Tang estate faces $115m China Club claim

Shanghai-style club and restaurant China Club is seeking HK$115 million from administrator of the estate of its late founder David Tang Wing-cheung, saying the tycoon had improperly taken the amount from the club before he passed away from liver cancer in 2017.

In a writ filed with the high court on Friday, China Club (China Investment Incorporations) is suing Gordon David Michael George Oldham, the administrator of Tang's estate.

According to the writ, Tang improperly transferred over HK$100 million of the club's funds to his personal account or the accounts of his related companies in ways that breach his fiduciary duty as a director of China Club during his lifetime.

The plaintiff alleges in the writ that Tang transferred nearly HK$51.87 million from its bank account to his personal account or those of companies controlled by him between 2016 and 2017.

The plaintiff also alleges a second sum of HK$56.29 million was transferred into his private account or bank accounts under his control between 2007 and 2014, which was the total net proceeds of several auctions of various artworks belonging to the plaintiff.

The China Club also alleges that Tang overpaid over HK$6.74 million to his private account when he paid out dividends to shareholders between 1998 and 2016.

China Club is seeking an order from the court confirming that the money was held by Tang as a trustee on behalf of the company and requiring his estate administrator to return the money.

Tang was a businessman and founder of China Club and the Shanghai Tang apparel label.

In 1991, he opened the China Club in the old Bank of China Building in Central with HK$40 million, a retro-chic, Shanghai-style club and Michelin star restaurant in Hong Kong.

He was also the founder of Hong Kong Cancer Fund and was president at the Hong Kong Down Syndrome Association, Royal Commonwealth Society Hong Kong Branch and Royal Geographical Society Hong Kong.

He was patron of Hong Kong Youth Arts Foundation and director of Asia Art Archive.

Tang was made a Knight Commander of the British Empire in December 2007 at the age of 52, for his "charitable services in the UK and to British interests in Hong Kong.''