Its legal representative in Changsha Best Commodity Trading Co. is the CEO’s brother-in-law.
Personal care firm Best World confirmed allegations that the shareholder and legal representative of its primary import agent in China, Changsha Best Commodity Trading Co., is its CEO and managing director’s brother-in-law, a response to queries from the Singapore Exchange (SGX) revealed.
“The primary import agent is a company incorporated in China owned by Koh Kim Chuan, who is the brother-in-law of Dora Hoan through his marriage with Mary Huan, Dora Hoan’s sister. Koh Kim Chuan is a self-made businessman who currently owns and manages two companies in Singapore,” the firm highlighted in its filing with the local bourse.
Dora Hoan has no financial or shareholding interest in the companies owned by Koh Kim Chuan, nor has Koh Kim Chuan and Mary Huan been involved in the management or business operations of the primary import agent or the group, Best World underlined.
SGX’s queries were prompted after Best World commenced defamation proceedings against short-seller Bonitas.The latter claimed in an April research report that the company had intentionally limited the scope of the independent review by PwC Singapore on the group’s business in China in 2018 to divert attention from ‘fabricated sales’ in China in 2017, amongst other allegations.
Shortly after, Singapore Exchange Regulation (SGX RegCo) suspended trading in the shares of Best World.
“The company regrets the confusion and unease caused by its failure to provide a fuller picture of the ownership of the primary import agent,” the firm commented, adding that it will make the agreements entered into between Best World and the primary import agent available for PwC’s review. Best World will also procure the primary import agent to grant PwC access to all necessary records for the period from 1 January 2017 to 31 May 2018 for the purpose of PwC’s review of the group’s sales to the primary import agent during that period.
Best World disclosed that it commenced dealings with Changsha Best Commodity Trading Co., in August 2015.
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