AN Insider Dealing Tribunal yesterday heard how an intimate friend of a Success Holdings' director allegedly used proceeds from the sale of a flat - claimed to originally have been meant as a gift - to buy shares in the company ahead of key corporate developments.
The tribunal heard claims that in a privatisation plan at Success Holdings, strategic selling of shares reduced the privatisation price.
The tribunal also heard allegations that purchases of Success shares were made before the public announcement of a special dividend.
And in the later takeover of Success Holdings by International Tak Cheung, it was alleged that a profit of $570,680 was made on the trading.
At the High Court, Mr Justice Stock was sitting with members Derek Murphy and Patrick Yeung in a preliminary tribunal inquiry into the trading of Success Holdings.
The tribunal heard argument that the inquiry should look at the balance of probability of there having been insider dealing. The other view was that the inquiry ought to only find insider dealing in a case where the activity was beyond all reasonable doubt.
It was claimed that Success Holdings director Tony Lau Hon-chung bought a $1.63 million flat in Sha Tin that became a gift - executed by Mr Lau as an assignment and deed of gift - in favour of Ms Chan Dan-nar.
