Airocean’s directors in Court

What is the case about?
The indepedent directors of Airocean have been charged for breach of duty when they are alleged to have given misleading announcements over the nature and details of investigation of Mr Thomas Tay, the former CEO of Airocean by Corrupt Practices Investigation Bureau (CPIB).

Ms Lorraine Tay, the Vice President of SGX’s issuer regulation unit and the team leader in charge of Airocean’s compliance issues, was queried by Mr Davinder Singh, Senior Counsel, acting for one of the independent directors in the early proceedings.

Lorraine said SGX was informed by MAS then that the announcements may not be accurate and that MAS was unable to disclose why. Mr Singh queried whether this was informed to the directors.

  • What information did SGX have at that point in time?
  • What were the precise circumstances leading to SGX to conclude that the announcements then at that point in time were misleading
  • And whether the same information was conveyed or made available to the directors?
  • And when the directors became aware of the information, did the directors, to the best of their abilities, attempt to rectify any “misannouncements” made earlier to the investing public?

SGX‘s position – Announcements must always be the responsibility of the directors.

MAS‘s role with CPIB and MAS’s role with SGX – Beyond my realm of understanding at the moment.

CPIB‘s role – To investigate any wrongdoing. But could they be expected to tell the whole world who and what they are investigating and may end up compromising their investigation?

Let us await for more news on this case.

Reference – BT, Aug. 15, 2009

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