Former lawmaker Chim Pui-chung and his son were on Monday found guilty of conspiracy to defraud more than HK$42 million in transactions linked to a listed company.

The District Court ruled that Chim, who was the largest shareholder of Asia Resources, and his son Ricky Chim, who was the chairman, conspired with mainland businessman Ma Zhonghong to defraud the company, its board and shareholders between July 2013 and November 2015.

The case involved the issuance of convertible notes to increase the company's share capital while concealing a secret "shell company" agreement.

Ma had agreed to pay the ex-lawmaker HK$210 million for 70 to 75 percent of Asia Resources' issued shares.

Ma's associate and businesswoman, Wong Poe-lai, was convicted of money laundering in connection with the case.

A judge in 2022 issued an arrest warrant for the businessman who failed to report to the police and appear in court.

In his written judgement, Judge Ernest Lin cited evidence found by the ICAC in Chim's office in 2018, which revealed the former lawmaker as the mastermind behind the shareholding control scheme.

The financial transactions were found to be unusually complex and "could not possibly be considered normal business activities", which were believed to hide the identities of those involved, the judge added.

Lin said the elder Chim also made use of his influence to arrange for his son to become the firm’s chairman and executive director and orchestrate transactions.

The judge criticised the pair for treating the listed company as private property, harming both Asia Resources and its shareholders.

"The victims were not only Asia Resources but also the company's small shareholders, who were denied both the option of a mandatory takeover offer and saw their personal investments turned into tools for others' profit-making," Lin wrote in the judgement.

While shell company acquisitions aren't illegal, their actions prevented the board from protecting shareholders' interests, Lin noted.

All three defendants were remanded in custody until sentencing next month.

An ICAC spokesperson said the graft-buster will continue to work closely with financial regulators to combat corruption and crimes involving listed companies.

"The ICAC will strive to uphold integrity and fair operation of the Hong Kong financial market and to foster the confidence of stakeholders in the financial system," the spokesperson said in a statement.