Article from The Edge "Multi Sports gets new independent directors", some snippets:
Multi Sports Holdings Ltd's shareholders had yesterday approved the appointment of six independent directors to oversee and revamp the shoe manufacturer's operations.
Today, Multi Sports told Bursa Malaysia that Multi Sports shareholders had at the company's special general meeting approved the appointment of Kasinathan Tulasi, Naren Anand Gill, Clarence Yeow Kong Chew, Cheh Chee Mun, Guan Swee Kee and Terence Selvarajah as directors.
Multi Sports major shareholder Paramjit Singh Gill had earlier requisitioned the shareholders' meeting.
Paramjit said he wished to appoint the independent Malaysian directors to "investigate and regularise" the company's operations.
It will be interesting to follow this case, both specifically regarding Multi Sports and in general regarding Chinese listed companies on Bursa.
Officially (according to its last quarterly report) the company has plenty of cash, but given the last quoted share price, there were not many people who actually believed those numbers.
Will Paramjit and his team be able to discover the true situation, what has happened to the company since it IPO-ed on Bursa? Will they be able to extract some value for the minority shareholders? Will Chinese regulators swing into action, when needed?
In my humble opinion shareholders of Multi Sports should count on a total loss, and the (alleged) perpetrators will go scot-free. I hope I am wrong and have to eat my words.
That is the problem of account and those who prepared and signed.It is like hiding many mine field.Unlike engineering 1+1=2 ...In account you may have 3( plus good will,cut off date,receivable but how secure it able to receive???) or equal 1.5 (write off, defer entry etc).
ReplyDeleteEngineer sign drawing liable for 10-20 years and need purchase Professional Indemnity insurance in case legal suit..
But Director producing figures and those prepared & signed off ,the onus is for the readers to believe and his skill to spot any suspicion figure...Then also certain detail document the management not obligated to give so they can lump many figures together or qualify with many jargon small notes....so much of good governance & transparency!!!
And some time those responsible get fine only but pay by company fund !!
No wonder the market trading speak for itself..
Short of share holders activism, stern enforcement,prompt & alert watch dog,the evils flourish...
Good luck to new directors
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