Selected Director Disqualification Case Updates for July 2024 to September 2024

Respondent(s)	Breach(es)	Result	Remarks
A director	Application for disqualification order against a former director of an insolvent company under section 168H of the Companies (Winding Up and Miscellaneous Provisions) Ordinance, Cap. 32 (“the Ordinance”) for her 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; (c) failing to ensure the company’s due payments of wages and other termination payments to its employees in accordance with the provisions of the Employment Ordinance, Cap. 57; and (d) misusing the bank account of the company.	The Respondent was disqualified from acting as a director etc. of a company for a period of 3.5 years.	Case Summary
A director	Application for disqualification order against a former director of an insolvent company under section 168H of the Companies (Winding Up and Miscellaneous Provisions) Ordinance, Cap. 32 (“the Ordinance”) for his 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; (b) submit a Statement of Affairs of the company; (c) ensure the company’s due payments of wages and other termination payments to its employees in accordance with the provisions of the Employment Ordinance, Cap. 57; and (d) fully cooperate with the liquidators.	The Respondent was disqualified from acting as a director etc. of a company for a period of 4.5 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 an insolvent company under section 168H of the Companies (Winding Up and Miscellaneous Provisions) Ordinance, Cap. 32 (“the Ordinance”) for her 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;
(c) failing to ensure the company’s due payments of wages and other termination payments to its employees in accordance with the provisions of the Employment Ordinance, Cap. 57; and
(d) misusing the bank account of the company.

The Respondent was disqualified from acting as a director etc. of a company for a period of 3.5 years.

Case Summary

A director

Application for disqualification order against a former director of an insolvent company under section 168H of the Companies (Winding Up and Miscellaneous Provisions) Ordinance, Cap. 32 (“the Ordinance”) for his 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;
(b) submit a Statement of Affairs of the company;
(c) ensure the company’s due payments of wages and other termination payments to its employees in accordance with the provisions of the Employment Ordinance, Cap. 57; and
(d) fully cooperate with the liquidators.

The Respondent was disqualified from acting as a director etc. of a company for a period of 4.5 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.