By Mak Yuen Teen
Since its listing in 2014, YuuZoo Corporation (YZ) has never held its AGM on time.
On 2 August 2018, it issued an announcement that it has been notified by SGX that day that its application for a waiver for an extension to hold its AGM for the financial year ended 31 December 2017 has not been granted. YuuZoo was supposed to have held its AGM by 30 April 2018.
In its announcement, YuuZoo said that “the Company and its auditors are still in the process of finalising the accounts” and that “in relation to the Company’s AGM, it shall use its best endeavors to hold the same by 14 September 2018”.
Why are the accounts still in the process of being finalised more than 3 months after the AGM was due? When did the auditors commence its work?
The requirement to hold the AGM within 4 months of the financial year-end is a requirement of the SGX Rulebook (for other listed companies that are incorporated in Singapore, it is also a requirement of the Singapore Companies Act). Compliance with rules should not be based on “best endeavours”. Companies and boards must be held accountable for non-compliance with rules, especially in this case where there is repeated non-compliance.
I also look forward to an update on the interview that the former executive chairman was scheduled to have with the Commercial Affairs Department on 4 June. The company should follow what companies like Raffles United Holdings recently did, by providing periodic updates when its directors and officers were similarly called up by CAD for interviews.
