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Sias to hold shareholder dialogue ahead of Shanghai Turbo EGM
A LOCAL investor watchdog is holding a dialogue for shareholders of precision engineering group Shanghai Turbo Enterprises, citing "serious concerns about the events unfolding" at the company, ahead of a vote on July 24 on whether to replace its entire board of directors.
Shanghai Turbo announced in June that it would go ahead with an extraordinary general meeting (EGM), in line with a shareholder requisition letter received in January over which it had previously sought legal advice.
But the Securities Investors Association (Singapore), or Sias, said on Tuesday that it "is not convinced that the action proposed could be in the interest of the minority shareholders and the company" and has invited concerned shareholders to meet on Wednesday morning at the MND Building Annex B.
Shanghai Turbo has been locked in a legal tussle with former executive director Liu Ming since he was voted off the board in April 2017.
The company previously tried to have Mr Liu blocked from dealing with his 29.99 per cent stake in the company and from requisitioning meetings "for the purpose of delaying, discontinuing, disrupting or otherwise preventing the timely conclusion of the lawsuit or the appeal against him".
Developments have included a months-long standoff at a factory in China, which climaxed in a purported baton attack on a Singaporean director and several others. Video footage of the attack was played for shareholders at Shanghai Turbo's annual general meeting in March and released publicly.
The Singaporean independent director, former government fishery officer Raymond Lim Sian Heong, is one of the four board members whose overthrow is being sought.
The rest of the Shanghai Turbo board - lead independent director Jack Chia Seng Hee, independent director Alexander Cheung Hok Fung and non-executive, non-independent director Daniel Liu Danjun - is also on the chopping block.
The EGM was requisitioned by Lin Chuan Jun and Zhang Ping, who together hold an interest of about 10.6 per cent in the company. Mr Lin has been proposed as a new director of the company, alongside Koh Wee Kiang and Zhang Wen Jun.
The meeting is set to take place on July 24 at 9.30am, at Marina Bay Financial Centre Tower 3.