Eratat Lifestyle Limited

I have no idea who is supposed to do what. I just went to the SIAS website to look for a place to launch a complain against lack of action regarding the Eratat fiasco, but I only found all the happy-happy things on the webpage. What to do? Sigh....

These incidents have happened again and again because the costs of committing frauds and dereliction of duties are simply too low.

Do you see any of CEOs, CFOs or IDs of delinquent S-chips being sued and imprisoned?

Most simply resign and move on, leaving the poor retail investors helpless and hopeless with their investments.

If the authorities do not act, the retail investors need to team up and exercise their rights.

Hongwei got delisted but don't know what was the result of the investigation. each share cost 18.5c when suspended.

Sino techfibre also suspended for 3 years but no news until now.

SGX had all these bosses get away so new ones start doing the same trick knowing the SGX is a lame duck.

Why not delist all the S-Chips and save whatever money that can for the retail investors as many S-Chips are trading at about 10% of NTA.

Make things difficult for the management of S-Chips and make it very tight and fool proof and they will succumb.

If SGX just concerned about its own profit ,the retail investors are made to sacrifice by big losses and scams for their selfish motives.

Wish we can be like the Chinese who are so vocal and uncontrollable when the Malaysian Airlines disappeared,only then SGX will wake up and the S-Chips management will be more mindful of their dirty tricks

Maybe we can look at this from a different angle:

Govt brought in a lot of FTs, some commit crimes, and manage to get back to countries without extradition treaty, govt popularity might stink as a result, but it is the government fault to bring in FT? Or the employers fault?

If u read the risks in the prospectus, it is stated very clearly that all their businesses are in china, without effective judicial control over.

The independent directors, unless directly involved in frauds, cannot be held reliable for the crime of others. What else can they do except raise questions? They are not shareholders, even if a EGM is called, what can they do if boss like Qingmei, Fuxing, etc has more than 50% shares.

I think it's better to learn to take care of yourself than try to get people to take care of u. Eratat red flags has been raised long enough, but they are red flags, not evidences of frauds, and if as investors u choose to invest since u like the risk reward profile, how can u blame others, since no one push the shares into your CPF Acc and minus money from your monthly pay.

Learn to identify the skills to spot risks and protect yourself is The best next thing to do IMO

1/ No one is entitled to invoke protection from "Buyers beware" for fraud or dereliction of duties. If a wrong punishable under the laws is committed, the people must be held accountable.

2/ The directors are responsible for failing to carry out their fiduciary duties and not for crimes of others. The Companies Act and other relevant laws have clear guidelines on what directors, particularly IDs of listco should do. Definitely, asking questions at AGM or board meetings are not sufficient. They are empowered to do many more things. In the case of Eratat, there are so many red flags raised leading up to the disappearance of the Chairman. Did the IDs or CFO investigate each and every red flag diligently? Did they go down to the bank to investigate the cash like they did after the incident happened.

3/ The pursuit of extraordinary profits is not the reason for stomaching the loss arising from fraud. It is acceptable, if the loss is due to business failure. But, it is not acceptable if it is due to fraud.

greenrookie wrote:

Maybe we can look at this from a different angle:

Govt brought in a lot of FTs, some commit crimes, and manage to get back to countries without extradition treaty, govt popularity might stink as a result, but it is the government fault to bring in FT? Or the employers fault?

If u read the risks in the prospectus, it is stated very clearly that all their businesses are in china, without effective judicial control over.

The independent directors, unless directly involved in frauds, cannot be held reliable for the crime of others. What else can they do except raise questions? They are not shareholders, even if a EGM is called, what can they do if boss like Qingmei, Fuxing, etc has more than 50% shares.

I think it's better to learn to take care of yourself than try to get people to take care of u. Eratat red flags has been raised long enough, but they are red flags, not evidences of frauds, and if as investors u choose to invest since u like the risk reward profile, how can u blame others, since no one push the shares into your CPF Acc and minus money from your monthly pay.

Learn to identify the skills to spot risks and protect yourself is The best next thing to do IMO

Greenrookie had rightly point out we have to take care of ourselves.

Many had raised red flag in this stock. How can we believed a company able to increased its cashflow by hundred of million RMB a year to over RMB 500m, yet need to turn to loan paying loan shark rate!!! SGX had failed badly in this area. SGX should had raised this issue with the company rather than aproved the loan.

In the business world there are many sharks out there. The key for all of us is to 'MANAGE THE RISKS.' Learn to differenciate between 'sheep and goat.'