BACKGROUND NOTE
CONFIDENTIAL
PAUL LEE ENGINEERING FIRM
1.
In
Following the news that the Chairman and some other Directors had left the Board of the Paul Lee Engineering Co Ltd and that certain irregularities had been discovered in the accounts, on 22 August 1974 the Stock Exchanges, at the request of the company, suspended trading in the company's shares. October 1974, it appeared that there were circumstances suggesting that persons concerned with managing the company's affairs had been guilty of fraud, mis feasance or other misconduct towards the company or its members: or that its members had not been given all the information with respect to its affairs that they might reasonably expect. Accordingly, on 24 October 1974 the Financial Secretary appointed inspectors to investigate the affairs of the company in accordance with Section 143 of the Companies Ordinance. Meanwhile, on the grounds that the company had failed to proceed with the works under the contracts with due diligence, on 22 October 1974 the Government decided to enter all the contracts which the company was undertaking for the Government. These contracts constituted virtually the whole of the company's portfolio of works. From the interim report made at the direction of the Financial Secretary by the inspectors, it appeared to the Financial Secretary that the company should be wound up.
On
6 November 1974 he signed a petition that the company might be wound up by the Court under the provisions of the Companies Ordinance. A winding up order was made by the Court on
3 February 1975.
Hong Kong & Indian Ocean Department
27 June 1975
CONFIDENTIAL
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