YuuZoo shuts down; CEO resigns over trade suspension

It also blamed IRAS’ seizure of its funds that disabled it from continuing operations.

The CEO of Singapore-listed YuuZoo Networks Group Corporation (YNG), Mohandas, will resign over share trading suspension but will keep his post as non-executive director. According to a series of announcements, YNG also has been forced to close all of its subsidiaries and terminate the employment agreements of all of its employees in Singapore.

The company cited “a direct consequence” of the Singapore Exchange’s (SGX) decision to suspend the trading in YuuZoo’s shares after YuuZoo’s previous auditor RT LLP failed to reply to two questions posed by SGX, then asked the Commercial Affairs Department (CAD) to commence an investigation of the company.

Also read: CAD probes YuuZoo after SGX RegCo's report

The Inland Revenue Authority of Singapore (IRAS) also seized all cash funds that were held in the Singapore bank account of YuuZoo Corporation, a fully owned subsidiary of YNG Corporation.

“The CAD investigation, which soon has been going on for a full year, has not revealed any wrongdoing by the company,” YNG said. “The company since the beginning of the investigation has shown it has not committed any breach of the rules SGX asked CAD to investigate.”

Some months after IRAS had seized all the cash funds held in the Singapore account of YuuZoo Corporation, IRAS admitted that YuuZoo Corporation did not owe IRAS any taxes. IRAS, therefore, returned the money in a cheque issued to YuuZoo Corporation. In the meantime, the Singapore bank where the account was held had however decided to close YuuZoo’s account and refused to open a new account for the Company.

“The continuation of the operations in Singapore has however been made impossible by the seizure of all funds, the refusal by IRAS to return them in a manner that would enable the company to make use of them, the continuation of the SGX-imposed share suspension and the SGX requested CAD investigation,” a spokesperson said.

“It has resulted in all Singapore-based banks that the company has contacted refusing to open a bank account for the company and has made it impossible for the company to raise new funds,” the spokesperson added.

Since IRAS has refused to return the money to another company account, YNG was unable to access any of the money that IRAS soon one year ago seized and then returned. “The company has therefore been unable to pay local salaries, including that of its Singaporean CEO, who as a result has been forced to resign.”

YNG has written to SGX requesting a lifting of the share trading suspension.

Photo by Yahoo! Singapore

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia