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SFC restrains former director of SMI Culture & Travel Group Holdings Limited from disposing personal properties

Issue date: 2023-10-24 16:28:50

The Securities and Futures Commission (SFC) has taken action to restrain Ms Leung Anita Fung Yee Maria, former chief executive officer and executive director of SMI Culture & Travel Group Holdings Limited (SMI Culture & Travel Group), from proceeding to complete the sale of her two properties in Shanghai and Canada (Note 1).

The aim of the SFC’s action is to preserve assets for satisfying a compensation order that the court may impose at the conclusion of the legal proceedings brought by the SFC under section 214 of the Securities and Futures Ordinance in October 2019 against Leung and two other senior executives of SMI Culture & Travel Group, namely Mr Philip Wong Yu Hong (deceased), former chairman and non-executive director, and Mr Tsiang Hoi Fong, former executive director.

To this end, the SFC obtained an interim injunction order at the Court of First Instance against Leung on 22 September 2023.  Under the interim injunction order, Leung is required, amongst other things, to notify the SFC of the execution of a sale and purchase agreement of the specified properties of hers in Hong Kong, Shanghai and Canada, pending the determination of the SFC’s injunction application made on 19 September 2023 to prohibit her from disposing assets in Hong Kong and elsewhere (Injunction Application) (Note 2).

Subsequently and pursuant to the interim injunction order, Leung notified the SFC that she had entered into sale and purchase agreements for her two properties in Shanghai and Canada (SPAs).  The SFC considered the SPAs and was concerned that the completion of the SPAs may result in the dissipation of Leung’s assets.

As a result, the SFC made another application to the court on 17 October 2023 seeking to restrain the completion of the SPAs until the determination of the Injunction Application.  Following the SFC’s application, Leung gave an undertaking to the court not to implement the terms and/or proceed to completion of the SPAs until the determination of the Injunction Application except with the prior consent of the SFC or leave of the court.  If Leung breaches the undertaking, she may be guilty of contempt of court.  The undertaking of Leung has the effect of preserving the status quo pending the determination of the SFC’s Injunction Application.

End

Notes:

1. The principal business of SMI Culture & Travel Group – founded by Leung and Philip Wong Yu Hong – was providing media services including TV programme and production related services, TV advertising, and other public relations services in the People’s Republic of China.  The company’s shares were listed on The Stock Exchange of Hong Kong Limited on 30 June 2004 and delisted on 21 March 2022.
2. For further details, please refer to the SFC’s press release dated 25 September 2023.

News captured as of:2023-10-24 16:28:50

Source: SFC