The elder son of the Yung Kee restaurant founder Kam Shui-fai accused his younger sibling on Monday of breaking his father's wishes, resulting in the elder son's loss of influence over company management.

Yung Kee, the restaurant in Central renowned for its crispy roasted goose, is called the "canteen to the city's rich and famous". The future of the restaurant however, appears uncertain as the family remains locked in a bitter feud.

The elder son, Kinsen Kam Kwan-sing, filed a petition in March 2010 asking that the courts wind-up Yung Kee Holdings Limited. Since then, two years of attempts at mediation have proven fruitless. The 20-day trial of the case began on Monday.

Jat Sew-tong, counsel for Kinsen, elaborated details in opening submissions alleging that the younger brother Ronald Kam Kwan-lai had made moves beginning early in 2009 to diminish Kinsen's role at Yung Kee.

Five family members of founder Kam Shui-fai, who died in December 2004, inherited assets and shares of the celebrated restaurant. Kinsen and Ronald, each received 35 percent of the holdings, served as the board's only two directors.

Ronald received another 10 percent interest later in a bequest from a deceased sibling. The mother of the two combatants, Mak Siu-chun then awarded her 10-percent interest to Kinsen. Jat explained that the corporate structure was intended to maintain equal influence between Kinsen and Ronald.

Ronald, as outlined in the submission, had become furious over his mother's decision. A disputed transfer of shares from a sister, Kelly Kam, to Ronald gave the younger son a 55 percent majority in Yung Kee shares.

Subsequently, Ronald's son Carrel Kam Lin-wang was appointed as a third director. Jat said Kinsen Kam had never expected that he would have to come to a "situation" of voting since decisions were made in the past by simple order from Kinsen.

The brothers' late father had required the brothers to learn every aspect of the business. When Carrel arrived, he came in "right at the top and took over", Jat alleged.

Kinsen was made to share power with Ronald on human resources decisions and once was denied access to financial information. Kinsen's demand to declare dividends was dismissed at a board meeting by Ronald, who was quoted by Jat as saying because "we don't want to".

Jat described Kinsen as being "devastated" by the "unilateral and drastic steps" taken by Ronald. Jat said Kinsen made an offer to sell his interests in Yung Kee, but the siblings failed to agree on the valuation of the company's market value. Professionals from Kinsen's side assessed the value at about HK$1.51billion, but Ronald's evaluators gave an estimate of no more than HK$1.35 billion.

In a statement released to the press before the trial, Ronald Kam stood by his legal position objecting to the wind-up petition. He expressed "regret" that a family feud has to be resolved in a trial, but said he will "defend upon reason" as his legal advisers suggested that his brother has no legal standing.

The trial was expected to take another 19 days. The widow and all children of the restaurant's founder and two staff from the restaurant are expected to testify to the facts of the case.

kahon@chinadailyhk.com

China Daily

(HK Edition 01/31/2012 page1)