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Majority shareholder seeks to prosecute action against ETC's non-executive chairman
A MAJORITY shareholder of Catalist-listed Emerging Towns & Cities Singapore Ltd (ETC) is requesting the company to prosecute an action against its non-executive group chairman.
Luo Shandong is seeking to bring an action against ETC's Christopher Chong Meng Tak for alleged breach of directors' duties.
On Friday, ETC said in a Singapore Exchange filing that it had received a letter on Thursday from Shook Lin & Bok LLP, Mr Luo's solicitors, to request the SGX to direct ETC in appointing special auditors from one of the "Big 4" accounting firms to address legal action in respect of unauthorised withdrawals of funds from its 60 per cent-owned subsidiary Huizhou Daya Bay Mei Tai Cheng Property Development Co Limited, among other things.
Last month, ETC started a lawsuit against Mr Luo and two companies - Dong Gang Industrial Co Ltd and Hunan Toener Investment Group Co Ltd - in relation to the unauthorised withdrawals of funds that it had earlier reported.
"The company has not quantified the loss it has suffered and will seek an assessment from the court of the damages owing to it," it said.
The group revealed in mid-November that between July and October this year, about 118 million yuan (S$24 million) had been transferred, without authorisation, from Huizhou Daya Bay Mei Tai Cheng Property Development Co to the two companies controlled by Mr Luo.
ETC's shares have been suspended since Nov 20 this year.