Securities and Futures Commission

Client: Securities and Futures Commission
Practice area involved: dispute resolution

We recently worked around the clock to successfully obtain urgent administrator orders and Mareva injunctions (freezing orders) on a licensed securities dealer and related companies in Hong Kong. This was a particularly important matter for our client, the Securities and Futures Commission (SFC), as it was the first time it had applied for and obtained an administration order against companies it did not regulate.

We were instructed by the SFC to make an urgent application to the High Court seeking the appointment of an interim administrator and interim Mareva injunctions against Great Honest Investment Company, a licensed securities dealer, and two non-regulated affiliates.
The SFC sought the injunctions against the company and its directors for allegedly transferring or dealing with clients’ property in an illegal manner.

The court appointed an administrator to all three companies and also granted Mareva injunctions against Lorrain Chung, the majority shareholder of Great Honest, and Siu Yun Piu, her brother-in-law, restraining them from removing any of their assets from Hong Kong, or dealing with or diminishing the value of any of their assets within Hong Kong. The Mareva injunction also extended to Siu’s assets worldwide while a prohibition order was made against Chung, prohibiting her from leaving Hong Kong.

Gareth Thomas, who led for Herbert Smith, commented: “This was a great example of teamwork. The lawyers from SFC were very impressed by the quality of our work and the way in which all the members of the team worked together.”

“The lawyers from the SFC were very impressed by the quality of our work and the way in which all members of the team worked together”