Court orders 3b yuan in Founder Securities assets to be frozen
Friday, 02 January, 2015, 12:12pm
Sijia JiangSijia.jiang@scmp.com
A court has frozen three billion yuan (HK$3.7 billion) of assets of Founder Securities following complaints by stakeholder Beijing Zenith Holdings.
The freeze is the latest episode of legal battles surrounding the Founder Group, whose directors have been alleged to be linked to corruption scandals.
Founder Securities, the brokerage unit of the conglomerate with businesses in technology, health care and properties, said in a Shanghai stock exchange filing that it received the order from a court in Changsha , Hunan province, following an arbitration application from Beijing Zenith, its second-largest stakeholder. It said 1.77 billion yuan in its bank accounts had been frozen immediately, “affecting the operation of the company”. Continue reading