David C Lee Surveyors board member makes offer to save company

PUBLISHED : Thursday, 01 June, 2006, 12:00am
UPDATED : Thursday, 01 June, 2006, 12:00am

Updated at 1.58pm:
A board member of David C. Lee Surveyors said he would help the embattled company pay $2 million in wages it owed ? if he could take control of it, Ming Pao reported on Thursday.

The board member, identified as Chan Tin-chi, said if the company managing director David Lee Tsung-hei withdrew a liquidation application and gave him the power to control the firm, he would inject $2 million to cover the unpaid wages, Ming Pao reported.

The newspaper said Mr Chan made his remarks during a Hong Kong Commercial Radio programme on Wednesday.

Mr Lee is also the chairman of the Housing Society, which manages 32,000 subsidised rented flats in Hong Kong. He announced on Monday that the company would close down and about 120 staff would lose their jobs. The surveying firm is one of 12 in the David C. Lee Group.

He said his company was in financial difficulty and lost several million dollars each year. The firm could have continued to operate had it not been for a dispute with a board member.

Mr Lee said the firm could not pay its workers as the dispute had prevented it from obtaining a bank overdraft.

Mr Chan said Mr Lee had agreed to pass over his managerial powers to him in a contract signed in September. Mr Chan said if Mr Lee would exercise the contract terms he could immediately resolve the problem, Ming Pao reported.

He said he would invite Mr Lee to a meeting on Thursday to discuss the matter and urged clients not to terminate contracts, the newspaper reported.

Mr Lee said some investors had expressed an interest in buying his company and he was considering their offers, Ming Pao reported.

His company obtained most of its work from government departments such as the Buildings Department, the Hospital Authority and the Housing Department.