Tuesday, September 2, 2014   




Fallout over Chan appointment

Benjamin Scent

Friday, May 16, 2008

Separate from quarrels over whether he is medically fit to return to the helm of Sun Hung Kai Properties, chairman Walter Kwok is also claiming a range of disagreements with his brothers over company management.

In the writ filed yesterday, Walter Kwok alleges that because of repeated disagreements about improving corporate governance since May 2007, his two younger brothers sought to remove him from his positions and thereby gain control and power of the board.

The eldest Kwok brother is claiming he had concerns regarding the alleged decision of Thomas Kwok and Raymond Kwok to enter into a lease of International Commerce Centre without observing proper corporate formalities.

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The two younger brothers, who serve as vice chairmen of the company, did not allow full discussion on the terms of the proposed lease, Walter Kwok claims.

Local media reports said the Sun Hung Kai chairman was not happy with Raymond Kwoks decision to rent out space in ICC to Morgan Stanley and Credit Suisse at a discount.

The claim also alleges Thomas and Raymond Kwok disagreed with their elder brothers attempts to find out if there was any impropriety in the way the company awards construction contracts.

According to the writ, Walter Kwok also claims they sought to block investigations into why a parcel of land in the New Territories was acquired at what he said was an inflated price.

Local media reported the two younger brothers planned to buy three small sites in the Heung Fan Lui area of Tai Wai for HK$400 million to develop luxury residential projects. Walter Kwok was reported to have disagreed with their decision because the sites were near a crematorium.

Raymond and Thomas Kwok also sought to prevent Walter Kwok from bringing in Deloitte Touche Tohmatsu to review the management of the company, the legal claim alleges.

Finally, Walter Kwok claims he disagreed with a proposal by Raymond Kwok to engage John Chan Cho-chak, former managing director of Kowloon Motor Bus Co, as a non-executive director of Sun Hung Kai given John Chans past performance record.


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