Sias dialogue for Shanghai Turbo shareholders ahead of EGM

SINGAPORE - The local investor watchdog is holding a dialogue for shareholders of precision engineering group Shanghai Turbo Enterprises today over what it regards as "serious concerns about the events unfolding" at the company.

The meeting is ahead of a vote next Tuesday over whether to replace its entire board of directors.

Shanghai Turbo announced last month 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 yesterday that it "is not convinced that the action proposed could be in the interest of the minority shareholders and the company".

It has invited concerned shareholders to meet this 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 last year.

The Securities Investors Association (Singapore) said yesterday that it "is not convinced that the action proposed could be in the interest of the minority shareholders and the company".

The company previously tried to have Mr Liu blocked from dealing with his 29.99 per cent stake in the firm 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 stand-off 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 who face being ousted in the vote next Tuesday.

The rest of the Shanghai Turbo board comprise lead independent director Jack Chia Seng Hee, independent director Alexander Cheung Hok Fung and non-executive, non-independent director Daniel Liu Danjun.

The EGM was requisitioned by Mr Lin Chuan Jun and Ms Zhang Ping, who together hold an interest of about 10.6 per cent in the company. Mr Lin has been proposed as one of the new directors, alongside Mr Koh Wee Kiang and Mr Zhang Wen Jun.

The meeting next Tuesday starts at 9.30am at Marina Bay Financial Centre Tower 3.


Correction note: This story has been edited for clarity. 

A version of this article appeared in the print edition of The Straits Times on July 18, 2018, with the headline 'Sias dialogue for Shanghai Turbo shareholders ahead of EGM'. Print Edition | Subscribe