Justice Harris ruled on Friday that a case brought by a small shareholder should be combined with two others as they are all related, reports newspaper South China Morning Post.
Convoy and its advice arm Convoy Financial Services are at the centre of an investigation by Hong Kong’s Independent Commission Against Corruption (ICAC) and the Securities and Futures Commission (SFC).
Executives have been arrested and the group’s chairman was apprehended at the airport.
Legal action
Small shareholder Xiaoyan Zhu brought her claim against 32 defendants in late December seeking compensation of around HK$2m (£1.85m, $0.26m, €0.21m) for losses to her investment in Convoy, SCMP reported.
Among those named in her lawsuit are former chairman Quincy Wong and the group’s second largest shareholder Hui-kwan Kwok, who has a lawsuit of his own. Kwok is suing the company after its new chairman Johnny Chen moved to veto his shares and prevent him from ousting the board.
Kwok holds 29.91% of the company’s shares, and called an extraordinary meeting on the last day of 2017 to pass a motion to remove six directors of the firm and appoint three he had nominated.
The third case has been brought by Convoy’s new management team, which is suing Wong and 27 others for misappropriating over HK$4bn and funnelling it via companies controlled by Wong.
