The Stock Exchange of Hong Kong censured two former executive directors of a delisted company, Mr. Dai Shunhua and Ms. Song Xiaoying, and declared them unsuitable for senior management positions. This was due to their failure to provide substantive responses to all of the Exchange’s investigative enquiries.
Why It Matters
This action reinforces that a director’s duty to cooperate with regulators is absolute and persists even after a company delists. Failure to cooperate is treated as a serious breach of the Listing Rules, with sanctions that can effectively end an individual’s corporate career.
Industry Impact
This serves as a critical warning to all company directors about the severe personal consequences of non-cooperation with regulatory investigations. It underscores that the Exchange will hold individuals accountable, regardless of the company’s listed status.
GCC Insight
This case highlights the non-negotiable requirement for robust governance protocols. Directors must be proactively trained on their fiduciary and regulatory duties, including how to manage official inquiries. Ensuring full cooperation is essential to protect both the company’s integrity and their own professional standing.
