ALLIED Group chairman Lee Ming Tee, former chief executive Chan Chun-on and Mr Lee's nephew Lee Seng Chay were the leading characters in a ''deliberate attempt'' to avoid provisions under disclosure rules, according to the Allied Report.
The report reveals a number of ''disguised'' share transactions which allegedly helped Mr Lee consolidate his control over the group. The transactions were described as being prejudicial to minority shareholders.
The three worked together as a team to control Allied and, between them, put into effect what Government-appointed Inspector Nicholas Allen has dubbed ''the FSCB (First South China Bank) mechanism''.
The First South China Bank was at the centre of the case. The bank, previously part of the Allied group, was used to enable Mr Lee and his associates to benefit from the acquisition of new shares issued by Allied Group, Allied Properties and Allied Industries International Ltd (AIIL) without paying a cent.
Allied and four related companies, Allied Properties (HK), Crusader Holdings, Paragon Holdings and Wai Yick Limited, have been under investigation since August 1992 for share deals between January 1990 and May 1992.
The investigation was later extended to cover 22 related companies and about 100 subsidiaries and associated firms.
According to the report, Mr Lee Ming Tee controlled about 30 per cent of Allied Group Limited (AGL).