SGX RegCo will subject the reappointment of Liu Ming of Shanghai Turbo Enterprise to review over the next three years, says the exchange’s regulatory body in a Notice of Compliance on April 19.
Liu was CEO of the company between 2006 and 2017. He wasn’t elected at the company’s AGM for FY2017 in April 2017.
Since then, Liu and various other parties have been in a long-drawn legal and at times physical tussle for control over both the listed entity here, as well as the company’s key operating subsidiary in China.
On March 3, the company appointed Liu to the board as an executive director, making him the only executive position in the four-person board.
Citing powers it wields under the listing rule, SGX RegCo requires Shanghai Turbo to obtain prior approval if Liu is to be reappointed as a director or an executive officer of the company, starting from the coming AGM for FY2022.
“We are of the view that it is in the interests of the public and for the protection of investors that shareholders should be given sufficient information to be able to appraise the character and integrity of Mr Liu Ming in view of the Court’s judgement, lawsuits filed against him as well as the fact that Mr Liu Ming was not re-appointed as executive director by shareholders during the 2017 AGM for reasons not known to SGX RegCo,” says the regulator in its notice.
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SGX RegCo is known to have exercised its power to remove individuals from SGX-listed boards. A notable example was the removal of Chen Wei Ping as chairman of Midas Holdings.
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SGX RegCo is also requiring Shanghai Turbo to appoint an independent professional May 18 to undertake an independent review of Liu’s suitability as a director, prior to seeking its approval for his appointment or reappointment.
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“The review should cover, but is not limited to, past and present directorships, history of employment, litigation and bankruptcy checks, Mr Liu Ming’s personal and business backgrounds and integrity, role in the company’s business, interests in other companies, and any criminal or other records,” says SGX RegCo.
Shanghai Turbo Enterprise last traded at 5 cents.
