06 Apr 2020
This briefing looks at the Market Misconduct Tribunal’s decision in respect of Magic Holdings International Limited, published on 25 March 2020.
The Market Misconduct Tribunal (MMT) found Magic Magic Holdings International Limited and five of its directors in breach of the inside information disclosure requirement under Part XIVA of the Securities and Futures Ordinance (SFO) in the context of commercial negotiations and incomplete proposals. This decision concerned the then proposed acquisition by L’Oreal S.A., in 2013, of the entire issued share capital of Magic, a then Hong Kong listed company in the beauty sector. The MMT addressed the following issues in the decision:
The decisions is a useful reminder on the importance for directors and senior management to ensure proper safeguards exist for the listed company to comply with its Part XIVA obligations, in order to avoid protracted investigations and legal proceedings, as well as hefty fines and other penalties.
This material is provided for general information only. It does not constitute legal or other professional advice.
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