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China Sky CEO quits, cites limited access to information about China units being sued
CHINA Sky Chemical Fibre Co's chief executive has resigned from his post, citing his limited access to key information about subsidiaries in China, the company said on Tuesday.
Ling Yew Kong, who stepped down as CEO and executive director on Monday after almost six years on the job, continues as a non-executive, non-independent director of the company.
The company said in a filing with the Singapore Exchange that Mr Ling faced a "constraint in discharging duty effectively" over the lack of information on subsidiaries' finances and operations.
The filing, which was submitted by chairman He Zhidong, said that the management of certain units in China were not forthcoming when Mr Ling asked about legal proceedings against the subsidiaries as well as what was going on at the group. The lawsuits include complaints of unpaid employee salaries and social security and insurance contributions, among other issues.
China Sky is also facing a court order in China for the auction of land owned by a unit in Qingdao.
The land was listed as collateral for loans of 1.073 billion yuan (S$219 million) taken out by company subsidiaries, China Sky said on July 12, adding that stakeholders have until July 19 - or 15 days from the date of the Shandong Qingdao Intermediate People's Court order - to submit their claims.
Trading in China Sky shares has been suspended since August 2016, when the legal cases against the subsidiaries came to the board's attention. The board of directors said at the time that it had no details of the suits and was assessing the going concern of the company.