On October 24, 2018, a director of Rightful Mortgage Limited (the Company) was prosecuted by the Companies Registry (CR) under section 750(6) of the Companies Ordinance for knowingly or recklessly giving false or misleading information to the Registrar of Companies in connection with an application for deregistration of the Company. The director, Ken Lee Sai-cheung, pleaded guilty at Eastern Magistrates' Courts today (October 24) and was fined $15,000 for the charge.
The case relates to false information provided by the defendant in the application form which was lodged with the CR for deregistration of the Company. Contrary to the certification made by the defendant in the application form that the Company was not a party to any legal proceedings and that it had no outstanding liabilities, the Company was reported to be the defendant in a High Court proceeding and there was an adverse costs order granted against the Company.
"The ruling helps disseminate a strong message to all companies and their officers that they have the responsibility to ensure that the information given to the Registrar must not be false or misleading. Any provision of false or misleading information to the CR may attract a fine of $300,000 and imprisonment for up to two years," a spokesman for the CR said.