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Case Study on Breach of Director’s duties at Tiger Asia Company
Business Law: Individual Assignment arsHaad Mustafa
Case Study on Breach of Director’s duties at Tiger Asia Company
Business Law: Individual Assignment arsHaad Mustafa
2014
2014

Tiger Asia and executives punished for market misconduct
[Bill Hwang, founder of Tiger Asia, was banned from securities trading in Hong Kong for four years.]
The Market Misconduct Tribunal yesterday said hedge fund Tiger Asia Management and two of its senior executives, Bill Hwang Sung-kook and Raymond Park, engaged in market misconduct and banned the company and Hwang from securities trading in the city for four years.
Hwang, the founder of New York-based Tiger Asia, and Park, the head of trading, last year admitted to insider dealing in the shares of two mainland banks and were ordered by the court to pay more than HK$45 million to about 1,800 investors.
In a statement announcing the tribunal's ruling, the Securities and Futures Commission said: "This heralds a sterner approach in respect of protective measures provided under our law. The SFC will track down and take action against wrong-doers wherever in the world they may lurk."
The trading ban was shorter than the five-year "cold shoulder" order sought by the SFC.
Park, who had suffered from a debilitating stroke, was not banned due to his incapacity.
Tiger Asia reached a US$60 million settlement deal with the US Securities and Exchange Commission in December 2012 for the same insider trading.
The SFC started its legal action in 2009 against Tiger Asia, Hwang, Park and William Tomita for insider trading and market manipulation ahead of share-placement announcements by Bank of China and of China Construction Bank in 2008 and 2009.
In both cases, the investment bankers arranging the placement invited Tiger Asia to buy the shares and gave it advance knowledge

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