HK watchdog acts on Hanergy

SFC claims that five current, former directors of firm failed to address concerns

The Securities and Futures Commission of Hong Kong is seeking legal action to disqualify five former and current directors of mainland solar energy firm Hanergy Thin Film Power Group from being directors or being involved in the management of any Hong Kong corporation for up to 15 years.

The directors, including the company's founder and former chairman Li Hejun, and four current independent non-executive directors - Zhao Lan, Wang Tongbo, Xu Zheng and Wang Wenjing - failed to question the viability of Hanergy's business model which relied on the sales of solar panel production systems to its connected parties as its main source of revenue and failed to assess properly the financial positions of the connected parties, according to a statement released by the SFC on Monday.