Directors Banned for Failing in Disclosure Duty

On 17 March 2010, SFC reported that it had obtained orders in the High Court to disqualify two former executive directors of Warderly International Holdings Ltd (Warderly) for failing to ensure timely disclosure of material information to the company’s shareholders. This is the first time directors have been disqualified for this type of misconduct.

The orders disqualify Ms Ellen Yeung Ying Fong and Mr John Lai Wing Chuen from being directors or being involved in the management of any corporation for five years

Both Yeung and Lai accepted they had breached their duties to Warderly and specifically, they agreed they failed on a number of occasions to ensure Warderly complied with the disclosure requirements under the Listing Rules and to give shareholders all the information they might reasonably expect.

Mark Steward, the SFC’s Executive Director of Enforcement, said “Directors have an obligation to ensure the company reports material information to the investing public on a timely basis. Failure to do so destroys trust and confidence in the market.”

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