The Market Misconduct Tribunal (MMT) has made a disqualification order against Ms Salina Yu Lai Si, former chief executive officer of Water Oasis Group Limited (Water Oasis), and ordered her to disgorge $281,346 after making the determination that Yu engaged in insider dealing in the shares of Water Oasis (Note 1).
The disqualification order prohibits Yu from being a director or being involved in the management of any listed corporation, without leave of the court, for a period of two years effective 15 February 2015. The sum of disgorgement is equivalent to the benefit she received in avoiding a loss through insider dealing in the shares of Water Oasis on 20 January 2012 (Notes 2 & 3).
The SFC alleged that at the time of her trading in the shares of Water Oasis, Yu knew that H2O Plus LLC would terminate Water Oasis’s exclusive distributorship of H2O’s products in Mainland China and Taiwan with immediate effect and that this information constituted inside information.
Today’s decision follows a hearing before the MMT at which Yu admitted she engaged in insider dealing in the shares of Water Oasis.
In making the decision on the disqualification order, the MMT is concerned that “if Ms Yu is tempted within the next couple of years to return to a management position in Water Oasis or is tempted to take up a position in some other listed corporation, that she may pose a threat to the integrity of the workings of such a business, a threat which may well reach out to undermine compliance with market regulations (Note 4).”
Notes:
- The MMT was chaired by The Honourable Mr Justice Michael Hartmann. Please see SFC’s press releases dated 4 November 2014 and 14 August 2014.
- Under section 257(1)(a) of the Securities and Futures Ordinance (SFO), a disqualification is an order that the person shall not be a director of a listed corporation or in any way, directly or indirectly, be concerned or take part in the management of a listed corporation for the period specified in the order.
- Under section 257(1)(d) of the SFO, a disgorgement order is an order that the person shall pay to the Government an amount of any profit gained or loss avoided by the person as a result of the market misconduct in question.
- A report which sets out the reasons of making the disgorgement and disqualification orders, and other orders is available on the MMT’s website (www.mmt.gov.hk).