The Court of First Instance’s decision has important implications for directors of listed companies when failing to act in the best interests of the company.

Background -

On July 15, 2015, the Securities and Futures Commission (SFC) suspended trading in shares of Hanergy Thin Film Power Group Limited (Hanergy), a company listed on the Main Board of The Stock Exchange of Hong Kong Limited. The SFC’s action followed its investigation into a series of very substantial connected transactions between Hanergy and its parent company, Hanergy Holding Group Limited (Hanergy Holding). Hanergy’s main source of revenue had come from selling solar-panel production systems to Hanergy Holding and Hanergy Holding’s affiliates. The SFC alleged that Hanergy’s former chairman, Mr. Li Hejun (Mr. Li), and four current independent non-executive directors, Ms. Zhao Lan (Ms. Zhao), Mr. Wang Tongbo, Mr. Xu Zheng (Mr. Xu), and Mr. Wang Wenjing, had failed to...