The Securities and Futures Commission (SFC) has taken legal action against eight current or former directors of FingerTango Inc. for alleged corporate misconduct and breaching their duties. The SFC is seeking disqualification orders against these directors and a compensation order against six of them. Additionally, the SFC wants FingerTango to appoint an independent external auditor to review its internal control procedures. The directors are accused of using IPO proceeds to invest in a fund without proper due diligence, resulting in a loss of $258.75 million. The SFC alleges that the directors failed to inquire into the loan notes issuer and assess the investment risks. The SFC has also issued restriction notices to three brokers to ensure funds are available for potential compensation.
Resource: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=23PR117