So coincidental that after my post yesterday about Violation of Shareholders Rights, I read today that SIAS had proposed some safeguards to SGX to protect the shareholders here.
The recommendations include:
- Not allowing top management and directors to resign once a company has been issued with SGX compliance notices. If you can remember, there was a case where all the directors resigned after the company did not comply with SGX’s demand for a special audit.
- Only admitting company from a country that has an extradition treaty is Singapore. This is crucial as without a treaty, a person that commits any form of fraud cannot be taken to task here.
- Not allowing foreign-listed companies to transfer money raised in Singapore out of the country unless there is confirmation from the independent directors that there is a real need.
- Having directors and management agreeing to submit to arbitration in Singapore, and compensating shareholders for losses should there be an losses due to fraud or mismanagement.
- Providing a bank guarantee and promising to comply fully with Singapore and SGX regulations.
The recommendations were presented to SGX about two weeks ago and they are currently considering them.