A statement on Wednesday by Securities Investors Association (Singapore), or SIAS, highlighted “serious concerns” over recent developments at China Sky Chemical Fibre Co Ltd.
Trading of Singapore Exchange (SGX) Mainboard-listed China Sky’s shares has been suspended since November 17.
SIAS called for the company to immediately comply with the SGX directive to appoint a special auditor under the listing rules so that the trading suspension can be lifted.
Issued on November 16, the SGX directive seeks to address various issues pertaining to interested party transactions between the company and the audit committee chairman, the aborted acquisition and development of land in China, and repair and maintenance costs.
The SIAS statement also called on China Sky and its directors to “adhere to corporate governance standards in Singapore, which is the least that shareholders expect from the company and its directors”.
“SIAS is perturbed to learn from SGX’s statement dated 16 December 2011 that queries from SGX to the company have been met with contradictory statements and disclosures which were not substantiated,” the association said.