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ETC majority shareholder calls for EGM to replace independent directors
THE MAJORITY shareholder of Emerging Towns & Cities Singapore (ETC) has called for a shareholders' meeting in a bid to replace two existing directors with his own nominees.
ETC, a Myanmar and China property developer, said on Monday that Luo Shandong had on Thursday sent the requisition notice, which sought the removal of non-executive and independent chairman Christopher Chong Meng Tak and audit committee chairman and independent director Peter Tan from the company's board. Mr Luo is also proposing to appointment his own nominees, one Shasha (Liang) Du and one Wang Guang, as directors of the company. Mr Luo is further seeking the removal of any directors of the company who may be appointed between the date of the requisition notice and the date of the EGM, which would block attempts by the board to add more members.
ETC has suspended its stock and is seeking advice on the requisition notice.
Last week, ETC alleged that 118 million yuan (S$24.1 million) had been transferred without authorisation to companies controlled by Mr Luo from a subsidiary in China. The company said that attempts by Mr Chong to obtain the company's bank tokens and company seal were blocked by uncooperative staff at the subsidiary, and that the company is taking legal action in China.
Nevertheless, ETC said that the unauthorised withdrawals were not expected to be material because the company owes Mr Luo and his companies 164 million yuan on a net basis, and that it will attempt to offset that debt with the withdrawals.
ETC was formerly known as China Titanium Ltd, and later Cedar Strategic Holdings.