-Oct-2019
It took them nearly 6 months to reveal windfall gains on shares of a company which became Alibaba Pictures Group Ltd (1060). The SFC is pursuing the entire board at that time (2014), including 3 INEDs who have since left.
MMT rejects SFC application to vary investigation costs order in Fujikon case
Market Misconduct Tribunal, 26-Aug-2019
Market Misconduct Tribunal, 26-Aug-2019
MMT fines H&H (1112) and its Chairman HK$1.6m each for late disclosure of inside information
SFC, 25-Jun-2019
For the 3rd time, the MMT gets it wrong by penalising shareholders for the wrong-doing done to them. This follows Yorkey (2788) in Feb-2017 and Fujikon (0927) in Apr-2019. In each case, the company's failure to disclose was entirely due to the negligence of the directors involved and they should have paid all the fines and expenses. Both the Fujikon and H&H cases were settlements agreed with the SFC, so the SFC has allowed directors to shift part of the burden of their wrong-doing onto shareholders by using company funds. This has to stop.
SFC, 25-Jun-2019
For the 3rd time, the MMT gets it wrong by penalising shareholders for the wrong-doing done to them. This follows Yorkey (2788) in Feb-2017 and Fujikon (0927) in Apr-2019. In each case, the company's failure to disclose was entirely due to the negligence of the directors involved and they should have paid all the fines and expenses. Both the Fujikon and H&H cases were settlements agreed with the SFC, so the SFC has allowed directors to shift part of the burden of their wrong-doing onto shareholders by using company funds. This has to stop.
MMT decision on SFC investigation costs of Fujikon and its directors
Market Misconduct Tribunal, 31-May-2019
The MMT reduces the SFC's claim from HK$412,637 to an order nisi of HK$100,000.
Market Misconduct Tribunal, 31-May-2019
The MMT reduces the SFC's claim from HK$412,637 to an order nisi of HK$100,000.
MMT fines Fujikon (0927), its CEO and CFO HK$1.5m for late disclosure of inside information
| MMT report, 22-May-2019
SFC, 12-Apr-2019
This endorsed settlement between the SFC and the defendants is unfair to outside shareholders because they will indirectly bear the cost of fines and expenses charged to the company for wrong-doing against the shareholders, namely the failure by the directors to cause the company to publish information on time. If the D&O insurance policy doesn't cover it, then we call on the offending directors to reimburse the company in full. Webb-site founder David Webb is a 10% shareholder of Fujikon.
SFC, 12-Apr-2019
This endorsed settlement between the SFC and the defendants is unfair to outside shareholders because they will indirectly bear the cost of fines and expenses charged to the company for wrong-doing against the shareholders, namely the failure by the directors to cause the company to publish information on time. If the D&O insurance policy doesn't cover it, then we call on the offending directors to reimburse the company in full. Webb-site founder David Webb is a 10% shareholder of Fujikon.
SFC takes CMBC Capital (1141) and 6 former directors to MMT
| The bubbles in CNN
SFC, 18-Dec-2018
This alleges late disclosure of market gains in its securities portfolio in 2014, including shares of Icube (0139), Heritage (0412) and Rising Development (1004), all of which have since been renamed. All 4 companies were then in what we call the "Chung Nam Network". On 8-Jan-2015, we warned the market about bubbles in 2 of them.
SFC, 18-Dec-2018
This alleges late disclosure of market gains in its securities portfolio in 2014, including shares of Icube (0139), Heritage (0412) and Rising Development (1004), all of which have since been renamed. All 4 companies were then in what we call the "Chung Nam Network". On 8-Jan-2015, we warned the market about bubbles in 2 of them.
SFC takes H&H (1112) and its Chairman to MMT over late disclosure
SFC, 29-Nov-2018
The SFC alleges that the respondents withheld Inside Information for a month until a profit warning on 23-Jul-2015.
SFC, 29-Nov-2018
The SFC alleges that the respondents withheld Inside Information for a month until a profit warning on 23-Jul-2015.
SFC takes Magic Holdings (delisted) and its directors to MMT
SFC, 15-May-2018
The SFC alleges that the respondents failed to promptly disclose Inside Information on the L'Oreal takeover talks after it began leaking to the market, causing a gradual escalation of the price. If the SFC succeeds, those who sold early without the benefit of that information may bring claims against the respondents for compensation. Meanwhile, we wonder whether the SFC will unmask anyone who dealt on the information.
SFC, 15-May-2018
The SFC alleges that the respondents failed to promptly disclose Inside Information on the L'Oreal takeover talks after it began leaking to the market, causing a gradual escalation of the price. If the SFC succeeds, those who sold early without the benefit of that information may bring claims against the respondents for compensation. Meanwhile, we wonder whether the SFC will unmask anyone who dealt on the information.
MMT sanctions Yorkey Optical (2788), its CEO and Financial Controller for late disclosure of Inside Information
| SFO s307Z
SFC, 28-Feb-2017
The CEO and company are each fined HK$1m. Ironically then, shareholders are paying for not being told about Inside Information. The HK Treasury gets HK$2m, but 115 investors who overpaid by HK$1.53m during a 13-week period get nothing. The SFC could claim for them under SFO s213, but has not. It appears investors in small-caps are on their own, and must make their own claims under SFO s307Z.
SFC, 28-Feb-2017
The CEO and company are each fined HK$1m. Ironically then, shareholders are paying for not being told about Inside Information. The HK Treasury gets HK$2m, but 115 investors who overpaid by HK$1.53m during a 13-week period get nothing. The SFC could claim for them under SFO s213, but has not. It appears investors in small-caps are on their own, and must make their own claims under SFO s307Z.
MMT fines AcrossAsia (8061), its former Chairman and CEO HK$2m for late disclosure of inside information
SFC, 30-Nov-2016
The MMT report is attached.
SFC, 30-Nov-2016
The MMT report is attached.
MMT finds AcrossAsia (8061), its CEO and former Chairman culpable of late disclosure of inside information
SFC, 7-Nov-2016
The MMT report is not yet online. This is the first time the MMT has made a finding of breaches of disclosure obligations which were introduced 3 years and 10 months ago.
SFC, 7-Nov-2016
The MMT report is not yet online. This is the first time the MMT has made a finding of breaches of disclosure obligations which were introduced 3 years and 10 months ago.
SFC takes Yorkey (2788), its CEO and FC to MMT for late disclosure of inside info
SFC, 6-Apr-2016
Notably the action is not against the other directors. The implication is that they didn't know the business was deteriorating, because they were not provided with the monthly management accounts. In our view, that omission in itself is poor governance.
SFC, 6-Apr-2016
Notably the action is not against the other directors. The implication is that they didn't know the business was deteriorating, because they were not provided with the monthly management accounts. In our view, that omission in itself is poor governance.
SFC commences MMT proceedings against AcrossAsia Ltd, its Chairman and CEO for late disclosure of inside information
SFC, 27-Jul-2015
SFC, 27-Jul-2015
Sign up for our free newsletter
Recommend Webb-site to a friend
Copyright & disclaimer, Privacy policy