Directors' failure to exercise judgment will lead to serious consequences and section 214 cases

The Court of First Instance has recently sanctioned a number of directors of listed companies by way of disqualification orders pursuant to section 214 of the Securities and Futures Ordinance. These latest cases serve to remind directors that failure to exercise reasonable care, skill and diligence as required under their directors’ duties may lead to serious consequences (both professionally and financially). This is so even if no dishonesty, bad faith, illicit gain or conflict of interest is involved.

The Chinese language version of this briefing is available here.