Official quits over insider trading charge
By Winny Wang |
August 10, 2011, Wednesday
|
Print Edition
Print Edition
AN independent non-executive director of China Southern Airlines has resigned after getting ensnared in an insider trading case in Hong Kong.
Lam Kwong Yu's resignation took effect last Friday, according to a company statement filed with the Shanghai Stock Exchange.
The Hong Kong Securities and Futures Commission has commenced criminal proceedings against Lam for alleged insider dealing while he was an independent director of Hong Kong Aircraft Engineering Co.
The commission alleged Lam, 67, purchased 4,000 shares in the Hong Kong company on June 4, 2010, after being told about a proposed deal in which Cathay Pacific Airways, a Hong Kong Aircraft shareholder, would sell its entire stake in the company to Swire Pacific Ltd.
The deal triggered a general offer for all shares in Hong Kong Aircraft and proceeded at HK$105 per share, representing a premium of about 25 percent over the market price. Hong Kong Aircraft announced the news on June 7, 2010. Lam resigned from the company on June 6.
The commission alleged that Lam sold the shares in the company for a profit of HK$80,000 (US$10,245).
Lam's attorney said his client bought the shares inadvertently without obtaining approval from Hong Kong Aircraft's board of directors.
Lam Kwong Yu's resignation took effect last Friday, according to a company statement filed with the Shanghai Stock Exchange.
The Hong Kong Securities and Futures Commission has commenced criminal proceedings against Lam for alleged insider dealing while he was an independent director of Hong Kong Aircraft Engineering Co.
The commission alleged Lam, 67, purchased 4,000 shares in the Hong Kong company on June 4, 2010, after being told about a proposed deal in which Cathay Pacific Airways, a Hong Kong Aircraft shareholder, would sell its entire stake in the company to Swire Pacific Ltd.
The deal triggered a general offer for all shares in Hong Kong Aircraft and proceeded at HK$105 per share, representing a premium of about 25 percent over the market price. Hong Kong Aircraft announced the news on June 7, 2010. Lam resigned from the company on June 6.
The commission alleged that Lam sold the shares in the company for a profit of HK$80,000 (US$10,245).
Lam's attorney said his client bought the shares inadvertently without obtaining approval from Hong Kong Aircraft's board of directors.
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