SECOND CHANCE: $50K Cash reward to whistle blowers, and other initiatives

Second Chance Properties CEO Mohamed Salleh with apparel that his company retails. NextInsight file photo

Second Chance Properties has posted on the Singapore Exchange website tonight an announcement that marks it out as an exemplary company when it comes to corporate governance.

Already a well-regarded company among many discerning investors, the Singapore-based property company (which also has businesses dealing with apparel and gold) has enhanced its efforts to minimise the risk of fraud and any other wrongdoing within the company.

We highlight Second Chance, in particular, because it demonstrates that a relatively small company (market cap: S$200 million) can stand tall.

So it's not just the blue-chip companies that have the best ideas and the motivation to do well by minority shareholders. 

In addition, we also think that Second Chance's high corporate standards are deserving of attention by S-chips, especially, because this sector has lost the confidence of investors -- and justifiably so.

The likes of China Milk and China Gaoxian have imploded after being caught guilty of various misdeeds -- a disaster for minority shareholders which would have been averted if the companies had safe-guards and penalties similar to what Second Chance announced this evening, as follows below.

Come to think of it, why can't every listed company on the SGX latch on to Second Chance's ideas and adopt the same measures? The upcoming AGMs would be a good opportunity for minority shareholders to ask that question.

Reward of $50,000 cash to Whistleblowers

To further strengthen its Whistle Blower Policy, the Company has implemented a strong deterrent by offering a cash reward to any person whether employees, suppliers, business associates or the general public who provides specific, reliable and credible information or evidence of fraudulent activities by any of the Company’s Executive Director and Management Team as listed in the Company’s Annual Report ($50,000/- cash reward) and all other employees (up to $2,000/- cash reward) which leads to admission of guilt by the accused or leads to successful prosecution.

Please visit our website www.secondchance.com.sg for full details.

Female representation on Company Board

The belief that women on boards create more diversity and is good for companies is gaining momentum and many countries have gone to the extent of imposing quotas.

Although Singapore has not made it compulsory, it does encourage this practice. Our Company believe in the merits of women on Boards and have decided to seek shareholders’ approval to amend our Company Constitution to include female representation on our Board of Directors.

Following are the main reasons in our decision towards this positive development:

Indemnity Clause

To improve upon and further strengthen its Corporate Governance, the Company has included an indemnity clause to protect itself from avoidable losses. As such, with effect from 1 January 2012, all Executive Directors and Key Management personnel of the Group had their Service Agreement renewed whereby they indemnify the Company, all losses incurred arising out of or in connection with any gross negligence, fraud or dishonesty committed.

Please do not hesitate to contact our CEO Mr Mohamed Salleh at 67456911 or at This email address is being protected from spambots. You need JavaScript enabled to view it.  if you require any information or clarification.