A COMPANY director who enlisted his daughters in a scheme to bypass stock market listing rules has been publicly censured by the Hong Kong stock exchange.
Continuing its crack-down on rule-breakers, the exchange has castigated Tse Kwok-wah, the chairman of building group Shun Shing Holdings, for failing to comply with its regulations at the time of the company's flotation in February 1992.
The exchange's action follows an investigation into the conduct of Mr Tse - also known as Tse Yip-sang - which concluded that he was in breach of regulations that a public company must have at least 25 per cent of its shares in public hands.
The exchange charges that, while it appeared that the necessary amount of stock was being floated off, Mr Tse had advanced funds to two of his daughters in connection with the subscription to the offer.
The deal meant that while shares were ostensibly in the hands of the public, Mr Tse could exercise control over them.
''Accordingly, Mr Tse is hereby publicly censured by the listing committee for either advertently or inadvertently acting in breach of his directors' undertaking in that he failed to take steps to avoid breaches of Rule 8.08 of the exchange listing rules by failing to ensure an open market in Shun Shing's shares,'' said a statement issued by the exchange last night.