SGX has to make sure its not a conspiracy to siphon the money out of the company by the boss.so much of cash but did not do share buyback.instead of paying cash for dividends promoting scrip dividend.
The boss fully subscribed the scrip dividends then few months later placed his own shares below srcip dividend price and net cash n net asset value.Dont know wht is the logic.Maybe the boss dont want to see the price of the shares go up so that he can buyback the company cheap.
Some of those who bought shares from placement by the boss in the company are clients of the company.
Now one client is suing for defective goods costing about 4million rmb but suing for 290million almost 75times the original cost.High cash in company of 292million rmb but never do share buyback.
SGX should hv its own investigators and get the independent directors to be on their toes to investigate.
The buyer is a sole owner claims to hv order worth almost the amount of compensation in just 2 months manufacturing is ridiculous unless this is a very huge company.
The claim is really ridiculous hope that there is no conspiracy between the boss of Foreland and the client to siphon company's money like what done by Hongwei boss and the father client of Hongwei.
tough one -- the lawyer has opined that Fulian Knitting supplies failed to meet the quality requirements specified in the Contracts.
Follows that Fulian Knitting would be liable to indemnify Jiangxi Longdu against all losses and damages incurred...
Given that the Contracts underlying the Claim did not specify maximum liquidated damages in the event of a breach, the Company is recommended by the Legal Advisor to engage an independent auditor firm to assess the Claim and to determine a reasonable compensation amount based on the
actual losses suffered by Jiangxi Longdu.
The Company was also advised by the Legal Advisor to negotiate with Jiangxi Longdu for an amicable
settlement rather than resorting to litigation.
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