HomeCompliance & EnforcementDirector DisqualificationSelected Director Disqualification Case UpdatesCase Summary

Case Summary

The Official Receiver has obtained two disqualification orders in the Court of First Instance against two former directors of an insolvent company under section 168H of the Companies (Winding Up and Miscellaneous Provisions) Ordinance, Cap. 32 (“the Ordinance”).

The former directors were disqualified from being a director of a company; a provisional liquidator or liquidator of a company; a receiver or manager of a company’s property; or in any way, whether directly or indirectly, be concerned or take part in the promotion, formation or management of a company, without leave of the Court, each for a period of two years.

The Court found that the former directors had breached their director’s duties by failing to (i) ensure that the company had complied with its obligations to keep and/or preserve proper books of account under sections 373 and 377 of the Companies Ordinance, Cap. 622 and section 274 of the Ordinance, and (ii) submit a Statement of Affairs of the company to the liquidators under section 190 of the Ordinance.