CLARITY MEDICAL (01406) announced that on September 22, 2025, the company, as defendant, received an originating summons dated September 19, 2025, issued by plaintiff Xie Weiye at the High Court of Hong Kong, case number HCMP 1627/2025. The plaintiff is a former executive director whose position was terminated by the board of directors on August 1, 2025, under a disqualification event pursuant to Article 86(4) of the company's articles of association. The plaintiff was also removed at the company's extraordinary general meeting held on September 23, 2025, which removal does not affect the validity of the board's decision that his position had been terminated under Article 86(4). According to the originating summons, the plaintiff is applying to the court for: (1) court approval for him to bring proceedings on behalf of the company against the following seven individuals (collectively, the potential defendants), namely Jiang Bo (executive director and chief executive officer of the company), Xu Yong (executive director and co-chief executive officer of the company), Hu Dingxu (non-executive director and chairman of the company), Wang Can (independent non-executive director), Zhao Wei (former non-executive director), Ci Ying (independent non-executive director) and United Orion Advisory Limited (UOA); (2) a court order to appoint receivers and managers of the company until the proposed application and/or proceedings mentioned in item (1) above are determined; (3) a court order to appoint independent persons to investigate the company's financial condition and/or the facts or circumstances leading to the proposed application or proceedings mentioned in item (1) above, and to report to the court; and (4) costs to be paid by the company. Regarding item (1) above, the plaintiff proposes that the company bring proceedings against the potential defendants concerning matters including the acquisition of company shares by Innovative Vision Inc, Mr. Xu's remuneration, the company's agreement with UOA, the company's employment of certain employees, bank account signatories, the assignment by Dr. Liu Zhixin of HK$1.75 million owed by the plaintiff (plus interest) to Saintford Limited (a wholly-owned subsidiary of the company), whistleblowers, the duties of Mr. Hu, Mr. Wang, Ms. Zhao and Ms. Ci to control the conduct of Mr. Jiang and Mr. Xu, the board's determination of the plaintiff's director disqualification, the use of company funds, and the fiduciary duties of such potential defendants as directors or former directors.
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