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HONG KONG (China Daily/ANN): The Hong Kong government appointed on Wednesday (July 28) an inspector to investigate the affairs of Next Digital, invoking the power conferred under the Companies Ordinance.
Speaking to the media, Financial Secretary Paul Chan Mo-po said that he had appointed Clement Chan Kam-ying as the inspector after reviewing the facts and circumstances in relation to the company's affairs and all other available information.
“It appears to me that there are circumstances suggesting the existence of the state of affairs referred to in section 841(2) of the ordinance in relation to Next Digital, including, among others, that Next Digital has been run in a manner unfairly prejudicial to the interests of its shareholders and creditors; that the officers of Next Digital have used the listed company to conduct unlawful activities and have themselves (been) involved in various alleged fraud offences and misconduct closely associated with the affairs of Next Digital; that the officers of Next Digital have breached their fiduciary duties and failed to observe proper standards of care in the performance of their duties; and that the governance of the company has seriously fallen short of that expected of a listed company.”