China Sky CEO quits over limited access to key data

China Sky Chemical Fibre chief executive Ling Yew Kong has resigned, citing his limited access to key information about subsidiaries in China, the company said yesterday.

Mr Ling, who stepped down as CEO and executive director on Monday after almost six years on the job, continues as a non-executive, non-independent director of the company.

China Sky said in a filing with the Singapore Exchange that Mr Ling faced a "constraint in discharging duty effectively" over the lack of information on the finances and operations of the company's subsidiaries.

The filing, which was submitted by chairman He Zhidong, said the management of certain units in China was not forthcoming when Mr Ling asked about legal proceedings against the subsidiaries as well as what was going on in the group.

The lawsuits include complaints of unpaid employee salaries and social security and insurance contributions, among other issues.

China Sky is also facing a court order in China for the auction of land owned by a unit in Qingdao.

The land was listed as collateral for loans of 1.073 billion yuan (S$218 million) taken out by subsidiaries, China Sky said on July 12, adding that stakeholders have until tomorrow to submit their claims.

Trading in China Sky shares has been suspended since August 2016, when the legal cases against the subsidiaries came to the board's attention.

A version of this article appeared in the print edition of The Straits Times on July 18, 2018, with the headline 'China Sky CEO quits over limited access to key data'. Print Edition | Subscribe