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Developer Cecil Chao Sze-tsung has accused his brothers of mismanaging Wah Kwong Shipping Holdings and is trying to wrest control of the firm from their grasp, a court heard yesterday.

 He and his mother want a committee appointed to run the affairs of elderly tycoon Chao Tsong-yea, who has been declared mentally unfit.

 Chao Nyi Ya Tsung and her son originally wanted to sit on the committee themselves, but said yesterday they would be content if a pair of impartial accountants were appointed to oversee the former Wah Kwong chairman's business interests.

 When Chao Tsong-yea retired last year, Frank Chao Sze-bang took over as chairman, with his brother George Chao Sze-kwong as vice-chairman.

 The two siblings and their sister, Mary Chao Sze-Leung, went to court to argue with their mother and brother Cecil over the division of their father's estate and to voice their resistance to the appointment of a committee.

 They claim it is unnecessary, and that Wah Kwong Shipping and fellow family firm Perm Finance have been managing perfectly well without one.

 Bringing in outsiders to manage the shareholdings would create needless expense, their counsel, Adrian Huggins SC, said.

 Until yesterday, the family had been waging its legal battle behind closed doors.

 They moved into open court when Frank, George and Mary Chao went to the Court of Appeal to fight a decision denying them the right to cross-examine written evidence.

 Mr Huggins argued that cross-examination was needed to combat 'allegations and hints that we are mismanaging the companies'.

 Mother and son should not be allowed to make such 'hints, allegations and insinuations about our conduct without us being allowed to cross examine them about it', he said.

 George and Frank Chao in turn accused Cecil Chao of having acted against his father's business interests in the past.

 'It's always been the patient's wish that neither his wife nor Cecil should manage his affairs or become involved in Wah Kwong,' Mr Huggins said.

 Mr Justice Anthony Rogers, Mr Justice Benjamin Liu Tsz-ming and Mr Justice Gerald Nazareth rejected the appeal, saying that it was appropriate for the lower court to reject the siblings' request for cross-examination.

 Cecil Chao denies ever having acted against his father's interests.

FAMILY BATTLE FOR CONTROL Cecil Chao and mother seek committee to run tycoon's affairs Other children fight to retain authority over family businesses Judges uphold decision on evidence cross-examination 



Chao accuses brothers of mismanagement as Wah Kwong case goes to open court