SIAS welcomes court order for Sino-Environment EGM
By Georgina Joseph, Channel NewsAsia | Posted: 18 December 2009 2224 hrs

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SINGAPORE : The Securities Investors Association of Singapore (SIAS) has said that it welcomes the court order for an extraordinary general meeting (EGM) to be held by troubled S-chip firm Sino-Environment Technology Group.

The EGM seeks to remove the executive directors of the company and to appoint new directors to the Board.

Sino-Environment's Independent Directors made a court application last week to call for the EGM and the Supreme Court granted its request on Thursday.

SIAS said in a statement on Friday that it is confident that the minority shareholders will support the move to appoint a new Board to preserve the assets of the Company and do all necessary things that are in the interest of the company and all shareholders.

Sino-Environment was plunged into turmoil after its then-CEO Sun Jiang Rong ran into financial difficulties. He had pledged his shares in the firm to secure financing, and his stake was sold on the open market after he defaulted on the personal loans.

Sino-Environment was then faced with potential early redemption of a S$149 million bond, casting doubts over its ability to continue operations.

SIAS hopes minority shareholders will attend the EGM to show support for the move to appoint a new Board.

It said that it will work with the Independent Directors to ensure that the new Board members are qualified to do the job well. - CNA/ms