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Trek 2000 board clears deputy CEO of conflict of interest
THE board of Trek 2000 International on Wednesday said its newly appointed deputy CEO Edwin Long has been cleared of conflict of interest arising from his directorship at the subsidiary of a competing firm.
Dr Long is currently a director of Digiland (Thailand) Co Ltd, which is a wholly owned subsidiary of New Silkroutes. Both New Silkroutes and Trek 2000 compete in the information technology business. Digiland mainly distributes information technology products in Thailand.
"No conflict of interest arises from Dr Long's directorship in Digiland as the company is primarily engaged in the research and development and sales of data storage products and internet-of-things products while Digiland is primarily engaged in the distribution of information technology products in Thailand," Trek 2000 said on behalf of its board.
Trek 2000 said Dr Long had tendered his resignation from New Silkroutes on May 4, 2016 and is currently serving his notice period until his last day of employment in New Silkroutes on June 30, 2016.
Digiland has purchased, and may continue to purchase, goods from Thumbdrive Plus (Thailand) Ltd, an associated company of Trek 2000, but earlier purchases were carried out on an arms-length basis and Dr Long was not involved in negotiating the price or commercial terms of these purchases, Trek 2000 said.
"Dr Long will abstain from all discussions and decisions relating to transactions between Digiland and the company, its subsidiaries, or associated companies; and Dr Long is mindful of any potential conflicts of interest arising from both the company and New Silkroutes (or its subsidiaries) being engaged in the information technology business segment," Trek 2000 said.
Trek 2000's board added that the transactions between Thumbdrive and Digiland do not fall within the definition of an "interested person transaction", as according to the listing manual, and that there are no transactions between the company and New Silkroutes.