Singapore Exchange reprimands New Lakeside for corporate governance breaches

SINGAPORE - The Singapore Exchange (SGX) has reprimanded New Lakeside Holdings, one of its former directors and its former chief financial officer for breaches of the listing rules and corporate governance failures.

New Lakeside was renamed Zhongxin Fruit & Juice in March last year.

In August 2010, the company had engaged Stone Forest Corporate Advisory to review the business operations and internal controls of some of its entities.

Based on the findings highlighted in the report, the SGX found that the company had breached certain listing rules, including one for failure to disclose material and accurate information on the crystallization of a corporate guarantee into a real liability.

Based on the SGX's assessment, a former executive director of the company, Mr Go Twan Heng, also failed to comply with a rule to act in the interests of shareholders as a whole.

Mr Oh Gim Teck, then the firm's CFO, was also involved in the breaches, the SGX said.

Based on the findings of the Stone Forest Report, the company also failed in terms of corporate governance practices, to safeguard its own interests and that of its shareholders, the bourse operator added.

The SGX has referred the rule breaches to the statutory authorities.

"Findings by Stone Forest pointed to serious deficiencies and lapses in the Group's internal controls and corporate governance and breaches of listing rules," the SGX said.

New Lakeside was listed on the former junior board Sesdaq in 2004. It transited to Catalist in Jan 2010.