Governance in group entities still a potential weak spot
Parent boards must be aware of the financial and reputational damage a problem at a subsidiary can cause and take proactive steps.
COMPANIES still have a long way to go to improve corporate governance standards at their subsidiaries, according to governance experts.
Some large multinational corporations have recognised that the governance of group entities or subsidiaries can be a significant problem and have started to take action to improve their internal processes and procedures to address the issues. Continue reading
Tue Aug 25, 2015 12:02am EDT
Tech challenges, severed contracts cloud Hanergy’s outlook
* HTF to publish H1 results on Aug. 28, said net loss likely
* HTF in need of new clients after severing links with parent
* Company is under investigation by Hong Kong market watchdog
By Umesh Desai
HONG KONG, Aug 25 (Reuters) – Hanergy Thin Film Power Group Ltd (HTF), which is being probed by Hong Kong regulators after its stock suddenly plunged, will have to convince shareholders about its outlook after it cut ties with its parent, which last year alone bought about two-thirds of its solar panel making equipment. Continue reading
Telco finds accounting, stock problems at units
A telecommunication company has found accounting discrepancies at one of its local units, including staff creating false evidence, and lapses regarding goods at an Indonesian unit.
S i2i, which makes phone handsets and provides other services, told the Singapore Exchange (SGX) yesterday that the problems had been detailed by consultants EY Advisory and BDO, which were engaged earlier this year after allegations surfaced.
EY Advisory focused on Singapore-based information technology firm Cavu Group, which was alleged to have “certain irregularities in the accounting records”. BDO looked at Selular Group in Indonesia, where certain quantities of cellphones marked as sold were supposedly not delivered. Continue reading
Probe news hits stocks in Pacific Andes stable: MAS, CAD investigating an offence under Securities and Futures Act
AUG 22, 20155:50 AM
SHARES in the Pacific Andes stable were sent reeling on Friday by news that the Monetary Authority of Singapore and the Republic’s white-collar crime investigation agency Commercial Affairs Department (CAD) are investigating an offence under the Securities and Futures Act (SFA). Continue reading
Related: (1) Scouring accounting footnotes to prevent tunnelling; (2) Is Your Forward-Looking Statement Safe Harbor Safe? Federal Appeals Court Reverses Dismissal and Revives Securities Fraud Class Action; Harman International Industries knowingly and recklessly propped up the stock price by making materially false and misleading statements about the company’s financial condition. In April 2007, Harman announced its potential acquisition by a private equity firm. In September 2007, however, Harman announced that the acquisition plan had been abandoned. (3) The trouble with non-binding takeover offers that create a false and manipulated ceiling for the target company’s shares which could be pledged or faced margin calls; There are numerous examples of where such buyouts have ended in tatters and some investors getting burnt; (4) Jade’s ex-president jailed and fined over sham takeover bid to push up its share price; (5) China Cord Blood Corp (NYSE: CO) and Golden Meditech (801 HK): Accounting Facts and Footnotes; (6) Taiwan’s MOF asks banks for details of Chinese loans to two troubled Chinese companies – Frankfurt-listed Chinese shoe company Ultrasonic AG whose executives disappeared with the loan and Golden Meditech (801 HK); TSU raises question of insider trading in Golden Meditech TDRs; FSC boss quizzed on Lien’s Golden Meditech TDRs; (7) 脐带血功效被夸大 中源协和 (Zhongyuan Union Cell & Gene: 600645 CH) 核心业务受困; 胎盘脐带血自费存储乱象; 脐带血：是生命种子，还是炒作噱头？“变了味”的脐带血; 脐带血保存，一场骗局? 血疑——上海市脐血库事件调查; Inside the Private Umbilical Cord Blood Banking Business: Wall Street Journal Analysis Found Dirty Storage, Leaky Blood Samples and Firms Going Under
CEFC: Discussions on JVs still ongoing
19 August 2015
Business Times Singapore
CEFC International, the fuel trader whose share price has shot up by more than ten-fold since mid-July, said in an update on Tuesday evening that discussions on its potential joint ventures are still ongoing.
“No definitive terms or formal legal documentation have been agreed, and no binding agreement in relation to the potential joint ventures has been entered into, at this stage,” said CEO and executive director Lu Da Chuan. “Shareholders and potential investors should exercise caution when trading in the shares of the company, as there is no certainty that the potential joint ventures will be agreed or that any similar transaction will materialise,” he said. Continue reading
Amtek unit bondholders look to move UK courts
Castex’s bondholders say firm’s stock price was pushed up to force a conversion of FCCBs into equity shares
Amtek’s problems are likely to affect several auto makers, including Maruti Suzuki and Tata Motors. Photo: Bloomberg
Mumbai: Troubles are building up at Amtek Auto Ltd, with bondholders of its subsidiary Castex Technologies Ltd looking to approach UK courts alleging manipulation of the company’s stock price. The bondholders say the stock price was pushed up to force a conversion of foreign currency convertible bonds (FCCBs) into equity shares.
Last week, shares of Amtek Auto fell 57% in response to the stand-off between the company and its bondholders and on fears of a liquidity crunch at the Delhi-based auto component firm. Continue reading
Rogue stock investors have no place to hide, says Hong Kong’s market regulator Mark Steward
PUBLISHED : Friday, 21 August, 2015, 1:20am
Cliff Buddle firstname.lastname@example.org
Cross-border cooperation to catch wrongdoers having an effect, outgoing SFC enforcer says
Stock-market manipulators who think they can exploit gaps in cross-border regulation will find there is “no place to hide”, the outgoing enforcement chief of the Securities and Futures Commission has warned. Continue reading