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SCMP Reporter

The protracted wrangle between Chim Pui-chung and the Securities and Futures Commission (SFC) took a twist yesterday when the legislator lodged a request for a judicial review of the long-suspended Mandarin Resources Corp.

Mandarin Resources, 72 per cent-held by Mr Chim, said it had asked the High Court to review the SFC's decision to suspend its trading.

The action, made by the company board after consulting its legal advisers, was 'based on protecting minority shareholders' interests and the pursuit of social truth', it said.

The SFC said it would 'defend the action in the same spirit of seeking social truth as the directors of Mandarin Resources put it'.

It hinted the public would know more details of the case when the hearing started.

'The commission welcomes the opportunity to explain its position, which it otherwise cannot do because of the secrecy provision,' a SFC spokesman said, adding that the commission had not been served with the papers yet.

Despite the court action taken by Mandarin, Mr Chim appealed to the SFC to settle the case out of court.

'I hope the SFC will solve the problem by negotiating with us so as not to waste public funds and to protect minority shareholders' interests,' Mr Chim said.

Mandarin Resources has been suspended from trading since 1986.

Mr Chim bought a controlling stake in the company in November, 1991.

A row flared in March when the SFC halted the company's application to resume trading.

Mr Chim said he had met the five conditions set out by the SFC for a resumption of trading, but the request was subsequently refused.

Last week, Mr Chim said the focus of the SFC's investigation was a deal in which the company sold two properties in Repulse Bay to Lucky Man Properties, a firm then controlled by him.

The deal, struck in August 1992, amounted to $120 million.

In March 1993, Lucky Man sold the two properties to a third party for $330 million.

Mr Chim denied that minority shareholders had been disadvantaged because the controlling shareholders did not vote in the general meeting held to decide the sale.



Chim seeks judicial review of suspended Mandarin Resources