SFC Prosecutes Maxwick Investment Limited and {X} for Contravening the Securities (Disclosure of Interests) Ordinance

25 Mar 2003

The SFC has successfully prosecuted Maxwick Investment Limited and its director and major shareholder {X} under the Securities (Disclosure of Interests) Ordinance.

On 7 August 1998, Maxwick and Angklong Limited entered into a loan agreement whereby Maxwick lent $60 million to Angklong which pledged a total of 140,711,000 shares of Fairyoung Holdings Limited (now renamed Dynamic Global Holdings Limited), or 41.56 percent of the relevant share capital of Fairyoung at that time, as collateral for the loan. Maxwick and {X} therefore became interested in the pledged Fairyoung shares. However, both Maxwick and {X} failed to report their interests in time to Hong Kong Exchanges and Clearing Limited (HKEx) and Fairyoung until 19 March 2002, a delay of about three and a half years.

Maxwick and {X} pleaded guilty to a total of four summonses relating to their failure to report to HKEx and Fairyoung in time their interests in the shares of Fairyoung.

Ms Polly Lo, a Magistrate at Western Magistracy, fined each of Maxwick and {X} $10,000, and ordered them to pay costs totalling $7,837 to the SFC.

An SFC spokesman reminds mortgagees of shares in listed companies that they are under a duty to notify the listed company and HKEx of their interests in the companies if they reach the reporting threshold. The notification must state the number or amount, and class, of shares involved. In case of uncertainty on their disclosure requirements, they should seek professional advice.


Note: The names of certain individuals in some news releases have been masked because they satisfy certain criteria set out under the Rehabilitation of Offenders Ordinance.

Page last updated : 25 Jan 2019