SFC commences legal proceedings against New Ray Medicine International Holding Limited and its former top executives

enforcement update

30 Nov 2020

  • Company involved: New Ray Medicine International Holding Limited
  • People involved: Mr Zhou Ling, and the company’s former chief executive officer and executive director, Mr Dai Haidong
  • Penalty: A court order in the legal proceedings for Zhou to pay compensation to New Ray

Summary:

SFC has commenced legal proceedings in the Court of First Instance to seek disqualification orders against former chairman and executive director of New Ray Medicine International Holding Limited (New Ray), Mr Zhou Ling, and the company’s former chief executive officer and executive director, Mr Dai Haidong, for allegedly committing corporate misconduct and breaching their duties towards New Ray.

The SFC also is seeking a court order in the same legal proceedings for Zhou to pay compensation to New Ray (Notes 1 to 3).

The SFC’s action follows an investigation into suspicious payments and undisclosed arrangements between New Ray’s senior executives and the counterparties of transactions involving New Ray which took place in 2015 and 2017.  In this connection, the SFC alleges that after the counterparties received payments from New Ray, significant amounts were then paid to Zhou and Dai.  When New Ray’s board of directors considered and approved these transactions, Zhou and Dai did not declare their personal interest in the transactions, nor disclosed to the board that the counterparties might not be independent third parties.

Read more about this enforcement news here: https://bit.ly/33lO0QK