HK$2.4b feud over Peak properties centres on power of attorney

A disputed power of attorney now appears central to a continuing family feud over a HK$2.4 billion property portfolio on the Peak.

Paladin - a listed investment firm run by Michael Chen Te-kuang, the son of former socialite Lilian Oung Hsiao-mei - last month dismissed an unsolicited offer worth HK$254.6 million by a British Virgin Islands-registered company, Gold Seal Holdings. Paladin's board argued the offer was less than a sixth of the firm's net asset value.

Gold Seal is controlled by Chen's aunt and uncle, Margaret Uon and Andrew Oung Da-ming.

The two siblings became Gold Seal directors on March 17, 2011, just days after their sister Lilian Oung was admitted to hospital following a stroke, according to a copy of company documents.

Chen's mother is "unable to make complex decisions" and is chair-bound, according to a doctor's letter dated this year.

On April 1, 2011, a power of attorney (POA) prepared by Baker & McKenzie lawyer Angela Lee gave Uon authority to act for her sister, including control over her business affairs.