The Hong Kong Securities and Futures Commission (SFC) has commenced legal proceedings in the Court of First Instance against former executives of C AUTO INT DECO (00048) and its subsidiary, Man Ka Shing Limited. The individuals involved are former director Wong Ho Yin (male) and former general manager So Lung Ying (female) of Man Ka Shing.

The two are accused of breaching fiduciary duties in connection with alleged fabricated transactions and improper payments. The SFC is seeking disqualification orders against both Wong and So. Additionally, the regulator is seeking a compensation order of HK$14.6 million against Wong. This amount corresponds to the alleged losses and damages incurred by C AUTO INT DECO due to purported improper payments made by Man Ka Shing.

The SFC alleges that between December 2019 and January 2020, Wong signed cheques for three payments totaling HK$14.6 million. These payments were recorded as being made to a mainland China company for food procurement. However, the funds were not used to settle genuine procurement transactions or trade payables, constituting a misappropriation of company funds.