The Court of Appeal yesterday dismissed the appeal of Sun Hung Kai Properties (SHKP) chairman and chief executive Walter Kwok Ping-sheung for an injunction order to prevent the board from voting on his removal.

Walter was granted an interim injunction on May 15 to block a vote by SHKP's directors and his younger brothers Thomas Kwok Ping-kwong and Raymond Kwok Ping-luen to terminate his term of office.

Yet his application to extend the injunction was set aside by the High Court last Friday, when his counsel immediately filed an appeal.

Vice-President of the Court of Appeal of the High Court Anthony Rogers dismissed the appeal of Walter, saying that "the directors' improper motives alleged by Walter were quite wrong".

Under the company law, the court should not interfere in the internal management of SHKP, he added.

In addition he agreed with the ruling of High Court judge Susan Kwan Shuk-hing that there is no evidence that suggests that the directors had reached an agreement with Walter which stipulated that he would resume duties should his mental health become satisfactory after a three-month leave.

Ambrose Ho, counsel of SHKP's directors, said the board had actually removed Walter from his positions in the meeting in February.

SHKP welcomes the judgment.

"SHKP's board of directors is free to vote on resolutions regarding changes in its top management," its spokesperson said in a statement. "The company's prudent approach to investments and development strategy remains unchanged,"

However, Walter said in a statement that he was very disappointed by the court's ruling.

He hopes the directors would consider the interest of shareholders as top priority and determine his fate after investigating thoroughly SHKP's internal management problem.

He insisted that he is mentally fit and can resume duty anytime.

Walter's counsel Ronny Tong said there was no basis for further appeal but he may consider other legal action after the board makes a decision on Walter's fate.

SHKP vice chairman and non-executive director Lee Shau-kee believed that Raymond and Thomas bear no malice toward Walter.

SHKP will hold a board meeting today to discuss changes among the top management, including the appointment of Kwok brothers' mother, Kwong Siu-hing, as chairwoman to replace Walter.

(HK Edition 05/27/2008 page1)