If I were a small shareholder, I’d need some more information on what is happening.
Following last Sunday’s announcement that the three executive directors (EDs) had resigned, the independent directors (IDs), by then the only remaining directors, said mid-week they had made three new board appointments and re-appointed the former financial controller. Two were IDs and one was a non-executive.
But till time of this post, nothing has been heard about who is managing the company in the absence of the CEO or any ED in China. And if no one is managing, who will manage it and when? Waz the point of all these directors based here? Everything of value is in China.
The IDs should be telling shareholders what they are doing to ensure that the assets of the company are not plundered or the business is not misrun in the absence of the EDs. If there are already gd managers on the ground, shareholders should be told. If there are none, why were there no plans for managers to replace the EDs? After all the IDs were seeking to remove the then EDs. And when will the new managers are expected to be in place? Shareholders need this information.
- SIAS not publicly commented on this;
- SGX not publicly querying company; or
- none of the usual corporate governance pundits are even raising this issue.
But who knows, maybe behind the scenes? Somehow I doubt it.
Is all this corporate governance activity by the two IDs and talk by others, Wayang or shadow puppetry in its most sophisticated form?
A small shareholder might very well think that. I couldn’t possibly comment