AN in-house investigation into transactions by investment company Chesterfield Ltd found they were 'highly speculative' and intended 'to siphon' funds to another firm.
Chief executive Paul Liu Ngai-wing said the 'independent' investigation, announced in October 1994, was undertaken by a board committee of Chesterfield, originally comprising just two men - Mr Liu and Peter Carey.
Mr Carey resigned from Chesterfield's board late last year, and a new independent committee comprised Mr Liu, Kenneth C K Wong and Jimmy C H Cheung, Mr Liu said.
The committee was investigating certain transactions by Chesterfield and subsidiaries allegedly involving Chesterfield director Wong Kim-chao, he said.
The committee said it was planning a special general meeting of shareholders to consider removing Mr Wong Kim-chao from Chesterfield's board, Mr Liu said.
Mr Wong Kim-chao has been restrained by a court order from involvement in Chesterfield or its subsidiaries.
