Singapore Exchange Regulation (SGX RegCo) has issued a notice of compliance to Asti Holdings 575 after the company had breached the Mainboard rules when it came to holding its annual general meeting (AGM). According to the rules, an issuer has to hold its AGM within four months from the end of its financial year (FY).
In its statement on April 27, SGX RegCo noted that the exchange had granted the company’s application to extend its deadline to hold its AGM for the FY2021 ended Dec 31, 2021.
According to the market regulator, Asti had sought the extension as its external auditor would only be able to provide its opinion to the audited accounts for FY2021 by Aug 18, 2022.
The extension is subject to the company convening its AGM for the FY2021 by Sept 7, 2022.
To date, Asti has not held its AGM for the FY2021 and the FY2022. It has also not submitted any notice of an extension for its FY2022 AGM. As such, it is in breach of Rule 707(1) of the rulebook.
“An AGM is an important avenue for issuers to, inter alia, present their financial performance to shareholders, address relevant queries from shareholders, and allow shareholders to vote on matters concerning the issuers’ affairs, including but not limited to the appointment and/or re-election of directors,” says SGX RegCo.
“We also noted recent developments including a request from certain requisitioning shareholders for a change in the company’s board members. The company should take the opportunity to assuage concerns raised by shareholders on matters concerning the company and its board members,” it adds.
The AGM will also provide a “necessary forum” for shareholders to gain clarity from Asti’s directors on its existing state of affairs, including its trading suspension since July 5, 2022, continues the market regulator. The trading suspension came after Asti had failed to comply with SGX’s exit criteria within the 36-month cure period.
In addition, SGX RegCo also noted that three of Asti’s directors – or one-third of its board – have not been subject to the periodic retirement and re-election at the company’s AGM, per the listing rules.
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Asti last held an AGM on May 31, 2021 for the FY2020 ended Dec 31, 2020.
The company sacked its former CEO, Michael Loh, in December 2021 in a bid to remain afloat and to exit the SGX watch-list.
Shares in Asti Holdings last traded at 1.4 cents before its trading suspension.
