Mansion House Group's independent shareholders have cleared a deal for the repayment of $100 million in loans to a sister and brother of director Irene So Wai-yin, a stock exchange council member.
The pair were given seven years to make repayments at an interest rate 1 per cent above the prime rate, with the first instalment due in November.
However, Somerley, a financial adviser appointed to look into the case, said both the loans and the repayment terms were not fair and reasonable.
It referred to the repayment deal as the 'new loans' in a circular at the company's independent shareholders meeting yesterday.
'We have been unable to conclude that the new loans are on normal commercial terms,' Somerley said.
'We are also unable to find examples of other loans of similar size and terms extended by the group to arm's-length clients,' Somerley said.