A nephew of Stanley Ho Hung-sun, born to the gaming mogul's sister, businesswoman Winnie Ho Yuen-ki, has sued for over HK$2 billion in Sociedade de Turismo e Diversoes de Macau's dividends.
The Hong Kong High Court, meanwhile, has granted a stay in the legal proceedings.
STDM, a company under Macau's jurisdiction, has not yet clarified its stance and explained key issues, such as whether Winnie Ho held the shares and if any dividends are owed.
Michael Hotung is the son of Winnie Ho and her cousin Eric Hotung. Six years ago, He filed a writ at the Hong Kong High Court, claiming his uncle Stanley Ho and STDM owe dividend payments accrued since 2007 for shares owned by his late mother.
The writ unveiled that Winnie Ho owned 7.34 percent of STDM in the prospectus, representing 6,263 shares, when STDM's subsidiary SJM (0880) was listed on the Hong Kong Stock Exchange in 2008.
The plaintiffs in the case are Michael Hotung, acting as the executor of his mother Winnie Ho’s estate, along with Moon Valley Foundation and Mutual Stand.
STDM, the legal representatives of the late Stanley Ho’s estate – Patrick Cowley and Rosalie Lui Yee-man – and Nanette Ho Yuen-hung are defendants.
Representatives of Stanley Ho have applied to the High Court for a permanent stay of the legal proceedings against him yesterday, while STDM has not yet made a statement on the case.
Though Michael Hotung has objected to any temporary or permanent stay of the proceedings, the judge has decided to grant a stay of the proceedings against Stanley Ho, pending STDM’s receipt of the court documents.
The defense’s senior counsel, Victor Joffe, asserted that the case should be handled in Macau as STDM is a Macau company. He argued that the Hong Kong court has no legal authority over the case and applied for a permanent halt to the lawsuit against Stanley Ho.
However, the plaintiffs countered that Stanley Ho is a Hong Kong resident, thus the lawsuit against him should fall under Hong Kong’s jurisdiction, and that they strongly opposed any temporary or permanent stay of the proceedings.
The writ showed that Winnie Ho invested HK$2 million in STDM in 1962, but was initially issued 20 physical shares after discussions. The funds for this investment reportedly came from Eric Hotung, who gave them to her in a trust.
In 2005, Winnie Ho purchased an additional two shares from Stanley Ho and ten shares from Nanette Ho, and then gave one share to each of the other two plaintiffs, the writ said.
She received dividend payments over HK$350 million from 2000 to 2006, but STDM stopped paying her dividends after she was officially ousted from the board in 2007, according to the writ.
The plaintiffs have argued that the defendants are withholding over HK$2 billion in accumulated dividends owed to Winnie Ho.
HELEN ZHONG
