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China Southern's independent director resigns over insider trading
By Winny Wang |
August 9, 2011, Tuesday
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Online Edition
Online Edition
CHINA Southern Airlines has received a resignation letter from its independent non-executive director, Lam Kwong Yu, who is involved in a case of insider trading.
Lam's resignation took effect on Saturday due to his personal time arrangement, according to a statement the country's largest carrier filed to the Shanghai Stock Exchange.
Hong Kong Securities and Futures Commission has commenced criminal proceedings against Lam for alleged insider dealing when he served as independent director of Hong Kong Aircraft Engineering Co Ltd.
The commission alleged 67-year-old Lam purchased 4,000 shares of the Hong Kong company on June 4 last year through an online securities trading account after being told about a proposed deal in which Cathay Pacific Airways, a shareholder of HAECO, would sell its entire stake in the company to Swire Pacific Ltd.
The deal triggered a general offer for all shares in HAECO and proceeded at HK$105 per share, representing a premium of about 25 percent over the market price. HAECO announced the deal on June 7, 2010 while Lam resigned as the company's independent non-executive director on June 6.
The commission also alleged that Lam sold the shares in the company after the announcement, making a profit of HK$80,000.
The investigation followed a letter from Lam's solicitor in which Lam explained that he bought the shares inadvertently without obtaining approval from the chairman of HAECO's board of directors, as required by the company's internal policy.
China Southern didn't disclose investigation progress of Lam's case.
Lam's resignation took effect on Saturday due to his personal time arrangement, according to a statement the country's largest carrier filed to the Shanghai Stock Exchange.
Hong Kong Securities and Futures Commission has commenced criminal proceedings against Lam for alleged insider dealing when he served as independent director of Hong Kong Aircraft Engineering Co Ltd.
The commission alleged 67-year-old Lam purchased 4,000 shares of the Hong Kong company on June 4 last year through an online securities trading account after being told about a proposed deal in which Cathay Pacific Airways, a shareholder of HAECO, would sell its entire stake in the company to Swire Pacific Ltd.
The deal triggered a general offer for all shares in HAECO and proceeded at HK$105 per share, representing a premium of about 25 percent over the market price. HAECO announced the deal on June 7, 2010 while Lam resigned as the company's independent non-executive director on June 6.
The commission also alleged that Lam sold the shares in the company after the announcement, making a profit of HK$80,000.
The investigation followed a letter from Lam's solicitor in which Lam explained that he bought the shares inadvertently without obtaining approval from the chairman of HAECO's board of directors, as required by the company's internal policy.
China Southern didn't disclose investigation progress of Lam's case.
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