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The Market Misconduct Tribunal chaired by Mr Justice Michael Victor Lunn, sitting with Mr Peter Wong Hong-yuen and Mr James Wardell as members, has submitted its reports to the Financial Secretary concerning its proceedings in relation to dealings in the shares of ABC Communications (Holdings) Limited (ABC) between February and May 2008.
The Tribunal determined that market misconduct has taken place, in that Mr Vincent Sze Chun-ning engaged in insider dealing given that he, being a person contemplating making a takeover offer of ABC, and knowing that the information as to the offer price and special dividend per share that was ultimately agreed and stipulated in the Joint Announcement of May 30, 2008 in the context of a consequent mandatory general offer was relevant information in relation to ABC, disclosed that information to Mr Wang Chao while having reasonable cause to believe that he would make use of the information for the purpose of dealing, or of counselling or procuring another person to deal, in the shares of ABC, contrary to section 270(1)(d) of the Securities and Futures Ordinance (Cap 571) (the Ordinance).
Pursuant to section 252(3)(c) of the Ordinance, the Tribunal determined that the profit gained as a result of the market misconduct was $1,669,955.
Pursuant to section 257 of the Ordinance, the Tribunal made the following orders in respect of Mr Sze:
(i) pursuant to section 257(1)(a) of the Ordinance, that he shall not, without the leave of the Court of First Instance, be a director of a listed corporation or in any way, directly or indirectly, be concerned or take part in the management of a listed corporation for a period of four years with effect from November 3, 2011;
(ii) pursuant to section 257(1)(e) of the Ordinance that he shall pay to the Government the sum of $3,672,581; and
(iii) pursuant to section 257(1)(f) of the Ordinance that he shall pay to the Securities and Futures Commission the sum of $507,689.
The Tribunal proceedings in respect of ABC involved three specified persons and the receipt of oral testimony from 19 witnesses. ¡@The Tribunal sat for 29 substantive hearing days.
A summary of the Tribunal's report is at Annex.
Ends/Friday, December 23, 2011
Issued at HKT 20:02
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