Change - Announcement of Cessation::Announcement of Cessation as Independent Director who is an Audit Committee Member

Issuer & Securities

Issuer/ Manager
FORELAND FABRICTECH HLDS LTD
Securities
FORELAND FABRICTECH HLDS LTD - BMG3658Z1041 - B0I

Announcement Details

Announcement Title
Change - Announcement of Cessation
Date &Time of Broadcast
06-May-2014 17:29:06
Status
New
Announcement Sub Title
Announcement of Cessation as Independent Director who is an Audit Committee Member
Announcement Reference
SG140506OTHRZZCG
Submitted By (Co./ Ind. Name)
Tsoi Kin Chit
Designation
Executive Chairman
Description (Please provide a detailed description of the event in the box below)
Mr Lim Siang Kai has provided one month's notice of his resignation to the Board with effect from 3 May 2014.

The Board of Directors of Foreland Fabrictech Holdings Limited (the Company together with its subsidiaries, the Group) wishes to announce the resignation of Mr Lim Siang Kai as an Independent Director of the Company with effect from 2 June 2014. Mr Lim Siang Kai will also cease to be the Chairman of the Audit Committee, member of the Nominating Committee and Remuneration Committee.

The Board would like to express its appreciation to Mr Lim Siang Kai for his contribution as Independent Director and the chairing of the Audit Committee.

The Company will appoint new Independent Director to fill up the vacancy as soon as possible and will announce the appointment accordingly.

Additional Details

Name Of Person
Lim Siang Kai
Age
57
Is effective date of cessation known?
Yes
If yes, please provide the date
02/06/2014
Detailed Reason (s) for cessation
Differences in opinion with the Management in relation to the handling of the dispute with Jiangxi Longdu, reference of which is made to the announcement dated 14 December 2013, 18 December 2013, 23 December 2013, 26 December 2013, 3 January 2014, 10 January 2014, 10 February 2014 and 6 May 2014.
Are there any unresolved differences in opinion on material matters between the person and the board of directors, including matters which would have a material impact on the group or its financial reporting?
Yes
If Yes, Please provide full details
If the PRC directors were to settle the compensation claim of Jiangxi Longdu amounting to RMB275,284,800 plus late interest payment of RMB7,707,974.40, it would severely affect the financial position of the Group to the extent that its ability to operate as an on-going concern becomes questionable.
Is there any matter in relation to the cessation that needs to be brought to the attention of the shareholders of the listed issuer?
Yes
If Yes, Please provide full details
Mr Lim's decision to resign was primarily due to the desire of the PRC directors wanting to push through the settlement terms as highlighted in the Update Announcement dated 6 May 2014 with Jiangxi Longdu, notwithstanding his strong objection and disapproval. He insisted that the Company should engage a Singapore-based lawyer and a Singapore or Hong Kong based professional appraiser to review and evaluate the claim. Without doing this, he was unable to agree on a settlement to be entered into with Jiangxi Longdu by Fulian Knitting Co., Ltd.
Any other relevant information to be provided to shareholders of the listed issuer?
No
Date of Appointment to current position
07/03/2007
Does the AC have a minimum of 3 members (taking into account this cessation)?
No
Number of Independent Directors currently resident in Singapore (taking into account this cessation)
0
Number of cessations of appointments specified in Listing Rule 704 (7) or Catalist Rule 704 (6) over the past 12 months
5
Job Title (e.g. Lead ID, AC Chairman, AC Member etc.)
Lead Independent Director, Chairman of the AC, member of NC and RC.
Role and responsibilities
Non-executive and Independent Director
Familial relationship with any director and/ or substantial shareholder of the listed issuer or of any of its principal subsidiaries
Nil
Shareholding interest in the listed issuer and its subsidiaries?
No
Other Directorships
Past (for the last 5 years)
China Angel Food Limited, Texchem-Pack Holdings (S) Ltd
Present
Natural Cool Holdings Limited, ISDN Holdings Ltd, Joyas International Holdings Limited, China Print Power Group Limited