SFC launches action to disqualify directors of Freeman FinTech Corp

The Securities and Futures Commission (SFC) is seeking to disqualify 10 current and former directors of the Freeman FinTech Corporation for breaching director duties in relation to a connected transaction that led to company losses.

The directors, including managing director Quincy Hui Kwong Hei and former non-executive director Andrew Liu, allegedly mishandled the acquisition and disposal of a stake in Liu’s Holdings.

The other Liu family members did object, and Freeman later sold the interest back at a loss of HK$76.8 million after the acquisition failed to go through.

According to the SFC, Hui failed to make full inquiries with Liu on the stance of Liu’s Holdings other shareholders before getting Freeman’s shareholders to approve the acquisition.

Additionally, Liu had failed to disclose to Freeman that some shareholders of Liu’s Holdings had objected to the acquisition, and that there was a conflict of interest between Liu, his parents and Freeman in the disposal.