Home' A Plus Magazine : Nov 2012 Contents 4 November 2012
Leung Chi-keung, CPA and
Luk Ka-cheung, CPA
Complaint: Noncompliance with the Funda-
mental Principles of Statement 1.200 "Pro-
fessional Ethics -- Explanatory Foreword." In
July 2009, Leung and Luk were found by the
Market Misconduct Tribunal to be culpable of
insider dealing, which is contrary to section
270(1)(e)(i) of the Securities and Futures Ordi-
nance (Cap 571). Leung and Luk held non-pub-
lic and price sensitive information about the
securities of China Overseas Land and Invest-
ment Limited, a Hong Kong-listed company.
The two accountants admitted the complaint.
Decision and reasons: Leung's and Luk's
names shall be removed from the register for
a period of one year. Each must also pay the
Institute a penalty of HK$100,000 and pay
costs towards the disciplinary proceedings
amounting to HK$34,159 and HK$21,145 for
Leung and Luk respectively. The Disciplinary
Committee considered this case as a serious
one, involving public interest and an element
of breach of trust by both accountants.
Chan Kin-hang, Danvil, CPA
Complaint: Noncompliance with the Funda-
mental Principles of Statement 1.200 "Profes-
sional Ethics -- Explanatory Foreword" and
paragraph 100.4(a) of the Code of Ethics for
Professional Accountants; and guilty of pro-
fessional misconduct. Chan was director of a
company which submitted a tender to the Of-
ficial Receiver for appointment as provisional
liquidators. After the tender was accepted, the
Official Receiver appointed Chan and a non-
member as joint and several provisional liqui-
dators for a number of companies. In October
and December 2009, Chan and the non-mem-
ber were removed as the joint and several
liquidators/provisional liquidators for seven
companies on the grounds that they did not
carry out their duties appropriately and that
Chan had included misleading information in
the tender. Chan admitted the complaints.
The Disciplinary Committee found that
Chan breached the above standards of ethics in
submitting a declaration form used in the ten-
der, which contained incorrect and misleading
information. This misled the Official Receiver
Conference discusses CPAs
role in Hong Kong's future
The Institute responded to newspaper reports that questioned the effectiveness of
its disciplinary system. On 28 September, several local newspapers reported that
since the Financial Reporting Council was set up six years ago, it has completed 14
investigations, but only one disciplinary order has been made by the Institute.
The Institute clarified that by end of September it had received 16 cases re-
ferred by the FRC, all of which had been introduced to its complaint assessment
process. Of the 16 referred cases, eight had been concluded after completion of
due process. Not all cases were sent for consideration by a Disciplinary Commit-
tee because the Institute judged that they were more appropriately concluded
by other sanctions available. The Institute added that the results of all con-
cluded cases were communicated to the FRC, which has the option of pursuing
its own prosecution if it was dissatisfied with case outcomes.
Of the eight cases in progress, six were referred to the Institute this year.
One of the two pre-2012 cases still in progress was being dealt with by an inde-
pendent Disciplinary Committee specifically set up for the case in accordance
to the Professional Accountants Ordinance, and the other was being considered
by Institute's Council for referral to a Disciplinary Committee. The Institute
advises the FRC of the progress of all referred cases on a quarterly basis.
Institute responds to media on
The Institute held a conference last month to discuss business sustainability
and the future of the accounting profession. Keynote speakers included Chris-
tine Loh, under-secretary for the environment, Paul Druckman, chief executive
officer of the International Integrated Reporting Council, and Julia Leung,
under-secretary for financial services and the treasury.
The one-day event was divided into two parts. During the morning session,
Loh covered why sustainability is important for businesses and Druckman
discussed how to communicate and report on it. In the afternoon, Leung talked
about Hong Kong's role as an international financial centre.
In his closing remarks, Clement Chan, vice president of the Institute, noted
that the topics discussed were intertwined and impact the future of Hong Kong.
into accepting the tender. He was also found guilty of professional misconduct as a
joint and several liquidator/provisional liquidator of three of the seven companies.
Decision and reasons: Chan's name shall be removed from the register for a
period of three years. He must also pay the Institute a penalty of HK$33,333.33
and costs of HK$288,511. The Disciplinary Committee took Chan's personal
circumstances and conduct during the proceedings into consideration when
making its decision.
(Details of disciplinary findings are available on the Institute's website:
Disciplinary finding (continued)
Links Archive Oct 2012 Dec 2012 Navigation Previous Page Next Page