The Stock Exchange of Hong Kong Limited has criticized MIE Holdings Corporation (Stock Code: 1555) and censured Mr. Zhang Ruilin, the non-executive director and chairman, directing him to attend training. Between 2016 and 2021, Mr. Zhang facilitated a subsidiary of the Company in providing a guarantee for his personal loans, which led to defaults and a lawsuit from the lender. These transactions were not reported to the board as required under the Listing Rules, violating Chapters 14 and 14A. Though Mr. Zhang delegated the handling of this matter to an internal legal adviser, he failed to ensure proper reporting and compliance with internal control procedures. The issue was only revealed in January 2023 during an audit. Both the Company and Mr. Zhang accepted the disciplinary actions and acknowledged their breaches. The key takeaway emphasizes that directors must adhere to internal control policies and ensure compliance with Listing Rules, as delegation does not relieve them of their responsibilities.
Resources: https://www.hkex.com.hk/News/Regulatory-Announcements/2025/250304news?sc_lang=en