SFC stops Lai from interfering in firm

PUBLISHED : Saturday, 17 December, 1994, 12:00am
UPDATED : Saturday, 17 December, 1994, 12:00am

LAWYERS for the Securities and Futures Commission (SFC) have succeeded in a bid to keep Arthur Lai Cheuk-kwan and his associates from interfering in the affairs of Chesterfield.

Chesterfield is a 15 per cent associate company of MKI, which the SFC is seeking to wind up.

Arthur Lai and his associates are understood to have controlled the company through MKI Management Services, which also has given an undertaking not to interfere with Chesterfield.

Chesterfield management currently is investigating how it lost millions of dollars on a series of land deals in China.

In one of the deals, Chesterfield apparently bought eight blocks of townhouses for $130 million from Good Faith International and Bolou Xian Yuanzhou Zhen Property Development Company.

The deal has now been written off to $1,000 and Good Faith has disappeared.

Mr Lai, Richard Lo Chi-ho, and MKI Management Services have given an undertaking not to be involved in Chesterfield's business or its management or in any of its subsidiaries.

Ip Chi-keong, alias Yieh Chih-chiang, and Wong Kim-chau were not represented or present at the hearing in judge's chambers yesterday, and an interim order has been made against them.

Mr Wong has not been seen for some time.

A further hearing is to be held in open court on Monday and Bill Weeks, spokesman for the SFC, said further orders might be sought.