Landing International Development Ltd, operator of South Korea’s Jeju Shinhwa World, has suspended its Chairman and Executive Director Yang Zhihui after the Securities and Futures Commission of Hong Kong (SFC) commenced legal proceedings against him.
According to details filed with the Hong Kong Stock Exchange, the proceedings relate to another company of which Yang is also chairman, Teamway International Group Holdings Limited, which is alleged to have conducted business or affairs in a manner “unfairly prejudicial to the interests of members of Teamway.”
In particular, SFC claims Yang breached his fiduciary duties to Teamway in respect to a number of transactions and matters, failed to procure Teamway to disclose certain inside information in breach of his disclosure duties, undertook conduct dishonestly for his private purpose and personal benefits – and contrary to Teamway’s interests – and generally failed to act with due and reasonable care, skill and diligence by failing to properly supervise the affairs of Teamway and subsidiaries.
SFC has asked Hong Kong’s Court of First Instance to disqualify Yang from being a director or manager of Teamway or any other business and to have him pay compensation to the company.
In a filing, Landing said it has chosen to suspend Yang from all administrative and executive duties and powers in order to alleviate the concerns of shareholders and the public.
Executive Director Ms Chan Mee Sze has been named acting chairperson of Landing in his absence.
Yang, who owns 50.48% of Landing, has a colorful history, having famously gone missing for three months in 2018 after being detained by authorities in Cambodia. When he returned, Landing explained that he had been “assisting the relevant department of the People’s Republic of China with its investigation during the period of his absence.”
In late 2020 he resigned from the board of Chinese marine diving equipment producer China Dive Company Limited amid allegations he manipulated the securities market.
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