Chairman felled by stroke, but SGX not told
Furniture firm directors charged with failure to reveal change at the top
By Yang Huiwen
Lee Siew Hoe, operations head for the loss-making firm, was also charged under the Companies Act. -- ST PHOTOS: WONG KWAI CHOW
View more photos
THE managing director and four former directors of Chuan Soon Huat Industrial Group were charged yesterday with failing to tell regulators that there had been a change in the effective control of the firm.
The charges under the Companies Act centre on statements in the furniture company's 2004 and 2005 annual reports regarding the role of former executive chairman Lee Tian Teck.
He was listed as chairman until his November 2006 resignation, when in fact he had suffered a stroke in December 2003 and did not attend another board meeting after that.
The Subordinate Courts heard that the five failed to tell the Singapore Exchange (SGX) that Mr Lee was no longer discharging his duties as executive chairman.
They include managing director Lee Thian Soon, 52, who is Mr Lee's brother.
The others charged are operations head Lee Siew Hoe, 48, and group general manager and marketing head Lim Kiang Soon, 49. They are also former executive directors.
Former independent directors Sng Keng Ling, 52, and Peter Moe, 54, were also charged. Both resigned from the board early last year.
The five are accused of breaching section 157(1) of the Companies Act, which prescribes that 'a director shall...act honestly and use reasonable diligence in the discharge of the duties of his office'.
They face fines of up to $5,000 or jail for up to a year.
The charges stem from an investigation by the Commercial Affairs Department (CAD) in 2006. In November that year, the five directors as well as non-executive director Geoffrey Aldridge were arrested and released on bail.
Mr Aldridge has not been charged.
Chuan Soon Huat's board of directors, excluding managing director Lee Thian Soon, told the SGX yesterday that it 'will discuss and determine the next steps to be taken in the best interests of the company'.
The court case is the latest blow for the loss-making firm, whose share price has fallen by over 70 per cent since the start of last year. It closed unchanged at 1.5 cents yesterday.
Its losses have ballooned from $2.1 million in 2005 to $13.3 million last year. It most recently reported a loss of $1.69 million for the second quarter.
It has been placed on the SGX's watch-list as it has registered pre-tax losses for its three most recently completed consecutive financial years. Companies on the watch-list risk being delisted within 24 months.
Also, chief financial officer Yoong Weng Cheong resigned in April 'to pursue other career opportunities in China'.
[email protected]
Furniture firm directors charged with failure to reveal change at the top
By Yang Huiwen
Lee Siew Hoe, operations head for the loss-making firm, was also charged under the Companies Act. -- ST PHOTOS: WONG KWAI CHOW
View more photos
THE managing director and four former directors of Chuan Soon Huat Industrial Group were charged yesterday with failing to tell regulators that there had been a change in the effective control of the firm.
The charges under the Companies Act centre on statements in the furniture company's 2004 and 2005 annual reports regarding the role of former executive chairman Lee Tian Teck.
He was listed as chairman until his November 2006 resignation, when in fact he had suffered a stroke in December 2003 and did not attend another board meeting after that.
The Subordinate Courts heard that the five failed to tell the Singapore Exchange (SGX) that Mr Lee was no longer discharging his duties as executive chairman.
They include managing director Lee Thian Soon, 52, who is Mr Lee's brother.
The others charged are operations head Lee Siew Hoe, 48, and group general manager and marketing head Lim Kiang Soon, 49. They are also former executive directors.
Former independent directors Sng Keng Ling, 52, and Peter Moe, 54, were also charged. Both resigned from the board early last year.
The five are accused of breaching section 157(1) of the Companies Act, which prescribes that 'a director shall...act honestly and use reasonable diligence in the discharge of the duties of his office'.
They face fines of up to $5,000 or jail for up to a year.
The charges stem from an investigation by the Commercial Affairs Department (CAD) in 2006. In November that year, the five directors as well as non-executive director Geoffrey Aldridge were arrested and released on bail.
Mr Aldridge has not been charged.
Chuan Soon Huat's board of directors, excluding managing director Lee Thian Soon, told the SGX yesterday that it 'will discuss and determine the next steps to be taken in the best interests of the company'.
The court case is the latest blow for the loss-making firm, whose share price has fallen by over 70 per cent since the start of last year. It closed unchanged at 1.5 cents yesterday.
Its losses have ballooned from $2.1 million in 2005 to $13.3 million last year. It most recently reported a loss of $1.69 million for the second quarter.
It has been placed on the SGX's watch-list as it has registered pre-tax losses for its three most recently completed consecutive financial years. Companies on the watch-list risk being delisted within 24 months.
Also, chief financial officer Yoong Weng Cheong resigned in April 'to pursue other career opportunities in China'.
[email protected]
