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Hong Kong watchdog requires disqualification of five Hanergy directors

Staff Writer |
The Securities and Futures Commission of Hong Kong is seeking legal action to disqualify five former and current directors of mainland solar energy firm Hanergy Thin Film Power Group from being directors or being involved in the management of any Hong Kong corporation for up to 15 years.

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The directors, including the company's founder and former chairman Li Hejun, and four current independent non-executive directors-Zhao Lan, Wang Tongbo, Xu Zheng and Wang Wenjing-failed to question the viability of Hanergy's business model which relied on the sales of solar panel production systems to its connected parties as its main source of revenue and failed to assess properly the financial positions of the connected parties, according to a statement released by the SFC on Monday, China Daily reports.

"They also failed to take proper steps to recover these receivables by putting the interests of the connected parties before that of Hanergy, and so did not act in Hanergy's best interest," the statement added.

Meanwhile, the SFC is also seeking a court order to require Hanergy's parent company-Hanergy Holding Group Ltd-pay all outstanding receivables due to Hanergy under various sales contracts and execute a guarantee securing their payment.

The first hearing of the petition will be in the Court of First Instance on May 21.

The trading of Hanergy shares has been suspended for more than one and a half years.

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