Green Economy Development Details Internal Control Failures in Disposal of Listed Securities

Green Economy Development Limited ( (HK:1315) ) has issued an update.

Green Economy Development Limited has issued a supplemental announcement clarifying that it will not seek shareholder approval for a previously completed disposal of listed securities executed on the open market between 15 and 17 September, as the transaction has already settled and cannot be unwound. The company detailed its formal internal process for disposing of investments—starting from risk management policy setting through investment team proposals, financial impact assessment, board approval, and compliance with listing rules—and acknowledged significant internal control flaws that led to the disposal being carried out before the board was notified. These weaknesses included understaffing of the investment team, shared access to a non-business trading platform lacking joint authorisation, absence of designated coverage during a key director’s leave, the investment manager’s lack of familiarity with listing rules, and misinterpretation of policy as pre-approval. The company stated that remedial measures have been implemented to strengthen internal controls over investment acquisitions and disposals, signaling an effort to tighten governance and reduce regulatory and operational risk for shareholders and other stakeholders.

More about Green Economy Development Limited

Green Economy Development Limited is a Hong Kong-listed company incorporated in the Cayman Islands, engaged in investment activities that include holding and trading listed securities, with its operations subject to the corporate governance and transaction requirements of the Hong Kong listing regime.

Average Trading Volume: 498,227

Technical Sentiment Signal: Strong Sell

Current Market Cap: HK$82.71M

For detailed information about 1315 stock, go to TipRanks’ Stock Analysis page.