GOLDSTONE CAP (01160.HK) probe finds executive director involved in potential insider trading, board to seek removal

NewTimeSpace News: On 28 October, Goldstone Capital Group Limited (01160.HK) published the special investigation committee report and the continued suspension of an executive director's duties. The company had published announcements dated 28 August 2026 and 20 October 2026 regarding the suspension of the duties of Mr Chen Changyi and the establishment of the special investigation committee.

Based on the evidence obtained, the committee considers that, among other things, Mr Chen has breached the duty of care and the duty of fidelity expected of him as an executive director, that he was actually involved in potential insider trading, and that he is also suspected of having assisted certain concert party shareholders of the company in obtaining control of the company.

The committee made four recommendations to the board: first, given Mr Chen's breach of his duties as a director, the company should initiate procedures to remove him as a director and continue to suspend his duties until the removal is effected; second, to submit the special investigation committee report to the regulatory authorities for handling; third, the company should consider the possibility of taking legal action against Mr Chen; and fourth, to strengthen the company's internal controls and appoint suitable senior management personnel to avoid similar occurrences. Following the committee's recommendations, the board resolved that Mr Chen's duties as an executive director will remain suspended until he is removed as a director, and the company will publish further announcements as and when appropriate.