IMHO :
- Buyer bewares. You have to take care of yourself.
- Don't drool on the asset, once again : asset, business, structure.
- Try to think as if you are the controlling shareholders.
May I just add on part 3:
Try to think as if you are the controlling shareholder what would you do, in context of incentives including whether u care about capital gains or reputation
But please don't delude ourselves we can change things easily like the controlling shareholders... we are but just OPMI... we can only ride on the coat-tails of their likely decisions
at this point, i thought it would be noteworthy to add to further that quite often, especially in companies which have survived 2-3generations, the controlling stake or a big stakeholder is often a pte ltd company which the first generation planned in such a way so as to try to keep the business within the family itself. eg yhs, when this holding company was broken down, the company would be then susceptible to external threats. another eg would be hong realty pte ltd which controls stakes in the kwek listed companies and still is.
it is different picture to consider if the controlling stakeholder was a pte ltd company with a collection of interested parties rather than a single person.
http://infopub.sgx.com/FileOpen/Eratat_U...eID=276130
"The Company’s interim CEO Mr Ho subsequently called Manager Zhang to confirm that he received the 29 January Letter. Over the Chinese New Year holiday period, Mr Ho kept in touch with Mr Lin and urged him to cooperate by handing over the seals (such as corporate seal, legal representative seal, financial seal, etc.) of the various Group entities in China (collectively, “Corporate Seals”) and to assist the Board in the verification of the bank cash balance.
Mr Lin was elusive and kept saying that he needed more time to resolve all the issues."
"In the ABC Response, the bank also clarified that the cash and loan balances stated in the
aforesaid documents were inconsistent with the bank’s records but did not elaborate further. They also said that the dispute between the Company and Mr Lin was an internal matter and they would continue to honour any properly executed and sealed instructions from HMW."
Seeing how the events unfold itself one by one, your guess over the fate of Eratat is as good as mine.
Another one bites the dust.
The red flags were repeatedly brought up by different members at various times, so there was plenty of advance warning.
If anyone got caught despite reading this thread, well, hopefully they've learnt something.
Had this question in mind for sometime. Can the board suspend the CEO if he own more than 50% of the company?
Believe SGX as regulator will prosecute those who committed frauds .
(26-02-2014, 08:21 AM)cfa Wrote: [ -> ]Believe SGX as regulator will prosecute those who committed frauds .
How? Eratat is not the first S-chip to fake its bank confirmation and bank statement.
Look at China Hongxing, China Gaoxian, Hongwei. All faked their cash balances and yet their CEOs are all living happily ever after.
So stop day dreaming and wake up to reality.
We have CAD, CPIB and they are famous crime busters. Leave it to them and they will apprehend them in due course.
(26-02-2014, 08:45 AM)cfa Wrote: [ -> ]We have CAD, CPIB and they are famous crime busters. Leave it to them and they will apprehend them in due course.
If you believe that, I've got a bridge to sell you.
Seriously, didn't you read the part where i said that the CEOs of fraudulent S-chips are living happily ever after?
And if CAD, CPIB are such famous crime busters, why haven't they prosecute those fraudulent S-chips yet?