The Securities and Futures Commission (SFC) has launched legal action against eight former directors of 3DG Holdings (International) Limited (formerly known as Hong Kong Resources Holdings Company Limited) due to their alleged failure to prevent the misappropriation of $74.4 million in corporate funds. This situation arose after the company acquired a licensed money-lending business in June 2017 and subsequently issued 12 loans totaling the misappropriated amount between June 2018 and March 2019. All these loans defaulted when they became due, prompting the SFC to claim that the directors were involved in a scheme to misappropriate the company’s cash. The SFC is pursuing compensation orders for the full amount from the directors and is also seeking disqualification orders, asserting that the directors breached their fiduciary duties by not exercising the necessary diligence in their roles.
Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=25PR31
