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Chen Maobo Committee examiner Zha Yi Media is not worried about the decline of Hong Kong stocks for the first time in 22 years: irrelevant

2021-07-28T12:26:21.144Z


Financial Secretary Chen Maobo announced today (28th) that he cited Article 841 (2) and (3) of the Companies Ordinance to appoint Chen Jinrong, the former president of the Institute of Accountants, as an examiner to investigate the business of Next Media Group. Chen Maobo said,


Financial Secretary Chen Maobo announced today (28th) that he cited Article 841 (2) and (3) of the Companies Ordinance to appoint Chen Jinrong, the former president of the Institute of Accountants, as an examiner to investigate the business of Next Media Group.

Chen Maobo said that after reviewing relevant facts, circumstances and current information, Next Media is suspected of handling the company's business in a way that unfairly harms shareholders and creditors, high-level personnel have used the company to conduct illegal activities, and are suspected of multiple business related to the company For fraud and misconduct, its group governance is far from reaching the required standards of a listed company, so the "Regulations" is used to investigate the incident.


Chen Maobo pointed out that the last time the regulations were cited was an investigation into the Peregrine Incident in 1999. He emphasized that this decision was made based on public interest and to maintain the good reputation of Hong Kong as an international financial center and commercial center.

Asked if he is worried that the move will cause severe losses to Hong Kong stocks, which have fallen sharply in the past few days, Chen Maobo said that the stock market decline is related to the adjustment of external market policies and geopolitical factors. He reiterated that the investigation of Next Media is not related to the stock market decline.


Chen Maobo cited the "Companies Ordinance" to appoint inspectors to investigate whether Next Media was involved in improper governance.

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Refers to Next Media’s early repayment of 150 million loans or involvement in defrauding creditors

Chen Maobo said that after reviewing the relevant facts and circumstances, it was discovered that Next Media Group was suspected of unfairly harming shareholders and creditors in handling the company's business. At the same time, senior officials used the company to conduct illegal activities and were suspected of multiple frauds related to the company's business. And improper behavior, it is believed that the senior staff of Next Media violated the credit responsibilities or failed to properly perform the credit responsibilities, and the group governance is far from reaching the required standards of a superior company. Therefore, the "Regulations" is used to appoint an inspector to investigate the incident.

Chen Maobo continued to point out that there are several situations in the Next Media Group that are of particular concern to him.

He cited, for example, that Next Media Group issued an announcement in May this year, stating that the company has sufficient liquidity to cope with 18 months of operation since April this year, but in June this year it was frozen by the Secretary for Security for about 1,800 three subsidiaries. In less than a week, Next Media announced the termination of the publishing business of a major subsidiary.

He also pointed out that Next Media Group failed to announce its results in accordance with the listing regulations. At the same time, Next Media Group disclosed for the first time on July 22 this year that the group repayed the former chairman and major shareholders of 150 million yuan in advance on April 1st. , Which caused the company’s cash to drop sharply. However, past annual reports showed that the relevant loans were still not due for a long time, making it suspect that the debt repayment was intended to deceive creditors. It also pointed out that from the end of 2020 to the middle of this year, many company executives were involved in violation of the National Security Law control.

Chen Maobo emphasized that as the Financial Secretary, it is necessary to use regulations to investigate incidents in order to protect and maintain Hong Kong's status and reputation as an international financial center and commercial center, and he attaches great importance to it.

+7

The investigation covers eight major areas of refusal to answer whether the "high-level tasks" are performed

He mentioned that the investigation will cover eight major areas, including whether group affairs are used to harm the interests of members in an attempt to defraud the company’s creditors; whether senior group members handle company affairs according to their personal interests and cause losses to the company’s public shareholders; whether senior personnel are involved in the company’s Members or creditors commit fraud and misconduct; whether Next Media has made full, adequate and timely disclosure to shareholders; whether senior personnel have failed to perform their due responsibilities or performed their duties negligently; the loan and repayment between Next Media and the former chairman Whether the payment is true; whether the governance of Next Media as a listed company is healthy; and whether he, as the financial secretary, is in the public interest if he makes an application for disqualification of directors in accordance with the law.

Chen Maobo pointed out that the examiner Chen Jinrong has been required to submit a final report within 6 months.

When asked about the suspension of trading of many listed companies such as GCL-Poly Energy for a long time, why the government did not cite the business of companies related to the regulations, and then asked Chen Maobo whether he was performing "high-level tasks." He pointed out that the last time this regulation was cited was conducted in 1999. For the Fortune Incident, Peregrine was in liquidation at that time. The purpose of the investigation was to find out what needs to be improved to avoid the recurrence of the relevant situation. After the inspector provided the report, the government would follow the inspector’s recommendations to understand how to improve the company. Management also means that if the subject under investigation refuses to cooperate with the examiner, the maximum penalty is a fine and imprisonment.

+5

Chen Jinrong is the king of public office and "walks" with Chen Maobo

Asked if he is worried that the move will cause severe losses to Hong Kong stocks, which have fallen sharply in the past few days, Chen Maobo said that the stock market’s decline is related to external market policy investigations and geopolitical factors. He noticed that the stock markets in neighboring regions have also adjusted and reiterated the investigation of Next Media and The fall in the stock market is irrelevant. It is also said that after an extraordinary two years in Hong Kong, the financial market has been operating smoothly. Last year, the capital market inflows of 50 billion yuan, and the amount of Hong Kong's asset management business increased by 20% last year to 35 trillion. Yuan, so I am very confident in the creation of the environment in Hong Kong.

According to the information, Chen Jinrong is the managing director of the audit department of Lixin B&B. He has more than 30 years of experience in the accounting industry. He has served as the president of the Institute of Certified Public Accountants and the chairman of the Australian Chamber of Commerce in Hong Kong. He has also held a number of public positions, including a non-executive director of the Securities Regulatory Commission and the Audit Committee of the Securities Regulatory Commission. Vice Chairman, Member of the Remuneration Committee of the SFC and the Appeal Committee of the Securities and Futures Commission (listed on the Hong Kong Stock Exchange), Honorary Advisor of the Financial Reporting Council and Member of the Inspection Committee, Member of the Audit Committee of the Consumer Council, Member of the Standing Committee of the Hong Kong Special Administrative Region Government's Corporate Law Reform, and Police Supervisor Chairman of the Publicity and Opinion Investigation Committee, member of the Audit Committee of the West Kowloon Cultural District Authority, etc.

The Financial Secretary may appoint an inspector if he feels that the company is formed for illegal purposes

According to section 841 of the Companies Ordinance, if the Court of First Instance declares by order that the affairs of a company should be investigated, the Financial Secretary must appoint a person to conduct the investigation.

In addition, if the Financial Secretary feels that a company was formed for fraudulent or illegal purposes, one person can be appointed to investigate the affairs of the company if the following situations occur.

The relevant situation is as follows:

1. The company's affairs are being or have been handled in a way that unfairly harms the interests of general members or one or some members.

2. Someone is or has been dealing with the company's affairs with the intention of defrauding the company's creditors or any other person's creditors.

3. Someone is or has been dealing with the company's affairs for any other fraudulent or illegal purpose.

4. A person who has been shown to be involved in the company's composition or management of its affairs has committed fraud, misconduct or other improper conduct to the company, its members or its creditors in terms of the company's composition or management.

According to Article 846 of the Companies Ordinance, the inspector may require the company, its officers or former officers, the company's agent or former agent, and those who have documents with reasonable grounds to surrender any record documents related to the investigation , Including directors’ accounts.

Former "Apple Daily" 4 editors involved in violation of national security laws and then postponed to hear Chen Peimin and others all refused bail. Former "Apple Daily" executive editor Lin Wenzong was arrested for violation of national security laws and is now detained by the police in 21 countries and released on "Apple Daily" Joint statement Beijing severely condemns Next Media’s cash balance of less than 183 million yuan in 2 months. It is seeking legal advice on the resumption of land for the science and technology park. Next Media has entered into an agreement with the buyer to sell the property in Taoyuan, Taiwan for nearly 140 million yuan.

01News

Source: hk1

All news articles on 2021-07-28

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