Date: April 22, 2009
SIAS notes with concern the move to remove the Independent Director, Mr Tan Lye Huat at Kian Ho Bearings Ltd by a substantial Minority Shareholder. Minority Shareholders’ interest are protected by Directors, especially Independent Directors. This is enshrined in the Corporate Governance Code.
SIAS is against the removal of Independent Directors unless the Independent Director is not performing his duties or he is being difficult at the Board level, affecting the harmonious working relationship of the Board, consequently, affecting the interest of the company.
SIAS calls on Minority Shareholders of Kian Ho to consider the merits of the reason advanced by the Board before voting on the resolution to remove the Independent Director. SIAS also calls on the majority shareholder to consider the validity of the reason advanced for the removal of the independent director. SIAS is not pleased with the manner and circumstances which the removal is sought.
David Gerald
President/CEO
Securities Investors Association Singapore (SIAS)
