Selected Director Disqualification Case Updates for October to December 2024

Respondent(s)	Breach(es)	Result	Remarks
A director	Application for disqualification order against a former director of two insolvent companies under section 168H of the Companies (Winding Up and Miscellaneous Provisions) Ordinance, Cap. 32 (“the Ordinance”) for his breach of the directors’ duties by:- (a) failing to ensure the company’s compliance of the accounting records provisions of the Ordinance and the Companies Ordinance, Cap. 622; (b) failing to submit a Statement of Affairs of the company; and (c) non-cooperation.	The Respondent was disqualified from acting as a director etc. of a company for a period of 4 years.	Case Summary
Two directors	Application for disqualification order against two former directors of an insolvent company under section 168H of the Companies (Winding Up and Miscellaneous Provisions) Ordinance, Cap. 32 (“the Ordinance”) for their breach of directors’ duties by failing to:- (a) ensure the company’s compliance of the accounting records provisions of the Companies Ordinance, Cap. 622 and/or the Ordinance; and (b) submit a Statement of Affairs of the company.	Each of the Respondents were disqualified from acting as a director etc. of a company for a period of 2 years.	Case Summary
Notes: According to section 168H of the Ordinance, it is mandatory for the Court to make a disqualification order once it is satisfied that a person’s conduct as a director of an insolvent company, either taken alone or with his conduct as a director of any other company, renders him unfit to be concerned with the management of a company. The minimum period of disqualification is 1 year and the maximum period is 15 years. Under section 168K of the Ordinance, the Court shall have regard to the matters mentioned in Part I of the Fifteenth Schedule to the Ordinance, and where the company has become insolvent, also matters in Part II of the Fifteenth Schedule, in determining whether a person’s conduct as a director makes him/her unfit to be concerned in the management of a company. Other conducts relevant to the question of unfitness not falling within the matters specified in the Fifteenth Schedule may also be considered.

Respondent(s)

Breach(es)

Result

Remarks

A director

Application for disqualification order against a former director of two insolvent companies under section 168H of the Companies (Winding Up and Miscellaneous Provisions) Ordinance, Cap. 32 (“the Ordinance”) for his breach of the directors’ duties by:-

(a) failing to ensure the company’s compliance of the accounting records provisions of the Ordinance and the Companies Ordinance, Cap. 622;
(b) failing to submit a Statement of Affairs of the company; and
(c) non-cooperation.

The Respondent was disqualified from acting as a director etc. of a company for a period of 4 years.

Case Summary

Two directors

Application for disqualification order against two former directors of an insolvent company under section 168H of the Companies (Winding Up and Miscellaneous Provisions) Ordinance, Cap. 32 (“the Ordinance”) for their breach of directors’ duties by failing to:-

(a) ensure the company’s compliance of the accounting records provisions of the Companies Ordinance, Cap. 622 and/or the Ordinance; and
(b) submit a Statement of Affairs of the company.

Each of the Respondents were disqualified from acting as a director etc. of a company for a period of 2 years.

Case Summary

Notes:

According to section 168H of the Ordinance, it is mandatory for the Court to make a disqualification order once it is satisfied that a person’s conduct as a director of an insolvent company, either taken alone or with his conduct as a director of any other company, renders him unfit to be concerned with the management of a company. The minimum period of disqualification is 1 year and the maximum period is 15 years.
Under section 168K of the Ordinance, the Court shall have regard to the matters mentioned in Part I of the Fifteenth Schedule to the Ordinance, and where the company has become insolvent, also matters in Part II of the Fifteenth Schedule, in determining whether a person’s conduct as a director makes him/her unfit to be concerned in the management of a company. Other conducts relevant to the question of unfitness not falling within the matters specified in the Fifteenth Schedule may also be considered.