SECURITIES AND FUTURES COMMISSION v. YIN YINGNENG RICHARD AND OTHERS

HCMP 2502/2012

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

MISCELLANEOUS PROCEEDINGS NO. 2502 OF 2012

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IN THE MATTER OF FIRST CHINA FINANCIAL NETWORK HOLDINGS LIMITED

and

IN THE MATTER of Section 214 of the Securities and Futures Ordinance, Cap 571

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BETWEEN

SECURITIES AND FUTURES COMMISSION Petitioner
and
YIN YINGNENG RICHARD 1st Respondent
LEE YIU SUN 2nd Respondent
WANG WEN MING 3rd Respondent
FIRST CHINA FINANCIAL NETWORK HOLDINGS LIMITED 4th Respondent

Before: Hon Anthony Chan J in Court

Date of Hearing: 30 September 2015
Date of Decision: 30 September 2015

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DECISION ON COSTS
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1. I award the costs of and occasioned by the summons filed on 9 March 2015 (“Summons”) and the consent summons filed on 21 April2015 to the SFC, with a certificate for counsel, to be paid by Wang. Such costs are to be taxed if not agreed. I make no costs orderin respect of Yin, Lee and the Company.

2. Briefly, my reasons are as follows. It was not unreasonable for the SFC to be concerned about the agreement reached between Wangand the Company on the extension of time for the payment of compensation given that (a) Wang remained an executive director and Chairmanof the Board of the Company and (b) the disapproval expressed by the court in respect of the corporate governance exercised overthe Company. Hence, the Summons was rightly taken out.

3. Although it may be said that Wang was doing what he could to meet the time frame for the payment in question, it must be rememberedthat the time frame was agreed by him and that he ought to have applied to the court for an extension of time with proper evidencein support.

(Anthony Chan)
Judge of the Court of First Instance
High Court

Mr Charles Manzoni SC and Mr Norman Nip, instructed by Securities and Futures Commission, for the petitioner

Mr John Scott SC and Mr John Hui, instructed by Robertsons, for the 1st respondent

Mr Jose Maurellet and Mr Justin Lam, instructed by Boase, Cohen & Collins, for the 2nd respondent

Mr Anson Wong SC and Mr Benny Lo, instructed by Sit Fung Kwong & Shum, for the 3rd respondent

Mr Adrian Leung, instructed by K C Ho & Fong, for the 4th respondent