A famous Chinese medicinal oil inventor claims his son tricked him into giving up a majority stake in the company, a High Court writ claims.
Wong To-yick, a Chinese herbalist and a bone-setting specialist since 1967, filed the writ seeking damages from his son, Tinly Wong Tin-chee.
Mr Wong claims in the writ that in 1995 or early 1996 Tinly Wong had deceived him into reducing his majority stake in the company, Wong To Yick Wood Lock Ointment Ltd.
The company, founded by Mr Wong in 1988, was the maker of the popular Wong To Yick Wood Lock Oil. Tinly Wong was a director of the company from 1988 until December 1999.
According to the writ, Tinly Wong allegedly told his father, who held a 51 per cent stake at the time, that the company would be frozen for two to three years by the government when Wong died, paralysing its operation.
Tinly Wong then allegedly advised his father to trim his stake to below 50 per cent and suggested his sons, Jonathan Wong Ka-heng and Andrew Wong Ka-wai, be made shareholders.
Mr Wong followed his son's advice, buying new shares that the company issued from the dilution of his 6 per cent stake in his grandchildren's names. He also allocated more shares to his wife, Law Kam-mui, whom he divorced in 2002.