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Foreland takes legal action against former executive chairman over possible breaches
FORELAND Fabrictech Holdings said on Tuesday that it is in the process of engaging legal advisers to take further action against its former executive chairman, Tsoi Kin Chit, over possible breaches.
The China textile company said that the breaches were related to securities laws and other possible offences arising from the recent public reprimand of the company and Mr Tsoi by the Singapore Exchange (SGX).
Such measures would likely also be extended to its subsidiary company in China, Fulian Knitting Co, Ltd, Foreland said.
On Nov 11, SGX had rebuked the company and Mr Tsoi for failing to promptly announce a significant claim and putting in place robust internal controls to address financial, operational and compliance risks.
In early December, Foreland's board announced that it has lodged a complaint with the Commercial Affairs Department (CAD) against Mr Tsoi.
Foreland has requested an immediate suspension in the trading of its shares given the "significant uncertainty" over whether the legal actions will impact on the securities.