Datapulse’s shareholders should press for answers
They deserve much better corporate governance, transparency and treatment from the Board even as the company tries to address their concerns about its plans.
Read MoreAuthor: Mak Yuen Teen
Datapulse Tech: More questions about disclosures, corporate governance
How can directors be considered independent if their appointments are so closely linked to a controlling shareholder such that they resign as soon as there is a change in controlling shareholder? How can independent directors be considered independent when they are clearly appointed by the controlling shareholder?
Read MoreHock Lock Siew Column: Disclosure tweaks and quarterly reporting go hand-in-hand
Companies that are not very transparent, such as those with results and annual general meeting delays, restatements of financials, modified audit opinions and frequent queries, should not be exempt from quarterly reporting. And those exempted that fail to maintain a good compliance record should be required to report quarterly. This incentivises good behaviour and punishes bad behaviour.
Read MoreA Conversation about Stewardship and the Investment Industry
I truly believe that the day are numbered for active fund managers who do not practise stewardship on behalf of their clients. And those institutional investors hiding behind a false stewardship facade will be found out. I can’t wait for that day to come.
Read MoreDatapulse Technology’s disclosures about its operations throw up more questions than answers
From its actions and disclosures, it is clear that the company had every intention to continue its manufacturing activities, for which it had signed and exercised an option for a new property. Its full-year financial results and press release of Sep 21 also clearly signalled its plan to continue in manufacturing. Its U-turn about ceasing its manufacturing activities appears to be caused by its probable inability to secure alternative premises after selling its existing property.
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