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Court grants application for injunction order on ex-China Environment chairman, family
A FORMER executive chairman of mainboard-listed China Environment Ltd and his family have been prohibited by the Singapore High Court from dealing with company assets worth up to US$7 million.
On Wednesday, the investment holding company, which designs and produces air pollution control and treatment systems in China, announced that it was granted on Dec 4 an application for the Worldwide Mareva Injunction Order against Huang Min, his wife and his two daughters.
The order applies to assets solely or jointly owned, located in Singapore or outside of the Republic.
In the second half of last year, legal proceedings of the company and its subsidiary, Fujian Dongyuan Environmental Protection Co Ltd (FDJY), against Mr Huang and his family commenced.
In September 2016, China Environment said in a Singapore Exchange filing that there were discrepancies in the findings of a Chinese legal firm appointed by the company to investigate the existence of trade receivables due from Anhui Shengyun Mechanical Co Ltd and Nanning Youji Technology Co Ltd.
The company had previously announced on Aug 12, 2016 the impairment of trade receivables in its half yearly results announcement.
However, the legal firm found that the trade receivables due from the two companies are "non-existent", it said.
China Environment then issued a Writ of Summons against Mr Huang for the purported non-existent receivables.
Shares of China Environment have remained suspended since last June.
The firm, together with FDJY, is preparing for the full trial of the matter, which is anticipated to take place sometime next year, it said on Wednesday.
Separately, China Environment also announced on Wednesday the appointment of Joe Chong as the chief financial officer of the company.
The decision was made by the board of directors of the firm after having reviewed and considered the qualifications and experience of Mr Chong, who was previously a finance manager for about five months at Firstlink Investments Corporation Limited.
Mr Chong will be responsible for overseeing the accounting and finance functions of China Environment.