Sunvic Chemical Holdings Ltd (SGX: A7S) has become the latest S-Chip to be reprimanded by Singapore Exchange Limited (SGX: S68) for breaching listing rules.
According to an announcement, SGX found that Sunvic Chemical has failed to make immediate announcements and seek shareholders? approval for its ?interested person transactions? for the past three financial years from FY2013 to FY2015. The company failed to follow listing rules regarding its transactions ?with associates of Sun Xiao, the Company?s Executive Director and Chief Executive Officer (the ?CEO?) (appointed on 9 January 2013) and the late Sun Liping, the former Executive Chairman and CEO (appointed…
According to an announcement, SGX found that Sunvic Chemical has failed to make immediate announcements and seek shareholders’ approval for its “interested person transactions” for the past three financial years from FY2013 to FY2015. The company failed to follow listing rules regarding its transactions “with associates of Sun Xiao, the Company’s Executive Director and Chief Executive Officer (the “CEO”) (appointed on 9 January 2013) and the late Sun Liping, the former Executive Chairman and CEO (appointed from 24 April 2009 to 9 January 2013).”
There are 13 transactions involved in this case, totaling more than RMB 1.55 billion over the past three financial years.
SGX’s notice came after a similar warning was written by the company’s Chief Regulatory Officer in the Regulator’s Column, highlighting that SGX was watching some Singapore-listed firms from China (S-Chips) that might have breached listing rules. My colleague, Chong Ser Jing, has also written a piece on four possible companies that SGX might be referring to. In fact, Sunvic Chemical Holdings could be one of the companies that SGX was talking about as well.
All these are very positive developments for SGX and investors in Singapore. It shows SGX’s determination to uphold its listing rules. This will likely improve investors’ confidence in the market and give the remaining companies listed on SGX much better reputations in the long run.
SGX is definitely moving in the right direction and we hope it will continue weeding out more companies that breach listing rules and/or have questionable accounting practices.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Stanley Lim doesn’t own shares in any companies mentioned.