Singapore Exchange Regulation (SGX RegCo) has issued a public reprimand to the former directors and CEO of Sunrise Shares Holdings 581 on Oct 18. The directors, Wong Siu Fai, Zheng Aimin, Tang An and Wang Ziquan and Liang Yongdong, the company’s former CEO, were rebuked for breaching Catalist rules 719(1) and 703(4)(a).
Rule 719(1) led the company to fail to have adequate and effective systems of internal controls that include financial, operational, compliance and information technology controls and risk management systems while Rule 703(4)(a) led to the company reporting factually inaccurate results. On Aug 15, 2022, Sunrise reported a profit after tax of $205,000 for the 1HFY2022 ended June 30, 2022 even though it was actually in a net loss position of $890,000. The company had made two reporting errors that led to the mistake in its bottom line.
In addition to the public reprimand, SGX RegCo has issued an order preventing any issuer from appointing or re-appointing Sunrise’s former chairman, Wong Siu Fai, as a director, executive officer, or both for two years starting from Oct 18.
Companies were also prohibited from appointing or re-appointing Liang as a director, executive officer or both for one year, also from Oct 18.
On Sept 10, one of the company’s independent directors, Lim Tong Lee resigned with immediate effect. According to Sunrise’s filing, Lim left to “pursue other business interests and opportunities”. Lim has also stepped down from his roles as chairman of the nominating and remuneration committee and from his role as member of the audit committee.
Lim’s departure left Sunrise’s audit committee with less than the minimum regulatory requirement of three members. Sunrise added that it is “aware” of the rule’s requirements and will try to fill the vacancy within two to three months.
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On March 1, Sunrise announced the resignation of its executive director and CEO Wira Boo Kuang Loon. Boo left with immediate effect; Tan Eng Eng was appointed to replace Boo as the company’s executive director and CEO.
Shares in Sunrise Shares closed flat at 2.5 cents on Oct 18.
