Exchange’s Disciplinary Action against China Tangshang Holdings Limited (Stock Code: 674) and its executive directors
Regulatory
14 Apr 2021
香港聯合交易所有限公司
(香港交易及結算所有限公司全資附屬公司)
THE STOCK EXCHANGE OF HONG KONG LIMITED
(A wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited)
The Listing Committee of The Stock Exchange of Hong Kong Limited
CENSURES:
(1) China Tangshang Holdings Limited (Stock Code: 674);
(2) Mr Zhou Hou Jie, executive director of the Company;
CRITICISES:
(3) Mr Chen Wei Wu, executive director and Chairman of the Company; and
DIRECTS:
(4) the Company to conduct an internal control review; and
(5) Mr Zhou and Mr Chen to undergo training.
The Exchange found that:
- the Company failed to comply with the announcement and/or shareholders’ approval requirements applicable to a major transaction and an advance to an entity, carried out by its subsidiary in September 2019, thereby breaching the Listing Rules; and
- Mr Chen and Mr Zhou failed to discharge their duties as directors, including their failure to implement effective internal controls for ensuring the Company’s compliance with the Listing Rules.
Key messages:
The Exchange’s warnings against breaches of the Listing Rules are to be taken seriously. The Exchange will not tolerate repeated breaches and will not hesitate to take disciplinary action against the breaching parties.
Shareholders are entitled to information about, and if applicable vote on, material transactions carried out by the listed issuer. To safeguard the interest of the investing public, it is therefore of paramount importance that listed issuers comply with the procedural requirements set out in the Listing Rules.
Directors are ultimately responsible for the issuer’s compliance with the Listing Rules. Thus, it is imperative for directors to take active steps to ensure the listed issuer’s compliance, including implementing and maintaining adequate and effective internal controls.
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For the avoidance of doubt, the Exchange confirms that the sanctions and directions in this news release apply only to the Company, Mr Zhou and Mr Chen, and not to any other past or present members of the board of directors of the Company.
Ends