Investments involve risk due to reasons like change in demand and economy or poor decision making by the management but fraud is not acceptable especially there were enough warning signs with S-Chips.
Independent directors are a requirement to take care of minority shareholders interests and they are paid handsomely for the job.They cannot be just collecting director fees and not being hands on matters related to especially looking out for incidents where the minority interests have been breached.
If they are just there to raise questions and accept whatever replies they get from the management then why do we need them. if they don't feel right they should resign and expose them from the start and don't wait until too late and walk away when gone beyond repair.
SGX being a regulatory body in whom we supposed to hv faith in order for the smooth and proper functioning of the stock market.Nobody will dare to take risk if there is no regulatory body for it. They collect money for their service but their poor services hv caused billions of dollars of losses.If they hv channeled some resources to go after the suspicious activities right at the beginning stage other companies will beware of committing such acts.But they were laxed and stood helpless.It got infected and other companies too one by one started to skim the money from the coffer of the company and manipulating the share price.
The auditors could be bribed to overlook any red flags.
Thank you all for sharing your views which I deeply appreciate. I think we do have something in common - that stock investing has its dangers which we must all learn to navigate in order to survive and make some money. The only difference of views is whether fraud should be considered as just another form of danger or something which the law has to intervene. I happen to take the latter view, and hence my peeve is that the stock market system here is such that the law is not empowered to do that. However, I do respect those of you who take the former view, and if you take this view, then the issue of the impotence of the law is irrelevant. But in the midst of reading the diverse views, I have learned something to help me become a better investor in future. So thank you all for expressing your views with great candour and passion. I wish you every success in your investing journey.
The Board of Directors wishes to announce that the Company has been served a statutory demand by the solicitors acting for the Bondholder (“Demand”), arising from the Company’s failure to pay the second coupon interest under the Bonds as well as failure by the Company to pay the redemption amount for all principal and interest due under the Bonds pursuant to the Acceleration Notice. The
Company has 21 days from 2 June 2014, which was the date of the Demand, to repay the aforesaid outstanding, failing which the Company shall be deemed to be unable to pay its debts and the Bondholder shall be entitled to rely on any statutory presumptions of insolvency arising therefrom and
take all necessary steps, including liquidating the Company.
The Board is currently consulting its advisors and discussing with the Bondholder, and will update
shareholders on any material developments in relation to the aforesaid matter.
BY ORDER OF THE BOARD
Lim Yeow Hua
Independent Director
As expected, the CFO and interim CEO has resigned.
Even if the cash can no longer be recovered, all people who are at fault should be made accoutable.
If no further action taken by company against the defaulters, perhaps SGX and say CAD should quickly step in. This is a case of public interest and confidence in our regulatory system.
This incident happened and the shops have been closed since CNY, so the longer the delay, the chances of incriminating evidence gets less traceable. Unless the PRC authority steps in, the chances of apprehending the culprit looks slimmer by the day. I'm not hoping to recover anything, just hoping that justice is served where it is due.
NextInsight
a hub for serious investors
