THE Singapore Exchange (SGX) on Thursday (May 5) reprimanded Albert Ang, former executive director of AGV Group, for a breach of Catalist rules for failing to disclose his involvement in an investigation conducted by the Commercial Affairs Department (CAD).

Ang’s involvement in the investigation was “information known and necessary to be disclosed to avoid the establishment of a false market in the company’s securities”, SGX said in a bourse filing. It has brought 1 charge against Ang for the breach. Ang was formerly the chief executive officer (CEO) of AGV Group, a provider of hot-dip galvanising services, between Oct 2, 2015 and Jan 13, 2020. He was also an executive director of the company. On June 30, 2020, an order was issued to Ang stating that the CAD had reasonable grounds for believing that he had committed an offence of false trading and market rigging transactions under section 197 of the Securities and Futures Act of Singapore (SFA), noted the SGX Listings Disciplinary Committee (LDC). The CAD statement was clear that Ang was the subject of investigation for an offence committed under section 197 of the SFA. However, even though Ang had stepped down as CEO in January 2020, he continued to be the company’s executive director at the material time. 

The LDC said it was foreseeable that the company would continue to rely on Ang, as founding director and former CEO, “for its proper oversight and management.” “In view of the foregoing, the CAD Statement was material information necessary to be disclosed in a timely manner, in order for the public to obtain a clear picture of the extent of Ang’s involvement in the investigation and the SFA offence that he was being investigated for,” the committee said. However, the CAD Statement was not disclosed in the Jul 1 announcement by the company as required under the Catalist rules, due to Ang’s failure to inform the company of the order in a timely manner. 

According to the LDC, Ang’s failure to inform the company of the order in a timely manner also led to the company disclosing inaccurate information in the Jul 2 response and the July 7 response - which is that Ang had only been asked to assist in the investigation, instead of being a subject of the investigation.

“Therefore, the failure to disclose the CAD Statement in a timely manner resulted in the existence of a false market at the material time, wherein the public could not make a true assessment of Ang’s involvement in the investigation and the impact on the company arising from such investigation, and consequently, traded in the company’s securities on an uninformed basis,” the LDC said.

On Jan 22, a resolution agreement was signed by the relevant parties, which stated that Ang would plead guilty to the charge of Catalist Rule 703(1)(a). The LDC noted that Ang will be providing a signed written undertaking to SGX to resign from all existing director and/or executive officer positions in any SGX-listed company, if any. He is also not to be appointed to any such position in any SGX-listed company, for a period of 2 years from the date of imposition of sanctions by the LDC.

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On May 4, the Singapore High Court made orders placing AGV Group under judicial management, with Leow Quek Shiong and Gary Loh Weng Fatt appointed as the joint and several judicial managers of the company.

AGV Group had voluntarily suspended trading of its shares on Nov 24, 2021.