Listing candidate Jet Air International Group borrowed money from the chairman's wife at 12 per cent interest and lent to the chairman at 7.5 per cent interest, according to the firm's listing prospectus.
In 1995, chairman Peter Yu Kam-ching had loans outstanding from Jet Air of $1.38 million on which he paid interest at 7.5 per cent.
In the same year, the firm paid interest of $170,000 to his wife, company director Agnes Yuen Shui-chun.
Loans to Mr Yu were outstanding in 1993, 1994 and 1995 but were repaid by the end of 1995.
According to the prospectus, the company gives an assurance that such transactions will not continue once the shares are listed on the exchange.
Although Jet Air was established in 1970, the company provided audited accounts for only three years.
Mr Yu said this was because this was the minimum required by the Stock Exchange.
