The ICAC has arrested 11 people, including the former and incumbent chairmen of a publicly listed company, in relation to an alleged illegal commission scheme and suspected misappropriation of company funds.

In an operation that began on April 19, the ICAC also arrested a former deputy chairman and three business promotion managers of the listed company; an assistant manager, a former assistant manager and a former senior manager of a travel agency; and two other people.

The former chairman, incumbent chairman, former deputy chairman and three business promotion managers of the listed company are alleged to have been involved in a scheme to offer illegal commissions to employees of a number of travel agencies and help them evade tax.

The illegal commissions, which were allegedly arranged without the prior approval of the travel agencies' management, were rewards for their staff to arrange tour groups to visit the listed company's merchandise showrooms.

Incombent chairman may have taken $2m

To cover up the suspected illegal practices, the commissions were allegedly routed through three off-shore companies the listed company's senior management and associates controlled.

ICAC inquiries also revealed the incumbent chairman had allegedly misappropriated company funds totalling more than $2 million, while other senior managers were suspected to have assisted in covering it up.

Inquiries are continuing.