CDC Corporation (CHINA) says it uncovered instances of corporate misconduct among some of its staff and is currently filing suit in the High Court of Hong Kong against one employee.
The company yesterday said that on January 19, 2006, it filed suit against an unnamed former officer in the company's Hong Kong office for breach of fiduciary duties and failure to comply with the company's corporate governance and compliance policies.
CDC says the proceeding is at its preliminary stage and no timetable has yet been set for discovery or trial.
CDC says it intends to vigorously pursue its claims against the former officer, as well as claims it may have against others for other identified instances of alleged corporate misconduct.
As part of a strategic review started in 2005, the company says it has significantly strengthened and upgraded its internal controls and compliance policies and the company will continue to monitor and improve these policies as part of its commitment to enhance good corporate governance.