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SGX should ask Lian Beng to explain resignation of IDs
Last Friday, two independent directors of construction firm Lian Beng resigned from the company's board of directors. The reason given was "differences of opinion'' with the management over certain company affairs. A seasoned corporate lawyer on Monday posed this question to me - shouldn't SGX, in the interests of transparency and timely disclosure, immediately ask the company for details of what exactly are these differences? I think the answer, in a disclosure-based market, is a resounding yes. These are not just any directors, they are independent directors, which possibly makes it even more necessary for details to be given.
After all, shareholders have a right to know why company officers whose job is to oversee the company's affairs from an objective standpoint, have chosen to leave their posts.