Five past, present directors of 8Telecom given SGX reprimand for breaching listing rules

FIVE past and present directors of mainboard-listed 8Telecom : AZG 0% International Holdings : AZG 0% have been given a public reprimand by the Singapore Exchange (SGX) for breaching listing rules. 

Three past directors – Liu Lu, Zhang Yuanyuan and Xiang Ying – are also prohibited from being appointed or reappointed by any SGX-listed company as a director and/or executive officer for two years starting from Aug 4, according to the SGX regulatory action, published on Friday (Sep 15).

Liu was an executive director, Zhang was an independent director, while Xiang was a non-independent non-executive director of the maker and supplier of telecommunications pipes, telecommunications and other towers as well as provider of telecommunications engineering services.

Tiffany Gong Qian, another former executive director, is to provide a signed written undertaking to the frontline regulator not to seek any corporate directorship or serve as a key executive officer for one year starting from Aug 4.

Under the board, including current executive director Wang Zhejun, 8Telecom in 2018 failed to conduct the necessary due diligence to ensure the accuracy of information in the circular on its proposed issuance of 16 million new ordinary shares in relation to the true beneficial owners of its target companies. 

China Commodity Market and China Commodity Shopping Centre were the target companies.

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The directors had failed to disclose in the circular material information on the state of affairs of the target companies, so as to enable shareholders to make a properly informed decision on the proposed acquisition.

They also failed to submit material information relating to the change in a shareholder of VOK Investment Holdings (8Telecom’s controlling shareholder) for SGX’s review and approval, before the issuance of the final circular.  

Additionally, they did not submit material information on Zhang’s relationship with the target companies as well as her consequential abstention from giving a recommendation on the proposed acquisition and making the audit committee’s statements in relation to the target companies.

Trading in the shares of 8Telecom has been suspended since September 2019.