SFC bans chairmen of Chevalier, ENM from stock trading over code breach
Chairmen of Chevalier, ENM penalised for helping Nina Wang increase ENM holdings
Two directors at a listed company and the former chairman of a second listed company have been banned by the regulator from trading stocks after an "extremely serious breach" of the listing code.
Chevalier International Holdings chairman Chow Yei-ching and his son and Chevalier director Oscar Chow Vee-tsung have been issued "cold-shoulder" orders prohibiting them from trading stocks for 10 years and 2 years respectively starting on July 2. The order does not apply to their stake in property, construction and financial services conglomerate Chevalier.
Former ENM Holdings chairman Joseph Leung Wing-kong was also handed a two-year trading ban.
All breached the Takeovers and Mergers and Share Repurchases code, by acting as undisclosed concert parties with late Chinachem Group chairwoman Nina Wang Kung Yu-sum, to gain voting rights control over ENM without triggering a general offer.
"The panel takes the view that the conduct of the respective respondents … constitute an extremely serious breach of the code which merits severe sanctions," the Takeover and Mergers Panel wrote in its judgment yesterday.
Leung resigned as ENM chairman on May 5, almost two months after regulators first publicly reprimanded him.
