CFA Society Singapore
SINGAPORE (Sept 17): Datapulse Technology has completed its internal controls review with law firm Lee & Lee after it was ordered to do so by SGX-ST in April this year following concerns raised over possible conflict of interest with its then-reviewer, RHT Law Taylor Wessing.
The optical disc manufacturer recently came under the spotlight this year after it was chided by SGX RegCo in Feb for buying a shampoo business Wayco Manufacturing without proper due diligence, as well as for the company’s shareholders’ tussle which started late last year.
In an update on Sunday, Datapulse says its audit committee and board have adopted all of Lee & Lee’s recommendations on improvements to its internal controls and corporate governance.
This includes adopting a new policy for the evaluation and approval for the merger, acquisition and disposal of assets, as well as a policy related to the appointment, re-appointment and resignation of its directors.
The only exception is Lee & Lee’s recommendation to establish a board risk committee, as the company does not deem it necessary or appropriate at this juncture to do so given the current scale and scope of the company’s operations.
Further, Datapulse announces that it has since appointed Aw Cheok Huat as a non-independent non-executive director, along with Sin Boon Ann and Loo Cheng Guan as independent directors of the company for their “significant experience as directors of various companies listed on the SGX-ST”.
It adds that it has appointed Morgan Lewis Stamford LLC as its compliance advisor on Sept 10 for a period of one year, to assist and advise on matters relating to compliance with continuing listing rules.
Going forward, the company says that in line with its adoption of Lee & Lee’s recommendations in its final report, it will not commence or implement its proposed property business nor go ahead with its proposed business diversification although these moves were approved by its shareholders in 2013 and 2018, respectively.
It nonetheless clarifies that it is free to conduct its proposed consumer and investment businesses upon gaining shareholder approval, although it will notify SGX-ST in an advance of any possible acquisitions that involve Ang Kong Meng, Wayco’s seller who was reportedly a close business associate of shareholder Ng Siew Hong at the time of transaction.
Shares in Datapulse closed 1 cent lower at 28 cents on Friday.