Sun Hung Kai & Co (SHK), held by the Allied Group, launched a management reshuffle yesterday with former Securities and Futures Commission (SFC) executive Gerard McMahon joining as a director. The reshuffle comes a year after Allied Group subsidiary Allied Properties (HK) bought 33.18 per cent of SHK - once Hong Kong's largest locally owned brokerage - from the Fung family for $743.6 million. SHK shareholders yesterday approved the appointment of Mr McMahon as a non-executive director. Allied was investigated by regulatory authorities in 1992 when Mr McMahon was the SFC's executive director of enforcement. SHK's former chairman and managing director Tony Fung Wing-cheung and former executive director Peter Fung Yiu-fai resigned from the board yesterday. The two unrelated business partners recently set up their own company, Yu Ming Investment Management. Barrister Arthur George Dew was appointed executive chairman and Stephen Law Wing-kit was elected an executive director. Privately owned Vicwood Group deputy managing director Stephen Chong Yuet-luk joined SHK as executive director after his firm bought an 11.14 per cent stake in SHK three months ago. Mr Dew said the move would enable co-operation between SHK and Vicwood, which owns the Vicwood Tower in Sheung Wan. He said SHK planned to expand further in retail broking and corporate finance. 'We've had two fund raising exercises in the past six months, which provided sufficient funding to reduce the company's debts and increase working capital,' he said. Mr Dew said SHK had sold one of the two floors of its former headquarters in Admiralty Centre and planned to keep the other floor for its own use. The $357 million sale, which would be completed by the end of the month, would generate $220 million in net profit this year, according to the company's latest annual report. Mr Law said 'several' third parties had approached SHK's investment associate SHK China Industrial Investments to buy an interest in the company. 'We turned down the offer already because we have no intention to sell it,' he said.