With today's (26Mar12) announcement, I suppose Viz Branz shareholders would have to ask themselves which side - (1) CKP, and his lawyers and possibly other advisors; (2) CBB, who apparently has more support from the other 3 directors (including the IDs), and his lawyers and possibly other advisors; or (3) the company, as represented by the non-EDs and IDs, and assisted by its appointed lawyers - should or could they rely upon? As for me, I am inclined towards (3).
The announcement was rather unclear though. The board said there was no merit in these allegations. Does that mean what CKP alleged is not true - that "monies due to the Company from the Myanmar distributors were paid into a third party account operated by CBB from which payment was only thereafter made from the third party account to the Company" - or that although that happened, nothing irregular is found by the board??
And for a father to lodge a report with CAD on the son, there must be something really wrong....after all, it the allegation is true, it will be CBT or similar irregularities??
What a twist of events!
The fact that the father CKP is doing this shows he has deep animosity towards his son CBB. As today's announcement and the statement in it is from Viz Branz's BOD and mainly the 3 IDs, I tend to believe there is no wrongdoing in the handling of monies received from the 2 Myanmar distributors. I have noted that CKP's allegations did not come close to suggesting that CBB had cheated on Viz Branz's monies. We should also bear in mind that Viz Branz's business dealings with the 2 Myanmar distributors should be on-going, and the related trade and payment transactions and documents should be handled by their headoffice finance department in Sinagpore which is managed by CFO Lam Weng Kok (an experienced professional man), and checked upon by the external auditor E&Y.
Well, I may be imagining too much here, but this could be a ploy to influence minority shareholders to let go their Viz Branz shares. I am really curious and wish to know who bought up most of the 8+% transacted since 1Mar12 at increasing prices, especially after the counter went 'XD' on 8Mar12 for the last $0.02/share 3rd-Interim dividend. It is quite obvious someone out there didn't mind paying quite a lot more for minority shareholders' Viz Branz shares!
I think this is also a cheapskate ploy! If anything Viz is too cheap and making this charges will not help minority shldrs anyway. They make up this story with much evidence of wrong doing just dont damp the shares anyhow.
IDs sleeping or are they going to question and let the public know what is happening?
I think as ID they are not really independent? Their appointment is owed to who hired them? SGX cannot intervene on behalf of minority interest unless big funds in the stock. In this case, I dont really see any big fund pulling their weight to fight the outstead of deviant director? Senior looks the the 1 leading the charge.
It looks like trouble for Co. if they dont focus on creating shldrs value, but if you look closer the Co. is generating lots of cash and return to shldrs. They are not trying hard enough to make us believe we will sell out at cheaper valuation!!
I tend to think the board has been somewhat economical with the announcement. They should reveal more that just quoting phrases to let shareholders know if things are intact. They said they have received the complaint letter to SGX on 20/3/12 but there was no announcement then. Why??
The fact that MD allowed payments through him already sound fishy though. And unless its a special account, or else if the funds mixed with MD's personal funds, he would be in a lot of trouble i would say. And likely that the board was not informed, or else CKP as a board member would have no ground to complain? I fear real trouble which will drive down value!
Hope this thing gets resolved for the sake of shareholders!
logging in CAD is serious biz and will damage reputation of co.
More so it's FATHER vs SON! :O
Or are they trying to privatised on the cheap by driving the share price down?
it does not make sense to issue a 2cts dividend (which attracts attention) if the intention is to privatise. Much more economical to privatise on the cheap when no one's looking. The 2cts smells like "milking the cow while the milkman is in charge" or "SGP milkman not trusting the PRC milkman tending to the till". It is reasonable to assume that Senior have more influence in PRC and it is PRC that is bringing in the dough.
It also does not make sense if the CAD report is to drive down the share price. See above point (why do so much to drive down the price when pre-2cts price was only 34 cts?). Also in such a blatant move.. it will incur wrath of the minority and majority will get into trouble with SIC.
Also, for those who are already parents and know the unconditional love parents feel towards their children. What will turn a father against son to such an extend (CAD)? Not forgetting CAD will potentially provide one with free lodging and food at Changi. The Father is obviously incensed and is doing a "你做初一，我做十五".
Looking at the situation as it reveal, I'm not surprise that shareholders will continue to enjoy hefty dividends as long as the company is making money. My guess is maybe receiving at least 1 to 2 cts for this FY.
better dont anyhow sell now. Father and Son team playing games to depress share?
CAD thing if really true, and if father has mistress?? This will be key issue? Father now has the full mandate to fire son, with all the voting shares he wants, why arent he doing it?
Suspect this is a game plan to collect cheap privatisation!!