Topic 5: Effective Handling of Conflict of Interests
Mitchell & Meyer would offer a consultancy contract to Joseph WAN, Chairman of Manfold, after the takeover. Joseph had not disclosed this deal to anybody including other board members.
Maggie MOK, Executive Director of Manfold, had advised Mitchell & Meyer on the takeover of Manfold through her own consultant firm.
Fred sat on the boards of different companies including On Yee Export (Hong Kong) Ltd (On Yee HK). The latter's subsidiary, On Yee (USA) Inc, is the major distributor of Manfold Toy in the USA. Sales to On Yee USA constituted 22% of Manfold Toy's businesses.
Peter LEE, one of the staff members of Manfold in the Mainland, had very close relationship with suppliers in the Mainland through night club entertainments.
