Date
20 September 2017
Greencool's former chairman Gu Chujun has been charged with gross misconduct and causing losses to minority shareholders. Photo: caixin.com
Greencool's former chairman Gu Chujun has been charged with gross misconduct and causing losses to minority shareholders. Photo: caixin.com

SFC seeks HK$1.59 bln asset freeze on Greencool ex-chief

Hong Kong’s Securities and Futures Commission (SFC) had on June 20 submitted a request to a city court seeking an order to freeze HK$1.59 billion (US$205 million) worth of assets of Gu Chujun, the former chairman of delisted firm Greencool Technology Holdings, 21st Century Business Herald reported Tuesday.

In addition, SFC also asked the Court of First Instance for an order to make Gu compensate for loss suffered by more than 1,300 minority shareholders. The shareholders haven’t been able to file a compensation lawsuit against Gu in view of the high legal costs.

Gu has 28 days to respond to the court, the report said. Meanwhile, an assistant was quoted as saying that he is unaware of the SFC’s move.

Gu was sentenced to 10 years imprisonment in 2009 by Guangdong’s Higher People’s Court for instructing senior executives at Greencool Technology to overstate the company’s financial statements between 2000 and 2004. The businessman was said to have misled investors and also cause great loss to them due to the stock’s delisting from the Hong Kong bourse in 2007. Gu, however, got out of jail in 2012.

The Hong Kong markets watchdog has also begun investigations on those executives, according to the report.

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TL/AC/RC

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