As though Dasin Retail Trust (DRT) CEDU did not have enough challenges with its portfolio, and the inabiity of related parties to meet their rental obligations in a couple of the trust’s malls, disagreements between directors of the trustee-manager have now come to light.
In a copy of the announcement sent on May 26, Zhang Zhencheng, a minority shareholder of DRT’s trustee-manager, and major unitholder of DRT filed a claim in the High Court on May 25 against Tan Huay Lim, lead independent director of the trustee manager, for oppressive and commercially unfair acts taken towards Zhang.
Among the complaints was that Tan failed to carry out his duties as an independent director amidst a highly important refinancing exercise by DRT.
According to the announcement, Tan pushed for the acceptance of a legally binding MOU which does not benefit DRT or the trustee-manager.
The MOU requires DRT to buy assets in China from the foreign seller, subject to terms that are prejudicial to unitholders, the announcement sent on May 26 says. “At this juncture, the priority of DRT is to make an orderly disposal of one or more assets in order to repay part of the loans owing to the syndicated banks and agree with the syndicated banks on the restructuring of the syndicated facilities,” the announcement says.
When Zhang became awaire of the winding-up petition against Sino-Ocean Capital in Hong Kong, the 70% shareholder of the trustee-manager, he and two other independent directors raised the matter of disclosure at a board meeting on April 20. Tan did not vote in favour of disclosure. Shortly thereafter, SGX queried the trustee-manager on Sino-Ocean Capital and the disclosures were announced on May 4.
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“Tan Huay Lim often briefed and instructed advisers directly on matters relating to DRT's trustee-manager and DRT and, in the process, excluded the trustee-manager’s management from such deliberations and communication. These included advisers such as valuers, auditors and legal advisers engaged on behalf of DRT,” the May 26 announcement says.
