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Camsing Healthcare's subsidiary Nature's Farm CEO suspended
MAINBOARD-LISTED Camsing Healthcare has on Oct 29 suspended all administrative and executive duties and powers of the chief executive officer (CEO) of its subsidiary, Nature’s Farm. This came months after the company suspended its chairman and executive director in August.
In its regulatory filing on Wednesday, Camsing Healthcare announced that its board has arrived at the decision after considering that the CEO Hua Min has breached its delegation of authority protocol thrice, in:
- Agreeing to sell the company’s property at S$890,000 in September, without first consulting the board or obtaining the board’s prior consent;
- Giving a property agent a 4 per cent commission of approximately S$35,600, also without first consulting the board or obtaining its prior consent; and
- Conducting a marketing campaign for the sales of membership cards at S$530, although each card was worth S$600.
While he has explained that this was done to improve the cash flow position of the company, this was not carried out with prior board approval, which was required as it was material in nature and may result in company incurring actual liability of S$240,000 and when the company is facing cash flow concerns, said Camsing Healthcare.
The board is suspending the duties and powers of Mr Hua to investigate the matters further, and considers that such suspension is in the best interests of the company and the shareholders as a whole.
The company had suspended all administrative and executive duties and powers of chairman and executive director Lo Ching in August, after she was held in the custody of the Shanghai police. Then, it said that the Shanghai police had not disclosed the reasons for or incidents leading to the custody of Ms Lo.
It was earlier reported that wealth manager Noah Holdings had filed a lawsuit against Hong Kong-listed Camsing International Holding, of which Ms Lo is also chairman, in relation to a 3.4 billion yuan (S$667 million) asset management product that is in danger of default. Noah had reported Camsing International to regulators.
Camsing Healthcare's shares have been suspended since Apr 1.