Cordlife Group says four of its directors as well as its former CEO have been arrested and interviewed by the Commercial Affairs Department over potential disclosure breach.
Cordlife, which sells storage services for cord blood cells, reported last November that some its tanks were not maintained at the right temperature.
Dr Ho Choon Hou, Cordlife's acting chairman and non-independent non-executive director; independent directors Yeo Hwee Tiong and Cheong Tuck Yan Titus Jim; non-independent non-executive director Chow Wai Leong as well as Tan Poh Lan, former group CEO and executive director, have been arrested, interviewed and out on bail.
Thet Hnin Yi, the company's CFO, has been asked to assist with the Investigations, but she has not been arrested, placed on bail or charged with any offence.
In addition, four of Cordlife's directors who are now not based in Singapore are told to report to CAD on April 2 for interviews.
They are Joseph Wong Wai Leung, an independent director, and three non-independent and non-executive directors Zhai Lingyun, Chen Xiaoling and Yiu Ming Yiu.
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"Given that the current board has been overseeing the investigation to address the lapses identified by the Ministry of Health, the majority of the board is of the view that it would be in the interests of the company for all directors to continue serving on the board," says Cordlife.
Zhai and Chen, on the other hand, disagree as they hold the view that their fellow directors who have been arrested and released on bail are not suitable to remain on the board.
"The board will continue to consider and assess the suitability of all directors to continue serving on the board, pending the development of the investigations," says Cordlife.
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In addition, depending on how the investigations evolve, the board might appoint new IDs to serve as additional checks and balances for the company.
Cordlife claims that its operations will also continue to operate as usual.
