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Thursday, 7 January 2010
Sino-Environment executive directors step down
Troubled Sino-Environment said that its executive directors (EDs) have resigned, without providing details on whether there will be new management soon.
The independent directors will keep shareholders updated
By OH BOON PING 04 January 2009
(SINGAPORE) Troubled Sino-Environment said that its executive directors (EDs) have resigned, without providing details on whether there will be new management soon.
In stock exchange filings, Sino-Environment said Sun Jiangrong, You Shengquan and Li Shouxin have stepped down as directors of the company, while the independent directors (IDs) will continue to keep shareholders updated of all material developments.
The latest development was a surprise given that chairman Sun Jiangrong has just been cleared of misappropriation allegations by the authorities in China.
Investigations by the Fuzhou Public Security Bureau yielded no evidence to prove Mr. Sun embezzled company funds, the waste management company said on Jan 1.
Allegations of misappropriation against Mr. Sun were made by the company’s independent directors (IDs) in Singapore, Hong Kong and China on Oct 12 last year through its former financial controller Raynauld Liang and ID Wong Chiang Yin.
The allegations were prompted by a special audit by PricewaterhouseCoopers (PwC) that drew attention to ‘questionable cash transactions and matters which may have a significant impact on the financial position of the company’.
According to PwC, tens of millions of dollars of transactions by Sino-Environment were carried out without board approval or authorisation.
This contravened specific instructions from the IDs that all payments above $500,000 had to follow official protocol.
The sacking of Mr. Liang, after he lodged complaints to various authorities, drew further flak from the IDs.
They eventually obtained a Supreme Court order to convene a shareholders’ meeting this month to vote on the removal of Sino-Environment’s EDs, including Mr. Sun.
They also obtained court orders forbidding the EDs from selling major company assets and signing new contracts of significant value.
When contacted yesterday, the IDs said that they are seeking to clarify the situation before issuing any response, and will take legal advice on the status of the shareholders’ meeting now that the EDs have resigned.
Trading in Sino-Environment’s shares has been suspended since Sept 23 last year.
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Sino-Environment executive directors step down
The independent directors will keep shareholders updated
By OH BOON PING
04 January 2009
(SINGAPORE) Troubled Sino-Environment said that its executive directors (EDs) have resigned, without providing details on whether there will be new management soon.
In stock exchange filings, Sino-Environment said Sun Jiangrong, You Shengquan and Li Shouxin have stepped down as directors of the company, while the independent directors (IDs) will continue to keep shareholders updated of all material developments.
The latest development was a surprise given that chairman Sun Jiangrong has just been cleared of misappropriation allegations by the authorities in China.
Investigations by the Fuzhou Public Security Bureau yielded no evidence to prove Mr. Sun embezzled company funds, the waste management company said on Jan 1.
Allegations of misappropriation against Mr. Sun were made by the company’s independent directors (IDs) in Singapore, Hong Kong and China on Oct 12 last year through its former financial controller Raynauld Liang and ID Wong Chiang Yin.
The allegations were prompted by a special audit by PricewaterhouseCoopers (PwC) that drew attention to ‘questionable cash transactions and matters which may have a significant impact on the financial position of the company’.
According to PwC, tens of millions of dollars of transactions by Sino-Environment were carried out without board approval or authorisation.
This contravened specific instructions from the IDs that all payments above $500,000 had to follow official protocol.
The sacking of Mr. Liang, after he lodged complaints to various authorities, drew further flak from the IDs.
They eventually obtained a Supreme Court order to convene a shareholders’ meeting this month to vote on the removal of Sino-Environment’s EDs, including Mr. Sun.
They also obtained court orders forbidding the EDs from selling major company assets and signing new contracts of significant value.
When contacted yesterday, the IDs said that they are seeking to clarify the situation before issuing any response, and will take legal advice on the status of the shareholders’ meeting now that the EDs have resigned.
Trading in Sino-Environment’s shares has been suspended since Sept 23 last year.
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