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  • Oct 31, 2014
  • Updated: 6:47pm
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COURTS

CPPCC local delegate Lam Shu-chit sued

PUBLISHED : Tuesday, 26 February, 2013, 12:00am
UPDATED : Tuesday, 26 February, 2013, 4:34am

A local delegate to the nation's top advisory body has been drawn into a 700 million yuan (HK$870 million) legal challenge by his former business partner.

Businessman Hsu Ming-chi yesterday filed a writ of summons to the High Court against seven defendants, including Lam Shu-chit, a local delegate to the Chinese People's Political Consultative Conference.

Lam has been hotly tipped to be promoted to the CPPCC standing committee in next month's annual session.

At a press conference yesterday, Hsu's solicitor Simon Si Ming-yee said his client filed the writ to recover 700 million yuan worth of shares.

Hsu had, in the 1990s, co-founded the South National real estate company with his younger brother Hsu Mingliang and Lam, in which Lam controlled half of the shares while the brothers owned the other half, Si said.

In 2000, Hsu borrowed HK$2 million from Lam, signing a deal in which he agreed that his South National shares would be transferred to Lam's company, South Asia Textile Holdings, if he failed to repay the debt in two years. "My client was hesitant … but Lam told him it could help Lam explain [the loan] to other shareholders," Si said.

He said Hsu was keen to clear the debt in 2002, but as Lam was too busy to settle it then, the matter was put on hold.

It was not until last year that Hsu found out his South National shares had been transferred to another company director in 2006. Si said Hsu was shocked to find his signatures on four documents confirming the share transfer and his resignation as company director. "Hsu … believes the signatures were forged," he said. "We will seek [help] from handwriting analysts [to prove our case]."

In response to the accusations, Lam told the Post he was confident his name would be cleared. "[Hsu] signed the documents himself … I believe my company did things in accordance with the law," he said.

 

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