Leaked documents need answers from Seapower chairman Francis Yuen
INTERNAL documents from subsidiaries of Seapower International, circulated to newspapers and the stock exchange, require answers from Francis Yuen Tin-fan, former chief executive of the exchange and now chairman of Seapower.
The documents relate to a company called Dynasty Court Investments, which allegedly maintained a share-trading margin account at Seapower Finance at least until this February.
According to the documents, Dynasty Court opened its account at Seapower Finance on July 2, 1992. A document dated December 1, 1992, apparently on Seapower Finance headed paper, contains the following details on Dynasty Court and the account: Account number 605998 for British Virgin Islands registered Dynasty Court Investments was opened on July 2, 1992. A document titled ''Mandate for Limited Company Account'' fixes the date of the account opening to November 5, 1992, in a document stamped November 11. The correspondence address for the firm is c/o Francis Yuen, at Tin Hau Temple Road, Hong Kong. Authorised persons for the firm's account at Seapower are Mr Yuen's late father Yuen Ping-to, and his mother Yuen Chang Sau-on. The account had an initial authorised margin limit of $1 million, later raised to $1.5 million. If the account was in debit, an interest rate of 2.5 per cent per annum over the Hong Kong prime rate would be charged. The margin account was guaranteed by Francis Yuen, according to a document dated November 6, 1992, and stamped November 11. The document is allegedly signed by Mr Yuen and witnessed by one Yam Kit-wai.
Two letters accompanied the documents: a short letter to newspapers and a longer letter addressed to Gerry McMahon of the Securities and Futures Commission (SFC), Paul Chow, chief executive of the stock exchange, and Herbert Hui, head of the exchange's listing division.
The second letter makes a series of allegations about Mr Yuen in the form of three questions for the stock exchange and the SFC.
The letter to regulators also includes claims about how trading by Dynasty Court was carried out.