SGX calls for immediate resignation of two top Midas Holdings executives
Troubled railway parts maker Midas Holdings has been hit with a notice of compliance by regulators demanding the immediate resignation of two of its top executives.
The Singapore Exchange (SGX) said in the notice that Midas Holdings executive chairman Chen Wei Ping cannot be appointed as a director or executive officer in any listed company for the next three years.
The bourse has also barred Ma Ming Zhang, the legal representative of Midas Holdings unit Luoyang Midas, from being appointed an executive officer in any listed company for the next three years.
These latest blows come after the company's audit committee lodged a police report with Singapore's Commercial Affairs Department last week, over a possible breach of securities laws and other offences linked to irregularities in the group's operations in China.
These included unauthorised loans taken out by the companies' subsidiaries, as well as the provision of unauthorised corporate guarantees.
The guarantees were executed by, among others, Sun Qi Xiang, the legal representative of Jilin Midas Light Alloy, Mr Ma, Mr Chen and Yang Xiao Guang, the legal representative of Dalian Huicheng, another unit of Midas Holdings.
They did not seek approval from the company's board for providing these guarantees.
In view of these developments, there are "immediate and serious concerns" about the suitability of Mr Chen and Mr Ma to continue in their roles, the Singapore bourse regulator said.
The SGX also noted that other executives named in Midas' disclosures about events in China - including Mr Yang, Mr Sun and former chief executive Patrick Chew - have since resigned or been replaced.
Trading in the company's stock has been suspended since early February.
Chia Yan Min
03 April 2018