Saturday, 25 February 2017

Scan Associates: which breach? (2)

Article in The Star: Scan Associates discloses reason for suspending director

Some snippets:

Scan Associates Bhd director Yeoh Eng Kong, who was suspended for more than five months to facilitate an investigation against him, had been penalised for seeking an extension of time to submit a regularisation plan without the board’s knowledge and approval.

This was the ICT security solutions company's answer to Bursa Malaysia Securities’ query on the details of Yeoh’s breach of duties as director.

Scan had suspended Yeoh as director for two months in September last year but extended the period of his suspension twice, as an investigative committee set up by the company needed more time to analyse and conclude the case against him.

The suspension was finally uplifted with effect from Feb 17, the day after the committee concluded that Yeoh had indeed breached his duties as a director.

Scan so far has not explicitly said that the investigative committee had been dissolved. One of the matters that it was supposed to probe was related to “the preparation of the company’s subsidiaries’ audited financial statements.”

In the initial announcement on Yeoh’s suspension on Sept 9 last year, Scan said the board decided to form a committee to investigate “the possible serious breach of duties of a director and the preparation of the company’s subsidiaries’ audited financial statements.”

Scan’s external auditor Baker Tilly Monteiro Heng had in June last year tendered its resignation as auditors of the company and its subsidiaries. The reasons given were the outstanding amount of professional fees and the receipt of the writ and statement of claim filed by Yeoh on May 16.

External auditor resigning, probe in the subsidiaries' audited statements, it looks like more information will be revealed down the road.

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