Entrenching Sias is not the solution

ON Oct 21, 2019, The Business Times published David Gerald's commentary, in which the Securities Investors Association of Singapore's (Sias) founder, president and chief executive officer proposed a "formal requirement" where listed companies would "have to" engage with Sias when they find themselves in need of restructuring, with Sias "granted official standing to act on behalf of stakeholders in court". He also suggests that funds be made available to finance ensuing advice and actions taken by retail investors.

In essence, the proposal would make it mandatory for listed companies to engage with Sias, and Sias alone would effectively be able to represent retail investors' interests.

Mr Gerald's reasons for the proposals cannot be faulted. Retail investors, he said, "always find themselves disadvantaged relative to their institutional counterparts", and "large investors have funds to pursue legal action". Moreover, Mr Gerald's personal commitment to the cause cannot be doubted. A former magistrate, coroner, deputy public prosecutor and state counsel in the Singapore Legal Service, he has, since founding Sias in 1999, been a tireless champion of corporate governance and the "little guy" i…