Securities and Futures Commission of Hong Kong: Legal proceedings launched against former senior executives of C AUTO INT DECO (00048) and its subsidiaries.

On April 29th, the Hong Kong Securities and Futures Commission initiated legal proceedings in the original court against C AUTO INT DECO (00048) and its subsidiary Winkyi Global Limited (Winkyi) former director Wong Ho Yin (male) and former general manager of Winkyi, So Lung Ying (female). The two individuals are accused of breaching their fiduciary duties, involving fictitious trades and unauthorized payments. The Hong Kong Securities and Futures Commission is seeking a court order to disqualify Wong and So, and to issue a compensation order of HK$14.6 million against Wong, for losses and damages incurred by C AUTO INT DECO due to the unauthorized payments made by Winkyi. The Hong Kong Securities and Futures Commission stated that, between December 2019 and January 2020, Wong had signed checks totaling HK$14.6 million, which were recorded as payments to a mainland Chinese company for the purchase of food. However, as these payments were not used to settle genuine purchase transactions and trade payables, they were considered misappropriation of company funds.