Datapulse Technology saga presents a challenge to SGX rules

THE ongoing Datapulse Technology saga raises questions about the effectiveness of the Singapore Exchange (SGX) rules in protecting minority shareholders' interests.

To recap, it all started with questionable disclosures relating to the company's existing manufacturing activities, the sale of its existing property and the purchase of a new property. In the midst of these developments, a new controlling shareholder appeared, having bought a 29 per cent stake from the previous controlling shareholder/CEO and other shareholders at a significant premium through several married deals.

The three independent directors on the board at that time suddenly resigned, citing a change in controlling shareholder. The following day, a new board was hastily constituted through the appointment of three new independent directors and a new CEO/executive director. This was done by the three remaining executive directors, all of whom then proceeded to resign.