<News Analysis> Independent Director assisting investigations into TEE International
- Independent director – Mr. Teo Yi-Dar is assisting with investigations by the Commercial Affairs Department (CAD) in relation to potential offences by Tee International (TEE)
- Mr Teo joined TEE as a Non-Executive Non Independent Director since 7 Sept 2020. From TEE’s release, it appears that the investigations seem to target former Executive Directors and Management Personnel.
- Not related and no implication on Yangzijiang. No change to our BUY rating and TP of S$1.95 on Yangzijiang.
Independent Director assisting with investigations of another SGX listed company TEE. Yangzijiang announced last night that one of its independent directors Mr. Teo Yi-Dar is assisting with investigations by the CAD in relation to potential offences by TEE under the Securities and Futures Act. Mr Teo is currently a non-executive non independent director of TEE.
TEE under probe for potential SFA offence. TEE is required to produce various documents to the Commercial Affairs Department (“CAD”) to assist with an investigation into an offence under the Securities and Futures Act (Chapter 289, 2006 Revised Edition) (the “SFA”) pursuant to provisions of the Criminal Procedure Code 2010. Chapter 289 governs the regulation of activities and institutions in the securities and derivatives industry, including leveraged foreign exchange trading of financial benchmarks and of clearing facilities.
The investigations appear to relate to matters that arose during the period from 1 Jan 2020 to 31 July 2021 and that the Executive Directors and key Management personnel of the Group during the period have since resigned from the Group. TEE’s current Independent Directors and the Non-Executive Director and one Management personnel, namely the managing director of the Group’s Engineering and Construction Business, were asked to assist with the CAD investigations. None of the them have been asked to surrender their passports.
While it doesn’t look good to have director assisting in investigations. Mr Teo only joined TEE on 7 Sept 2020 and is a non-executive director. Furthermore, from TEE’s release, it appears that the investigations seem to target former Executive Directors and Management Personnel.
No change to our BUY rating and TP of S$1.95 on Yangzijiang.